The global convenience stores market size is estimated to reach USD 3.12 trillion by 2028 and is expected to grow at a CAGR of 5.6% from 2022 to 2028, according to a new report by Grand View Research, Inc. The market is surging due to long opening hours which provides easy access to customers to quickly purchase their necessary products when compared to other retail channels.
In addition, many stores remain open 24/7 near busy locations such as fuel stations or near a locality, so customers can grab their required items on the go. This is again influencing the growth of the market. Also, convenience stores are getting high challenges from the development of various retail sectors such as vending machines, e-commerce, and quick-serve restaurants. Therefore, these factors are restraining the market growth. Most of the key players operating in the market are adopting the strategy of partnership & acquisition to fulfill the growing needs and capture maximum market share globally.
The COVID-19 pandemic has positively impacted the market. Due to the global lockdown and the spread of deadly disease, customers were more likely to visit small stores such as convenience stores where the crowd is comparatively less than the supermarkets. In addition, a survey from the National Association of Convenience Stores (NACS), reported that in-store sales have noticed an increase of 1.5% during the pandemic. As most of the brick-and-mortar retail stores were closed owing to restricting the virus's spread. Also, the basket size in convenience stores surged by 18.5% which reflects the positive side of the market.
The cigarettes & tobacco segment contributed to the global market revenue share of around 38% in 2021. The availability of tobacco products among all convenience stores is easily accessible which is again accelerating the segment growth. Among, every item offered by convenience stores the demand for cigarettes & tobacco is comparatively higher. Thus, cigarette & tobacco demand is growing at a high speed and contributes more to the market revenue.
North America accounted for the largest market share of more than 47% in 2021. The convenience stores in this region is expanding their business by increasing stores and quickly offering emergency products such as over-the-counter medicines, milk, ice, and others, thereby generating more revenue for the market in North America. Convenience stores in the United States captured the largest share in the brick-and-mortar retail sector, thereby increasing the revenue generation in this region. Moreover, the pandemic and changing shopping habits among customers have expanded its growth beyond expectation. Thus, it contributes to more revenue generation in North America.
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Asia Pacific is projected to grow at the highest CAGR of 6.4% from 2022 to 2028. The growing purchasing power of the middle-class population and the development of stores in this region have attributed to the growth of convenience store
Additionally, local grocery stores are partnering with convenience stores to increase their presence in this market again attributing to the growth in this region. Thus, expected to drive the market during the forecast period
The foodservice segment is likely to register the highest CAGR of 6.4% from 2022 to 2028. The increasing spending on ready-to-eat food items or prepared foods by the ongoing customers is driving the overall revenue of the segment
Moreover, the home delivery service by local convenience stores is again attracting more customers to purchase food items from the stores. Thus, foodservice segment is expected to grow at the highest CAGR during the forecast period
Grand View Research has segmented the global convenience stores market based on type, and region:
Convenience Stores Type Outlook (Revenue, USD Billion, 2017 - 2028)
Cigarettes & Tobacco
Low Alcoholic Beverages
Convenience Stores Regional Outlook (Revenue, USD Billion, 2017 - 2028)
Central & South America
Middle East & Africa
List of Key Players of the Convenience Stores Market
Casey's General Stores, Inc
Alimentation Couche-Tard Inc.
Murphy USA Inc.
Alibaba Group Holding Limited
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