IGD predicts mixed fortunes for European grocers

The European grocery retail market will add €377.6 billion in sales to reach €2,289 billion by 2022, driven by the buoyant Central and Eastern Europe markets, according to IGD. Poland, Romania and Russia are expected to enjoy strong growth to 2022, benefiting from greater liberalisation and integration with other European countries.

With Europe’s population forecast to remain steady to 2022, real growth is set to account for 23.9% of total sales uplift for the region and an uptick in consumer spend will account for much of this. Jon Wright, Head of Retail Insight, IGD, says: “After Asia, Europe is set to benefit from the biggest increase in shopper spend to 2022, however, we are predicting mixed growth for the top five grocery markets. Turkey is forecast to experience the most dynamic sales growth in Europe, with rising shopping spending driving much of real growth."

Europe’s other largest grocery retail markets, including Germany, France and the UK, will experience a slower pace of expansion. Germany will be limited by low population growth, in addition to shoppers being more cautious with their spending. Shoppers in the UK are facing higher inflation, which is eroding wage increases, and therefore creating a more cautious attitude to spending.