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I need a market size analysis for the convenience store market in the US (exclude fuel and cigarettes; include food products, snacks, beverages incl. beer, spirits and wine). Please include growth rate & revenue in USD.
Hello! Thanks for your question about the convenience store market in the United States. I understand you want the revenue in dollars and the growth rate as well, with fuel and cigarettes excluded from the computation.
The short version is that, in 2015, convenience stores in the United States generated in-store sales of $225.8 billion and fuel sales of $349 billion. Sales of cigarettes and other tobacco products accounted for 35.9% of in-store sales.
In effect, in-store sales less tobacco product sales in 2015 was $144.74 billion. This amount is expected to grow at a CAGR of 8.3% in the coming years.
Below you will find further details on this.
METHODOLOGY
I based my answers on data provided by the National Association of Convenience Stores (NACS). NACS has its annual NACS State of the Industry Report, which is "the industry's premier benchmarking tool and the most comprehensive collection of firm-level, store-level and category data and trends based on the industry's annual performance."
Though the industry report is behind a paywall, I was able to get the necessary data from CSP Magazine and NAC's news archive and press releases.
IN-STORE SALES AND FUEL SALES
CSP Magazine, in its May 2016 special issue, presented the preliminary overview data from NACS State of the Industry Summit 2016. Among the data presented were the following yearly in-store sales and fuel sales of U.S. convenience stores from 2010 to 2015.
In-store sales
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2010 - $190.4 billion
2011 - $195.0 billion
2012 - $199.3 billion
2013 - $204.0 billion
2014 - $213.5 billion
2015 - $225.8 billion
Fuel sales
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2010 - $385.2 billion
2011 - $486.9 billion
2012 - $501.0 billlion
2013 - $491.5 billion
2014 - $482.6 billion
2015 - $349 billion
BREAKDOWN OF IN-STORE SALES
According to an April 2016 NACS press release, the breakdown of in-store sales of U.S. convenience stores in 2015 is as follows.
Tobacco (cigarettes and other tobacco products) - 35.9%
Foodservice (prepared and commissary food; hot, cold and dispensed beverages) - 20.8%
Packaged beverages (carbonated soft drinks, energy drinks, sports drinks, juices, water and teas) - 15.1%
Center of the store (candy; sweet, salty and alternative snacks) - 10.7%
Beer - 7.2%
Other - 10.3%
In 2014, in-store sales was broken down into the following categories, according to an April 2015 NACS news release.
Tobacco - 37.4%
Foodservice - 19.0%
Packaged beverages - 15.4%
Center of the store - 10.6%
Beer - 7.7%
Other - 9.9%
MARKET SIZE
Since sales of cigarettes and other tobacco products accounted for 35.9% of the total in-store sales in 2015, the market you are concerned with is therefore just $144.74 billion or 64.1% of $225.8 billion.
In 2014, the market size was $133.65 billion or 62.6% of $213.5 billion.
GROWTH RATE
CAGR for years beyond 2015 is not publicly available, but to give you an idea of how the market will grow in the succeeding years, I computed the year-on-year growth of the 2015 in-store sales (less tobacco sales) mentioned above. I found it to be 8.3% or:
(($144.74 billion-$133.65 billion)/$133.65 billion) x 100
For comparison, the global convenience store market is expected to grow too at a CAGR of 8.3% between 2013 and 2018. This is based on Page 3 of PwC's report on the global retail sector.
My colleague found an IBIS World market research report stating that the annual growth of the U.S. convenience store market between 2011 and 2016 was 1.0%. Though the report was published just last June 2016, the values provided in the report do not appear reliable. The total market revenue declared in the report is only $27 billion, which is a far cry from the $225.8 billion in-store sales reported by NACS.
CONCLUSION
In summary, the market you are interested in had a revenue of $144.74 billion in 2015. This revenue is projected to grow at a CAGR of 8.3% in the next few years.
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