PUBLISHER: The Business Research Company | PRODUCT CODE: 1672616
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672616
Retail sourcing and procurement encompass services utilized by organizations to assess and engage suppliers in acquiring products and services. In the retail context, procurement involves the identification and purchase of products that retailers aim to sell. The realm of retail sourcing and procurement incorporates various technologies facilitating activities such as insourcing, outsourcing, global sourcing, and strategic sourcing, ultimately streamlining supplier and contract management.
The primary types of solutions in retail sourcing and procurement are strategic sourcing, supplier management, contract management, procure-to-pay, and spend analysis. Strategic sourcing encompasses all upstream procurement activities, from spend analysis and supplier/category management to sourcing initiatives and contract management. A comprehensive strategic sourcing solution simplifies and collaborates on these complex business procedures, enhancing procurement to generate greater company value, optimize expenditure control, and manage supplier risk efficiently. The diverse services offered in this field include implementation, consulting, training, support, and employment, catering to various sectors such as small and medium enterprises (SMEs) and large enterprises.
The retail sourcing and procurement market research report is one of a series of new reports from The Business Research Company that provides retail sourcing and procurement market statistics, including retail sourcing and procurement industry global market size, regional shares, competitors with a retail sourcing and procurement market share, detailed retail sourcing and procurement market segments, market trends and opportunities, and any further data you may need to thrive in the retail sourcing and procurement industry. This retail sourcing and procurement market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The retail sourcing and procurement market size has grown rapidly in recent years. It will grow from $5.61 billion in 2024 to $6.37 billion in 2025 at a compound annual growth rate (CAGR) of 13.6%. The growth in the historic period can be attributed to increasing digitalization in the retail sector, rising automation in procurement and increased funding and investments for retail sourcing and procurement platforms.
The retail sourcing and procurement market size is expected to see rapid growth in the next few years. It will grow to $10.83 billion in 2029 at a compound annual growth rate (CAGR) of 14.2%. The growth in the forecast period can be attributed to the increasing use of cloud-based platforms, increasing adoption of blockchain in procurement and sourcing and growth in digital technologies such as automation, analytics and AI (artificial intelligence). Major trends in the forecast period include focus on localization of suppliers, focus on adoption of procurement-as-a-service (PaaS) model, focus on deploying artificial intelligence and digitization, focus on launching new, innovative products, focus on mergers and acquisitions and focus on offering sustainable procurement software solutions.
The growing trend of digitalization is anticipated to drive the expansion of the retail sourcing and procurement market in the coming years. Digitalization involves creating digital representations of physical attributes and aids the retail sourcing and procurement market by providing digital solutions. For example, in November 2023, the European Central Bank, a Germany-based central bank, reported that in the second half of 2022, the total number of non-cash payments in the European area rose by 8.8%, reaching 65.9 billion compared to the previous six months. The total value of these payments also increased by 2.8%, amounting to €118.8 trillion (approximately $128.55 trillion). Consequently, the growth of digitalization is propelling the retail sourcing and procurement market.
The rising adoption of cloud-based platforms in retail sourcing and procurement is expected to significantly drive market growth. Technology platforms are now central to the procurement industry, leading service providers to collaborate with procurement technology vendors to share their expertise in implementation and application management while incorporating these external platforms into their services. Modern cloud-based networks and platforms, such as SAP Ariba, Tradeshift, SMART by GEP, and Coupa, are becoming increasingly popular. For instance, in December 2023, Eurostat, a Luxembourg-based intergovernmental organization, revealed that 45.2% of EU enterprises utilized cloud computing services in 2023, marking a 4.2 percentage point increase from 2021. These services provide access to software, computing power, storage capacity, and more over the internet.
Retail sourcing and procurement solution providers are introducing innovative products. In September 2022, Craft, a leading supplier intelligence platform provider, announced the launch of three new product offerings - Craft Risk Hub, Craft N-Tier Mapping, and Craft Alerts - providing real-time risk assessment with objective data and advanced machine learning algorithms. Craft Risk Hub, for instance, offers supply chain and procurement experts contextualized insights on suppliers through data-driven benchmarking.
Leading companies in the retail sourcing and procurement market are concentrating on innovations such as payment automation for extracting invoice data from scanned documents. Payment automation involves leveraging technology to simplify and automate the processes of making and receiving payments. For example, in May 2024, Coupa Software Incorporated, a US-based software firm, introduced AI-driven innovations designed to improve operational efficiency and productivity for businesses. This new AI-driven platform automates accounts payable (AP) processes by digitizing invoices and assigning tax codes, which minimizes manual entry and accelerates approvals. Workflow processes are enhanced through auto-assignment, optimizing time management for teams. Improved buying experiences and supplier collaboration facilitate decision-making and increase profitability. Additionally, new AI tools provide risk-informed contract recommendations, enhancing compliance and mitigating legal risks.
In February 2022, Blume Global, an India-based provider of end-to-end supply chain visibility technology solutions, acquired Live Source. Live Source is a multi-enterprise supply chain business network for complex manufacturers. The acquisition provides current Live Source customers with access to Blume's extensive logistics execution technology and supply chain management expertise, further enhancing their capabilities.
Major companies operating in the retail sourcing and procurement market include IBM Corporation, Oracle Corporation, SAP SE, Coupa Software Incorporated, Ivalua Inc, Zycus Inc, GEP Worldwide, Epicor Software Corporation, Basware Corporation, Vroozi Inc, ET2C International, Alibaba, Supreme Group, Infiniti Research, Proactis, Accenture, GEODIS, PwC, Jumia, KPMG, Dragon Sourcing, EDS International, Blue Yonder, Protiviti, Honeywell International Inc., Bain & Company, Theodor Wille Intertrade, Boston Consulting, Cayena, Linkana, Coletar, Dukkantek, Conektr, Lawazem, EPCM Holdings
North America was the largest region in the retail sourcing and procurement market in 2024. The regions covered in the retail sourcing and procurement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the retail sourcing and procurement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The retail sourcing and procurement market includes revenues earned by entities by insourcing, outsourcing, global and strategic sourcing, direct procurement, indirect procurement, goods procurement, and services procurement. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Retail Sourcing And Procurement Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on retail sourcing and procurement market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for retail sourcing and procurement ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The retail sourcing and procurement market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.