NEW figures out today have valued China’s grocery market at more than $1 trillion, with that number expected to rise by 50 per cent over the next four years as rapid expansion continues.
Fresh data from research firm IGD predicts that all of the so-called Bric nations – Brazil, Russia, India and China – will be in the top five grocery markets in the world by 2016, showing the increasing dominance of emerging market consumers on the retail sector.
“For food and consumer goods companies, the Asia-Pacific and Latin American grocery markets offer long-term growth opportunities, with many businesses already profiting from entering them,” said Joanne Denney-Finch, chief executive of IGD.
India is expected to knock Japan out of the third spot in the next four years, as its grocery market – worth $375bn this year – swells to $566bn.
Brazil and Russia are expected to jostle for fourth and fifth place in 2016 as the Latin American country narrows the gap with its bigger rival, helped by investment ahead of upcoming sporting events including the 2014 World Cup and 2016 Olympic Games.
The US market, worth $940bn this year, will maintain its second place behind China and is predicted be worth $1.1 trillion by the time 2016 rolls around.
“By 2016, the top 15 global grocery markets will have a total value of $6.5 trillion,” said Denney-Finch.
“This offers plenty of scope for food and consumer goods companies seeking international growth and paints a positive picture for the industry globally.”