The Consumer Product And Retail Market is estimated to be valued at US$ 21.01 Tn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The consumer product and retail market consist of products like apparel and footwear, consumer electronics, home appliances, food & beverage, toys, sports equipment and others. These products aim to fulfill consumer needs and desires. The consumer product and retail market has benefitted from increased disposable incomes, urbanization, and shifting demographics especially in emerging economies. Online and omni-channel retailing are becoming increasingly popular among consumers.
Market key trends:
One of the key trends in the consumer product and retail market is accelerated digitization across the sector. The Covid-19 pandemic has further accelerated this trend as consumers shifted to online shopping significantly during lockdowns and social distancing measures. Retailers are investing heavily in technologies like artificial intelligence, machine learning, big data analytics, augmented/virtual reality to enhance consumer experience through personalized recommendations, digital/contactless payments etc. Companies are optimizing supply chains, improving inventory management and streamlining logistics using digital technologies. This digitization is allowing companies to cater to dynamic consumer demands better, gain valuable customer insights and adapt to changing market conditions faster compared to the past.
Porter’s Analysis
Threat of new entrants: The consumer product and retail market is well established market with presence of key players making it difficult for new players to enter. However, digitization is lowering entry barriers to some extent.
Bargaining power of buyers: Buyers in this market have significant bargaining power due to availability of many substitutes and transparency in pricing online. Buyers can easily compare products and prices.
Bargaining power of suppliers: Majority of suppliers have commodity type of offerings and are less differentiated making is easy for retailers to switch between them. However, few suppliers with proprietary offerings hold some bargaining power.
Threat of new substitutes: Moderate threat due to substitute options across product categories. Consumer preferences keep changing offering opportunity for new substitutes.
Competitive rivalry: Intense competition among existing players to gain market share.
SWOT Analysis
Strength: Wide portfolio of product categories, established brand names, global presence for key players, omnichannel distribution network.
Weakness: Pressure on margins due to competition, reliance on seasonal products, vulnerable to economic cycles.
Opportunity: Growth in e-commerce, demand in developing regions, scope to expand private label offerings.
Threats: Stringent regulations, supply chain disruptions, shifting consumer preferences.
Key Takeaways
The Global Consumer Product And Retail Market Growth is expected to witness high, exhibiting CAGR of 7.2% over the forecast period, due to increasing disposable income and growing middle class population globally. The Asia Pacific region dominated the market in 2023 with a share of over 35% owing to high population and rising living standards in countries like China and India. Key regional markets include North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
The retail sector is consolidating with major retailers acquiring regional chains to gain scale. Omni-channel presence is helping retailers engage customers effectively. Product categories like food and beverages, beauty and personal care, household goods are dominant segments. Digital technologies are enabling efficient inventory management and personalizing customer experience.
Key players operating in the consumer product and retail market are 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, LOreal Group, Nestle S.A.
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