China Overtakes U.S. in Retail Consumerism

The United States has long been known as the world’s biggest consumer nation.

But this is no longer the case. Developing countries that are very densely populated have industrialized, and they’re pushing past the U.S.

Recent information from the U.K.-based Institution of Grocery Distribution (IGD) revealed that China has surpassed the U.S., now making it the biggest retail nation in the world.

The information included daily shopping statistics from places like grocers, clothing stores, pharmacies, and warehouses, and excluded luxury and large purchases like property.

And it showed that Chinese spending in just these areas is growing 11% each year, compared with the 4% annual growth in the U.S.

In 2011, the U.S. spent $907.5 billion in retail. Chinese consumers spent roughly $963 billion.  And the gap will just keep getting wider. By 2015, IGD determined, the U.S. retail market will be worth $1.07 trillion while China’s could reach $1.45 trillion.

But China isn’t the only nation moving up in consumerism.

Brazil, India, and Russia are all on their way to pass Japan, which is currently in third place. Just like China, these economies are growing into competitive markets.

And as technology like smartphones and online shopping grows in popularity, the U.K. is changing its position too.  The 9th largest in retail shopping, the U.K.’s market is growing by 3.2% each year.

IGD information shows that it could soon pass Germany to become the nation with the highest-spending shoppers.

But with China at number one in retail, companies from the U.S. and U.K. could really stand to profit from expansion into China.  Joanne Denney-Finch, chief executive of IGD, said:

“Between 2006 and 2015, the Chinese grocery market is forecast to triple in value and to be worth nearly a trillion pounds ($1.6 trillion).”

She attributed the growth to the high population, expansion of the economy, and the inflation of food prices.