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The convenience stores market size is estimated to grow at a CAGR of 6.29% between 2022 and 2027. The market size is forecast to increase by USD 806.4 billion. The growth of the market depends on several factors, including the growing demand for convenient food products, rapid urbanization, rising consumer spending, and rising promotions such as volume discounts, and seasonal sales.
This convenience stores market report extensively covers market segmentation by ownership (independent retailer and retail chain), type (traditional convenience store, mini convenience store, hyper convenience store, expanded convenience store, and others), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for convenient food products is notably driving the market growth. Convenient food products are a type of processed, ready-to-eat food that only needs a little bit of preparation before eating. The food is partially cooked. The preference for convenient food products like processed meat and poultry products is rising in comparison to home-cooked food due to the increase in working women and their hectic work schedules. This has resulted in a decline in the use of the traditional cooking method and a shift in consumer preference toward convenient food options and eating outside (fast food restaurants and takeout restaurants).
Furthermore, the increasing number of working women has led to financial independence and increased disposable incomes. This, in turn, has increased the demand for convenient food products, as these products are easy to cook and consume less time. Additionally, working women can have increased leisure time with the use of ready-to-eat food products. Hence, these factors are expected to increase the demand for convenient meat and poultry products, which will fuel the growth of the global convenience stores market during the forecast period.
The increasing demand for private-label brands is a key trend in the market. In 2022, private-label grocery and apparel products show significant growth globally. Although a limited number of retailers dominate the retail industry, these retailers have a robust and growing private-label product line. Popular private groceries, such as soft drinks, frozen and refrigerated foods, alcohol, snacks, confectionery items, meat, dairy, and sausages, have raised the demand.
Additionally, private-label brands provide most of these products at low prices, which shows rising demand for private-label products from retail outlets. The growing demand for private-label brands is driving the growth of discount convenience stores that provide premium products at reasonable prices. Hence, the increasing preference for private-label brands is expected to provide growth opportunities for discount convenience stores, thus contributing to the convenience stores market growth during the forecast period.
The changing buying behavior due to increasing online retailing and e-commerce is challenging market growth. The Internet retail industry's expansion has been aided by ongoing technological advancements and shifting consumer purchasing patterns. Customers who are tech-savvy want more options for shopping; Consequently, they select online or e-commerce websites that offer personalized and interactive shopping experiences in addition to simple delivery and payment options. The widespread use of smartphones and the Internet has made it easier to shop online and made it possible for online retailers to reach more people in both urban and rural areas.
Moreover, the increasing purchasing power of millennials is driving the sales of goods and products from the online retail format. Certain services offered by e-commerce players include secure transactions, cash-on-delivery options, convenient return policies, 24-hour accessibility, and a wide variety of brands to compare and choose from. The growing customer tendency for online retail shopping, given its convenience, has drastically hindered the sales and revenue of convenience stores. Thus, the global convenience stores market is expected to be adversely affected during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Convenience Stores Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
EG Group - The company offers convenience stores under the brand names of Cumberland Farms, Certified Oil, Fastrac and Kwik Shop.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The independent retailer segment is estimated to witness significant growth during the forecast period. An independent retailer is a business that sells goods made by other companies and is privately owned by one or in partnership. There are two types of independent retailers, large and small. Smaller independent retailers majorly focus on a certain type of product that larger retailers do not carry such as vinyl records or photography supplies. Larger independent retailers maintain a wider range of products but provide a space for smaller brands and products to have space to sell similar to a boutique.
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The independent retailer segment was the largest segment and was valued at USD 1,061.20 billion in 2017. The rising demand for convenience store food products among consumers is driving segment growth. Moreover, increasing penetration of e-commerce platforms for the distribution of convenience products will drive the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to vendors is North America. The retail and financial sectors are to blame for the expansion of convenience stores across North America. The United States has the most convenience stores, followed by Canada. Investments in interactive kiosks are being driven by US retailers' increasing emphasis on customer satisfaction and redefinition. The market is also being driven by the demand in the region for self-checkout terminals of the first generation.
Moreover, the vendors in the United States and Canada are placing a growing emphasis on omnichannel retail, with convenience stores focusing on a strong offline and online presence in these countries. Due to the rapid spread of the Internet and the growing popularity of e-commerce, the demand for convenience store goods, particularly food and personal care items, among individual and student consumers in the United States is anticipated to slightly slow down during the forecast period.
In 2020, the market in North America was adversely affected by lockdowns imposed to limit the spread of COVID-19. However, in 2021, the initiation of vaccination drives led to the lifting of lockdown restrictions in North America. This resulted in the reopening of offline distribution units similar to convenience stores. In addition, the adoption of online channels for distribution, in turn, will drive the growth of the regional market during the forecast period.
The convenience stores market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Convenience Stores Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.29% |
Market growth 2023-2027 |
USD 806.4 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.84 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alimentation Couche Tard Inc., Amazon.com Inc., BP Plc, Caseys General Stores Inc., EG Group, Heineken NV, ITOCHU Corp., Krause Group, Kwik Trip, Magnit, Mitsubishi Corp, Murphy USA Inc., Parkland Fuel Corp., PT Sumber Alfaria Trijaya Tbk, PT. Indomarco Prismatama, Retail Group N.V., Royal Farms, Seven and i Holdings Co. Ltd., Sheetz Inc., and Walmart Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Ownership
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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