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 2028.
The value of the UK food & grocery sector rose 7.5% in 2023, driven by double-digit food inflation. Volumes declined 7.1% as consumers adjusted their spending in response to rising prices.
The UK tobacco & e-cigarette market is expected to decline at a CAGR of 0.4% between 2023 and 2028, as the influence of legislative changes and growing health consciousness among consumers creates deeper volume declines.
With consumer budgets squeezed, value for money was ranked the most integral driver of purchases in food & grocery among shoppers.
The value of the UK food & grocery sector rose 7.5% in 2023, driven by double-digit food inflation. Volumes declined 7.1% as consumers adjusted their spending in response to rising prices.
The UK tobacco & e-cigarette market is expected to decline at a CAGR of 0.4% between 2023 and 2028, as the influence of legislative changes and growing health consciousness among consumers creates deeper volume declines.
With consumer budgets squeezed, value for money was ranked the most integral driver of purchases in food & grocery among shoppers.
Scope
- The outlook for the food & grocery sector will be softer over the next five years, with the market forecast to increase at a 2.4% CAGR between 2023 and 2028.
- Online food & grocery sales will outpace the offline market in 2024.
- The food market, representing a substantial 65.6% of the total food & grocery sales, is projected to continue its growth trajectory, with a CAGR of 2.9% between 2023 and 2028.
Reasons to Buy
- Using our five year forecasts to 2028, learn which categories 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 to maximise sales potential.
- Use our in-depth analysis and forecasts to understand the current and future performances of the different channels, including online and offline.
Table of Contents
- Executive summary
- The UK food and grocery sector is set to grow at a slower rate between 2023 and 2028 than during the previous five-year period
- Tobacco & e-cigarette and alcoholic drinks markets to experience declining CAGR growth as consumer preferences shift
- Consumer demand for value for money and convenience-led shopping journeys to drive growth in UK food & grocery market
- KEY TRENDS
- Market drivers
- Market inhibitors
- Key Trends: Convenience Store Expansion
- Key Trends: Own Brand Range Expansion
- Key Trends: Online grocery shopping is on the rise
- Key Trends: Grocers expand their selection of world foods
- Strategies for success
- MARKET SIZE AND FORECASTS
- Five year growth 2018-2028
- Market size, 2018-2028
- Market Growth Drivers, 2021-2028
- CATEGORY PERFORMANCE AND FORECASTS
- Key category trends
- Food & grocery categories
- Market by category %, 2018-2028
- Market by Sub Category, 2023 & 2028
- CHANNEL PERFORMANCE AND FORECASTS
- Online market, 2018-2028
- Channel growth, 2018-2028
- Market by channel, 2023 and 2028
- Channel value and forecast, 2023 and 2028
- REVENUE AND MARKET SHARES OF TOP 10 PLAYERS
- Top 10 UK Retailers, 2023
- Market shares of the top 10 retailers
- Top 20 most visited and purchased from retailers for food & grocery, 2024
- Food & grocery competitor overlap, 2024
- COMPETITIVE LANDSCAPE: PROFILES OF LEADING PLAYERS
- Tesco
- Sainsbury's
- ASDA
- Waitrose & Partners
- Brands to watch
- CONSUMERS
- Key consumer trends
- Food & Grocery penetration and profile, 2024
- Food & Grocery category penetration, 2024
- Food & Grocery channel usage, 2024
- Food & Grocery fulfilment methods, 2024
- Food & Grocery purchase locations, 2024
- Food & Grocery store types, 2024
- Food & Grocery device usage, 2024
- Food & Grocery purchase frequency, 2024
- Food & Grocery consumer drivers, 2024
- Food & Grocery rapid delivery, 2024
- Rapid delivery usage inhibitors, 2024
- Rapid delivery order timing, 2024
- Statements about rapid delivery services, 2024
- High protein food, 2024
- High protein food purchase consideration, 2024
- High protein food purchased, 2024
- High protein food retailers, 2024
- Statements about high protein foods, 2024
- Convenience store penetration, 2024
- Convenience shopping mission, 2024
- Value for money in Food & Grocery Convenience Retailing, 2024
- UK Food & Grocery Purchase Locations, by Retailer, 2024
- Hybrid working pre-pandemic, 2024
- Hybrid working during the pandemic, 2024
- Hybrid working now, 2024
- Hybrid working & purchases, 2024
- Convenience visits during lunch break, pre-pandemic and now, 2024
- Convenience store shopping during workday, 2024
- Grocery store visits after work, pre-pandemic and now, 2024
- Grocery store visits after work, pre-pandemic 2024
- Statements about purchases while hybrid working, 2024
- METHODOLOGY, DEFINITIONS AND CONTACTS
- UK Food & Grocery Market by Sub-Category, 2023 & 2028
- UK Food & Grocery Channel Value & Forecast, 2023 and 2028
- Top 10 UK Food & Grocery Retailers, 2023
- UK Food & Grocery Competitor Overlap, 2024
- UK Food & Grocery Category Penetration by Demographic, 2024
- UK Food & Grocery Channel Usage by Demographic, 2024
- UK Food & Grocery Fulfilment Methods by Demographic, 2024
- UK Food & Grocery Purchase Locations by Demographic, 2024
- UK Food & Grocery Store Types by Demographic, 2024
- UK Food & Grocery Device Usage by Demographic, 2024
- UK Food & Grocery Consumer Drivers by Demographic, 2024
- Proportion of consumers who have used a supermarket rapid delivery service
- UK Food & Grocery Market GBP m, 2018, 2023, 2028 & CAGR %
- UK Food & Grocery Market Value GBP m, 2018-2028
- UK Food & Grocery Market Annual Growth %, 2018-2028
- UK Food & Grocery Market Growth Drivers, 2021-2028
- UK Food & Grocery Categories by Value GBP m, 2023 & 2028
- UK Food & Grocery Categories by Value Growth %, CAGR 2023-2028
- UK Food & Grocery Market by Category %, 2018, 2023, 2028
- UK Food & Grocery Online Market Size GBPm and Online Penetration %, 2018-2028
- UK Food & Grocery Channel Growth, 2018-2028
- UK Food & Grocery Market by Channel, 2023 and 2028
- Market Shares of Top 10 UK Food & Grocery Retailers, 2023, 2023 & 2024e
- Top 20 Most Visited Retailers for Food & Grocery %, 2024
- Top 20 Most Purchased from Retailers for Food & Grocery %, 2024
- Tesco UK Food & Grocery sales GBP mil, 2018-2023, and annual growth %
- Tesco UK Food & Grocery market share %, 2018-2024e
- Tesco UK Food & Grocery Penetration %, 2024
- Sainsbury’s UK Food & Grocery sales GBP mil, 2018-2023, and annual growth %
- Sainsbury’s UK Food & Grocery market share %, 2018-2024e
- Sainsbury’s UK Food & Grocery Penetration %, 2024
- ASDA UK Food & Grocery sales GBP mil, 2018-2023, and annual growth %
- ASDA UK Food & Grocery market share %, 2018-2024e
- ASDA UK Food & Grocery Penetration %, 2024
- Waitrose & Partners UK Food & Grocery sales GBP mil, 2018-2023, and annual growth %
- Waitrose & Partners UK Food & Grocery market share %, 2018-2024e
- Waitrose & Partners UK Food & Grocery Penetration %, 2024
- UK Food & Grocery Penetration %, 2024
- UK Food & Grocery Profile %, 2024
- UK Food & Grocery Category Penetration %, 2024
- UK Food & Grocery Channel Usage %, 2024
- UK Food & Grocery Fulfilment Methods %, 2024
- UK Food & Grocery Purchase Locations %, 2024
- UK Food & Grocery Store Types %, 2024
- UK Food & Grocery Device Usage %, 2024
- UK Food & Grocery Purchase Frequency, 2024
- UK Food & Grocery Consumer Drivers %, 2024
- UK Food & Grocery Rapid Delivery Penetration %, 2024
- UK Food & Grocery Rapid Delivery Profile %, 2024
- Factors that would deter consumers from using rapid delivery services to order food & groceries %, 2024
- How long consumers expect their rapid delivery order to take to arrive %, 2024
- Agreement and disagreement with statements about rapid delivery services, 2024
- Agreement and disagreement with the statement “A poor range of online food & grocery items limits me from buying more via rapid delivery” by age, 2024
- Proportion of consumers that would consider buying food items marked as “high protein” %, 2024
- Proportion of consumers that would consider buying food items marked as “high protein”, by demographic %, 2024
- Types of high protein food consumers would purchase %, 2024
- Proportion of consumers that have purchased foods marked as high protein in the last 12 months %, 2024
- Agreement and disagreement with statements about high protein foods, 2024
- Which convenience stores consumers shopped the most at in the last month %, 2024
- What was the main purpose of consumer’s last visit to a convenience store %, 2024
- How consumers rate convenience stores based on value for money %, 2024
- Proportion of consumers that shopped at each location type by the retailers purchased from for food & grocery %, 2024
- Prior to the pandemic how consumers described their working life %, 2024
- Working locations of consumers prior to the pandemic, by gender and age %, 2024
- During the pandemic how consumers described their working life %, 2024
- Working locations of consumers during the pandemic, by gender and age %, 2024
- How consumers described their working life now %, 2024
- Working locations of consumers now, by gender and age %, 2024
- When and where consumers shopped prior to the pandemic and now %, 2024
- Frequency of visits to convenience stores during consumers' lunch break, prior to the pandemic and now %, 2024
- Frequency of visits to convenience stores during consumers' lunch break prior to the pandemic, by age and demographic %, 2024
- Frequency of visits to convenience stores during consumers' lunch break now, by age and demographic %, 2024
- Frequency of visits to grocery stores after work, prior to the pandemic and now %, 2024
- Frequency of visits to grocery stores affter work prior to the pandemic, by age and demographic %, 2024
- Frequency of visits to grocery stores affter work now, by age and demographic %, 2024
- Agreement and disagreement with statements about purchases while hybrid working, 2024
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aldi
- Amazon
- ASDA
- B&M
- BP
- Budgens
- Co-op
- Costco
- Costcutter
- Deliveroo
- Eco-mate
- Farmfoods
- Goodrays
- Gousto
- HelloFresh
- Heron Foods
- Home Bargains
- Iceland
- Leon
- Lidl
- Marks & Spencer
- Morrisons
- Nisa
- Ocado
- One Stop
- Poundland
- Premier
- Sainsbury's
- Shell
- Spar
- Tesco
- The Gym Kitchen
- UberEats
- Waitrose & Partners
- Yo Sushi!
- Wasabi
- ZYN
