Food and Grocery Retail Market Report 2026

The food and grocery retail market size has grown steadily in recent years. It will grow from $12.67 trillion in 2025 to $13.1 trillion in 2026 at a compound annual growth rate (CAGR) of 3.4%. The growth in the historic period can be attributed to expansion of urban population centers, rising disposable income levels, growth of organized retail formats, increasing consumer preference for convenience shopping, expansion of supermarket and hypermarket chains.

The food and grocery retail market size is expected to see steady growth in the next few years. It will grow to $14.97 trillion in 2030 at a compound annual growth rate (CAGR) of 3.4%. The growth in the forecast period can be attributed to increasing penetration of online grocery platforms, rising investments in smart retail infrastructure, growing demand for sustainable food products, expansion of AI-driven demand forecasting, increasing focus on personalized shopping experiences. Major trends in the forecast period include increasing adoption of omnichannel retail models, rising demand for private label food products, expansion of quick commerce and last-mile delivery, growing focus on sustainable packaging and sourcing, enhanced use of data-driven inventory management.

The growth of the food and grocery retail market is anticipated to be propelled by the expanding e-commerce sector. E-commerce in this context refers to the online buying and selling of food and grocery products, facilitating transactions between businesses and consumers. This digital approach enhances market reach, broadens customer bases, and fosters revenue growth for businesses involved in food and grocery retail. Notably, according to Census.gov, in November 2023, US-based e-commerce sales for Q3 2023 reached $271.7 billion, marking a 0.9 percent (±0.4%) increase from the preceding quarter. This surge in e-commerce is a significant factor driving the overall growth of the food and grocery retail market.

Companies within the food and grocery retail market are actively incorporating innovative technologies to cater to the evolving demands of consumers. A notable trend is the development of 30-minute delivery services, offering ultra-fast and on-demand delivery options. Instacart, a US-based retail company, introduced 'Fairway Now,' a 30-minute delivery service, in December 2023. This technology-driven service provides customers with the convenience of receiving grocery and convenience items within a 30-minute timeframe, aligning with the increasing preference for quick and efficient shopping experiences. Such advancements contribute to the overall dynamism and competitiveness of the food and grocery retail industry.

In August 2023, Aldi Einkauf GmbH & Co. oHG, a German supermarket company, successfully acquired Winn-Dixie Stores Inc. and Harveys Supermarket, both prominent entities in the US grocery retail sector. The strategic acquisition, carried out for an undisclosed amount, signifies Aldi's commitment to expanding its market presence in the southeastern region of the United States. This move equips Aldi with speed-to-market advantages, quality retail locations, and a robust core business. The acquisition of Winn-Dixie, a US-based supermarket chain, and Harveys Supermarket, a US-based grocery chain, enhances Aldi's capacity to better serve the Southeastern region, reinforcing its position in the competitive landscape and offering potential savings for consumers in the grocery retail market.

Major companies operating in the food and grocery retail market are Wal-Mart Stores Inc., Costco Wholesale Corporation, The Kroger Co., Target Brands Inc., 7-ELEVEN Inc., Carrefour S.A., REWE Group, Lidl Stiftung & Co. KG, Tesco PLC, Edeka Zentrale AG & Co. KG, Aeon Co. Ltd., Publix Super Markets Inc., Woolworths Group, J Sainsbury plc, Les Mousquetaires, Auchan Retail, Aldi Einkauf GmbH & Co. oHG, Mercadona S.A., ASDA Stores Limited, Coles Group Limited, Système U, Wm Morrison Supermarkets Limited, HEB Grocery Company LP, Meijer Inc., Wakefern Food Corporation, Kaufland Stiftung & Co. KG, Fred Meyer Stores Inc., Spar International, Safeway Inc., Leclerc SA.

North America was the largest region in the food and grocery retail market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the food and grocery retail market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the food and grocery retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The food and grocery retail market includes revenues earned by entities by subscription services, online shopping and delivery, in-store services, specialty services, digital coupons and discounts, health and wellness programs, sustainability initiatives. 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.

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