 |
|
|
|
|
|
|
|
8 Feb 2010
China is set to overtake the US for the first time as the largest grocery market
in the world by 2014. IGD forecasts that the Chinese grocery market will
be worth €761 billion, outstripping the US, which is set to be worth €745
billion in four years' time.
Reasons for this include:
- The US was more significantly affected by the recession than China.
- IMF predicts that the Chinese market could grow nearly three times faster
than the US over the next four years
- Investment and consumer spend has increased in China and private sector
demand has been driven by the Government's stimulus package
Between 2010 and 2014 China's population growth rate is expected to be double
that of the US. Findings come from IGD's latest report 10 for 2010 that
includes predictions of the top ten grocery markets by value in 2014.
Other BRIC (Brazil, Russia, India, China) markets are set to grow in size
with India becoming the third largest food and grocery market in four years'
time, while Russia and Brazil rank fifth and sixth respectively. IGD also
predicts that Indonesia will enter the top ten list for the first time.
Joanne Denney-Finch, chief
executive, IGD comments: "Chinese population growth and economic prosperity
are contributing to the rise of China as an important grocery market on the
world stage. The US and key European markets still offer an important source of
growth for food and grocery businesses, but it is becoming harder to ignore the
BRIC countries.
"Many retailers and
manufacturers are already leading the way, building a strong presence in China
and other emerging markets. Those who have not yet invested in these markets
should start planning ahead now because the pace of growth for emerging markets
will continue to outstrip that of the developed world."
|
Top Ten Grocery Markets by value |
|
2010
2014* |
|
Rank |
Country |
€ |
Rank |
Country |
€ |
|
1 |
US |
638 |
1 |
China |
761 |
|
2 |
China |
529 |
2 |
US |
745 |
|
3 |
Japan |
345 |
3 |
India |
448 |
|
4 |
India |
279 |
4 |
Japan |
360 |
|
5 |
France |
205 |
5 |
Russia |
322 |
|
6 |
Russia |
186 |
6 |
Brazil |
284 |
|
7 |
Brazil |
185 |
7 |
France |
228 |
|
8 |
UK |
170 |
8 |
UK |
198 |
|
9 |
Germany |
160 |
9 |
Germany |
168 |
|
10 |
Italy |
130 |
10 |
Indonesia |
167 |
* 2014 is calculated using fixed
exchange rates based on the average rates of 2009 from
www.oanda.com
Notes:
- The IMF’s latest World Economic Outlook published in Oct 2009
forecasted a Real GDP Growth CAGR growth for the USA of 4.07% vs. China of
11.44% from 2009-2014. China could therefore be growing nearly three times faster than the USA
- Population according to 2008 UN Rev. will continue to grow
- From 2005 to 2010 42m more inhabitants in China vs. 14m in the US (in terms
of population growth India is well in the lead with +84m for the same period)
- From 2010 to 2014 = according to IFM October Rev. China will see a slowdown
in its population growth but even so, will add 27m new people whilst the US
population growth rate will remain relatively constant with 13m new inhabitants.
China’s rate is therefore double the US for that period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You need to be a Retail Analysis subscriber to access the whole story from our Bulletin service.
A subscription offers so much more on top of the news.Find out more about the service here. |
|
|
|
|
|
|
|
|
|
|
|
|
- Sent to over 16,000 industry contacts
- Team of experienced analysts reporting on top stories
- Coverage on the UK and from around the world
- An essential read!
|
|
|
|
|
|
