Retail Sourcing and Procurement Market to Reach $11.66 Billion by 2034

29 Aug 2025

What is Retail Sourcing and Procurement and Why Does It Matter?

Retail sourcing and procurement refers to the processes retailers use to identify, negotiate, and acquire goods and services essential for business operations. This includes supplier selection, contract management, risk assessment, cost optimization, and sustainability practices. Modern procurement solutions leverage technologies such as AI, blockchain, cloud platforms, and advanced analytics to optimize decision-making and improve transparency across supply chains.

It matters because the retail industry faces increasing challenges: growing global competition, fluctuating raw material costs, supply chain disruptions, and rising consumer expectations for transparency and ethical sourcing. Effective procurement strategies enable retailers to achieve cost savings, streamline operations, enhance compliance, and build resilient, sustainable supply chains that meet evolving customer demands.

According to BIS Research, retail sourcing and procurement market was valued at $5.81 billion in 2024 and expected to reach $11.66 billion by 2034 at a CAGR of 7.23%.

What’s Driving Growth in the Retail Sourcing and Procurement Market?

Key Drivers:

•   Digital Transformation of Retail Supply Chains: Widespread adoption of AI, blockchain, and cloud solutions to streamline procurement.
•   E-commerce Growth: Rising online retail activity requiring agile and efficient sourcing practices.
•   Focus on Sustainability: Retailers are increasingly adopting ethical sourcing and supplier transparency systems.
•   Risk Mitigation: Post-pandemic disruptions highlight the need for resilient and diversified supplier networks.
•   Cost Optimization: Competitive retail margins are pushing for automation and data-driven sourcing strategies.

What Are the Challenges in the Retail Sourcing and Procurement Market?

Key Challenges:
•   High Implementation Costs: Advanced procurement platforms require significant upfront investment.
•   Supplier Data Integration: Difficulty in consolidating fragmented supplier data across global networks.
•   Regulatory Complexity: Varying compliance requirements across regions add to operational burden.
•   Cybersecurity Risks: Increased digitization raises vulnerabilities in sensitive procurement data.
•   Change Management: Resistance from traditional procurement teams to adopt new technologies.

Market Segmentation: Where Are Growth Opportunities?

By Application
• Solution
• Service
By Deployment
• On-Premise
• Cloud-Based
By Region
• North America - U.S., Canada, and Mexico
• Europe - Germany, France, Italy, Spain, U.K., and Rest-of-Europe
• Asia-Pacific - China, Japan, South Korea, India, and Rest-of-Asia-Pacific
• Rest-of-the-World - South America and Middle East and Africa

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Analyst Perspective: What’s Next for Retail Sourcing and Procurement Market?

The retail sourcing and procurement market will continue evolving into a data-driven, automated, and sustainable function. Cloud-based procurement solutions are expected to dominate, given their scalability and integration capabilities. Asia-Pacific is projected to lead growth, fueled by rapid e-commerce expansion and digital adoption in markets like China and India. Europe will see strong adoption due to stringent sustainability and compliance mandates.

Looking ahead, AI-driven predictive sourcing, blockchain-enabled transparency, and circular procurement models will shape the future landscape. Retailers that embrace supplier collaboration platforms and sustainability-driven sourcing will gain a competitive edge.

-BIS Research Analyst Team