Convenience Stores Market (2022 - 2028)

Convenience Stores Market Summary

Convenience stores are gaining popularity as these stores contain each and every necessary item, benefitting customers to get the required items whenever needed in an emergency. Moreover, the market is surging due to long opening hours that provides customers with quick purchasing option of the necessary products when compared to other retail stores. The COVID-19 outbreak positively impacted the market. Convenience stores around the world have remained resilient to the pandemic, as customers visited convenience stores to avoid crowded places such as large stores or supermarkets.

A convenience store is a chain in the retail sector that offers a limited range of prepared and ready-to-eat food items, household groceries, packaged beverages, confectionery items, tobacco products, and periodicals. Convenience stores generally operate in small sizes and are open for extended hours as they operate 24/7 in some areas. These stores are often run till late at night, early in the morning, and also on holidays. Many customers rely on them for emergency purchases of products such as over-the-counter medicines, ice, milk, and eggs when regular stores are closed.

The convenience store has numerous benefits as they are mostly located in busy locations such as near railway stations or fuel stations so that customers can quickly grab their required items in a hurry which is one of the major factors for the market growth. Moreover, local corner stores are offering home deliveries by partnering with companies like Uber Eats which is again attracting consumers to demand their required items is the factor attributing to the growth of the market.

Additionally, the availability of ready-to-eat foods or prepared foods offered by corner stores is again attracting more customers to visit. Convenience stores can save much time for the customers by offering a large variety of items at the stores during their emergencies or in hurry. During the forecast period, the growing number of supermarkets that deliver goods online is likely to impede the expansion of the industry.

The COVID-19 pandemic has positively impacted the convenience store market. As per the survey by the National Association of Convenience Stores (NACS), total industry sales of in-stores have reported an increase of 1.5% during the coronavirus pandemic. Moreover, it was witnessed that the total basket size also surged by 18.5% in convenience stores. As customers were keen to reach small corner stores to avoid the supermarkets/hypermarkets. In addition, the convenience stores that offer food items and medicines during the pandemic have increased their overall sales during the coronavirus pandemic. Convenience stores typically have a smaller crowd as compared to other retail sectors which also helped them to make positive sales during the spread of disease all over the globe.

Type Insights

The cigarettes & tobacco segment dominated the market and contributed a revenue share of around 39% in 2021 and is forecast to grow at a CAGR of 5.8% from 2022 to 2028. The rising nicotine consumption across the globe is one of the primary factors driving the growth of the segment. In addition, the easy availability of tobacco products at every nearby convenience store is again accelerating the segment growth. In every country of the globe, tobacco consumption is comparatively higher than other items which are sold in convenience stores. Therefore, convenience stores are dominating in the revenue generation of the cigarettes & tobacco segment sales.

The foodservice segment is expected to witness the highest CAGR of 6.4% from 2022 to 2028. The foodservice segment is growing due to the easy availability of prepared food items in every convenience store. Moreover, the ready-to-eat food items and home delivery service offered by local convenience stores are again attributed to the growth of the foodservice segment. Convenience stores provide meals at all hours of the day so that consumers may obtain their things as soon as possible. As a result, throughout the forecast period, the foodservice segment is predicted to grow at the fastest CAGR.

Regional Insights

North America accounted for the largest market revenue share of over 47% in 2021. In the United States, the convenience stores count is considerably higher than other channels of trade which accounts for around 35% of brick-and-mortar retail stores. Moreover, the changing shopping conduct and the pandemic reformed the U.S retail sector, and the functioning of convenience stores has expanded beyond expectation. As the disease spread, customers were more likely to visit convenience stores due to less crowd as compared to supermarkets. Thus, increasing the overall sales of convenience stores in this region. Hence, the region is expected to grow at a significant CAGR during the forecast period.

Asia Pacific is forecast to register the highest CAGR of 6.4% from 2022 to 2028. The increase in purchasing power of the middle-class population in China and Vietnam is attributed to the surge in the demand for convenience stores. Additionally, Vietnam noticed the fastest growth in its convenience stores, especially in urban areas due to the lifestyle changes and consumers are living a fast-paced life. Additionally, with the development of infrastructure, the number of stores is increasing in popularity, and also the partnership agreements among the local companies are surging the overall market. Thus, the region is expected to grow at the fastest CAGR during the forecast period.

Key Companies & Market Share Insights

The market is characterized by the presence of established as well as new players. Major players operating in this market are offering various advantages such as partnership & acquisition. In October 2021, Reliance Retail announced its partnership with 7-Eleven, a giant convenience store to launch its store across India. The acquisition is made to increase its strong presence in the grocery segment. Some of the prominent players in the global convenience stores market include:

• Casey's General Stores, Inc

• Alimentation Couche-Tard Inc.

• Murphy USA Inc.

• Parkland Corporation

• 7-Eleven

• Alibaba Group Holding Limited

• Amazon.com, Inc.

• FamilyMart

• OXXO (FEMSA)

• Lawson Inc.

Convenience Store Market