ComCap’s Grocery Tech Report H2 2022 – Draft

We are pleased to present our views on the Grocery Tech landscape, and note key trends in the adoption of new technologies by grocery retailers to drive efficiencies and profitability.

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Grocery Tech players continue to serve a large ~$11.3TN global food and grocery retail market. The Grocery Tech players have been instrumental in accelerating automation and digitization trends for grocery retailers across the supply chain during the pandemic.

Despite supply chain challenges and macroeconomic headwinds, Grocery Tech players are forecasted to continue growing at an average 27.0% ‘23/’20 CAGR.

We expect investments in and partnerships with Grocery Tech players to remain a key strategic priority for Grocery retailers in H2’22 and 2023 as industry-wide adoption of technology continues to drive profitability and efficiencies for Grocery retailers.

Grocery sector key trends:

  • Grocery Tech players serve an ~$11.3TN global food and grocery retail market with a $15TN+ opportunity by 2028. Over the past 24 months, industry wide adoption of e-commerce within the grocery industry has continued to scale and mature, as the sector continues to battle key shifts in consumer behavior and global supply chain issues
  • Accelerated investment in fulfillment: To expand fulfillment capabilities grocers are partnering with micro-fulfillment center (MFC) technology players, and working with large tech players to introduce artificial intelligence in replenishment and commerce
  • M&A and private placement volumes remain strong: M&A markets remained strong during H1’22, recording 38 grocery notable deals (+15% higher than H1’21), of which grocery delivery and e-commerce market sub-sector had the majority of deals. Total number of investments in the grocery delivery & e-commerce sector increased by 16%

ComCap will publish the final report during the Groceryshop 2022 conference.