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The convenience stores market size is forecast to increase by USD 930 billion, at a CAGR of 6.78% between 2023 and 2028. The expansion of the market is driven by a variety of interconnected factors that are shaping consumer behavior and industry trends. One significant factor is the increasing demand for convenient food products, as modern consumers seek quick, easy-to-prepare meal options due to their busy lifestyles. This trend is closely tied to the effects of rapid urbanization, which is leading to more hectic schedules and a higher need for convenient food solutions. Additionally, rising consumer spending is fueling market growth, as individuals are willing to invest more in food products that offer convenience and quality. Promotions and marketing strategies also play a crucial role in market dynamics. Volume discounts and seasonal sales are effective tools that attract consumers and boost sales. Collectively, these factors growing demand for convenience, urbanization, increased consumer spending, and strategic promotions drive market growth and shape the competitive landscape of the food industry. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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Convenience stores have become an integral part of urban life, catering to the needs of populations in metropolitan areas with increased population density. The convenience retail market has witnessed significant growth due to increased retail investments and the franchising concept. These retail establishments offer a wide range of staple products, impulse products, and emergency products, making them important venues for consumers in congested urban areas. Kiosks and mini convenience stores have emerged as popular formats, providing easy access to essentials like household groceries, home consumables, and packaged beverages. Traditional convenience stores have expanded their offerings to include expanded convenience stores and hyper convenience stores, offering a more comprehensive range of services, including foodservice segment and home deliveries. The retail business in convenience stores is driven by the demand for necessities, with impulse purchases and emergency products contributing significantly to sales. The convenience store market is expected to continue its growth trajectory, as urbanization and changing consumer preferences prioritize convenience and accessibility.
The growing demand for convenient food products is notably driving the market growth. Convenient food products are a type of processed, ready-to-eat food that only needs a little bit of preparation before eating. The food is partially cooked. The preference for convenient food products like processed meat and poultry products is rising in comparison to home-cooked food due to the increase in working women and their hectic work schedules. This has resulted in a decline in the use of the traditional cooking method and a shift in consumer preference toward convenient food options and eating outside (fast food restaurants and takeout restaurants).
Furthermore, the increasing number of working women has led to financial independence and increased disposable incomes. This, in turn, has increased the demand for convenient food products, as these products are easy to cook and consume less time. Additionally, working women can have increased leisure time with the use of ready-to-eat food products. Hence, these factors are expected to increase the demand for convenient meat and poultry products, which will fuel the growth of the global convenience stores market during the forecast period.
The increasing demand for private-label brands is a key trend in the market. In 2023, private-label grocery and apparel products show significant growth globally. Although a limited number of retailers dominate the retail industry, these retailers have a robust and growing private-label product line. Popular private groceries, such as soft drinks, frozen and refrigerated foods, alcohol, snacks, confectionery items, meat, dairy, and sausages, have raised the demand.
Additionally, private-label brands provide most of these products at low prices, which shows rising demand for private-label products from retail outlets. The growing demand for private-label brands is driving the growth of discount convenience stores that provide premium products at reasonable prices. Hence, the increasing preference for private-label brands is expected to provide growth opportunities for discount convenience stores, thus contributing to convenience stores market growth during the forecast period.
The changing buying behavior due to increasing online retailing and e-commerce is challenging convenience stores market growth. The Internet retail industry's expansion has been aided by ongoing technological advancements and shifting consumer purchasing patterns. Customers who are tech-savvy want more options for shopping; Consequently, they select online or e-commerce websites that offer personalized and interactive shopping experiences in addition to simple delivery and payment options. The widespread use of smartphones and the Internet has made it easier to shop online and made it possible for online retailers to reach more people in both urban and rural areas.
Moreover, the increasing purchasing power of millennials is driving the sales of goods and products from the online retail format. Certain services offered by e-commerce players include secure transactions, cash-on-delivery options, convenient return policies, 24-hour accessibility, and a wide variety of brands to compare and choose from. The growing customer tendency for online retail shopping, given its convenience, has drastically hindered the sales and revenue of convenience stores. Thus, the global convenience stores market is expected to be adversely affected during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the convenience stores market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the convenience stores market.
EG Group - The company offers convenience stores under the brand names Cumberland Farms, Certified Oil, Fastrac and Kwik Shop.
The Convenience Stores market research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The independent retailer segment is estimated to witness significant growth during the forecast period. An independent retailer is a business that sells goods made by other companies and is privately owned by one or in partnership. There are two types of independent retailers, large and small. Smaller independent retailers majorly focus on a certain type of product that larger retailers do not carry such as vinyl records or photography supplies. Larger independent retailers maintain a wider range of products but provide a space for smaller brands and products to have space to sell similar to a boutique.
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The independent retailer segment was the largest segment and was valued at USD 1,105.40 billion in 2018. The rising demand for convenience store food products among consumers is driving segment growth. Moreover, increasing penetration of e-commerce platforms for the distribution of convenience products will drive the growth of the convenience stores market during the forecast period.
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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. The retail and financial sectors are to blame for the expansion of convenience stores across North America. The United States has the most convenience stores, followed by Canada. Investments in interactive kiosks are being driven by US retailers' increasing emphasis on customer satisfaction and redefinition. The market is also being driven by the demand in the region for self-checkout terminals of the first generation. Moreover, the vendors in the United States and Canada are placing a growing emphasis on omnichannel retail, with convenience stores focusing on a strong offline and online presence in these countries. Due to the rapid spread of the Internet and the growing popularity of e-commerce, the demand for convenience store goods, particularly food and personal care items, among individual and student consumers in the United States is anticipated to slightly slow down during the forecast period.
The Convenience Stores market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Convenience stores have become an integral part of modern life, particularly in metropolitan areas where increased population density requires quick access to essential items. The market for convenience stores has seen significant growth due to increased retail investments and the franchising concept. These retail establishments cater to the needs of consumers in congested venues, offering important items such as home consumables, packaged beverages, confectionery items, tobacco products, periodicals, and even fresh produce. Emergency purchases, such as ice, milk, eggs, and cigarettes and tobacco segment, are a major draw for convenience stores. Traditional stores have had to adapt to the changing market, offering time-saving services like home delivery and prepared foods. The convenience store market also caters to the growing middle-class population's everyday needs, providing low-alcoholic beverages, foodservice, and center store items. Real estate costs in urban areas have driven many limited selection convenience stores to operate in small, local corner stores.
Further, digital transformation has also played a role, with mobile payment options and self-checkout systems becoming increasingly common. Holidays and railway stations are also popular locations for convenience stores, providing essential services to travelers. Fuel stations are another significant market for convenience stores, offering a one-stop shop for fuel, snacks, and beverages. In conclusion, the convenience store market is a thriving industry that caters to the time-pressed consumer in metropolitan areas. Offering a wide range of essential items, from fresh produce to prepared foods and tobacco products, convenience stores have become an essential part of modern life. With the growing trend towards digital transformation and time-saving services, the future of convenience stores looks bright.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 930 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.24 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alimentation Couche Tard Inc., Amazon.com Inc., BP Plc, Caseys General Stores Inc., EG Group, Heineken NV, ITOCHU Corp., Krause Group, Kwik Trip, Magnit, Mitsubishi Corp., Murphy USA Inc., Parkland Fuel Corp., PT Sumber Alfaria Trijaya Tbk, PT. Indomarco Prismatama, Retail Group N.V., Royal Farms, Sheetz Inc., and Walmart Inc. |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this Convenience Stores market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Ownership
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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