Retail Sourcing and Procurement Global Market Report 2024

The retail sourcing and procurement market size has grown rapidly in recent years. It will grow from $5 billion in 2023 to $5.71 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%. The expansion observed during the historical period can be attributed to the increasing digitalization in the retail sector, the growing automation in procurement processes, and the heightened funding and investments dedicated to retail sourcing and procurement platforms.

The retail sourcing and procurement market size is expected to see rapid growth in the next few years. It will grow to $9.57 billion in 2028 at a compound annual growth rate (CAGR) of 13.8%. The anticipated growth in the forecast period can be attributed to the increasing utilization of cloud-based platforms, a growing adoption of blockchain in procurement and sourcing, and the expansion of digital technologies such as automation, analytics, and artificial intelligence (AI). Key trends expected during the forecast period include a focus on the localization of suppliers, an emphasis on adopting the procurement-as-a-service (PaaS) model, a concentration on deploying artificial intelligence and digitization, efforts towards launching new and innovative products, a focus on mergers and acquisitions, and a commitment to offering sustainable procurement software solutions.

The anticipated growth of the retail sourcing and procurement market is being propelled by the increasing trend of digitalization. Digitalization involves creating a digital representation of physical attributes, and in the context of retail sourcing and procurement, it involves the adoption of digital solutions. For example, as per NASSCOM’s (National Association of Software & Services Companies) strategic review, the technology sector in India reached $194 billion in 2021, showing a 2.3% year-on-year increase, driven by rapid digital transformation and adoption in the country. NASSCOM also noted that India's digital talent pool exceeded 1.17 million employees in 2021, marking a 32% year-on-year surge. Consequently, the growing digitization is a key driver behind the expansion of the retail sourcing and procurement market.

A major driving force in the retail sourcing and procurement market is the increasing utilization of cloud-based platforms. Procurement industry dynamics are now dominated by technology platforms, with service providers forming partnerships with procurement technology vendors to integrate their knowledge and approaches into their offerings. Modern cloud-based networks and platforms such as SAP Ariba, Tradeshift, SMART by GEP, and Coupa are gaining traction in the market. For example, Oracle, a US-based computer software company, introduced new updates to its Oracle Fusion Cloud Procurement service in August 2021, aiming to help customers maximize savings and enhance operational efficiency.

Retail sourcing and procurement solution providers are introducing innovative products. In September 2022, Craft, a leading supplier intelligence platform provider, announced the launch of three new product offerings – Craft Risk Hub, Craft N-Tier Mapping, and Craft Alerts – providing real-time risk assessment with objective data and advanced machine learning algorithms. Craft Risk Hub, for instance, offers supply chain and procurement experts contextualized insights on suppliers through data-driven benchmarking.

A prominent trend in the retail sourcing and procurement market is the emergence of strategic collaborations. Companies in this sector are forming partnerships to strengthen their market position. In April 2021, IBM, a US-based company in retail sourcing and procurement, collaborated with Celonis, a Germany-based company specializing in procurement software. This collaboration allows Celonis to offer its process mining software, which analyzes workflows within an organization and suggests more efficient ways to complete recurring tasks.

In February 2022, Blume Global, an India-based provider of end-to-end supply chain visibility technology solutions, acquired Live Source. Live Source is a multi-enterprise supply chain business network for complex manufacturers. The acquisition provides current Live Source customers with access to Blume's extensive logistics execution technology and supply chain management expertise, further enhancing their capabilities.

Major companies operating in the retail sourcing and procurement market report are IBM Corporation, Oracle Corporation, SAP SE, Coupa Software Incorporated, Ivalua Inc., Zycus Inc., GEP Worldwide, Epicor Software Corporation, Basware Corporation, Vroozi Inc., ET2C International, Alibaba, RT-MART International Ltd., e-mart, Hi-Living, Gmarket, Tencent Holdings Ltd., Supreme Group, Produze, Infiniti Research, Proactis, Accenture, Xella, SQLI, Sophie Candau Communication, GEODIS, PwC, ComInk, Jumia, KPMG, Dragon Sourcing, Nixu, 4iG Plc., EDS International, Blue Yonder, Protiviti, Honeywell International Inc., Cloudq, Bain & Company, Veriforce Solutions, Kroger, Theodor Wille Intertrade, Boston Consulting, Ribbons Fit Group Inc., Cayena, FLOKI Techologies, Linkana, Coletar, Rampco International Technical Services, Dukkantek, Conektr, Elkaso, Lawazem, EPCM Holdings.

North America was the largest region in the retail sourcing and procurement market in 2023. The regions covered in the retail sourcing and procurement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the retail sourcing and procurement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of solutions in retail sourcing and procurement are strategic sourcing, supplier management, contract management, procure-to-pay, and spend analysis. Strategic sourcing encompasses all upstream procurement activities, from spend analysis and supplier/category management to sourcing initiatives and contract management. A comprehensive strategic sourcing solution simplifies and collaborates on these complex business procedures, enhancing procurement to generate greater company value, optimize expenditure control, and manage supplier risk efficiently. The diverse services offered in this field include implementation, consulting, training, support, and employment, catering to various sectors such as small and medium enterprises (SMEs) and large enterprises.

The retail sourcing and procurement market research report is one of a series of new reports that provides retail sourcing and procurement market statistics, including retail sourcing and procurement industry global market size, regional shares, competitors with a retail sourcing and procurement market share, detailed retail sourcing and procurement market segments, market trends and opportunities, and any further data you may need to thrive in the retail sourcing and procurement industry. This retail sourcing and procurement market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The retail sourcing and procurement market includes revenues earned by entities by insourcing, outsourcing, global and strategic sourcing, direct procurement, indirect procurement, goods procurement, and services procurement. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.


The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.