Global convenience retail set to exceed US$1T by 2029

GLOBAL – The global convenience retail market is on track to surpass US$1 trillion in sales by 2029, according to the latest Global Convenience Trends Report 2025 released by market analyst IGD.

This forecast relies on a steady annual growth rate of 4.1 per cent and highlights how convenience retail continues to evolve amid growing competition and changing shopper habits.

The report identifies five key trends driving this growth: technological upgrades, a stronger focus on food, rethinking store layouts, clearer value propositions, and the need to meet higher consumer expectations.

“Convenience retail is evolving from quick transactions to smart, seamless experiences,” said Sneha Haria, insights manager at IGD. “Our report highlights key trends like digital innovation and healthier food options that will define success in 2025 and beyond.”

Shrinking market share

Despite the expected sales increase, the report notes that the convenience channel will lose a small share of the overall grocery market.

While global grocery is projected to grow by 4.2 per cent annually, convenience stores are growing slightly slower, at 4.1 per cent. This means their market share will dip from 10.7 per cent in 2024 to 10.6 per cent in 2029.

IGD attributes this shift to the faster rise of discount and online retailers. Discount chains continue to attract shoppers looking for lower prices, while online platforms are expanding their product ranges and delivery services, offering more variety than most convenience stores can manage.

Supermarkets are also adding pressure by rolling out smaller store formats that match the convenience model but carry more inventory.

Strategy and shopper expectations

To remain competitive, the report urges convenience retailers to focus on clear value, in-store experiences, and relevant promotions.

Adjusting store layouts, offering a mix of ready-to-eat and take-home meals, and bundling items into value meal deals are some of the tactics suggested.

“Retailers need to close the price perception gap with other channels and make targeted value visible across regions,” Haria said.

She added that while sustainability and health may not always be top concerns for convenience shoppers, they are becoming more important. Retailers that address these expectations can improve both sales and brand trust.

New Industry Activity

In a related development, South Africa’s Pick n Pay Group has begun testing AI-assisted checkout systems in its Express stores.

These systems allow customers to scan and pay using their mobile phones, aiming to speed up the shopping process and reduce queues. The trial is expected to expand to other regions later this year.

With global competition rising and consumer habits shifting, the next few years will likely shape the future of convenience retail. Retailers who adapt quickly will be in a better position to keep and grow their customer base.

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