Discounters lead global grocery sector growth as Aldi, Lidl et al tap emerging retail technologies

Discount will remain the fastest growing physical grocery channel globally through to 2030, with its CAGR almost 1% higher than the wider market’s 4%, according to new research from IGD.

This shows that the discount channel’s 4.8% growth will be driven by shoppers’ demand for value, rapid store expansion, and increasing momentum from product and operational innovations.

Dan Butler, Insight Partner at IGD, comments: “Once seen as low cost outliers, discounters are now at the cutting edge of retail: innovating at pace and operating tech enabled, health forward, sustainability driven stores. With the stigma of discount shopping fading, the channel enters the next phase of economic recovery with a stronger brand image and greater resilience to shifts in shopper spending power.”

By 2030, the channel will represent 9.7% of global grocery sales, adding $209 billion in new revenue, according to IGD. Europe will remain the heartland of discount retail with 23.6% grocery retail market share, but growth hotspots include the US, Russia, and Poland, where discounters will gain both share and scale at pace.

IGD expects the global grocery retail landscape will continue to shift with the expansion of major players, such as Lidl and Aldi - the largest global discounters - who are projected to generate a combined $334 billion in sales by 2030. The growth of both giants will be driven by major private label investment, the expansion of Aldi Süd in the US, and Lidl’s data driven pricing and loyalty ecosystem in Europe.

Variety discounters, such as Action in Europe and Dollar Tree in the US and Canada, will grow even faster than food focused discount formats, with a 6.3% CAGR to 2030. This will be driven by non‑food value, impulse purchasing, and rising private label penetration, IGD claims.

The report also highlights several emerging technologies - such as smart carts and AI agents - which IGD believes will help discounters progress even further. New and evolving technologies can benefit all retailers, but it expects discounters will innovate faster than competitors due to lean assortments, private label control, and tight operating models.

Suppliers

Butler says the research signals both challenge and opportunity for suppliers.

“Discounters want partners who can match their pace. Suppliers must work more closely with discounters than ever before and actively support their growth by collaborating on efficient supply chains, insight led innovation, and value focused product development,” he comments.

2026 RTIH Innovation Awards

Emerging technologies will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.