Non-food sales boost European grocery growth

Sales of food and non-food products are currently worth €909bn and predicted to rise to €1,030bn by 2009 and reach €1,063bn by 2010.

Mintel tips Hungary and the Czech Republic as the fastest-growing markets with sales in the former forecast to triple and double in the latter in the 10-year period to 2010.

“For a market which targets the low growth food sector, food retailers achieve impressive rates of sales progress, though this is mostly because of the development of non-food sales,” said Richard Perks, director of retail research. “Even though food retailing around Europe varies considerably from country to country – from the hypermarkets of France through the hard discounters of Germany to the small supermarkets of Austria – each country is seeing a trend towards larger stores. It is these outlets that are building up their sales of non-foods and the more larger stores they are able to open, the faster their growth will be.”

France has the largest food retailing market, worth an estimated €190bn in 2005, followed by the UK (€156bn) and Germany (€140bn). Italy and Spain make up the remaining top five.

Carrefour is hanging on as Europe’s largest food retailer but Tesco is closing the gap fast, reports Mintel.