A new study by EY-Parthenon examines the transformation of Greece’s supermarket sector, finding that the market is gradually shifting towards operational efficiency, the use of technology and data, and the creation of new sources of revenue.
According to the study, market consolidation, changing consumer behaviour and macroeconomic pressures are redefining the concept of value, making it essential for businesses in the sector to adapt their strategies.
Between 2020 and 2025, the global food retail market remained resilient, reaching about €11.3tn in 2025 and recording a compound annual growth rate (CAGR) of 4%.
Growth and challenges
Greece mirrors the international trend, with the organised market reaching €16bn in 2025, up from €12bn in 2020, for a CAGR of around 6%. However, the study finds that some of this growth was not driven by increased consumption but by inflation-driven price rises. It also makes clear that boosting profitability remains a major challenge for the sector.
Greece is also seeing a trend towards greater consolidation, with the six largest supermarket chains accounting for 71% of the organised market in 2025.
To meet these challenges, large businesses in the sector need to find sources of revenue and growth beyond the traditional core food market. They are already evolving into gateways for exporting Greek products, investing in modern logistics centres and turning selected large stores into destinations that combine grocery shopping, dining and other services. According to the EY-Parthenon study, tourist demand also offers opportunities for further growth, particularly in the islands.
“As opportunities to grow through increased consumption become more limited, businesses in the sector need to reassess their priorities. The systematic use of data and technology to improve promotional activity, product ranges and operational efficiency will be crucial. At the same time, businesses that transform their business models and develop new sources of revenue by seizing opportunities such as retail media, marketplaces and integrated meal solutions will stand out,” said Dimitris Papakanellou, EY-Parthenon Partner in Greece.
Consumer trends
Consumers continue to rate product price as the main factor in their fresh food purchases, with 52% citing it. Perceptions of value are changing, however: according to EY Greece’s 2025 consumer survey, 39% of respondents consider quality a key priority, while 44% consider whether a product is healthy and beneficial to their overall wellbeing when buying fresh food.
The study identifies significant opportunities to diversify supermarkets’ business models and generate additional revenue. Their large customer base, frequent store visits and data collected directly from customers (first-party data) can be used to develop new services, including targeted advertising and promotional opportunities across websites, apps and physical stores.
Partnerships with third-party marketplaces and integrated meal solutions in stores offer further opportunities. Meanwhile, expanding private-label products (private label), with a focus on premium, local and differentiated offerings, can boost profit margins.
Thanos Mavros, EY Greece Partner and Head of Consumer Products and Health Services, said: “As the rising cost of living pushes households towards more affordable options, food retailers need to adapt. Alongside adjusting their pricing and promotional strategies, they need to reassess their product ranges in light of demographic changes and the rapid growth in tourism. However, as the sector transforms and profit margins remain under pressure, businesses need to find value by expanding into more stages of the value chain, making strategic investments to turn stores into comprehensive destinations for shopping and services, and investing in selected new markets abroad.”