The convenience channel remains the third largest modern trade channel over the next five years but faces strong competition, impacting its growth. While the global grocery market is projected to grow annually by 4.2%, the convenience channel’s growth is slightly behind, at 4.1%.
This will mean the convenience channel will lose market share, from 10.7% in 2024 to 10.6% in 2029. This share loss is largely due to the faster growth of smaller, but rapidly expanding, channels: discount and online.
Discount retailers will attract budget-conscious shoppers, while online retailers will offer a breadth of range that convenience stores struggle to match. Supermarkets, despite their slower growth, are also becoming a greater threat to convenience stores.
To stay competitive, retailers must differentiate through enhanced in-store experiences, strategic space allocation, and value driven promotions. Sustainability and health initiatives are also crucial for meeting consumer demands and enhancing brand image.
Sneha Haria, Insights Manager, IGD, says: “Convenience retail is evolving from quick transactions to smart, seamless experiences. Our report highlights key trends like digital innovation and healthier food options that will define success in 2025 and beyond.”
“While the sector uses its proximity and adaptability to meet consumer trends, it must address costs and competition challenges. Retailers need to close the price perception gap with other channels and make targeted value visible across regions. Sustainability and health are emerging trends globally, even though they are not typically front of mind for convenience shoppers.”
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