The consumer product and retail market refers to the sale of various finished goods and merchandise for personal or household consumption. It includes clothing, electronic items, furniture, toys, food and beverages, and various other consumable goods. With growing urbanization, rising disposable incomes, and changing lifestyles, the demand for consumer products is increasing rapidly across both developing and developed economies globally. E-commerce platforms are playing a pivotal role in driving product sales in this market. The availability of a wide range of products online along with Doorstep delivery and return services has made shopping more convenient for consumers.
The global consumer product and retail Market is estimated to be valued at US$ 21.01 Bn in 2023 and is expected to exhibit a CAGR of 7.2 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the growth of this market is the growing product sales through e-commerce platforms, as mentioned in the heading. Ease of shopping from anywhere using Internet-enabled devices and hassle-free payment options are propelling the adoption of online shopping. Various retailers are now investing heavily in developing robust online shopping experiences to cater to evolving consumer preferences. The growing penetration of smartphones and Internet connectivity in both urban and rural areas is also expanding the reach of e-commerce platforms.
Another factor augmenting the market growth is shifting consumer behavior and demand for customized offerings. Retailers are responding to this change by providing a wide array of differentiated premium and customized products. They are also investing in analytics tools to gain better consumer insights for personalized merchandising and marketing strategies. This is helping companies to strengthen their brand loyalty and customer engagement in an increasingly competitive retail environment.
Segment Analysis
The consumer product and retail market is dominated by the fashion and apparel segment which holds a share of around 30%. The diverse fashion trends and rising purchasing power of consumers especially in developing regions such as Asia Pacific and Latin America are driving the growth of this segment. The electronics segment is another fast growing segment in this market owing to factors like technological innovations, changed lifestyle preferences and increasing affordability of devices.
PEST Analysis
Political: Government policies supporting local manufacturing and favorable FDI regulations are aiding the growth of the consumer product and retail industry in many countries. However, rising trade tensions can negatively impact international trade and supply chains.
Economic: Rising household incomes and expansion of the middle class consumer base in emerging markets are fueling the demand for various consumer goods. However, inflationary pressures and economic uncertainties pose challenges.
Social: Evolving consumer preferences towards stylish, technologically advanced and sustainable products are shaping the offerings in this industry. Growing digital connectivity is also influencing purchase decisions.
Technological: Innovations in areas like automated manufacturing, AI, IoT and augmented/virtual reality are allowing improved customization, virtual product sampling and seamless shopping experiences.
Key Takeaways
The Global Consumer Product And Retail Market Growth is expected to witness high over the forecast period propelled by rising spending power, urbanization and evolving lifestyles. The global consumer product and retail Market is estimated to be valued at US$ 21.01 Bn in 2023 and is expected to exhibit a CAGR of 7.2 % over the forecast period 2023 to 2030.
Regional analysis
Asia Pacific accounts for around 35% share of the overall consumer product and retail industry revenue currently led by China, India and other Southeast Asian countries. China is the largest clothing and apparel market globally while India is fast emerging as a retail hub. Ease of doing business and large untapped opportunities are attracting significant investments into Asia Pacific.
Key players
Key players operating in the consumer product and retail market are IDEMIA, Iritech Inc., IrisGuard UK Ltd., BioEnable Technologies Pvt. Ltd., NEC Corporation, Aware Inc., Gemalto NV (Thales Group), Iris ID Inc., Princeton Identity Inc., HID Global, and EyeLock LLC. IDEMIA and Gemalto NV dominate the market with their comprehensive product portfolios and global footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it