Introduction

The food retail sector in Portugal has been undergoing remarkable growth, fueled by the expansion of major supermarket chains, increased foreign investment, and evolving consumer preferences. With a competitive market dominated by key players, the industry is seeing a surge in both physical store openings and e-commerce adoption. This article delves into the current supermarket landscape in Portugal, highlighting market trends, key players, and future outlooks.

Market Overview and Growth Trends

Portugal’s food retail industry is one of the strongest sectors in the national economy. According to market reports, the supermarket sector generated over €24 billion in revenue in 2023, reflecting steady growth driven by consumer demand for convenience, quality, and affordability.

Key Growth Drivers:

• E-commerce and Digital Transformation – Online grocery shopping in Portugal has seen a 35% increase in sales since 2020, with retailers expanding home delivery and click-and-collect services.
• Sustainability Initiatives – Eco-friendly packaging, waste reduction, and local sourcing are gaining traction.
• Private Label Expansion – Supermarket chains are increasing investments in private-label products, now accounting for over 40% of supermarket sales in Portugal.

Major Supermarket Chains in Portugal

The Portuguese retail sector is dominated by a few major supermarket brands that are expanding rapidly, increasing market competition and consumer choice.

1. Continente – Market Leader

• Market Share: 26.6%
• Parent Company: Sonae
• Continente remains the top supermarket chain in Portugal, offering a wide range of products, including premium and organic options.

2. Pingo Doce – Strong Competitor

• Market Share: 21.7%
• Parent Company: Jerónimo Martins
• Known for its aggressive pricing strategies and fresh food selection, Pingo Doce continues to expand both in-store and online.

3. Lidl – A Growing Presence

• Market Share: 13%
• A popular discount supermarket chain that has gained significant traction in Portugal, focusing on affordability and efficiency.

4. Mercadona – Rapid Expansion

• Market Share: 7%
• Originally from Spain, Mercadona has grown significantly in Portugal since entering the market in 2019, opening numerous stores across the country.

5. Covirán – Serving Local Communities

• Opened 12 new stores in 2024, primarily in Lisbon, Bragança, and Leiria.
• Focuses on serving smaller communities and rural areas.

Challenges Facing the Supermarket Industry

While the market is thriving, there are key challenges that retailers must navigate:

• Rising Inflation and Costs – Increased operational and supply chain costs are pushing retailers to optimize logistics and pricing strategies.
• Competitive Market Dynamics – The entry of new international players adds pressure to local brands to innovate and differentiate.
• Consumer Behavior Shifts – Demand for organic, sustainable, and digital shopping experiences requires continuous adaptation from retailers.

Future Outlook for the Food Retail Sector

The future of food retail in Portugal looks promising, with continued investment in digitalization, sustainability, and customer experience.

Key Future Trends:

• Expansion of automated checkout and AI-driven retail experiences.
• Greater adoption of sustainable supply chains and eco-conscious practices.
• More integration of e-commerce and omnichannel strategies.

Conclusion

Portugal’s supermarket and food retail industry is poised for sustained growth, backed by innovation, consumer demand, and strong market players. As competition heats up, retailers that focus on digital transformation, sustainability, and customer-centric strategies will thrive in the evolving landscape. With continued investment and adaptation, Portugal’s food retail sector will remain one of the most dynamic and competitive in Southern Europe.