European Grocery Retail Market Size Likely to Grow at a CAGR of 3.1% By 2033

As per the current market research conducted by the CMI Team, the European Grocery Retail Market size is expected to record a CAGR of 3.1% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 3,256.1 Billion. By 2033, the valuation is anticipated to reach USD 4,285.6 Billion.

European Grocery Retail Market: Growth Factors and Dynamics

• Shift towards Online Retail: The European grocery retail market has experienced significant growth in online sales, driven by factors such as increasing internet penetration, convenience, and changing consumer preferences. The COVID-19 pandemic further accelerated this trend as consumers turned to online channels for grocery shopping due to lockdowns and safety concerns. Retailers have invested in expanding their e-commerce capabilities, including online ordering, home delivery, and click-and-collect services, to capitalize on this growing segment of the market.

• Rise of Discounters and Private Labels: Discount supermarket chains, such as Aldi and Lidl, have gained market share in Europe due to their competitive pricing strategies and focus on offering quality products at lower prices. Additionally, private label products have become increasingly popular as retailers invest in developing their brands to differentiate themselves and offer value to price-conscious consumers. This trend has put pressure on traditional grocery retailers to adjust their pricing and product offerings to remain competitive.

• Health and Wellness Trends: There is a growing consumer demand for healthier and more sustainable food options in Europe, driving growth in segments such as organic foods, plant-based products, and locally sourced produce. Consumers are becoming more conscious about the nutritional content, ingredients, and environmental impact of the products they purchase, leading retailers to expand their offerings in these categories and prioritize sustainability and transparency in their supply chains.

• Urbanization and Convenience: The increasing urbanization in Europe has led to changing consumer lifestyles and shopping habits, with a greater emphasis on convenience and on-the-go meal solutions. Urban consumers are seeking out grocery retailers that offer a wide assortment of fresh and prepared foods, as well as convenient shopping formats such as smaller store formats, express checkout options, and online delivery services. Retailers are adapting their store formats and product assortments to cater to the needs of urban consumers and enhance the shopping experience.

• Technology and Innovation: Technology is playing an increasingly important role in the Europe grocery retail market, with retailers leveraging digital tools and analytics to enhance operations, optimize supply chains, and personalize the shopping experience. Innovations such as mobile apps, self-checkout systems, and smart shelves are being adopted to improve efficiency, reduce costs, and engage consumers both in-store and online. Additionally, advancements in artificial intelligence and data analytics are enabling retailers to gain deeper insights into consumer behavior, preferences, and trends, allowing for more targeted marketing strategies and product recommendations.

Europe Grocery Retail Market: Partnership and Acquisitions

• In 2023, C&S Wholesale Grocers, LLC (C&S), a leading wholesale grocery supplier in the United States, has committed to acquiring 413 stores, eight distribution centers, and two offices. These assets were made available due to the planned merger between The Kroger Co. and Albertsons Companies Inc.

• In 2021, Instacart, an American retail company, has partnered with C&S Wholesale Grocers to provide e-commerce solutions to 3,000 independent C&S wholesale retailers in the U.S. This collaboration has enabled these retailers to expand their online presence in the U.S. market.

Report Scope

Europe Grocery Retail Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Europe Grocery Retail Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Shift to Online Shopping: COVID-19 resulted in significant changes in consumer behavior, including a rapid shift towards online grocery shopping. Lockdowns, social distancing measures, and concerns about virus transmission led to an increase in demand for online grocery delivery and click-and-collect services.

• Supply Chain Disruptions and Stockpiling: The pandemic also disrupted supply chains, leading to temporary shortages of certain products and challenges in restocking shelves. Panic buying and stockpiling by consumers, particularly during the initial stages of the pandemic, further exacerbated supply chain pressures and created logistical challenges for retailers.

• Adaptation of Business Models: Grocery retailers in Europe quickly adapted their business models to navigate the challenges posed by the pandemic. This included expanding e-commerce capabilities, implementing safety measures in-store, and adjusting store layouts to accommodate social distancing guidelines. Many retailers also introduced new services such as curbside pickup and contactless delivery to provide customers with safer shopping options.

• Investment in Digital Transformation: The pandemic accelerated digital transformation initiatives within the grocery retail sector, with retailers investing in technology and infrastructure to enhance online shopping experiences and improve operational efficiency. This includes investments in e-commerce platforms, mobile apps, and supply chain automation to better meet the needs of online shoppers and ensure the resilience of their operations in the face of future disruptions.

• Focus on Health and Safety: Grocery retailers prioritized the health and safety of customers and employees by implementing stringent hygiene protocols, installing protective barriers at checkout counters, and enforcing mask mandates and social distancing measures in-store. Clear communication of safety measures and compliance with public health guidelines helped to reassure consumers and maintain trust in the retail brand.

• Diversification of Product Offerings: To adapt to changing consumer preferences and address shifts in demand caused by the pandemic, grocery retailers diversified their product offerings and expanded assortments in categories such as pantry staples, cleaning supplies, and health and wellness products. Retailers also introduced new product lines and partnerships with local suppliers to support small businesses and offer customers a wider selection of products.

In conclusion, the COVID-19 pandemic has had a mixed impact on the European grocery Retail Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the European Grocery Retail Market:

• Tesco plc
• Carrefour SA
• Aldi Group
• Schwarz Gruppe (parent company of Lidl)
• Ahold Delhaize
• Metro AG
• Sainsbury’s
• Auchan Retail
• Rewe Group
• Edeka Group
• Morrisons
• Coop Group
• Migros Group
• Casino Group
• Waitrose & Partners
• Others

The European Grocery Retail Market is segmented as follows:

By Product Type

• Fresh Food
• Frozen Food
• Food Cupboard
• Beverages
• Cleaning & Household
• Others

By Category

• Packed
• Unpacked

By Distribution Channel

• Hypermarket Supermarket
• Convenience Stores
• Online Stores
• Others

Regional Coverage:

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe