New research by IGD indicates that by 2014 China will have overtaken the US as the world’s largest market for groceries
Chris Farnell
Although the US is still the single largest market as of 2010, IGD predicts that economic growth in emerging markets is going to shift the balance to the rest of the world, and that this trend has been fuelled by the global financial crisis. From 2008 to 2009, economic growth in the US was seen to decelerate, while China’s economy was less affected by the credit crunch.
The International Monetary Fund’s latest World Economic Outlook, published last October, forecast a GDP Compound Annual Growth Rate of 4.07 percent for the US between 2009 and 2013. Over the same period, China would have a growth rate of 11.44 percent. China’s economy could grow nearly three times quicker than the US.
IGD credits China’s better growth to the Chinese Government’s stimulus package and sustained bank lending, which it says buoyed the economy and drove up private sector demand. At the same time, consumer spending in China is increasing and the country is seeing a significant amount of investment. The Chinese grocery market will also benefit from its fast rate of population growth.
IGD said: “Many retailers and suppliers are already gaining traction in these markets but for those who have not yet invested, it is important to start planning ahead now because the pace of growth for emerging markets will continue to outstrip that of the developed world.”
Edited by Jennifer Denby
Source: http://www.igd.com/