The global convenience retail market is forecast to exceed USD $1 trillion in sales by 2029, according to IGD’s Global Convenience Trends Report 2025.
The sector is expected to grow at a compound annual rate of 4.1 per cent, slightly trailing the wider grocery market’s projected 4.2 per cent annual growth.
Despite being the third-largest modern trade channel, convenience retail is projected to lose market share over the next five years, from 10.7 per cent in 2024 to 10.6 per cent by 2029, due to faster growth in online and discount channels.
The report identifies five trends shaping the sector: Tech Evolution, Food Mission, Shifting Space, Targeted Value, and Striving for Better. These trends reflect a shift towards technology adoption, changing food offerings, more strategic use of space, targeted promotions, and a stronger focus on sustainability and health.
Sneha Haria, Insights Manager at IGD, said convenience retail is evolving from quick transactions to smart, seamless experiences.
“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. Retailers need to close the price perception gap with other channels and make targeted value visible across regions. Sustainability and health are emerging trends globally, even though they are not typically front of mind for convenience shoppers.”
Retailers are encouraged to improve store formats, leverage digital tools, and focus on both food-to-go and food-for-later ranges to remain competitive. Suppliers are advised to align product strategies with emerging consumer needs, particularly around health and convenience.
Key recommendations for retailers include adopting loyalty apps and retail media to personalise engagement, adjusting layouts to accommodate new services or legislation, and enhancing meal deals to boost basket sizes.
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