China has overtaken the United States to become the world’s biggest market for grocery shopping, according to the latest report to underscore the country’s growing global economic dominance.
The Chinese grocery sector will continue its fast growth over the next few years to hit almost £1tn by 2015, according to grocery industry researchers IGD. That trend brings opportunities for both Chinese and international retailers, but economists warn it will also put upward pressure on already high food prices.
Driven by a growing population, a move to more expensive foods and robust economic growth, the Chinese grocery sector was worth £607bn at the end of 2011, while the US market slipped to second place at £572bn, IGD says in a report on Wednesday . The UK was the world’s ninth largest grocery market.
The researchers forecast that China’s market will grow at twice the pace of the US to be worth £918bn by 2015.
“China’s grocery growth story is phenomenal,” said IGD’s chief executive, Joanne Denney-Finch.
“Despite its various logistical and bureaucratic challenges, China is a crucial growth market for Read more…