The global consumer product and retail market was valued at US$ 21.13 trillion in 2023 and is forecast to reach a value of US$ 34.44 trillion by 2030 at a CAGR of 7.2% between 2023 and 2030. Consumer products provide advantages to both companies and buyers. For companies, consumer products allow specialization in production, marketing, and distribution. Mass production creates economies of scale. Branding builds customer loyalty. Wide distribution through retailers makes buying convenient. For consumers, products satisfy needs and wants. Extensive product selection gives buyers choices. Easy retail access saves time and effort. Some disadvantages are production pollution, resource depletion, product defects, high prices for specialty goods, and impulse purchases. Overall, consumer products enhance modern lifestyles, although some downsides exist. Managing these tradeoffs is an ongoing challenge.
Global Consumer Product and Retail Market Drivers:
- Fast-Changing Consumer Preferences and Buying Behavior: Consumer preferences and buying behavior have undergone major shifts in recent years, driven by demographic changes, digital disruption, and evolving lifestyles. Millennials and Gen Z now make up a significant portion of consumers, and they tend to value experiences over material goods, shop across channels, and expect hyper-personalization. The pandemic has also led many consumers to re-evaluate their values and priorities. There has been a rise in ethically and environmentally conscious shopping, with growing demand for sustainably produced, healthy products. Consumers increasingly expect brands to take stands on social issues. Rapid growth of e-commerce and social commerce is also changing how people research and buy products. Consumer demands and expectations have fundamentally transformed, forcing retailers and brands across categories to adapt quickly to new preferences around convenience, value, experience, and purpose. Retailers must cater to these trends through curated omnichannel experiences that reflect consumers' evolving values. Those that quickly adapt their strategies, offerings and messaging are best positioned to gain market share.
- Blurring of Retail Channels and Emergence of New Competition: Traditional retail channels and competitive landscapes are shifting dramatically with the rise of e-commerce, diversification of store formats, and emergence of non-traditional competitors. E-commerce giants like Amazon (American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence) have conditioned consumers to expect ultra-convenience, speed, choice, and value. Retailers across categories are competing to offer the most seamless omnichannel experience through options like BOPIS and curbside pickup. Physical stores remain important, but their roles are changing; stores are becoming showrooms, fulfillment centers, and experiential destinations. Meanwhile, new competitors, from direct-to-consumer brands to tech companies, are disrupting markets through innovative platforms, products, and distribution models. Social media has become a popular selling channel. Retailers must rethink their operations and partnerships to compete in this new omni-channel landscape against both existing and emerging competitors. They must blend physical and digital capabilities into a unified commerce strategy. Those that successfully adapt their business models are poised to unlock new opportunities for growth and market share.
- The consumer product and retail market is experiencing disruption and transformation driven by changing consumer preferences, advancements in technology, and shifts in the competitive landscape. Consumers demand greater convenience, personalization, and experiences. This is driving retailers to adapt their business models, integrate digital channels, and find new ways to engage shoppers. While e-commerce giants like Amazon pose a threat, many traditional retailers are fighting back through investments in omnichannel capabilities and partnerships.
- At the same time, technology is reshaping the consumer journey and enabling innovations in areas like mobile payments, augmented reality, and data analytics. Successful retailers are leveraging these technologies to improve operations, offer customized promotions, and provide seamless shopping experiences. However, keeping pace with rapid technology advancements requires major investments.
- The competitive environment is intensifying as retailers contend with digital disruptors and changing consumer expectations. To stay ahead, retailers need agile business models centered on customer value. Investments in fulfillment and supply chain efficiency are critical as consumers demand faster, more flexible delivery options. Overall, the consumer product and retail sectors are undergoing massive transformation. Market Players that adapt quickly to new consumer priorities and emerging technologies will be best positioned for growth in this evolving market.
Global Consumer Product and Retail Market Opportunities:
- Growth in Emerging Economies: Emerging economies such as China, India, and Southeast Asia are expected to emerge as new economic destinations, inviting businesses across the globe for different industrial verticals. Initiatives from stable governments across these countries ensure smooth economic development that favors a peaceful investing environment. For instance, the Government of India has launched a novel program called “Make in India”, which aims to facilitate investments in technology, resources, and scientific applications that are being commissioned to achieve this goal. The program will lead to employment generation as well as the setting up of more small and mid-sized formal enterprises supporting large corporations across different industry verticals, allowing private investments in previously.
- Rapid growth of micro, small, and medium enterprises (MSMEs): The rapid growth of micro, small, and medium enterprises (MSMEs) can provide major business opportunities in the global consumer product and retail market. According to Coherent Market Insights’ analysis, there are over 120 million operating globally with over 89 million operating in emerging economies such as India, China, and Southeast Asia. Formal MSMEs are more common in high-income economies such as the OECD (Organisation for Economic Co-operation and Development) and non-OECD groups, and the EU (European Union). Around 40% of these formal MSMEs are engaged in the FMCG (Fast Moving Consumer Goods) and consumer goods sectors. However, in low and middle-income economies, MSME density is rising at a faster pace, especially in the Middle East, Latin America and the Caribbean, South Asia and East Asia, and the Pacific. MSMEs play an important role in employment generation and the GDP (Gross Domestic Product) of an economy. They still employ more than one-third of the world’s labor force. With a focus on continuity of operations and processes, MSMEs seek low-cost PLM (product lifecycle management) solutions.
Global Consumer Product and Retail Market Trends:
- The consumer product and retail market offers exciting opportunities in the coming years, especially as consumer preferences and behaviors continue to evolve. One major area of opportunity is the growth of online shopping and direct-to-consumer brands. According to the U.S. Census Bureau, e-commerce sales accounted for 14.1% of total retail sales in the second quarter of 2022, up from 11.8% in the second quarter of 2020. This shift demonstrates consumers' increasing comfort with online shopping. Direct-to-consumer brands that sell online and ship products directly to customers are well-positioned to take advantage of this trend. For example, Allbirds, an eco-friendly footwear brand that sells direct-to-consumer, grew its revenue by 27% year-over-year in 2021, according to its IPO (Initial Public Offering) filing.
Global Consumer Product and Retail Market Restraints:
- Intense competition among key market players : The consumer product and retail market is facing intense competition, which is limiting its growth potential. Large retailers are engaged in intense price wars and promotional activities to maintain and grow market share. For example, Walmart (multinational retail corporation) and Target (American retail corporation) regularly roll out promotions, coupons, and price-matching guarantees to attract customers away from competitors. This focus on lowering prices, and spending heavily on promotions cuts into retailers' profit margins and restricts their ability to expand. Additionally, the rise of e-commerce giants like Amazon is disrupting traditional retail models. Amazon's wide selection, low prices and fast shipping have raised consumer expectations, forcing other retailers to invest heavily in their online and delivery capabilities just to keep up. However, most players lack the scale and infrastructure to compete with Amazon over the long-term. Overall, intense competition is creating an incredibly challenging operating environment for consumer retail companies. It has reduced profitability, led to bankruptcies and consolidation, and hindered the sector's growth potential. More collaboration and differentiation among key players, rather than destructive competition, may be needed going forward.
Consumer Product and Retail Market Report Coverage
||Market Size in 2023:
||US$ 21.13 Tn
|Historical Data for:
||2018 to 2021
||2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
||2030 Value Projection:
||US$ 34.44 Tn
- North America: U.S. and Canada
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, and Rest of Asia Pacific
- Middle East & Africa : Middle East and Africa
- By Sector: Footwear, Apparel, Durables (Sporting Goods and Furniture), Consumer Packaged Goods, Others
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, L’Oreal Group, Nestle S.A., IBM Corporation, Accenture plc, Atos SE, Hewlett – Packard Company, PTC, Inc., Centric Software, Dassault Systemes S.A., Autodesk, Inc. Gerber Scientific, Inc., SAP SE, and Oracle Corporation
- Fast-Changing Consumer Preferences and Buying Behavior .
- Blurring of Retail Channels and Emergence of New Competition
|Restraints & Challenges:
- Intense competition among key players
COVID -19 Impact on Global Consumer Product and Retail Market
The COVID-19 pandemic has significantly impacted the consumer product and retail market in several ways:
- Shift to Online Shopping: With lockdowns and social distancing norms in place, consumers have shifted to online shopping. Retailers with a strong online presence have benefited, while those without have struggled. This has accelerated the digital transformation in the retail sector.
- Change in Consumer Behavior: Consumers are now more focused on essential products and health-related products. There has been a decline in demand for luxury and non-essential items.
- Supply Chain Disruptions: The pandemic has caused significant disruptions in supply chains due to restrictions on movement and labor shortages. This has led to delays and increased costs for retailers.
- Increase in Contactless Payments: To minimize the risk of virus transmission, consumers are preferring contactless payments over cash. This has led to an increase in digital payments.
- Store Closures: Many physical stores, especially small businesses, have had to close down due to the decrease in foot traffic and increased operational costs amidst the pandemic.
- In conclusion, the COVID-19 pandemic has brought about significant changes in the consumer product and retail market. Retailers need to adapt to these changes and innovate to stay competitive in the post-pandemic world.
Global Consumer Product and Retail Market: Regional Insights
- Based on region, the global consumer product and retail market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
- The North America region has emerged as the dominant force in the global consumer product and retail market over the past few years. This region accounts for the highest market share and is expected to maintain its leadership position during the forecast period as well. There are several factors that contribute to North America's strong standing. Firstly, the region is home to many large multinational consumer product companies like Procter & Gamble (American multinational consumer goods corporation), Johnson & Johnson (American multinational, pharmaceutical, and medical technologies corporation), PepsiCo (American multinational food, snack, and beverage corporation), Coca-Cola (American multinational corporation) etc which have massive distribution networks and spending power for marketing and product innovation. The presence of these giants, who invest heavily in R&D, is a big plus for North America. Secondly, high disposable incomes and stable economic conditions in countries like the U.S. and Canada encourage consumer spending on goods and services. For instance, in 2021, the U.S. Census Bureau reported that the real median household income rose to US$67,521 in 2020, the highest on record. The region also has a robust retail infrastructure, ranging from brick-and-mortar stores to e-commerce platforms. Retail giants like Walmart, Costco, Target, and Amazon have enabled easy access to products for consumers. Integrated omni-channel retail strategies also provide consumers with convenience.
Figure 1. Global Consumer Product and Retail Market, By Region
Global Consumer Product and Retail Market Segmentation:
The global consumer product and retail market report is segmented into sector and region.
- Based on sector, the market is segmented into footwear, apparel, durables (sporting goods and furniture), consumer packaged goods, and others. Out of which, consumer packaged goods (CPG) segment is expected to dominate the global consumer product and retail market over the forecast period, and this is attributed to rising health consciousness among consumers. More consumers are demanding natural, organic, and safe products for themselves and their families.
- According to a 2022 survey by the International Food Information Council, 58% of consumers said they avoid artificial ingredients. Additionally, a 2021 Organic Trade Association report found that 82% of parents purchase organic food for their children. This indicates growing awareness of product ingredients and a willingness to pay more for healthy options.
Figure 2 : Global Consumer Product and Retail , By Sector
Global Consumer Product and Retail Market: Key Companies Insights
- Some of the key players in the global 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, L’Oreal Group, Nestle S.A., IBM Corporation, Accenture plc, Atos SE, Hewlett – Packard Company, PTC, Inc., Centric Software, Dassault Systemes S.A., Autodesk, Inc. Gerber Scientific, Inc., SAP SE, and Oracle Corporation.
Global Consumer Product and Retail Market: Key Developments
- In May 2023, Reliance Consumer Products Limited (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), partnered with General Mills (a U.S.-based processed food company) to launch Alan’s Bugles (General Mills’ corn chips snack brans) in India. This will help Reliance to expand its footprint in India’s FMCG market.
- In September 2021, Amazon announced the opening of Amazon Style, the company's first physical apparel store. The tech-powered store combines Amazon's strengths in data analytics and personalization to provide a customized shopping experience. This move deepens Amazon's brick-and-mortar footprint in the apparel and fashion market.
- In December 2021, Nike (American athletic footwear company) acquired RTFKT, a leading digital fashion studio that creates virtual sneakers and collectibles. The acquisition accelerates Nike's digital transformation and allows it to grow its presence in the metaverse and NFT space. This taps into younger demographics interested in digital fashion and culture.
- In May 2022, IKEA (home furnishing company) partnered with Better Meat (B2B ingredients company) to develop plant-based meatballs and other substitutes for its iconic Swedish meatballs. As consumers shift towards more plant-based diets, this will IKEA respond to changing consumer preferences and expand its sustainability efforts.
*Definition: Consumer products are goods purchased by final consumers for personal use. There are four main types of consumer products. Convenience products are inexpensive items bought frequently with little shopping effort, like food, beverages, and household items. Shopping for products requires more time and effort to purchase things like furniture, electronics, and appliances. Specialty products have unique features that consumers will make a special effort to seek out, such as luxury cars, high-end clothing, and professional photographic equipment. Unsought products are ones consumers do not think of buying until they need them, including insurance, encyclopedias, and funeral services.