The global convenience retail market is set to surpass US$1 trillion by 2029, according to IGD’s latest Global Convenience Trends Report 2025, but growth is expected to trail behind other fast-expanding channels, posing new challenges for retailers.
The sector is forecast to grow at a compound annual growth rate (CAGR) of 4.1% over the next five years. While this reflects strong momentum, it falls slightly short of the 4.2% projected growth for the overall global grocery market.
As a result, convenience retail’s market share is expected to dip from 10.7% in 2024 to 10.6% by 2029.
Despite its position as the third-largest modern trade channel, convenience is losing ground to rising competition from discounters, online platforms, and even supermarkets expanding into smaller-format stores.
IGD highlights five key trends set to shape the sector’s evolution: tech evolution, food mission, shifting space, targeted value, and striving for better. Together, these will demand a strategic rethink from retailers and suppliers alike.
“Retailers need to adopt 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 stated.
Discount grocers are luring budget-conscious shoppers with low prices, while online retailers continue to attract consumers with broad ranges and ease of access.
Even supermarkets are becoming more of a threat as they roll out compact store formats that encroach on convenience store territory.
To stay relevant, convenience retailers must focus on elevating the in-store experience, optimising space, and offering compelling value-led promotions, IGD noted.
Differentiation through foodservice offerings, bundled meal deals, and curated ranges could help drive basket size and customer loyalty.
Sustainability and health are also emerging as increasingly important themes. “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.
“While the sector uses its proximity and adaptability to meet consumer trends, it must address costs and competition challenges.”
She added that closing the “price perception gap” with other channels and making value more visible across regions will be essential.
“Sustainability and health are emerging trends globally, even though they are not typically front of mind for convenience shoppers,” Haria said.
To drive growth and increase spend per visit, IGD recommends showcasing food-to-go and food-for-later propositions, introducing food counters, and offering differentiated cuisines and meal solutions tailored to busy lifestyles.
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