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United Kingdom (UK) Food and Grocery Market 2020-2025

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    Report

  • 66 Pages
  • November 2021
  • Region: United Kingdom
  • GlobalData
  • ID: 5560062
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United Kingdom (UK) Food and Grocery Market 2020-2025 report offers comprehensive insight and analysis of the food & grocery market, the major players, key trends, and consumer attitudes. It provides in-depth analysis of the hot issues impacting the market (such as ambient retailing, inflation and the rapid delivery channel), strategies for success, market sizes and forecasts to 2025, retailer profiles and market shares, and consumer shopping behaviour. The report focuses on 6 key sub-categories: food, alcoholic drinks, tobacco and e-cigarettes, soft drinks, household products and hot drinks. Consumer data is based on our 2021 UK How Britain Shops survey, using a panel of 10,000 nationally representative consumers.

Despite being up against tough 2020 comparatives the UK Food & Grocery market is expected to rise 0.3% in 2021. A strong Q1 will contribute to this growth, as well as inflation in H2 which has forced retailers to pass added costs onto the consumer. Supply chain issues and stock shortages will contribute to the drop in volumes, but we also have not seen the same level of stock piling in 2021 causing volumes to be much weaker versus 2020. Restaurants and leisure will take a greater share of grocery spend this year versus last year, particularly as businesses try to encourage employees to return to the office, reducing sales volumes and limiting overall growth in the sector.

Key Highlights


  • Online penetration almost doubled between 2019 and 2021, with the pandemic forcing the grocers to invest in increasing their online capacity to meet the demands for more frequent online shopping and an increase in the online grocery shopper base - up by almost a million extra shoppers.
  • Ambient retailing will disrupt the payment industry, alleviate pressure on labour shortages and drive investment in automation, but the immediate impact on the grocery market is small with the grocers needing to build awareness and consumer confidence to encourage appetite for these concepts.
  • 27.9% of consumers that have experienced stock shortages at the grocers stated they didn’t purchase anything else to replace the wanted item. This highlights how important it is for retailers to review and adapt their supply chains to avoid lost revenue and declining volumes.

Reasons to Buy


  • Using our five year forecasts to 2025, 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.

Table of Contents

  • Executive summary
  • Market to rise 0.3% in 2021 but volumes will fall ​
  • Supply chain issues cause massive disruption in 2021​
  • Squeezed disposable incomes will restrict expenditure, impacting market performance over the next five years​
  • Online penetration almost doubles between 2019 and 2021
  • KEY TRENDS
  • Market drivers
  • Market inhibitors
  • Key Trends: Cost pressures and supply chain disruption
  • Key Trends: Check-out free stores comes to fruition
  • Key Trends: Pandemic forces an increase in online capacity
  • Key Trends: Rapid-delivery services
  • Strategies for success
  • MARKET SIZE AND FORECASTS
  • Five year growth 2015-2025
  • Market size, 2015-2025
  • Market sources of growth, 2015-2025
  • CATEGORY PERFORMANCE AND FORECASTS
  • Key category trends
  • Food & Grocery categories
  • Market by category %, 2015-2025
  • Category segment value and forecast, 2020 & 2025
  • CHANNEL PERFORMANCE AND FORECASTS
  • Online market, 2015-2025
  • Channel growth, 2015-2025
  • Market by channel, 2020 and 2025
  • Channel value and forecast, 2020 and 2025
  • REVENUE AND MARKET SHARES OF TOP 10 PLAYERS
  • Top 10 retailers, 2020
  • Market shares of the top 10 retailers
  • Top 20 most visited and purchased from retailers for Food & Grocery, 2021
  • Food & Grocery competitor overlap, 2021
  • COMPETITIVE LANDSCAPE: PROFILES OF LEADING PLAYERS
  • Tesco
  • Sainsbury's
  • ASDA
  • Morrisons
  • Aldi
  • COMPETITIVE LANDSCAPE: RETAILERS TO WATCH
  • Retailers to watch: Gorillas
  • CONSUMERS
  • Key consumer trends
  • Food & Grocery penetration and profile
  • Food & Grocery category penetration
  • Food & Grocery channel usage
  • Fulfilment methods
  • Food & Grocery purchase frequency
  • Food & Grocery consumer drivers
  • METHODOLOGY, DEFINITIONS AND CONTACTS

List of Tables
  • Average online expenditure, F&G orders, order value and click & collect usage, 2019 & 2021
  • UK Food & Grocery Category Segment Value and Forecast, 2020 & 2025​
  • UK Food & Grocery Channel Value & Forecast, 2020 & 2025
  • Top 10 UK Food & Grocery Retailers, 2020
  • UK Food & Grocery Competitor Overlap, 2021
  • UK Food & Grocery Category Penetration by Demographic, 2021
  • UK Food & Grocery Channel Usage by Demographic, 2021
  • UK Food & Grocery Fulfilment Methods, 2021
  • UK Food & Grocery Consumer Drivers, 2021

List of Figures
  • UK Food & Grocery Market GBP m, 2015, 2020, 2025 & CAGR %
  • UK Food & Grocery Market Value GBP bn, 2015-2025
  • UK Food & Grocery Market Annual Growth %, 2015-25
  • UK Food & Grocery Market Sources of Growth, 2015-2025
  • UK Food & Grocery Categories by Value GBP bn, 2020 & 2025​
  • UK Food & Grocery Categories by Value Growth %, CAGR, 2020-2025
  • UK Food & Grocery Market by Category %, 2015-2025
  • UK Food & Grocery Online Market Size GBP bn and Online Penetration %, 2015-2025
  • UK Food & Grocery Channel Growth, 2015-2025
  • UK Food & Grocery Market by Channel, 2020 and 2025
  • Market Shares of Top 10 UK Food & Grocery Retailers, 2020
  • Top 20 Most Visited Retailers for Food & Grocery %, 2021
  • Top 20 Most Purchased from Retailers for Food & Grocery %, 2021
  • Tesco's UK Food & Grocery sales GBP m, 2015-2020, and annual growth %
  • Tesco's UK Food & Grocery market share % 2015-2020
  • Tesco's UK Food & Grocery Penetration %, 2021
  • Sainsbury's UK Food & Grocery sales GBP m, 2015-2020, and annual growth %
  • Sainsbury's UK Food & Grocery market share % 2015-2020
  • Sainsbury's UK Food & Grocery Penetration %, 2021
  • ASDA's UK Food & Grocery sales GBP m, 2015-2020, and annual growth %
  • ASDA's UK Food & Grocery market share % 2015-2020
  • ASDA's UK Food & Grocery Penetration %, 2021
  • Morrisons' UK Food & Grocery sales GBP m, 2015-2020, and annual growth %
  • Morrisons' UK Food & Grocery market share % 2015-2020
  • Morrisons' UK Food & Grocery Penetration %, 2021
  • Aldi's UK Food & Grocery sales GBP m, 2015-2020, and annual growth %
  • Aldi's UK Food & Grocery market share % 2015-2020
  • Aldi's UK Food & Grocery Penetration %, 2021
  • UK Food & Grocery Penetration %, 2021
  • UK Food & Grocery Profile %, 2021
  • UK Food & Grocery Penetration %, 2021
  • UK Food & Grocery Channel Usage %, 2021
  • UK Food & Grocery Fulfilment Methods %, 2021
  • UK Food & Grocery Purchase Frequency, 2021
  • UK Food & Grocery Consumer Drivers %, 2021

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Aldi
  • Amazon
  • ASDA
  • B&M
  • Beelivery
  • Circle K
  • Co-Op
  • Costco
  • Deliveroo
  • Dija
  • Fancy
  • Farmfoods
  • Getir
  • Gorillas
  • Grocemania
  • Heron Foods
  • Home Bargains
  • Iceland
  • Jiffy
  • Lidl
  • Marks & Spencer
  • Morrisons
  • Oasis H2O
  • Ocado
  • One Stop
  • Poundland
  • Poundstretcher
  • Sainsbury's
  • Sams Club
  • Selected
  • Snappy Shopper
  • Spar
  • Tesco
  • Uber Eats
  • Waitrose & Partners
  • Zapp