Convenience Stores Market to grow by USD 930 Billion (2024-2028), driven by rising demand for convenient food products, Report with AI-powered market evolution - Technavio

NEW YORK  , Dec. 16, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global convenience stores market size is estimated to grow by USD 930 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  6.78%  during the forecast period. Growing demand for convenient food products is driving market growth, with a trend towards increase in demand for private-label brands. However, changing buying behavior due to increasing online retailing and e-commerce  poses a challenge. Key market players include 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, Sheetz Inc., and Walmart Inc..

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Market Driver

In 2022, private-label grocery and apparel products experienced significant growth worldwide. Major retailers, who dominate the industry, have expanded their private-label product lines. Popular private grocery items, including soft drinks, frozen and refrigerated foods, alcohol, snacks, confectionery, meat, dairy, and sausages, have seen increased demand. Private-label brands offer these products at lower prices, driving demand from retailers. Changing consumer expectations demand premium products at affordable prices, leading to the launch of new private-label brands. This trend is boosting the growth of discount convenience stores. Thus, the rising preference for private-label brands presents lucrative opportunities for the growth of discount convenience stores during the forecast period. 

Convenience stores have become a staple in urban areas due to fast-paced living and increased population density. These retail establishments offer necessities like groceries, household goods, and essentials. Impulse purchases, such as snacks, soft drinks, and confectionery items, also drive sales. Emergency products and fresh food are growing trends, with some stores expanding into the foodservice segment. Traditional corner stores are evolving into mini, expanded, and hyper convenience stores. Strategic locations, self-checkout systems, contactless payment options, and mobile apps are key features. Kiosks and franchising concepts are popular, with home deliveries and fresh food becoming important offerings. Societal trends like holidays and urban lifestyles influence promotional strategies. Necessities like groceries, essentials, and household consumables remain the backbone, while impulse items, such as periodicals, tobacco products, and alcohol, continue to attract customers. Retail investments are on the rise, making convenience stores a lucrative retail business opportunity. 

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• The e-commerce sector's continuous growth and the changing consumer buying behavior have significantly impacted the convenience stores market. With the increasing use of technology and the widespread availability of the Internet, consumers now prefer online shopping due to its convenience and flexibility. E-commerce platforms offer secure transactions, cash-on-delivery options, convenient return policies, integrated customer service, product availability, and 24-hour accessibility. These services have encouraged consumers to purchase consumer goods online, leading to a decrease in sales for traditional convenience stores. The growing preference for online shopping among millennials, who have a higher purchasing power, further exacerbates this trend. As a result, the global convenience stores market is expected to experience a negative growth during the forecast period.
• Convenience stores face several challenges in today's market. With increased population density in metropolitan areas, retail investments, leading to more retail establishments in congested venues. Franchising concept is popular, but offering unique product offerings, including important items like home consumables, packaged beverages, confectionery items, tobacco products, periodicals, and fresh produce, is crucial. Holidays and emergency purchases drive sales, especially for items like ice, milk, eggs, and cigarettes and tobacco. Traditional stores must adapt to digital transformation, offering home delivery, online goods, foodservice, and time-saving options like self-checkout and inventory management systems. Real estate costs are high in urban areas, making it essential to cater to middle-class populations' everyday needs. Sustainability initiatives like low-alcoholic beverages, fresh, organic, and low-sugar options are important. Private label brands and national brands must coexist, and plastic waste reduction is a pressing concern.

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This convenience stores market report extensively covers market segmentation by  

1. Ownership 
• 1.1 Independent retailer
• 1.2 Retail chain
2. Type 
• 2.1 Traditional convenience store
• 2.2 Mini convenience store
• 2.3 Hyper convenience store
• 2.4 Expanded convenience store
• 2.5 Others
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Independent retailer-  Independent retailers, privately owned businesses selling manufactured goods, come in two sizes: small and large. Smaller retailers specialize in niche products like vinyl records or photography supplies, which larger retailers often overlook. Larger independent retailers offer a broader range of items, providing a platform for smaller brands. The growing consumer preference for convenience store food products fuels market expansion. Additionally, e-commerce platforms' increasing penetration in the distribution of convenience products will significantly contribute to market growth during the forecast period.

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Research Analysis

The Convenience Stores market has experienced significant growth in recent years, particularly in urban areas with increased population density. Retail investments have surged in metropolitan areas, leading to an expansion of convenience retail establishments. The franchising concept has played a crucial role in this growth, allowing retail chains to quickly establish a presence in congested venues. Staple products such as household groceries, beverages, and home consumables remain the backbone of convenience stores. However, impulse products and emergency items have also gained importance, catering to the needs of customers on-the-go. Kiosks and Mini Convenience Stores have emerged as popular formats, offering a more focused and streamlined shopping experience. Traditional Convenience Stores have expanded their offerings to include the Foodservice segment, providing hot and cold food options, while Hyper Convenience Stores offer an even wider range of products. The market is diverse, with offerings ranging from necessities to luxury items, including packaged beverages and home deliveries. The convenience retail business continues to evolve, meeting the changing needs of consumers in urban areas.

Market Research Overview

The Convenience Store market is thriving in metropolitan areas due to increased population density and the need for time-saving retail solutions. Retail investments, with franchising concepts becoming increasingly popular. Important items such as home consumables, packaged beverages, confectionery items, tobacco products, periodicals, and emergency purchases are staple offerings. Traditional stores coexist with mini, expanded, and hyper convenience stores, catering to various consumer needs. Strategic locations near railways stations, fuel stations, and local corner stores enhance accessibility. Home delivery, prepared foods, and online goods add to the convenience. Societal trends like digital transformation, low sugar options, and fresh food have influenced product offerings, with private label brands and national brands vying for market share. Essential goods like ice, milk, eggs, and necessities remain in high demand, especially in congested areas. Emergency products, kiosks, and self-checkout systems are essential for catering to fast-paced living. Contactless payment options, mobile apps, and promotional strategies are key to staying competitive. The market is diverse, catering to everyday needs and impulse purchases, with fresh food, alcohol products, and household groceries driving sales in urban areas. The retail business continues to evolve, adapting to societal trends and consumer preferences.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Ownership
• Independent Retailer
• Retail Chain
• Type
• Traditional Convenience Store
• Mini Convenience Store
• Hyper Convenience Store
• Expanded Convenience Store
• Others
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio