According to a recent report published by Grand View Research, Inc., the global convenience stores market is projected to reach a value of USD 3.12 trillion by the year 2028. This market is expected to grow at a compound annual growth rate (CAGR) of 5.6% during the forecast period from 2022 to 2028. One of the primary factors driving this growth is the extended operating hours of convenience stores, which allow customers to easily access and purchase essential items quickly—something that is often more challenging with other retail channels.
Additionally, a significant number of convenience stores operate 24 hours a day, particularly those situated in high-traffic areas such as near gas stations or within residential neighborhoods. This round-the-clock accessibility enables consumers to obtain their daily necessities conveniently at any time, thereby further boosting market expansion. However, despite this growth, the sector is facing substantial competition from emerging retail alternatives such as vending machines, e-commerce platforms, and quick-service restaurants. These competing formats are placing pressure on the traditional convenience store model and are acting as growth inhibitors for the market.
To counter these challenges and to meet increasing consumer demands, many leading players in the convenience store market are actively pursuing strategies such as partnerships and acquisitions. These strategic moves are aimed at expanding their presence and maximizing their share in the global market.
The COVID-19 pandemic has also played a significant role in influencing the growth trajectory of the convenience store market. With global lockdowns and concerns over the spread of the virus, consumers increasingly turned to smaller retail outlets like convenience stores, which generally had smaller crowds compared to larger supermarkets. According to a survey conducted by the National Association of Convenience Stores (NACS), there was a 1.5% increase in in-store sales during the pandemic period. The temporary closure of many traditional brick-and-mortar retail establishments, as part of efforts to curb the virus’s transmission, further propelled the convenience store segment. Moreover, the average purchase size or "basket size" in these stores grew by 18.5%, reflecting an upward trend in consumer spending per visit.
In terms of product categories, the cigarettes and tobacco segment accounted for approximately 38% of the total global market revenue in 2021. The widespread availability and easy accessibility of tobacco products in convenience stores contribute significantly to this segment’s robust performance. Among all the product offerings typically found in these stores, cigarettes and tobacco items consistently register the highest demand, driving faster growth and generating substantial revenue.
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Convenience Stores Market FAQ
1. What is the projected size of the global convenience stores market by 2028?
The global convenience stores market is estimated to reach USD 3.12 trillion by 2028, growing at a compound annual growth rate (CAGR) of 5.6% from 2022 to 2028.
2. What challenges are facing the convenience stores market?
The market faces competition from:
• Vending machines, offering quick and automated product access.
• E-commerce platforms, providing online shopping convenience.
• Quick-service restaurants, competing in the foodservice segment.
3. How did the COVID-19 pandemic impact the convenience stores market?
The pandemic led to:
• Increased in-store sales by 1.5%, as reported by the National Association of Convenience Stores (NACS).
• Higher basket sizes, with an 18.5% increase, indicating more items purchased per visit.
• Shift in consumer behavior, with customers preferring smaller stores over larger supermarkets to avoid crowds.
4. Which product segment holds the largest revenue share in convenience stores?
The cigarettes and tobacco segment contributed approximately 38% to the global market revenue in 2021, driven by high demand and easy accessibility in convenience stores.
5. Which region leads the global convenience stores market?
North America accounted for over 47% of the global market share in 2021, with the United States capturing the largest share in the brick-and-mortar retail sector.
6. What is the expected growth rate of the convenience stores market in Asia Pacific?
The Asia Pacific region is projected to grow at the highest CAGR of 6.4% from 2022 to 2028, driven by rising middle-class purchasing power and the expansion of convenience stores.
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