United Kingdom (UK) Food and Grocery Retailing Market Size, Trends, Consumer Attitudes and Key Players to 2027

United Kingdom (UK) Food and Grocery Retailing Market Size, Trends, Consumer Attitudes and Key Players to 2027

Summary

The UK Food & Grocery report offers a comprehensive insight into the Food & Grocery market in the UK, analysing the sector, the major players, the main trends, and consumer attitudes, as well as providing market forecasts out to 2027.

The total UK food & grocery market is forecast to be worth £185.7bn in 2023, up 8.0% on the previous year. High food inflation and volume declines beginning in 2022 have severely impacted consumer shopping habits and weakened the position of the Big Four in the food & grocery market due to higher operational costs and the growing threat of discounters. Intense price matching and loyalty scheme initiatives have also saturated the UK food & grocery market as retailers tussle to retain appeal. Lower forecasted food inflation in 2024 will require grocers to investment more in online capabilities, product innovation and personalisation to demonstrate added value and entice spend from an increasingly mobile customer base. Yet, prospects remain strong for the sector with the compound annual growth rate forecast to be 3.6% between 2022 and 2027, up from 3.3% witnessed between 2017 and 2022.

Scope

• The online UK food & grocery market declined 12.0% in 2022 to £20.0bn against strong comparative sales in 2020 and 2021. The outlook for the online food & grocery market is limited in 2023, with online growth forecast to remain broadly flat versus the previous year as consumers trade down to discounters operating predominantly in the offline channel and the added expense of online shopping will lead to a fall in demand for online orders.
• Despite food inflation having reached a peak of 19.2% in March 2023, a decline in the rate of inflation has been slower to materialize than previously expected. Value for money, price and quality are the most significant drivers for those purchasing food & groceries.
• Aldi and Lidl are expected to see the most significant increase in market share this year as the discounters continue to gain new customers who are trading away from traditional supermarkets to save money on their food & grocery bills.

Reasons to Buy

• Using our five year forecasts to 2027, learn which subcategories in the food & grocery market will be the fastest performing to enable focus and investment in these winning product areas.
• Understand how drivers of food & grocery purchases, such as range, price and quality, vary in importance among different demographics in order to maximise sales potential.
• Use our in-depth analysis of the challenges faced by key retailers in the sector in order to understand how to steal shoppers and market share.