From tech-driven innovation to sustainability, the industry has evolved to meet modern consumer demands, and its projected CAGR is 4.1 percent.
The IGD Global Convenience Trends Report 2025 revealed significant changes ahead for the convenience retail sector. Sales are projected to exceed USD 1 trillion by 2029.
This growth is fuelled by five key trends: Tech Evolution, Food Mission, Shifting Space, Targeted Value and Striving for Better.
- Tech Evolution: New stores leverage technology to adapt to and meet changing shopper behaviours.
- Food Mission: Convenience now includes dine-in options, on-the-go snacking, food for later, and drinks.
- Shifting Space: Efficient space reallocation boosts revenue and enhances the customer experience.
- Targeted Value: Promotions and loyalty programs are evolving to be personalised and targeted.
- Striving for Better: Sustainability and health initiatives are becoming crucial for meeting consumer demands.
The convenience channel will remain the third-largest modern trade channel over the next five years, but will face intense competition. While the global grocery market is projected to grow annually by 4.2 percent, the convenience channel’s growth is slightly behind, at 4.1 percent. This means the convenience channel will lose market share, from 10.7 percent in 2024 to 10.6 percent in 2029.
This share loss is mainly due to the faster growth of minor, but rapidly expanding, channels: discount and online. Discount retailers will attract budget-conscious shoppers, while online retailers will offer a wide range that convenience stores struggle to match.
Despite their slower growth, supermarkets have also become a greater threat to convenience stores. Operators are expanding their smaller footprint formats.
Retailers must differentiate through enhanced in-store experiences, strategic space allocation, and value-driven promotions to stay competitive. Sustainability and health initiatives are also crucial for meeting consumer demands and enhancing brand image.
“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,” said Sneha Haria, Insights Manager.
“Retailers must 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 at the front of mind for convenience shoppers.”
What retailers can do to gain a stand out:
- Tech Evolution: Convenience retailers must use technology to streamline operations, enhance the customer experience, and drive growth. Areas to look at include retail media, loyalty apps, and creating a seamless omnichannel experience.
- Food Mission: Convenience retailers can differentiate themselves by showcasing a range of food-to-go and food-for-later propositions. They should also explore different dayparts and global cuisines.
- Shifting Space: Convenience stores must strategically allocate space to differentiate from nongrocery categories and value-added services. They must also promptly adapt to new legislation by adding facilities that help shoppers adjust to changes.
- Targeted Value: Transaction sizes are small, making value a critical lever to drive frequency. Value is not just about price; it’s about adding interest to daily luxuries and building stronger customer engagement.
- Striving for Better: Adopt sustainability and health initiatives to enhance brand image, improve operational efficiency, and meet consumer demand for eco-friendly and healthier products. These efforts can lead to long-term cost savings and customer loyalty.
Retailers can stay competitive but must enhance the in-store experience and showcase food-to-go and food-for-later propositions. By exploring new ways to stand out with food counters, differentiated ranges and cuisines, and bundling products as part of meal deals, these enhancements will help increase spend per trip and provide greater value to shoppers.
Explore the c-store here
