The global Consumer Products and Retail Market is estimated to be valued at US$ 18.18 trillion in 2021 and is expected to exhibit a CAGR of 7.5% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
The Consumer Products and Retail market comprises a wide range of products and services that are used by consumers in their daily lives. These include food and beverages, personal care products, clothing, electronics, household goods, and more. The market is driven by the demand for these products and the changing consumer preferences towards convenience, quality, and affordability.
Consumers today are more conscious about their health and well-being, leading to an increased demand for organic and natural products. The advent of e-commerce has also revolutionized the retail industry, offering consumers more choices and convenience in shopping. With the rapid advancements in technology, retailers are leveraging digital platforms to enhance their reach and provide personalized shopping experiences to consumers.
1) Driver: Increasing Disposable Income
The rise in disposable income is one of the key drivers propelling of the Consumer Product and Retail Market Growth. As economies continue to develop and incomes increase, consumers are willing to spend more on a wide range of products and services. This has led to a surge in consumer spending, especially in emerging economies. The growing middle class population with higher purchasing power is driving the demand for consumer products and retail services.
For example, in India, the middle-class population is estimated to reach 1.3 billion by 2025, boosting the demand for consumer products and retail services. Similarly, in China, the rising middle class is fueling the growth of the retail industry.
2) Opportunity: E-commerce Penetration
The increasing penetration of e-commerce platforms presents a significant opportunity for the Consumer Products and Retail market. With the proliferation of smartphones and the internet, consumers can now shop conveniently from the comfort of their homes. E-commerce offers a wide range of products, competitive pricing, and fast delivery options, attracting a large consumer base.
For instance, in the United States, e-commerce sales accounted for 14% of total retail sales in 2020, up from 11% in the previous year. In China, the world’s largest e-commerce market, online retail sales reached approximately US$ 2 trillion in 2020. The growing popularity of e-commerce platforms such as Amazon, Alibaba, and JD.com is driving the growth of the Consumer Products and Retail market.
The Consumer Products and Retail market can be segmented based on product type, distribution channel, and geography. One dominant segment in this market is the food and beverages segment, which includes packaged food, beverages, and fresh produce. This segment is expected to dominate the market due to increasing urbanization, changing dietary habits, and the rising demand for convenience food.
– Political: The political landscape and regulations in different countries can impact the operations of consumer products and retail companies. Political stability and favorable policies promoting trade and investment are beneficial for market growth.
– Economic: The economic conditions of a country influence consumer spending patterns. Stable economic growth, rising disposable incomes, and low inflation rates favor the Consumer Products and Retail market.
– Social: Changing consumer lifestyles and preferences drive innovation in the Consumer Products and Retail market. Factors such as health consciousness, sustainability, and convenience shape consumer choices.
– Technological: Technological advancements play a crucial role in the growth of the Consumer Products and Retail market. Innovations such as e-commerce platforms, mobile apps, IoT, and artificial intelligence are transforming the retail experience.
– The global Consumer Products and Retail market is expected to witness high growth, exhibiting a CAGR of 7.5% over the forecast period, due to increasing disposable income and e-commerce penetration.
– The Asia-Pacific region is expected to be the fastest-growing and dominating region in the Consumer Products and Retail market, driven by the rising middle-class population and urbanization.
– Key players operating in the global Consumer Products and Retail market include Metro AG, Kroger Company, Carrefour SA, Tesco PLC, Wal-Mart Stores, Inc., Costco Wholesale Corporation, Unilever PLC, Amway, Reckitt Benckiser Group plc, Pepsi Co, Inc., Procter & Gamble, L’Oreal Group, Nestle S.A., IBM Corporation, Accenture plc, Atos SE, Hewlett – Packard Company, PTC, Inc., Centric Software, Dassault Systemes S.A., Autodesk, Inc., Gerber Scientific, Inc., SAP SE, and Oracle Corporation.
In conclusion, the Consumer Products and Retail market is poised for steady growth in the coming years, driven by factors such as increasing disposable income and the growth of e-commerce. The market offers a wide range of opportunities for key players to capitalize on the changing consumer preferences and technological advancements.