14 Oct Grocery Industry Europe – 4 Key Trends
4 key trends that is going to drive the Grocery Industry in Europe that you cannot miss out on.
Undoubtedly, the pandemic has reshaped the Grocery Retail industry in Europe at an unprecedented scale and speed – but these changes are here to stay even post pandemic.
According a report by McKinsey, there are new shopping behaviours emerging in Europe and understanding these trends are crucial for businesses to be able to adapt and flourish in the coming years.
It comes as no surprise that while Europe experienced a sharp decline in retail sales growth in 2020, food and grocery sales increased by 7.5% and the online growth of the grocery sector increased from 19.5% in 2019 to 56.1% in 2020.
The top 4 factors that will shape the sector till 2025 are:
1) Channel Shift – There is a clear channel shift that online is likely to continue growing in market share and sales, while brick-and-mortar supermarkets are expected to lose market share.
2) Change in Prices and Value – According to survey statistics, 26% of consumers plan to save money and adopt cheaper solutions while grocery shopping but at the same time, seek for more sustainable and healthy products.
3) Lifestyle changes driving food demand – 30% of consumers intend to spend their budget on healthier and organic products, 19% intend to spend on environmentally friendly products and a greater emphasis on convenience like delivery services and ready-to-eat food is expected with the millennials.
4) Efficiency – Technology is going to be seen as a key differentiator in the efficiency of the industry, not just leveraging technology building online stores but in supply-chain and back-end processing automations too.
On the whole, 2020 was a challenging year for the Grocery Retail space in Europe but an increase in demand may have helped some players with a strong online offering grow still.
The major developments in the key areas highlighted are expected to stay and shape the future of the industry in the coming years. It is key that plays in this space are able to act with agility and adapt to the fast changing consumer behaviour in order to excel in this market.
Our Senior Consultants at NAOS International have been covering the Tech & Digital space for more than a decade and are able to advise and hire top talents for firms to have the right team in place. Reach out to our team in Europe to learn more about how we can support you too.
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