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About the Food and Drink Industry

The global food industry is constantly developing in tune with demands of global consumers. The industry participants, namely food suppliers, manufacturers and food retailers all work together to adapt and change to evolving trends in consumption. The food and drink supply chain is complex and ends with a number of different food retail formats. The most popular retail outlet is the supermarket, but in recent decades, other retail formats have emerged, including hypermarkets, discounters, convenience stores and service stations. Supermarkets and hypermarkets account for a little over 50% off all grocery retail sales. Independent food stores take a 16% share and the rest of the market is shared between convenience stores ,standard convenience stores, service stations, discounters and other outlets.

The total value of the food retail market is approximately $4 trillion annually, with supermarkets and hypermarkets dominating the retail market. The food retail market is relatively concentrated, with the top 15 global grocery retailers taking over 30% of global grocery retail sales. Many of the largest global grocery retail companies are US and European companies. Some of the leading supermarket and hypermarket grocery retailers include Kroger Co, Safeway Inc, Tesco Plc, Royal Ahold NV, Edeka Zentrale, Rewe Group, Delhaize Group, ITM Entreprises SA, Carrefour, Wal-Mart, Auchan, E Leclerc, J Sainsbury, Casino Guichard-Perrachon, Schwarz Beteiligungs and Royal Ahold.

The retailers above have expanded their operations internationally, with many of them spreading outside their immediate country boundaries and expanding intercontinentally. Tesco is now present in China, Wal-Mart has international operations principally in Latin America, but also in other countries such as the UK and China. Food and drink manufacturers are similarly expanding internationally, as emerging economies begin to benefit from additional disposable income. It is estimated that the leading fifty producers have a combined market share of less than 20% of gobal grocery sales. For example, it is estimated that Nestle has an approximate global market share of 3% of global packaged food retail sales, highlighting the fragmented nature of food and drink manufacturing. Other leading global food and drink manufacturers include Kraft Foods, Unilever Group, PepsiCo Inc, Danone, Cadbury Schweppes, Mars, Kellogg Co, General Mills, Lactalis, Campbell Soup Co, ConAgra Foods, Dean Foods and Ferrero Group.

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