Retail Sourcing and Procurement Market - Global Industry Size, Share, Trends, Opportunity, and Forecast By Component (Service, Solution, By Deployment Type, By Organization Size ), By End User, By Region & Competition, 2021-2031F

Description

The Global Retail Sourcing and Procurement Market is projected to expand significantly, rising from USD 6.73 Billion in 2025 to USD 15.64 Billion by 2031, achieving a CAGR of 15.09%. This sector involves the strategic methodologies and digital infrastructures that retailers utilize to identify suppliers, manage contracts, and obtain goods for internal operations or resale. The market's momentum is largely driven by the urgent need for cost efficiency and a growing demand for supply chain transparency to ensure ethical compliance and risk reduction. These factors encourage organizations to implement sophisticated procurement frameworks that improve inventory oversight and facilitate supplier collaboration, focusing on enduring resilience rather than temporary technological fixes.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 6.73 Billion
Market Size 2031	USD 15.64 Billion
CAGR 2026-2031	15.09%
Fastest Growing Segment	Cloud
Largest Market	North America

However, the market faces a substantial obstacle in the form of a severe shortage of skilled professionals equipped to manage these complex procurement environments. This lack of talent restricts retailers' ability to fully exploit advanced sourcing technologies, effectively slowing the uptake of innovative solutions. Data from the Chartered Institute of Procurement & Supply indicates that in 2024, 58% of employers experienced challenges in recruiting appropriate talent for their procurement needs. Consequently, this skills gap poses a significant risk of bottlenecking the modernization efforts required for the market's sustained growth.

Market Driver

The assimilation of artificial intelligence and predictive analytics acts as a transformative force within the Global Retail Sourcing and Procurement Market. Retailers are increasingly adopting these technologies to refine demand forecasting, automate repetitive purchasing tasks, and optimize inventory against fluctuating market dynamics. This strategic pivot is motivated by the need to enhance operational flexibility and data usage. According to Honeywell's January 2025 'AI in Retail Survey', over 80% of retailers intend to expand their use of automation and AI to adapt to shifting consumer behaviors. Similarly, SAP's January 2025 report on digital transformation notes that 57% of executives identify digitalization as the primary strategic priority for procurement functions in the near future.

Simultaneously, the push for sustainable and ethical sourcing is fundamentally reshaping procurement structures. Companies are under intense pressure from regulators and consumers to ensure supply chain transparency and lower their carbon footprints, necessitating the implementation of strict supplier vetting and environmental tracking systems. As per the British Retail Consortium's 'Climate Action Roadmap' update in December 2025, 91% of retailers have established greenhouse gas emission baselines to publicly report and track their environmental impact. By embedding these sustainability metrics into their sourcing strategies, businesses are mitigating reputational risks and securing long-term stability in a resource-limited global economy.

Market Challenge

A scarcity of qualified professionals represents a formidable barrier to the expansion of the Global Retail Sourcing and Procurement Market. As procurement functions transition from transactional purchasing to strategic, data-centric operations, the demand for personnel proficient in digital tools, negotiation, and risk management has surged. Unfortunately, the existing workforce has not evolved quickly enough to meet this demand, compelling organizations to postpone the deployment of automated sourcing frameworks due to a lack of human capital to manage them. This results in missed opportunities for operational efficiency and supply chain transparency, preventing retailers from fully capitalizing on market advancements.

The severity of this labor deficit is underscored by recent industry findings that highlight widespread workforce issues across the supply chain ecosystem. The MHI Annual Industry Report in 2025 revealed that 83% of manufacturing and supply chain professionals view the persistent talent shortage as a major operational challenge. This high prevalence of skill gaps means retail organizations are often occupied with filling fundamental roles rather than optimizing their procurement strategies. Without a robust pipeline of skilled procurement specialists, retailers struggle to navigate market volatility or ensure ethical compliance, thereby decelerating the overall growth trajectory of the global sourcing sector.

Market Trends

The adoption of nearshoring strategies to alleviate global supply risks is fundamentally restructuring retail supply networks as businesses move away from distant, single-source dependencies. Retailers are increasingly regionalizing their manufacturing and sourcing footprints to insulate operations against geopolitical instability and trade tariff fluctuations. This structural shift prioritizes proximity and agility over minimizing unit costs, allowing organizations to respond faster to demand spikes while reducing transit times. According to a December 2025 report by WSI titled 'Retail Supply Chain Moves That Will Define 2026', 77% of supply chain leaders have already shifted sourcing away from China to tariff-neutral countries, signaling a permanent move toward shorter, more resilient supply lines capable of withstanding global disruptions.

Additionally, the deployment of IoT devices for end-to-end inventory visibility is gaining momentum as retailers utilize physical tracking hardware to eliminate data blind spots across the value chain. By integrating radio-frequency identification (RFID) sensors and connected shelf-monitoring systems, procurement leaders are generating the granular, real-time data necessary to validate stock levels and prevent costly inventory distortion. This hardware-driven transparency ensures shipment accuracy and minimizes shrinkage, providing the foundational data layer required for advanced automated decision-making. Zebra Technologies' '18th Annual Global Shopper Study' from November 2025 indicates that 54% of retail decision-makers plan to implement RFID technology within five years, highlighting the critical nature of these investments in closing the gap between digital records and physical stock availability.

Key Market Players

SAP SE
Oracle Corporation
IBM Corporation
GEP
Ivalua Inc.
Jaggaer
Epicor Software Corporation
Coupa Software Inc.
Zycus Inc.
Infor Inc.

Report Scope

In this report, the Global Retail Sourcing and Procurement Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Retail Sourcing and Procurement Market, By Component

Service (Implementation, Training & Support, Consulting)
Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis)

Retail Sourcing and Procurement Market, By Deployment Type

On-Premises
Cloud

Retail Sourcing and Procurement Market, By Organization Size

SMEs
Large Enterprises

Retail Sourcing and Procurement Market, By End User

Retailers
Food & Beverage
Wholesalers & Distributors
Home Improvement & DIY Retailers
Others

Retail Sourcing and Procurement Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Retail Sourcing and Procurement Market.

Available Customizations:

Global Retail Sourcing and Procurement Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Retail Sourcing and Procurement Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Component (Service (Implementation, Training & Support, Consulting), Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis))
- 5.2.2. By Deployment Type (On-Premises, Cloud)
- 5.2.3. By Organization Size (SMEs, Large Enterprises)
- 5.2.4. By End User (Retailers, Food & Beverage, Wholesalers & Distributors, Home Improvement & DIY Retailers, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Retail Sourcing and Procurement Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Component
- 6.2.2. By Deployment Type
- 6.2.3. By Organization Size
- 6.2.4. By End User
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Retail Sourcing and Procurement Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Component
    - 6.3.1.2.2. By Deployment Type
    - 6.3.1.2.3. By Organization Size
    - 6.3.1.2.4. By End User
- 6.3.2. Canada Retail Sourcing and Procurement Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Component
    - 6.3.2.2.2. By Deployment Type
    - 6.3.2.2.3. By Organization Size
    - 6.3.2.2.4. By End User
- 6.3.3. Mexico Retail Sourcing and Procurement Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Component
    - 6.3.3.2.2. By Deployment Type
    - 6.3.3.2.3. By Organization Size
    - 6.3.3.2.4. By End User

7. Europe Retail Sourcing and Procurement Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Component
- 7.2.2. By Deployment Type
- 7.2.3. By Organization Size
- 7.2.4. By End User
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Retail Sourcing and Procurement Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Component
    - 7.3.1.2.2. By Deployment Type
    - 7.3.1.2.3. By Organization Size
    - 7.3.1.2.4. By End User
- 7.3.2. France Retail Sourcing and Procurement Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Component
    - 7.3.2.2.2. By Deployment Type
    - 7.3.2.2.3. By Organization Size
    - 7.3.2.2.4. By End User
- 7.3.3. United Kingdom Retail Sourcing and Procurement Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Component
    - 7.3.3.2.2. By Deployment Type
    - 7.3.3.2.3. By Organization Size
    - 7.3.3.2.4. By End User
- 7.3.4. Italy Retail Sourcing and Procurement Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Component
    - 7.3.4.2.2. By Deployment Type
    - 7.3.4.2.3. By Organization Size
    - 7.3.4.2.4. By End User
- 7.3.5. Spain Retail Sourcing and Procurement Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Component
    - 7.3.5.2.2. By Deployment Type
    - 7.3.5.2.3. By Organization Size
    - 7.3.5.2.4. By End User

8. Asia Pacific Retail Sourcing and Procurement Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Component
- 8.2.2. By Deployment Type
- 8.2.3. By Organization Size
- 8.2.4. By End User
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Retail Sourcing and Procurement Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Component
    - 8.3.1.2.2. By Deployment Type
    - 8.3.1.2.3. By Organization Size
    - 8.3.1.2.4. By End User
- 8.3.2. India Retail Sourcing and Procurement Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Component
    - 8.3.2.2.2. By Deployment Type
    - 8.3.2.2.3. By Organization Size
    - 8.3.2.2.4. By End User
- 8.3.3. Japan Retail Sourcing and Procurement Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Component
    - 8.3.3.2.2. By Deployment Type
    - 8.3.3.2.3. By Organization Size
    - 8.3.3.2.4. By End User
- 8.3.4. South Korea Retail Sourcing and Procurement Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Component
    - 8.3.4.2.2. By Deployment Type
    - 8.3.4.2.3. By Organization Size
    - 8.3.4.2.4. By End User
- 8.3.5. Australia Retail Sourcing and Procurement Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Component
    - 8.3.5.2.2. By Deployment Type
    - 8.3.5.2.3. By Organization Size
    - 8.3.5.2.4. By End User

9. Middle East & Africa Retail Sourcing and Procurement Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Component
- 9.2.2. By Deployment Type
- 9.2.3. By Organization Size
- 9.2.4. By End User
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Retail Sourcing and Procurement Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Component
    - 9.3.1.2.2. By Deployment Type
    - 9.3.1.2.3. By Organization Size
    - 9.3.1.2.4. By End User
- 9.3.2. UAE Retail Sourcing and Procurement Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Component
    - 9.3.2.2.2. By Deployment Type
    - 9.3.2.2.3. By Organization Size
    - 9.3.2.2.4. By End User
- 9.3.3. South Africa Retail Sourcing and Procurement Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Component
    - 9.3.3.2.2. By Deployment Type
    - 9.3.3.2.3. By Organization Size
    - 9.3.3.2.4. By End User

10. South America Retail Sourcing and Procurement Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Component
- 10.2.2. By Deployment Type
- 10.2.3. By Organization Size
- 10.2.4. By End User
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Retail Sourcing and Procurement Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Component
    - 10.3.1.2.2. By Deployment Type
    - 10.3.1.2.3. By Organization Size
    - 10.3.1.2.4. By End User
- 10.3.2. Colombia Retail Sourcing and Procurement Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Component
    - 10.3.2.2.2. By Deployment Type
    - 10.3.2.2.3. By Organization Size
    - 10.3.2.2.4. By End User
- 10.3.3. Argentina Retail Sourcing and Procurement Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Component
    - 10.3.3.2.2. By Deployment Type
    - 10.3.3.2.3. By Organization Size
    - 10.3.3.2.4. By End User

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Retail Sourcing and Procurement Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. SAP SE
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Oracle Corporation
15.3. IBM Corporation
15.4. GEP
15.5. Ivalua Inc.
15.6. Jaggaer
15.7. Epicor Software Corporation
15.8. Coupa Software Inc.
15.9. Zycus Inc.
15.10. Infor Inc.