T. Ozbun
Research expert covering food retail and all food topics for Italy and Brazil
Food retail in Italy - statistics & facts
In the face of current rising price, the food retail sector in Italy finds itself in the midst of a dynamic shake-up. Superstores and supermarkets traditionally dominate the market share in the food retail sector. However, the tides are shifting as discount stores experience a surge in their market share. Faced with financial constraints due to inflation, customers are increasingly turning to these formats to save on grocery expenses. As prices rise, the evolving dynamics of this industry are reshaping the preferences of cost-conscious consumers, prompting them to seek more affordable options.
The food retail industry in Italy encompasses a wide range of formats: grocery stores, hypermarkets, supermarkets, discount stores, and convenience stores. In 2022, the total turnover of the food retail industry in Italy reached about 170 billion euros, making it one of the most important sectors in the country's economy. Major food and grocery retailers include Conad, with the highest market share, Selex, and Coop Italia. Other leading food retailers were Esselunga, Gruppo VéGé, and Eurospin, all of which are supermarkets or discount grocery chains.
Organic food retail
Retail sales of organic food have seen steady growth in Italy since 2011. In 2021, organic food sales in the country generated about 3.9 billion euros, more than doubling in a decade; supermarkets alone generated sales of nearly 2.3 billion euros. The value of retail sales of organic products per capita doubled over the same period, from 28 euros per capita spent in 2011 to just less than 70 in 2021. Fruit was the most sought-after category, accounting for more than a quarter of total organic food spending, followed by milk and dairy products and vegetables.Inflation and private label
While in September of 2021 only half of Italian consumers expected food prices to rise, by mid-2022 this share had exceeded 80 percent, settling back down to around 70 percent towards the end of 2023. A common change in spending behavior in times such as these, in order to save on groceries, is to switch to cheaper alternatives. This not only includes turning to discount stores, but also transitioning to private labels. These products offer a low-cost but often similar quality alternative to other brands and, similarly to discounters, have the potential to witness a surge in their sales. Private label sales revenues in grocery retail in Italy have, in fact, had a constant growth since 2011, reaching just under 13 billion euros in 2022. With a parallel growth trajectory, their market share could approach nearly a quarter of all food retail sales within the next decade.
