Food & Grocery Retail Market Belgium: Ken Research
Ken Research announced its latest publication on, “Food and Grocery Retailing in Belgium-Market
Summary & Forecasts; Comprehensive overview of the market, consumer, and
competitive context, with retail sales value and forecasts to 2020”, offer insights on the changing trends and key
issues within the Food & Grocery Retail Market in Belgium.The publication includes an insightful
analysis of changing consumer behavior, changing
economic and demographic factors, technology innovations, leading domestic and international players,
distribution channels and regulatory framework within which the Food
& Grocery Retail Market in Belgium operates. The analysis of the aforementioned trends for major Food
& Grocery categories: drinks, household products, packaged food, tobacco
and unpackaged food; for their sales through leading distribution channels such
as Convenience Stores, Food and drinks specialists, Hypermarkets, supermarkets
and hard-discounters, Value, variety stores and general merchandise retailers,
General retailers, Specialist retailers, Value retailers, Online; has been done
from 2010 to 2020.
Brief Overview of the Food & Grocery Retail Market in
Belgium
With
changing consumer lifestyle and improvement in macroeconomic factors all over
the world, global retail market has been witnessing consistent surge in demand
and consequent boom in its growth rate. But ill-fated retail sector in Belgium
experienced slowdown due to contraction of the economy. Low GDP growth and low
inflation adversely affected the retailing in the country. However, the
scenario is improving as the economy has started to recover over last two
years. Increasing exports & investment in the country is further
reinforcing the growth.
Improving
economic outlook along with rising disposable income & falling unemployment
has boosted consumer confidence leading to increased consumer spending in every
retail product category market. The most benefitted category has been the Food
& Grocery category. It is the largest product category of the retail
market, accounting for 59.8% of total retail sales. In 2015, it has a market
value of EUR41.8 billion. The product market has seen significant increase in
per capita expenditure. Increased demand induced by steady economic improvement
has encouraged the retail companies to look for ways to increase their market
share. They have switched to smaller & cheaper product offerings. Also, due
to low level of competition in the market, price-war has been a prevalent
strategy adopted by them. Regarding the distribution landscape, convenience
trend among retailers along with Belgium society having smaller apartments
& single-parent families, has led the convenience stores to dominate the
distribution channel. However, with increasing internet and mobile penetration
in the society, online retailing has been growing with record double-digit
growth. Hence, overall a positive Food & Grocery retail environment is
prevailing in the country.
Key Factors Driving Growth
in Belgium’s Food
& Grocery Retail Market
Although
economy’s contraction hit the retail market adversely in the past; today with
economic recovery and improved macroeconomic scenario, both demand side and
supply side factors are induced in a way leading to growth & expansion of
the retail market. Hence key factors driving growth of the Food & Grocery
retailing in Belgium include both consumer side factors and the strategies of
the retailers.
With
economic recovery, rising disposable income & falling unemployment,
consumer retail product consumption and hence retail spending is increasing.
Improving economy, along with increasing exports & investment has also
boosted consumer confidence further increasing the retail spending. Belgium
favourable demography is also a contributing factor to increasing demand.
Improving labor market and inflationary conditions are making the environment
conducive for growth.
Retailers
are also strategizing their business actions to achieve maximum market
penetration given the increasing demand for Food & Grocery products. As per
consumer need belonging to different income class of the society, smaller and
cheaper offerings are being made, expected to significantly drive the market in
future. Price-war among retailers though a big challenge for the growth of the
market in value terms, at least expands the market as per volume sales growth.
Apart from
consumer & suppliers’ actions, increasing inbound tourists offering growth
opportunities in retail sector.
Future of Belgium’s
Food &
Grocery Retail Market
After
experiencing slowdown during the years of contraction; with economic recovery
the Food & Grocery retail market scenario is improving and paints an
optimistic picture for the future of the market over the forecast period
(2015-2020). Food and grocery retail market is forecasted to grow posting CAGR
of 1.89% over 2015-2020, reaching value of EUR45.9 billion by 2020. Per capita
expenditure on Food & Grocery is also expected to increase to EUR4,012.9 by
2020. Convenience stores, also called as ‘second refrigerators’, expected to
dominate the distribution channel as the convenience trend continues to prevail
among retailers. On the other hand, online sales are expected to grow,
registering CAGR of 10.37% over the forecast period.
However,
maturity of the market and price-war among retailers may challenge the growth
of the market in coming years. Hence, dealing with them& nullifying their
impact may become important for the growth of the market to its full potential.
To know more on
coverage, click on the link below:
Related Reports:
Companies Covered:
-
Carrefour
-
Delhaize Group
-
Colruyt
-
Lidl
-
SPAR
-
Aldi
-
Louis Delhaize Group
-
Intermarche and Albert Heijn
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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