The queen of retail you may not have noticed
When we think of retail chains, the first association is often shelves filled with various food products. However, what frequently flies under the radar is the massive portion of the market made up by the non-food category. From domestic essentials and cosmetics to textiles and electronics, non-food products are omnipresent and crucial for the success of any retail store.
What are non-food products?
Non-food products cover a wide range of items that are not intended for consumption but are essential for daily life. This category includes everything from detergents, cleaning products, cosmetics, cookware, domestic goods, textiles, electronics, small domestic appliances, toys, and tools, to various seasonal items like Christmas decorations or gardening equipment.
Retail chains rely on a rich selection of non-food products to attract customers and increase sales, and effective distribution of these products is key to maintaining stock levels and customer satisfaction.
Check out the difference between Non-Food 1 (N1) and Non-Food 2 (N2) here.
Global growth and revenue
According to the latest data from Expert Market Research, the global retail market generated over $23 trillion in 2023, with an expected growth rate of 5.8% from 2024 to 2032. These figures indicate significant purchasing power and healthy growth in the coming years. A large portion of these revenues is generated by retail chains offering a mix of goods, including both food and non-food sectors. Statista reports that the food sector currently accounts for over 60% of the global retail market, while the non-food sector makes up the remaining 40%.
In the non-food sector, there has been significant growth in recent years, especially driven by the popularity of e-commerce and advanced technologies supporting the development and sales of these products. According to Statista's estimates, between 2021 and 2026, electronic devices within the global retail industry are expected to experience one of the highest growths, with an annual growth rate of over 8%.
These data highlight the growth of the non-food sector, which is becoming a key category for the success of retail chains.
Non-food sector as a driver of competitiveness and market adaptation
The non-food product category is a vital part of everyday consumption, making it one of the key sectors in the offering of retail chains. Distribution processes in this sector are crucial to ensuring product availability, and success depends on an efficient distribution network and processes. Kenty Adria stands out as one of the leaders in the distribution of non-food products in the Adria region, focusing on strategic planning, trend monitoring, and investment in innovative technologies. Our expertise and professional approach are confirmed by renowned global brands with whom we work closely to connect them successfully with our clients. Through continuous improvement and market adaptation, we build trust and provide exceptional support.
With the growing market demands and complex logistical challenges, distributors have the opportunity to develop innovative solutions that will enable long-term growth and adaptation to changes. For all market participants, from manufacturers to retailers, understanding the dynamics and potential of the non-food sector is crucial for success and adapting to future trends.
