China's grocery market reaches US$1trillion
China, the world’s biggest food and grocery market, is now valued at more than US$1tn and is forecast to be worth US$1.5tn in 2016, according to latest figures published by IGD.
The US grocery market will remain the second largest globally and is predicted to be worth US$1.1tn in 2016. IGD expects growth to accelerate from a compound annual growth rate (CAGR) of 3.6% between 2010 and 2012, to 4.7% between 2013 and 2016.
By 2016, the Indian grocery market will have overtaken Japan to become the world’s third largest grocery market, valued at US$566bn.
The gap between Russia and Brazil is fast narrowing. By 2016, the Brazilian and Russian grocery markets are projected to be worth US$468bn and US$467bn respectively, with Brazil set to climb to fourth position with a CAGR of 9.1% between 2013 and 2016.
All of the BRIC (Brazil, Russia, India, China) nations will be in the top five grocery markets by 2016, worth just over US$3tn in total.
The Chinese grocery market, in particular, has been growing at a rapid pace for several years. Representing one fifth (20%) of the world’s population, China has had a surge in the number of higher-income earners, benefiting from a significant rise in wages. This has resulted in a soaring demand for new products, brands and concepts – all of which have helped fuel its growth (Press Release IGD, 5 June 2013).