Global Consumer, Food & Retail Industry Report

The global consumer, food, & retail industry is a highly dynamic, multi-trillion-dollar market with ongoing revenue growth.

The retail sector is a thriving global force, including both in-store channels and online e-commerce channels, with digitalization and emerging technologies impacting every facet of the retail landscape. More retailers are turning to omnichannel strategies, integrating online and offline sales channels to facilitate more seamless customer engagement and growth opportunities.

Food consumption continues to increase as populations grow, as well as growing disposable incomes and fast-paced lifestyles worldwide. The COVID-19 pandemic caused more consumers to opt to cook their meals at home. The impacts of increased inflation that followed have also reinforced this trend in preferences, as the cost of dining out, even at fast food chains, has surged to record price levels. Customers also prepare specific cuisines at home to recreate vacation experiences.

Consumers are also embracing more diverse grocery and food delivery models such as buy online & pick-up in-store, curbside pick-up, and direct-to-door delivery.

Market Segmentation

The consumer, food, & retail industry is segmented into various areas, including:

• Food & grocery retail (supermarkets, hypermarkets, convenience stores, online stores, and others)
• Department stores and clubs
• Health, beauty, and personal care
• Household goods, cleaning, and pet care products 
• Consumer packaged goods
• Electricals, office, leisure, and entertainment
• Beverages
• Footwear, apparel, athleisure, and durables (sporting goods and furniture)

Key Market Trends & Drivers

There are several new trends emerging in the consumer, food, & retail space.

Technology is changing how consumers interact with retail services with new innovations regarding mobile payments, AI, augmented reality, and data analytics. Companies are using these technologies to improve efficiencies, offer tailored promotions, and offer seamless shopping experiences. 

Hybrid shopping combines online with in-person shopping, forcing brands to embrace integrated omnichannel retail experiences to give all customers the options they want.

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“Food as medicine" is an emerging area that is designed to help people meet daily essential nutrient needs and play a proactive role in preventing diseases. These strategies are being adopted by consumers around the world, as well as by governments, to help support food-based nutritional programs and healthcare systems. Health insurance companies even cover some medically tailored meals or groceries for eligible patients.

Streamlined checkout experiences cater to making the process easier and faster for shoppers, and fast delivery and free returns for online shopping are also high-priority touchpoints. Frictionless delivery is being employed to get purchases to the door as quickly as possible. Retailers are also focusing on strategies to reduce cart abandonment for online shopping by minimizing friction through more concise, one-page checkout processes. This is especially important for mobile shoppers who want to quickly make purchases on their devices while on the go.

AI and personalization are being used to tailor recommendations for online shoppers while also helping retailers understand customer preferences and personalize promotions and product recommendations to them. Additionally, social commerce and the rise of livestream shopping are tapping into what’s culturally relevant to target audiences.

Athleisure continues to be one of the fastest-growing fashion trends worldwide. It is a multi-billion-dollar sector that is being driven by a global shift in consumer preferences toward more comfortable and adaptable clothing options, as well as healthier, more active lifestyles. More advanced fabrics are being used to offer temperature control and moisture management and are gaining more popularity among shoppers.

M&A

To remain competitive, retailers are looking towards agile business models that focus on customer value. Some companies need help when it comes to innovating quickly enough, so some are turning to M&A to fill gaps within their portfolios so that they do not fall behind. They are investing in fulfillment and supply chain efficiencies to provide faster, more flexible delivery options.

Overall, the market is undergoing significant transformation, so companies need M&A solutions that enable them to quickly adapt to new consumer preferences and emerging technologies. Retailers are also looking to maximize returns on their stores, consolidating and creating economies of scale through partnerships and acquisitions.

Consumer migration patterns also influence retailer M&A deals as consumers move from urban to suburban and rural areas and vice versa. Consumers are also changing retail visit habits, hunting for the most value but not the cheapest price. And, more customers are shopping online, so retailers need to find new ways to draw customers in to visit their stores by offering unique experiences.

More companies are also looking for M&A strategies to offer an advantage within trendy and niche categories, such as snacking, frozen foods, and healthier options.

Our Recent Success Stories in the Sector

Some of Benchmark International’s more recent successful deals in the consumer, food, & retail space include:

• The transaction between Grassy Handels GmbH & Co. KG/Slumbersac Trading Ltd. (trading as Schlummersack) and Impact Brands GmbH
• The sale of Ideal Frame Company, Inc. to an individual acquirer
• The acquisition of Skillets, Inc. by Rosser Capital Partners
• The deal between Gloveit, LLC and Ruscan Chem Inc.
• The transaction between Demetrius of Forty Churches, LLC, DBA Ahlers Meals, and a private investor
• The sale of A.D.A. Supplies & Leasing Services Inc. to Safety Supply Group
• The acquisition of Dragonfire Tools by Traction Capital Partners
• The deal between Espresso Parts, LLC and Diversified Food Service Supply, LLC
• The transaction between Lodging Source, LLC and Olifant Legacy
• The sale of Omni Solutions to Gurtler Industries
• The acquisition of Sunny Morning Foods, Inc. by Burris Logistics

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