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

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.

Executive summary

Online food & grocery penetration lags behind 2021-levels as the cost-of-living crisis squeezes disposable income
Discounters Aldi and Lidl to make significant market share gains in 2023
Food inflation drives the necessity for grocers to demonstrate value for money and increase store presence

KEY TRENDS

Market drivers
Market inhibitors
Key Trends: Inflation
Key Trends: Customer Facing Technology
Key Trends: Loyalty Schemes
Key Trends: Sustainability
Strategies for success

MARKET SIZE AND FORECASTS

UK Food & Grocery Market, five year growth 2017 - 2027
UK Food & Grocery Market Size, 2017-2027
UK Food & Grocery Market Growth Drivers, 2020-2027

CATEGORY PERFORMANCE AND FORECASTS

Key category trends
Food & grocery categories
Market by category %, 2017-2027
Market by sub-category %, 2022-2027

CHANNEL PERFORMANCE AND FORECASTS

Online Market, 2017-2027
Channel growth, 2017-2027
Market by channel, 2023 and 2027
Channel value and forecast, 2023 and 2027
REVENUE AND MARKET SHARES OF TOP 10 PLAYERS
Top 10 retailers, 2022
Market shares of the top 10 retailers
Top 20 most visited and purchased from retailers for food & grocery, 2022
Food & grocery competitor overlap, 2022
COMPETITIVE LANDSCAPE: PROFILES OF LEADING PLAYERS
Tesco
Sainsbury's

ASDA

Aldi
Morrisons
Retailers to watch: Discount Dragon
Retailelr to watch: Amazon

CONSUMERS

Key consumer trends
Food & Grocery penetration and profile
Food & Grocery category penetration
Food & Grocery channel usage
Fulfilment methods
Food & Grocery purchase locations
Food & Grocery purchase frequency
Food & Grocery consumer drivers
Rapid Delivery penetration and profile
Where consumers switch from for food & grocery shopping
Use of supermarket loyalty schemes
Aspects of loyalty schemes valued most by consumers
Opinions on supermarket loyalty schemes
How shopping habits have changed for food & groceries
METHODOLOGY, DEFINITIONS AND CONTACTS

List of Tables

UK Food & Grocery Market by Sub-Category, 2022 & 2027
UK Food & Grocery Channel Value & Forecast, 2022 and 2027
Top 10 UK Food & Grocery Retailers, 2022
UK Food & Grocery Competitor Overlap, 2022
UK Food & Grocery Category Penetration by Demographic, 2023
UK Food & Grocery Channel Usage by Demographic, 2023
UK Food & Grocery Fulfilment Methods, 2023
UK Food & Grocery Purchase Locations, 2023
UK Food & Grocery Consumer Drivers, 2023

List of Figures

Food & non alcoholic beverages annual CPIH inflation rates in the UK, 2023
Aldi and Lidl share of the UK food & grocery market, 2023
"Consumers who have used a
supermarket loyalty scheme, by
age, 2023"
"Aspects of supermarket loyalty schemes
shoppers value the most, 2023
"
UK Food & Grocery Market GBP m, 2017, 2022, 2027 & CAGR %
UK Food & Grocery Market Value GBP bn, 2017-2027
UK Food & Grocery Market Annual Growth %, 2017-2027
UK Food & Grocery Market Sources of Growth, 2020-2027
UK Food & Grocery Categories by Value GBP m, 2022 & 2027
UK Food & Grocery Categories by Value Growth %, CAGR 2022-2027
UK Food & Grocery Market by Category %, 2017-2027
UK Food & Grocery Online Market Size GBPm and Online Penetration %, 2017-2027
UK Food & Grocery Channel Growth, 2017-2027
UK Food & Grocery Market by Channel, 2022 & 2027
Market Shares of Top 10 UK Food & Grocery Retailers, 2021, 2022 and 2023e
Top 20 Most Visited Retailers for Food & Grocery %, 2023
Top 20 Most Purchased from Retailers for Food & Grocery %, 2023
Tesco's UK Food & Grocery sales GBP m, 2017-2022, and annual growth %
Tesco's UK Food & Grocery market share % 2017-2023e
Tesco's UK Food & Grocery Penetration %, 2023
Sainsbury's UK Food & Grocery sales GBP m, 2017-2022, and annual growth %
Sainsbury's UK Food & Grocery market share % 2017-2023e
Sainsbury's UK Food & Grocery Penetration %, 2023
ASDA's UK Food & Grocery sales GBP m, 2017-2022, and annual growth %
ASDA's UK Food & Grocery market share % 2017-2023e
ASDA's UK Food & Grocery Penetration %, 2023
Aldi's UK Food & Grocery sales GBP m, 2017-2022, and annual growth %
Aldi's UK Food & Grocery market share % 2017-2023e
Aldi's UK Food & Grocery Penetration %, 2023
Morrisons' UK Food & Grocery sales GBP m, 2017-2022, and annual growth %
Morrisons' UK Food & Grocery market share % 2017-2023e
Morrisons' UK Food & Grocery Penetration %, 2023
UK Food & Grocery Penetration %, 2023
UK Food & Grocery Profile %, 2023
UK Food & Grocery Penetration %, 2023
UK Food & Grocery Channel Usage %, 2023
UK Food & Grocery Fulfilment Methods %, 2023
UK Food & Grocery Purchase Locations %, 2023
UK Food & Grocery Purchase Frequency, 2023
UK Food & Grocery Consumer Drivers %, 2023
UK Food & Grocery Rapid Delivery Penetration %, 2023
UK Food & Grocery Rapid Delivery Profile %, 2023
Where consumers switched from for food & grocery shopping, 2023
Wether consumer used a supermarket's loyalty scheme when shopping for food & groceries in the last 12 months, 2023
Consumers who have used a supermarket loyalty scheme, by age, 2023
Aspects of loyalty schemes that consumers valued the most, 2023
Consumer statements on supermarket loyalty schemes, 2023
How consumer's shopping habits have changed for food & groceries, 2023

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

Description

Table of Contents

List of Tables

Abstract

Scope

Reasons to Buy

Table of Contents

Table of Contents

Executive summary

KEY TRENDS

MARKET SIZE AND FORECASTS

CATEGORY PERFORMANCE AND FORECASTS

CHANNEL PERFORMANCE AND FORECASTS

ASDA

CONSUMERS

List of Tables

List of Tables

List of Figures

List of Figures