European Trends in Food Shopping
Table of contents
1. Introduction
REPORT COVERAGE
DEFINITION
2. Strategic Overview
MARKET DYNAMICS AND SEGMENTATION
Table 1: The European Retail Food and Drinks Market by Value (_bn), 2004-2008
Figure 1: The European Retail Food and Drinks Market by Value (_bn), 2004-2008
Table 2: Major European Retail Food Markets by Value and per Capita Expenditure (ebn and e), 2007
GROWTH AREAS
Healthy/'Better for You'
Convenience
Premium/Indulgence Products
Ethnic Foods
Organic Foods
Fairtrade Foods
Table 3: Major European Markets for Fairtrade-Certified Products by Value (_m), 2006 and 2007
Other Ethical Foods
DISTRIBUTION
Table 4: Estimated Number of Food/Grocery Stores in Selected European Countries, 2007
Supermarkets and Hypermarkets
Discount Retail Chains
Table 5: Shares of the Retail Food Market Taken by Discount Retailers in Selected European Countries by Value (%), 2007
Online/Internet Grocery Retailing
COMPETITIVE STRUCTURE
Market Concentration
Table 6: The European Food Retail Market by Company by Market Share by Value (%), 2007
Table 7: Major European Food Retail Markets by Operators by Value (%), 2007/2008
Recent Corporate Activity
Table 8: Major Corporate Activity in the European Food Retail Industry, 2005-2008
PROMOTION
Table 9: Main Media Advertising Expenditure by Leading UK Supermarkets and Grocery Chains (£000), Years Ending September 2007 and 2008
Table 10: Main Media Advertising Expenditure on Selected Food Categories in the UK by Sector (£000), Years Ending September 2007 and 2008
THE CONSUMER
Affluence and Purchasing Power
Table 11: European Consumer Expenditure and Gross Domestic Product per Capita ($bn and $), 2007
Consumer Confidence
Food Price Inflation
Own Brands
Table 12: Share of the Retail Industry Taken by Own Brands in Selected European Countries by Volume (%), 2007
Ethical Considerations
Legislation
MARKET FORECASTS
3. Carrefour
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
Table 13: Geographical Breakdown of Carrefour's Store Network by Number of Stores, June 2008
MARKET SHARE
ADVERTISING
PROFITABILITY
Table 14: Financial Results for Carrefour Group (_m), Years Ending 31st December 2006 and 2007
FUTURE COMPANY DEVELOPMENTS
4. Tesco
company information
GEOGRAPHICAL OPERATIONS
Table 15: Geographical Breakdown of Tesco's Store Network by Number of Stores, Year Ending February 2008
MARKET SHARE
ADVERTISING
Table 16: Main Media Advertising Expenditure by Tesco PLC (£000), Years Ending September 2007 and 2008
PROFITABILITY
Table 17: Financial Results for Tesco PLC (£m), Years Ending 25th February 2006, 24th February 2007 and 23rd February 2008
FUTURE COMPANY DEVELOPMENTS
5. Metro Group
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
Table 18: Geographical Breakdown of Metro's Food Retail Network by Number of Stores, 2007
MARKET SHARE
ADVERTISING
PROFITABILITY
Table 19: Financial Results for Metro Group (_m), Years Ending 31st December 2006-2007
FUTURE COMPANY DEVELOPMENTS
6. REWE Group
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
Table 20: Geographical Breakdown of REWE's Food Retail Network by Number of Stores, 2007
MARKET SHARE
ADVERTISING
PROFITABILITY
Table 21: Financial Results for REWE Group (_m), Years Ending 31st December 2006 and 2007
FUTURE COMPANY DEVELOPMENTS
7. Schwarz Group
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
Table 22: Geographical Breakdown of Schwarz's Retail Network, 2007/2008
MARKET SHARE
ADVERTISING
Table 23: Main Media Advertising Expenditure by Lidl UK (£000), Years Ending September 2007 and 2008
PROFITABILITY
FUTURE COMPANY DEVELOPMENTS
8. Groupe Auchan
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
Table 24: Geographical Breakdown of Groupe Auchan's Food Retail Network by Number of Stores, 2008
MARKET SHARE
ADVERTISING
PROFITABILITY
Table 25: Financial Results for Groupe Auchan (_m), Years Ending 31st December 2006 and 2007
FUTURE COMPANY DEVELOPMENTS
9. EDEKA
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
MARKET SHARE
ADVERTISING
PROFITABILITY
Table 26: Financial Results for EDEKA (_bn), Years Ending 31st December 2005-2007
FUTURE COMPANY DEVELOPMENTS
10. Aldi
COMPANY INFORMATION
GEOGRAPHICAL OPERATIONS
Table 27: Geographical Breakdown of Aldi's Retail Network by Number of Stores, 2007/2008
MARKET SHARE
ADVERTISING
Table 28: Main Media Advertising Expenditure by Aldi UK (£000), Years Ending September 2007 and 2008
PROFITABILITY
FUTURE COMPANY DEVELOPMENTS
11. An International Perspective
INTRODUCTION
MARKET DEVELOPMENTS
Table 29: World's Largest Retail Food Markets by Value ($bn), 2007
COMPETITOR ENVIRONMENT
Wal-Mart
Kroger
Costco
SPAR
Seven & I Holdings
Others
CONSUMER BEHAVIOUR
12. PEST Analysis
POLITICAL FACTORS
Responses to the Financial Crisis
World Economic Forum
Competition Commission Investigation in the UK
Deregulation in France and the Republic of Ireland
Shopping Hours
Corporate Image
ECONOMIC FACTORS
The European Economy
The European Retail Market
Rising Food Prices
SOCIAL FACTORS
Rising Obesity Levels
Consumer Confidence
Ethical Food Purchasing
Food Miles and Provenance
Plastic Bags
TECHNOLOGICAL FACTORS
E-Commerce
Chip and PIN
Emergence of Radio-Frequency Identification
Self-Scanning
13. Consumer Dynamics
INTRODUCTION
EUROPE
General Food Shopping Behaviour
Table 30: The Importance of Good Value Own-Label Products When Food Shopping by Country (% of respondents), 2008
Online Grocery Shopping
Ethical Food Shopping
Table 31: Main Reasons for Buying Animal Welfare Foods in Europe (% of respondents), 2007
GREAT BRITAIN
Table 32: Shopping for Food, Drink and Household Products at Supermarkets (% of adults), Year Ending March 2008
Table 33: Regularly Shopping for Food, Drink and Household Products at Supermarkets (% of adults), Year Ending March 2008
Table 34: Shopping for Food, Drink and Household Products at Other Retail Stores (% of adults), Year Ending March 2008
Table 35: Those Who Have Ever or Regularly Shopped for Food, Drink and Household Products on the Internet (% of adults), Year Ending March 2008
Table 36: Considerations When Choosing to Shop for Food (% of respondents), 2008
REPUBLIC OF IRELAND
14. The Future
MARKET FORECASTS
Table 37: The Forecast European Retail Food and Drinks Market by Value (_bn), 2009-2013
Figure 2: The European Retail Food and Drinks Market by Value (_bn), 2004-2013
FUTURE TRENDS
Share of Consumer Expenditure
Further Industry Consolidation
Threat of the Discounters
Nutrition and Food Safety
Continued Technological Advancements
15. Further Sources
Associations
Publications
General Sources
Government Sources
Other Sources
Key Note Sources
Report description
The European region contains some of the world's largest retail markets for food and drink, major examples of which include the UK, France and Germany. However, recent growth has been much higher in the world's developing markets such as the People's Republic of China (PRC), India and Russia, the last of which appears set to become Europe's largest retail grocery market at some point within the next decade, if present growth trends continue.
Even prior to the worsening economic situation being experienced at present, many of the larger retail food markets in Western Europe were displaying fairly modest levels of annual growth, as a result of their size and maturity and the fact that consumer expenditure is increasingly moving away from basic necessities such as food and drink towards areas such as household and leisure items. However, growth has been apparent in various sectors of the food and drinks market within recent years, with notable examples including:
* healthy foods, with a current trend towards natural varieties containing fewer artificial additives
* premium and indulgence foods, especially in sectors such as ice cream and confectionery
* ethical foods, such as organic, Fairtrade and locally sourced varieties
* the online retail grocery market, which has resulted from technological advancements such as the advent of broadband, coupled with growing usage of the Internet.
In the newer EU entrants of Central and Eastern Europe, market performance has been rather more dynamic. In many of these countries, consumer spending on food and groceries has grown as a result of rising income levels and greater availability of higher-quality branded goods. Many markets are developing fast, with modern retail outlets such as supermarkets and hypermarkets replacing small independent stores as the main source of grocery purchases.
From a supply perspective, the European retail food and drinks market is experiencing increasing consolidation. Many of the major retail groups are keen to increase their presence in developing economies where growth levels are higher, not just in the newer EU countries but also in other parts of the world, notably the PRC and India. As a result of this expansion strategy, many of the European giants (such as Carrefour and Tesco) have become truly global players, operating in many markets outside their European heartlands.
The pace of expansion has been fastest among Europe's leading discount retail operators, of which the most significant are Schwarz/Lidl and Aldi. Both of these companies operate throughout most of Europe, although their share of grocery sales in many countries remains on the low side. In response to these developments, many of the mainstream retail groups have been increasing their presence in this sector, either by acquiring discount retail chains or by extending their lower-priced own-label ranges.
Consumers throughout Europe share a number of similarities when it comes to food and grocery shopping. Most have a strong desire for good value for money and cheap prices, especially given the present economic circumstances and the rising cost of food in sectors such as dairy and bakery products. Obtaining good value for money is especially important for food shoppers in Germany and Austria (where discount retailers hold a particularly well-established position), although European consumers are generally quite price-sensitive as a whole. Other strong consumer concerns include location of the store and ethical considerations.
Over the coming years, growth is likely to remain higher in the developing markets of Central and Eastern Europe, as spending patterns and living standards continue to catch up with the West. Consumers across the region as a whole are likely to be ever more price-conscious, as a result of which the appeal of discount chains is expected to continue rising. More people are expected to use the Internet for grocery shopping, although the share of the retail food and drinks market taken by this channel is forecast to remain fairly small.
