The Chinese market was valued at GBP 607 billion (EUR 735 billion, USD 960 billion) at the end of 2011, followed by the U.S. market at GBP 572 billion (EUR 693 billion, USD 905 billion), the UK-based organization reported this week. By 2015, the Chinese market is forecasted to be worth GBP 918 billion, burying the U.S. market at GBP 675 billion.
“China’s grocery growth story is phenomenal. Between 2006 and 2015, the Chinese grocery market is forecast to triple in value and to be worth nearly 1 trillion pounds. This rapid expansion has been fuelled by three main factors: rapid economic growth, population and rising food inflation,” said Joanne Denney-Finch, CEO of IGD. “Despite its various logistical and bureaucratic challenges, China is a crucial growth market for many of the world’s largest grocery retailers. Even beyond the major cities there are huge opportunities — forecasts suggest there will be over 200 Chinese cities with a population over 1 million people by 2025. But given China’s size and diversity, it’s essential not to treat the country as one homogenous market.”
Additionally, all four of the BRIC countries (Brazil, Russia, India, China) are projected to be among the top five food and grocery retail markets by 2015, with India displacing Japan as the world’s No. 3 grocery market. At the end of 2011, India was No. 4 at GBP 244 million, while Brazil was No. 5 at GBP 212 billion and Russia was No. 6 at GBP 198 billion. Japan is expected to drop from No. 3 at GBP 254 billion in 2011 to No. 6 at GBP 263 billion in 2015. (The United States is expected to remain at No. 2.)
Rounding out the top nine at the end of 2011 were France at GBP 187 billion, Germany at GBP 144 billion and the UK at GBP 143 billion. Those three countries are expected to keep their positions at No. 7, No. 8 and No. 9 through 2015, while Indonesia is expected to overtake Italy as the world’s tenth biggest food and grocery retail market by 2015.