Retail Grocery Volume Trends in Europe: A Look into the Future
According to a recent report by McKinsey & Company titled The State of Grocery Retail Europe 2025, retail grocery volume is projected to experience modest growth in Northern and Southern Europe, while declining in Central and Eastern regions by 2030.
Insights from the Report
In 2025, McKinsey conducted a survey involving approximately 14,500 consumers across 13 European countries. The findings revealed that there is a growing trend among younger consumers, with 42% of Gen Z and 37% of Millennials purchasing ready-to-eat meals at least once a week.
Interestingly, the report also highlighted a shift in consumer behavior towards environmentally sustainable grocery products. Despite the increasing focus on sustainability, respondents across all age groups indicated a decreased intention to purchase locally sourced and socially responsible products in 2025 compared to the previous year.
Consolidation and M&A Activity
One of the key drivers identified in the McKinsey report is the desire for consolidation and scale among retail grocers. This has led to a rise in merger and acquisition deals within the industry since 2021. The pursuit of consolidation is seen as a strategic move to enhance competitiveness and efficiency in the evolving grocery retail landscape.
As the grocery retail sector continues to undergo transformation, with shifting consumer preferences and market dynamics, retailers are increasingly focusing on strategies that will enable them to adapt and thrive in the changing environment.
Stay tuned for further updates on the state of grocery retail in Europe as we monitor the latest trends and developments shaping the industry.