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US grocery market to grow with changing store formats says forecast

The US grocery market will be worth $1,722bn by 2022, according to forecasts from the IGD. The group forecasts that the US market will have a compound annual growth rate (CAGR) of 3.6 per cent for the 2017-2022 period.

The market share of hypermarket and supermarket formats is expected to slip, with discounters generating growth. But it is the online sector that is expected to see the fastest growth, with a CAGR of 18.1 per cent.

IGD North America programme director Stewart Samuel says several key trends are fuelling the change. “The online channel is developing at pace in the US and although many leading retailers have operated online for over 20 years, it is only in the last three years where we have seen an acceleration of investment and activity,” he says. “In the next five years, the online grocery channel will grow by $20bn and will be the main driver of growth in the US grocery market."

Stewart says that the use of stores to provide convenient collection options are proving popular with shoppers, that meal kit delivery services are seeing rapid sales, and that grocery retailers are partnering with third parties to enter online channels.

Meanwhile convenience stores are improving fresh food offers and developing innovative food-to-go products. 

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