China has overtaken the United States as the world's largest market for grocery retail. Currently, the Chinese market is measured at US$964.5 Billion, and the market is expected to grow at a steady rate for the next 4 years at an average annual rate of 10.9%. Despite the slowdown in the Chinese GDP, grocery sales continue to grow at a steady pace and are expected to exceed US$1.46 Trillion. This growth creates a large potential market for multinational grocers. However, grocers should not treat this market as a homogenous one, and must consider the local tastes and customs of each region.
Link:
http://www.2point6billion.com/news/2012/04/05/report-china-overtakes-u-s-as-the-worlds-top-grocery-market-10944.html#more-10944
Very interesting! From what I've read the Chinese grocery sector will continue its fast growth over the next few years to hit almost £1tn by 2015, according to grocery industry researchers IGD. That trend brings opportunities for both Chinese and international retailers, but economists warn it will also put upward pressure on already high food prices.
ReplyDeleteWow, with Chinese demand continuing this path, commodity driven Latin American economies can have some optimism about the future. At the same time, they should continue looking for ways to diversify their economies, it will only take a dive in commodity prices for it to go down in flames.
ReplyDeleteAs the most populated country in the world, it makes sense that China is the world’s top grocery market. I read an article in the NY Times that China’s one-child policy has lead each family to spoil its only child, showering him/her with food, luxury items, and other goods/services. Although this wasn’t mentioned in the article, I wonder if this was a contributing factor to China overtaking the US as the world’s top grocery market.
ReplyDeleteAlex Conlan
I'm curious to see what large grocery retailers such as Ahold and Carrefour do in China. Right now, the Chinese grocery market looks extremely different from that of the US. For example, the shopping experience does not seem to have the same "shopper marketing" focus that grocery stores here in the US have. It seems that they will have to do a lot of research on which promotional tactics work best for grocery stores in China.
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