Global convenience retail set to surpass $1 trillion by 2029 fuelled by in-store technology evolution

IGD has released a Global Convenience Trends Report 2025 which reveals significant changes ahead for the convenience retail sector. Sales are projected to exceed $1 trillion by 2029, driven by a compound annual growth rate (CAGR) of 4.1%.

Retailers need to embrace new convenience models, enhance store formats, and integrate digital tools, while suppliers need to adapt product strategies to emerging food trends and convenience needs. The report outlines five key global trends shaping the future of convenience retail:

Tech evolution: Convenience retailers must use technology to streamline operations, enhance the customer experience, and drive growth. Areas to look at include retail media, loyalty apps, and creating a seamless omnichannel experience.

Food mission: Convenience retailers can differentiate themselves by showcasing a range across both food-to-go and food for later propositions. They should explore different dayparts and global cuisines.

Shifting space: Convenience stores must strategically allocate space to differentiate with non-grocery categories and value-added services. Promptly adapt to new legislation by adding facilities that help shoppers adjust to changes.

Targeted value: Transaction sizes are small, making value a critical lever to drive frequency. Value is not just about price; it’s about adding interest to daily luxuries and building stronger engagement with shoppers.

Striving for better: Adopt sustainability and health initiatives to enhance brand image, improve operational efficiency, and meet consumer demand for eco-friendly and healthier products. These efforts can lead to long-term cost savings and customer loyalty.

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. Operators are expanding their smaller footprint formats.

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.”

2025 RTIH INNOVATION AWARDS

Convenience retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.