Global Retail Market Outlook to 2028

Global Retail Market Overview

• In 2023, the Global Retail Market was valued at USD 28.51 Billion, driven by increasing urbanization, rising disposable incomes, and the growth of e-commerce platforms. The market is segmented into grocery, apparel, electronics, and home goods, with grocery being the most dominant due to its essential nature and frequent consumer purchases.
• Major players in the Global Retail Market include Walmart, Amazon, Costco, Alibaba, and The Kroger Co. These companies are recognized for their extensive supply chains, wide product assortments, and strong market presence across multiple regions. Walmart leads the market with its extensive network of physical stores and robust online platform, known for competitive pricing and convenience.
• In North America, the United States and Canada are prominent markets, driven by high consumer spending power and a strong preference for online shopping. These countries are characterized by a mature retail environment with significant investments in technology and supply chain optimization to enhance customer experience and operational efficiency.
• In 2023, Amazon expanded its grocery delivery services under its Amazon Fresh brand, aiming at capturing a larger share of the grocery segment. This innovation underscores the ongoing shift towards online shopping and home delivery services in the global retail market, reflecting broader trends in consumer preferences towards convenience and speed.

Global Retail Market Segmentation

The Global Retail Market can be segmented by product category, sales channel, and region:

• By Product Category: The market is segmented into grocery, apparel, electronics, and home goods. In 2023, grocery remains the most dominant category due to its essential nature and high frequency of purchase. However, electronics are gaining popularity for their rapid technological advancements and frequent product launches. The demand for apparel is also on the rise, driven by fashion trends and increasing consumer interest in sustainable and ethical clothing.

• By Region: The Global market is segmented regionally into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2023, North America leads the market due to high disposable incomes, a strong preference for online shopping, and a large population of retail consumers. Asia-Pacific is also a significant market, driven by the growing middle class and the rapid expansion of e-commerce platforms.

• By Sales Channel: The market is segmented by sales channel into supermarkets/hypermarkets, specialty stores, and online retailers. In 2023, supermarkets and hypermarkets dominate the market due to their wide reach and availability of a variety of brands

Global Retail Market Competitive Landscape

• Walmart: In 2023, Walmart launched a new range of private label products under its Great Value brand, catering to the growing demand for affordable and high-quality retail products. This launch is aimed at strengthening the company's position in the budget segment of the market, where there is increasing consumer interest in value-for-money options. The new product line leverages Walmart's extensive supply chain and aligns with the broader trend towards cost-effective retailing among consumers.
• Amazon: In 2024, Amazon expanded its Prime membership benefits with the introduction of a new line of exclusive products, designed to meet the rising consumer demand for premium and specialized retail items. This expansion reflects Amazon's commitment to providing value-added services to its customers and positions the brand to capture a share of the growing market for exclusive and limited-edition products.

Global Retail Market Analysis

Market Growth Drivers:

• Rising Urbanization: The increasing number of people living in urban areas is driving the demand for retail products globally. As of 2023, urban areas have seen a substantial influx of people, with the World Bank reporting that over 4.3 billion people now reside in cities. This trend towards urbanization has led to higher consumption patterns, as urban dwellers typically have better access to retail outlets and higher disposable incomes compared to rural populations.
• Growth of E-commerce: The expansion of online shopping platforms has revolutionized the retail market, boosting the demand for a wide array of products. E-commerce giants like Amazon and Alibaba have been at the forefront of this growth, providing consumers with easy access to high-quality and exclusive retail products from the comfort of their homes. In 2023, it was reported that Amazon's e-commerce operations reached over 300 million active users globally, reflecting the shift in consumer behavior towards online shopping.
• Innovation in Retail Offerings: Retailers are increasingly developing specialized products, such as eco-friendly and sustainable goods, to cater to the growing demand from environmentally conscious consumers. Alibaba launched a green product line in 2023 aimed at eco-conscious consumers, offering items ranging from sustainable fashion to energy-efficient appliances. This initiative has been well-received in the market, showcasing the importance of innovation in attracting and retaining customers who prioritize sustainability in their purchasing decisions.

Market Challenges:

• Supply Chain Disruptions: The rising complexity of global supply chains, particularly in the wake of the COVID-19 pandemic, is posing challenges to retailers, leading to increased logistics costs. This could potentially impact pricing and availability, especially in the electronics and apparel segments.
• Regulatory Constraints: The market is subject to stringent regulations regarding product safety standards, import/export restrictions, and labeling. Compliance with these regulations can be challenging for retailers, particularly smaller players who may lack the resources for extensive testing and certification.

Government Initiatives:

• Chinas Digital Commerce Strategy: The Chinese government's Digital Commerce Strategy aims to boost the e-commerce sector by providing subsidies for technology upgrades and supporting digital transformation initiatives. With a budget of CNY 100 billion which is USD 15 billion, the strategy includes specific initiatives to promote online retailing and enhance digital infrastructure, which directly impacts the retail industry. This initiative is expected to drive innovation and growth within the retail market, pushing companies to adopt more advanced technologies.
• Combatting Organized Retail Crime Act: The Combatting Organized Retail Crime Act is a federal initiative in the United States, supported by retail groups and law enforcement associations, aimed at creating a specialized center within Homeland Security to combat organized retail theft. The National Retail Federation (NRF) reported that retail theft cost U.S. retailers USD 100 billion in 2021, highlighting the financial impact of this issue on the retail sector. This initiative reflects the government's commitment to reducing theft and its associated costs, which can influence pricing strategies, security measures, and overall profitability for retailers.

Global Retail Market Future Market Outlook

The Global Retail Market is expected to continue its steady growth, driven by the increasing trend of e-commerce, the expansion of urban areas, and innovation in product offerings.

Future Market Trends:

• Expansion of Subscription-based Services: Subscription-based retail services, where consumers receive regular deliveries of curated products, are expected to grow in popularity. This model offers convenience and ensures consistent quality and product diversity.
• Increased Focus on Sustainability: There will likely be a growing emphasis on sustainable retail products designed to reduce environmental impact. Advances in packaging technology and sustainable sourcing will drive the development of these products.