The UK food & grocery market 2017-2022
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The UK food & grocery market will grow by 19.6% over the next five years. The market will be primarily driven by inflation, owing to the weakening pound which is driving import costs, peaking at 3.2% in 2019. Inflation will be felt across all categories, most notably in tobacco, alcohol, oils/fats, meat/fish and sugar products. Price competition from discounters will go some way to mitigate price rises but will subsequently impact margins.
- The discounters will add greater pressure on the big four as they widen their presence, especially in regions where they are currently underrepresented.
- Online food & grocery sales are forecast to grow by 43.3% in the five years to 2022, driven by investment in fulfilment capabilities by the market leaders, new entrants and online pureplays.
- Top-up shopping continues to be important for consumers as they opt for smaller, more frequent, food & grocery shopping missions, with 43.5% of food & grocery consumers shopping at least once every few days.
Reasons to buy
- Understand the opportunities in the market by learning who shops for food & grocery, how frequently they shop and what drives their store selection, in order to better resonate with consumers and boost future shopper conversion levels.
- Utilise our five year market forecasts to understand which subcategories are the strongest and fastest performing to ensure more stringent focus and investment in these areas.
- Use our analysis of the key market issues to inform business strategies on food provenance, offsetting inflation, online development, acquisitions and partnerships, and retail park space expansion.
- Use our online market forecasts and online consumer data to identify which consumers to target for online growth, how to build shopper penetration and understand which fulfilment methods to invest in and improve.
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