Retail Sourcing and Procurement Market Size, Share, and Growth Analysis, By Solution (Strategic Sourcing, Supplier Management), By Service (Implementation, Training and Support), By Deployment Type, By User Type, By Region - Industry Forecast 2025-2032

Global Retail Sourcing and Procurement Market size was valued at USD 5.6 billion in 2023 and is poised to grow from USD 6.51 billion in 2024 to USD 21.8 billion by 2032, growing at a CAGR of 16.3% during the forecast period (2025-2032).

The retail sourcing and procurement market is set to experience robust growth driven by the rising global adoption of advanced technological solutions. Innovations in the Internet of Things (IoT), cloud computing, big data, and blockchain technology are enhancing operational efficiency, transparency, and traceability in supply chains. As retailers increasingly focus on localization and sustainable procurement, the shift towards digitalization is becoming a crucial growth catalyst. Notable trends include the adoption of procurement-as-a-service (PaaS) models and increased deployment of artificial intelligence. Recent developments, such as Costa Coffee's partnership with GEP SOFTWARE for automated procurement and Coupa Software's AI-driven innovations, highlight the evolving landscape. These advancements are pushing retailers to enhance their agility, resilience, and competitiveness in an increasingly technology-driven environment.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Retail Sourcing And Procurement market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Retail Sourcing And Procurement Market Segments Analysis

Global Retail Sourcing and Procurement Market is segmented by Solution, Service, Deployment Type, User Type and region. Based on Solution, the market is segmented into Strategic Sourcing, Supplier Management, Contract Management, Procure-To-Pay and Spend Analysis. Based on Service, the market is segmented into Implementation, Training and Support and Consulting. Based on Deployment Type, the market is segmented into Cloud and On-Premises. Based on User Type, the market is segmented into Small and Medium-Sized Enterprise and Large Enterprise. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Retail Sourcing And Procurement Market

The surge in digitalization is anticipated to significantly boost the growth of the global retail sourcing and procurement market in the coming years. Digitalization involves transforming physical attributes into digital formats, enhancing operational efficiency. For example, data from the European Central Bank highlights that non-cash payments in Europe rose by 8.8% to reach 65.9 billion in the latter half of 2022, compared to the prior six months. This notable trend underscores how increasing digital transactions and innovations are propelling the advancement of retail sourcing and procurement, ultimately driving market expansion and enhancing overall business processes.

Restraints in the Global Retail Sourcing And Procurement Market

The Global Retail Sourcing and Procurement market is hindered by mounting concerns regarding data security and the necessity for regulatory compliance, particularly with the rise of digital procurement solutions. Retailers are increasingly challenged to adhere to rigorous regulations, including the General Data Protection Regulation (GDPR) in Europe and various other regional compliance mandates, which impose strict policies for data protection. As companies strive to modernize their procurement processes, the need to navigate these complexities while ensuring the safeguarding of sensitive information may limit their ability to fully embrace digital solutions, thereby creating a significant restraint within the market.

Market Trends of the Global Retail Sourcing And Procurement Market

In the Global Retail Sourcing and Procurement market, a significant trend is the increasing adoption of artificial intelligence-driven innovations, particularly in payment automation. Major industry players are investing in technologies that enhance operational efficiency by streamlining invoice processing through advanced data extraction from scanned documents. This shift not only accelerates payment cycles but also minimizes human error and reduces operational costs. As retailers seek to optimize their procurement processes amidst growing competition, the integration of AI tools is becoming essential for driving productivity, improving supplier relationships, and ensuring real-time financial visibility, positioning companies for successful and agile sourcing strategies in a dynamic marketplace.