Market Forecast by Countries (Germany, United Kingdom, France, Italy, Russia, Spain, Rest of Europe), By Product (Fresh Food, Frozen Food, Food Cupboard, Beverages, Cleaning & Household, Others), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores & Clubs, Online) And Competitive Landscape
Product Code: ETC395720 | Publication Date: Aug 2022 | Updated Date: Mar 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 250 | No. of Figures: 50 | No. of Tables: 25 | |
Report Name | Europe Food & Grocery Retail Market |
Forecast Period | 2025-2031 |
Market Size | USD 30 billion by 2031 |
CAGR | 5% |
Growing Sector | E-commerce |
Europe Food & Grocery Retail Market report thoroughly covers the market By Countries, By Product, By Distribution Channel. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
Europe Food & Grocery Retail Market was valued at USD 25 billion and is expected to reach USD 30 billion, growing at a CAGR of around 5% from 2025 to 2031. This growth is attributed to increasing consumer demand for convenient shopping experiences, a shift toward healthier food choices, and the expanding adoption of e-commerce platforms. Key market players are leveraging innovative technologies and sustainable practices to cater to evolving customer preferences while enhancing operational efficiency. Additionally, the rising popularity of private-label products and eco-friendly packaging is expected to further drive market dynamics. This anticipated growth underscores significant opportunities for stakeholders and investors focusing on the European food and grocery retail sector, particularly in areas such as digital transformation, omnichannel strategies, and supply chain optimization, to align with consumer trends and regulatory requirements.
The Europe food and grocery retail market is a dynamic and competitive sector, driven by changing consumer preferences, growing demand for convenience, and a shift towards online shopping. The market is witnessing increased focus on health-conscious products, organic food, and sustainable sourcing, as consumers become more environmentally aware. The rise of e-commerce and direct-to-consumer models is transforming the retail landscape, with supermarkets, hypermarkets, and specialized retailers adapting to new shopping behaviors. Additionally, the demand for premium products and ready-to-eat meals is growing. Key factors influencing the market include economic conditions, technological advancements in retail, and evolving consumer habits. The market is expected to experience steady growth, with innovations in packaging, logistics, and digital services playing a crucial role in shaping its future.
According to 6Wresearch, the Europe Food & Grocery Retail Market Size is expected to reach a significant CAGR of 5% during the forecast period 2025-2031. This growth is driven by evolving consumer preferences, increased demand for health-conscious and organic food products, and the rising trend of online shopping. As more consumers prioritize convenience, retailers are adapting by enhancing their digital presence and offering seamless e-commerce experiences. The market is also benefiting from a growing interest in sustainable practices, with eco-friendly packaging and locally sourced products gaining popularity. Supermarkets, hypermarkets, and specialized food retailers are investing in innovative technologies and improving logistics to meet the changing demands. This market expansion is further supported by the increasing demand for premium, ready-to-eat, and organic food options across Europe.
Trend in the European food and grocery retail market highlights a significant shift towards online shopping and omnichannel retailing, as consumers increasingly prefer the convenience of ordering groceries online. This trend is driving retailers to invest in digital platforms and enhance delivery services. Additionally, there is a growing demand for sustainable and organic products, with consumers prioritizing health-conscious and eco-friendly options. Personalized shopping experiences through data analytics and AI are also gaining traction, allowing retailers to cater to individual preferences. The rise of plant-based and alternative protein products, alongside innovations in packaging and sustainable sourcing, further exemplify the evolving consumer mindset in the European market. These trends are reshaping the retail landscape, pushing for more innovation and adaptability.
Investment opportunities in the Europe food and grocery retail industry are driven by several emerging trends. The rise of e-commerce and online grocery shopping presents significant opportunities for digital platform development, logistics, and last-mile delivery services. There is also growing demand for sustainable and organic products, creating the potential for investment in eco-friendly sourcing, packaging, and supply chains. Additionally, the popularity of convenient and health-conscious food opens avenues for innovation in ready-to-eat meals and plant-based products. Retailers focusing on personalized shopping experiences through AI and data analytics can enhance customer engagement. Furthermore, investments in automated technologies and AI-driven inventory management can help retailers streamline operations and reduce costs, offering a competitive edge in the market.
Leading players expanding the Europe food and grocery retail market share include major retail giants such as Tesco, Carrefour, Aldi, Lidl, Sainsbury's, and Metro AG. These retailers are leveraging innovations in both brick-and-mortar and online platforms to cater to evolving consumer preferences. Tesco and Sainsbury's are leading the way in the UK, investing heavily in online grocery services and expanding their product range, particularly in organic and sustainable offerings. Carrefour and Metro AG are focusing on multi-channel retail strategies, integrating physical stores with e-commerce platforms to enhance customer experience across Europe. Aldi and Lidl are growing rapidly with their cost-effective models, offering high-quality products at competitive prices while focusing on sustainability. Additionally, new entrants in the e-commerce space, like Amazon Fresh, are pushing for digital growth in the food retail market, intensifying competition and market share expansion.
Government regulations play a crucial role in ensuring effective market performance in the European food and grocery retail industry. Regulations focus on sustainability, such as mandates for recycling and reducing plastic waste, pushing retailers toward eco-friendly packaging and practices. Food safety and labeling laws ensure transparency and consumer trust, requiring accurate nutritional information and allergen warnings. Additionally, governments enforce fair trade practices to protect both consumers and suppliers, while promoting competition laws to prevent monopolies. Tax incentives for green initiatives and support for local sourcing further encourage sustainability. Overall, these regulations help create a balanced, transparent, and sustainable retail environment.
Future insights of the Europe food and grocery retail market indicate steady growth driven by increasing consumer demand for convenience, sustainability, and health-conscious products. E-commerce is expected to continue expanding, with more retailers enhancing their online platforms and delivery services. The market will see rising investments in sustainable packaging, organic and plant-based foods, and personalized shopping experiences through data analytics. Additionally, the shift towards omnichannel retailing, integrating physical stores with digital experiences, will become more prevalent. Government regulations promoting sustainability and food safety will further shape the market, ensuring growth while meeting environmental and consumer needs.
The report offers a comprehensive study of the subsequent market segments and their leading categories.
The United Kingdom’s dominance extends to the food and grocery retail market within Europe, driven by its advanced supply chain infrastructure and thriving e-commerce platforms. The country's combination of established supermarket brands and rapid adoption of online grocery shopping has created a robust and competitive market environment. Consumer preferences for convenience, coupled with innovations in delivery services, have fueled significant growth in the sector. Additionally, the UK’s focus on sustainable practices, such as reducing food waste and increasing eco-friendly packaging, aligns with evolving consumer expectations. These trends position the UK as a leader in the European food and grocery retail market, outpacing many of its regional counterparts.
According to Ravi Bhandari, Research Manager, 6Wresearch, Fresh food continues to be the most significant category within the UK's food and grocery retail market, driven by increasing consumer demand for healthier and high-quality products. Items such as fruits, vegetables, dairy products, and fresh meat account for a substantial portion of grocery expenditure, reflecting a shift towards more balanced and nutritious diets. Retailers have responded to this demand by enhancing their offerings and prioritizing locally sourced and organic produce to attract health-conscious shoppers. Additionally, fresh food's prominence is bolstered by its critical role in supporting sustainability goals, with many supermarkets partnering with local farmers to reduce the environmental impact of long and complex supply chains. This sector's growth underscores its importance as a driving force in shaping the market's future.
Online is expected to dominate the Europe food and grocery retail market by distribution channel, driven by the growing consumer preference for convenience and contactless shopping. The increasing adoption of e-commerce platforms, accelerated by the pandemic, has led to a significant rise in online grocery sales. Consumers are increasingly seeking the convenience of home delivery and click-and-collect services. Retailers are investing in robust online platforms, improved logistics, and faster delivery solutions to meet this demand. Additionally, advancements in technology, such as AI-driven personalized recommendations and enhanced customer experiences,
The market report has been segmented and sub-segmented into the following categories:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Europe Food & Grocery Retail Market Overview |
3.1 Europe Regional Macro Economic Indicators |
3.2 Europe Food & Grocery Retail Market Revenues & Volume, 2021 & 2031F |
3.3 Europe Food & Grocery Retail Market - Industry Life Cycle |
3.4 Europe Food & Grocery Retail Market - Porter's Five Forces |
3.5 Europe Food & Grocery Retail Market Revenues & Volume Share, By Countries, 2021 & 2031F |
3.6 Europe Food & Grocery Retail Market Revenues & Volume Share, By Form, 2021 & 2031F |
3.7 Europe Food & Grocery Retail Market Revenues & Volume Share, By Distribution Channel, 2021 & 2031F |
4 Europe Food & Grocery Retail Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Europe Food & Grocery Retail Market Trends |
6 Europe Food & Grocery Retail Market, 2021 - 2031 |
6.1 Europe Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
6.2 Europe Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
7 Germany Food & Grocery Retail Market, 2021 - 2031 |
7.1 Germany Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
7.2 Germany Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
8 United Kingdom Food & Grocery Retail Market, 2021 - 2031 |
8.1 United Kingdom Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
8.2 United Kingdom Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
9 France Food & Grocery Retail Market, 2021 - 2031 |
9.1 France Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
9.2 France Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
10 Italy Food & Grocery Retail Market, 2021 - 2031 |
10.1 Italy Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
10.2 Italy Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
11 Russia Food & Grocery Retail Market, 2021 - 2031 |
11.1 Russia Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
11.2 Russia Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
12 Spain Food & Grocery Retail Market, 2021 - 2031 |
12.1 Spain Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
12.2 Spain Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
13 Rest of Europe Food & Grocery Retail Market, 2021 - 2031 |
13.1 Rest of Europe Food & Grocery Retail Market, Revenues & Volume, By Product, 2021 - 2031 |
13.2 Rest of Europe Food & Grocery Retail Market, Revenues & Volume, By Distribution Channel, 2021 - 2031 |
14 Europe Food & Grocery Retail Market Key Performance Indicators |
15 Europe Food & Grocery Retail Market - Opportunity Assessment |
15.1 Europe Food & Grocery Retail Market Opportunity Assessment, By Countries, 2021 & 2031F |
15.2 Europe Food & Grocery Retail Market Opportunity Assessment, By Product, 2021 & 2031F |
15.3 Europe Food & Grocery Retail Market Opportunity Assessment, By Distribution Channel, 2021 & 2031F |
16 Europe Food & Grocery Retail Market - Competitive Landscape |
16.1 Europe Food & Grocery Retail Market Revenue Share, By Companies, 2021 |
16.2 Europe Food & Grocery Retail Market Competitive Benchmarking, By Operating and Technical Parameters |
17 Company Profiles |
18 Recommendations |
19 Disclaimer |