Retail Sourcing and Procurement Market
Report ID: SQMIG45A2512
Report ID: SQMIG45A2512
[email protected]
USA +1 351-333-4748
Report ID:
SQMIG45A2512 |
Region:
Global |
Published Date: March, 2025
Pages:
198
|Tables:
84
|Figures:
70
Global Retail Sourcing and Procurement Market size was valued at USD 6.51 Billion in 2024 and is poised to grow from USD 7.57 Billion in 2025 to USD 25.35 Billion by 2033, growing at a CAGR of 16.3% during the forecast period (2026–2033).
Globally increasing adoption of the solutions by various retail businesses is anticipated to be the growth factor of the industry over the forecast period. Moreover, the emergence of the Internet of Things (IoT), cloud technology, and big data is the key factor in boosting the implementation of the solutions within businesses.
Additionally, blockchain technology is being explored for its potential to enhance transparency and traceability in supply chains, reducing the risk of fraud and ensuring the ethical sourcing of goods. These technological advancements are transforming retail sourcing and procurement, allowing retailers to build more resilient and efficient supply chains. Technological advancements are playing a pivotal role in enhancing retail sourcing and procurement, making these processes more efficient, transparent, and data-driven. Key trends expected during the forecast period include a focus on the localization of suppliers, an emphasis on adopting the procurement-as-a-service (PaaS) model, a concentration on deploying artificial intelligence and digitization, efforts towards launching new and innovative products, a focus on mergers and acquisitions, and a commitment to offering sustainable procurement software solutions.
The anticipated growth of the retail sourcing and procurement market is being propelled by the increasing trend of digitalization. Consequently, the growing digitization is a key driver behind the expansion of the retail sourcing and procurement market. A major driving force in the retail sourcing and procurement market is the increasing utilization of cloud-based platforms. Procurement industry dynamics are now dominated by technology platforms, with service providers forming partnerships with procurement technology vendors to integrate their knowledge and approaches into their offerings.
Market Key Attributes
In August 2024, Costa Coffee announced that it would leverage the GEP SOFTWARE procurement platform to automate its procurement process for the company’s global direct and indirect spending. The GEP SOFTWARE offers AI-enabled digital procurement and supply chain platforms to enable global enterprises to become more resilient, agile, competitive, and profitable.
In May 2024, Coupa Software Incorporated, a US-based software company, launched AI-driven innovations aimed at enhancing operational efficiency and productivity for businesses. A new AI-driven platform automates AP processes by digitizing invoices and assigning tax codes, reducing manual entry and speeding approvals. Workflow processes are optimized with auto-assignment, improving time management for teams. Enhanced buying experiences and supplier collaboration streamline decision-making and boost profitability. New AI tools offer risk-informed contract recommendations, improving compliance and reducing legal risks.
In May 2024, GEP announced the launch of an AI-based orchestration solution that automates procurement processes to improve collaboration, decision-making, and outcomes for businesses. Similar initiatives by other companies are expected to increase market competition and present more options for customers to select from.
Market snapshot - 2026-2033
Global Market Size
USD 5.6 billion
Largest Segment
Cloud
Fastest Growth
On-premises
Growth Rate
16.3% CAGR
To get more insights on this market click here to Request a Free Sample Report
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.
Analysis by Source
As per global retail sourcing and procurement market outlook, the cloud segment accounted for a significant revenue share in 2024 and is expected to advance rapidly during the forecast period. Cloud-based procurement helps streamline the overall source-to-pay process via social collaborations and automation, thus attaining higher margins by effectively controlling costs. Furthermore, the deployment of cloud-based software ensures seamless accessibility without the need for any additional IT solutions. Cloud-based procurement software also offers the advantage of timely upgrades and maintenance to ensure seamless functioning, driving its appeal among customers. The SAP S/4HANA is an enterprise resource planning (ERP) software developed for large enterprises by SAP SE that covers various processes such as procure-to-pay, order-to-cash, request-to-service, and plan-to-product, with its cloud edition being released semi-annually since 2022. The on-premises segment is anticipated to advance at a substantial growth rate from 2025 to 2032. This segment witnesses strong demand, particularly among larger businesses that have the technological capabilities and capital to run these types of software from their location. On-premises systems are installed and operated on a retailer's servers and infrastructure rather than being hosted in the cloud. While cloud-based solutions have gained popularity for their scalability and flexibility, on-premises systems still offer unique advantages, such as enhanced security and data control, ease of customization, and reduced latency. Moreover, organizations with established on-premises systems can more easily integrate new procurement solutions with their existing infrastructure without relying on Internet connectivity. However, high initial investments and scalability limitations are challenges expected to restrain segment growth.
Analysis by Enterprise Size
As per global retail sourcing and procurement market forecast, the large enterprise segment accounted for a leading revenue share in 2024. Consequently, they help streamline sourcing activities, improve supplier management, enhance the cost control, and drive overall procurement efficiency. These businesses have extensively adopted innovative retail sourcing and procurement solutions to address the complexities and scale of procurement processes faced by organizations with extensive supply chains, diverse product offerings, and multiple locations. Growing need among such businesses to leverage their purchasing volume to negotiate better terms and pricing with suppliers and reduce procurement-related operational costs is a notable factor aiding industry expansion. As per global retail sourcing and procurement market analysis, the small and medium enterprises segment is expected to witness the largest CAGR from 2025 to 2032. The proliferation of SMEs across the retail sector and rising demand for the availability and timely delivery of products has forced these businesses to leverage sourcing and procurement tools to address the rising demand while maintaining profitable margin levels. Additionally, the use of automated processes speeds up the procurement cycle, allowing SMEs to respond quickly to market demands. These solutions help smaller businesses streamline their procurement processes, manage supplier relationships, and optimize costs without the extensive resources often available to larger corporations.
To get detailed segments analysis, Request a Free Sample Report
North America led the market with 35.1% of the global revenue share in 2024. The demand for retail sourcing and procurement solutions in this region has been influenced by various factors, including the rapidly evolving retail landscape, supply chain complexities, technological advancements, and changing consumer behaviors. Retailers in economies such as the U.S. and Canada are continuously seeking ways to streamline procurement processes and reduce operational costs, driving substantial demand for solutions that automate sourcing, procurement, and supplier management.
The U.S. accounted for a dominant revenue share of the regional market in 2024 owing to the rapidly expanding adoption of automation in procurement and sourcing, coupled with frequent technological advancements in cloud and analytics. The country is known as a hub for innovations due to the presence of a highly competitive market, driving significant developments in technologies such as AI, machine learning, and blockchain, which have helped transform procurement processes.
Asia Pacific is anticipated to emerge as the fastest-growing market during the forecast period. The exponential growth of the retail industry in recent years in economies such as China, India, and Japan due to improving living standards and urbanization has created significant competition among businesses, driving demand for effective retail sourcing and procurement solutions. The steadily growing popularity of e-commerce has fundamentally changed how retailers operate, as they now require robust solutions to manage online sales efficiently, ensure product availability, and optimize logistics.
India in the retail sourcing and procurement market has witnessed strong growth in recent years, aided by the country’s continuously evolving economic environment, the rapid growth of the e-commerce industry, technological advancements, and increasing consumer awareness regarding sustainability. As retailers must address challenges and opportunities, they increasingly adopt advanced sourcing and procurement solutions that enhance efficiency, transparency, and responsiveness to market demands.
Europe accounted for a notable revenue share of the global market in 2024. European retailers increasingly invest in digital sourcing and procurement solutions to enhance efficiency, transparency, and collaboration across their supply chains. Additionally, automation of procurement processes is a significant focus area for regional enterprises. The rising focus of European consumers on sustainability and ethical sourcing practices has compelled retailers to seek solutions that support sustainable procurement practices, track carbon footprints, and ensure compliance with environmental regulations.
Germany dominates the retail sourcing and procurement market in Europe, driven by its strong retail industry, advanced digital infrastructure, and focus on sustainable procurement practices. With leading retailers such as Aldi, Lidl, and Metro Group, Germany has seen significant adoption of AI-driven procurement solutions, supplier risk management tools, and cloud-based sourcing platforms. The country’s commitment to sustainability and regulatory frameworks, such as the Supply Chain Due Diligence Act, further accelerates the adoption of modern procurement technologies. In Middle East & Africa, the United Arab Emirates (UAE) is at the forefront of retail sourcing and procurement growth. With its rapidly expanding retail sector, including global brands and e-commerce giants, the UAE has been investing heavily in digital procurement, supplier collaboration, and blockchain-enabled sourcing solutions. The presence of retail hubs in Dubai and Abu Dhabi, along with government initiatives to enhance supply chain transparency and efficiency, positions the UAE as a leading market for procurement innovation. In Latin America, Brazil is leading the retail sourcing and procurement market, fueled by its large retail industry, growing e-commerce sector, and increasing adoption of cloud-based procurement solutions. Retail giants such as Magazine Luiza and Brazil are investing in AI-powered sourcing tools, automation in procurement processes, and data-driven supply chain management. Brazil’s focus on cost reduction, supplier diversity, and compliance with evolving trade regulations is driving the demand for efficient procurement solutions.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Drivers
Digitalization Drives Growth in the Retail Sourcing and Procurement Market
Rise in Cloud-Based Platforms Propel Growth
Restraints
Data Security and Compliance Risks
High Implementation Costs
Request Free Customization of this report to help us to meet your business objectives.
The global retail sourcing and procurement industry is highly competitive, driven by the increasing need for cost optimization, supplier collaboration, and digital transformation in retail operations. Major players such as SAP SE, Oracle Corporation, IBM Corporation, GEP, and Jaggaer dominate the market with cloud-based procurement solutions, AI-driven analytics, and automated supplier management tools. These companies focus on enhancing the supply chain visibility, risk management, and sustainability compliance, catering to the evolving needs of global retailers.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest analysis, retail sourcing and procurement vendors across the world are constantly adding innovation to their products and services to offer augmented solution offerings and serve customers in a better manner. Sourcing and procurement solutions and services are being increasingly adopted in the retail sector, which has led to the growth of the market across the globe. The major players also acquired various companies to strengthen their product portfolio and expand their geographic footprints into existing and emerging markets. For instance, Epicor acquired Insite Software to expand its business solution footprint to support broader supply chain initiatives. This acquisition would help Epicor to expand its cloud offerings and accelerate development in the field of cloud and mobility. North America is expected to hold the largest market share during the forecast period, whereas APAC is expected to exhibit potential growth opportunities for the retail sourcing and procurement ecosystem players to explore and cater to new clients.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 6.51 Billion |
| Market size value in 2033 | USD 25.35 Billion |
| Growth Rate | 16.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Retail Sourcing and Procurement Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Retail Sourcing and Procurement Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Retail Sourcing and Procurement Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Retail Sourcing and Procurement Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
REQUEST FOR SAMPLE
REQUEST FREE CUSTOMIZATION
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Feedback From Our Clients
USA (+1) 351-333-4748
