The value of the UK food & grocery sector grew over 2% in 2024, driven by outperforming mid-market players. Volumes declined marginally as consumers adjusted their spending in response to rising prices.
The online food & grocery channel will outpace the total sector growth in 2025, as investment in fulfilment capacity by grocers and consumers' familiarity with ordering groceries through rapid-delivery services drives uptake.
Health-driven food & grocery purchases are changing spending patterns and will compel grocers' to adjust ranges to stay relevant.
Report Scope
- The outlook for the food & grocery sector will be softer over the next five years, with the market forecast to increase between 2024 and 2029.
- Food inflation is expected to fall to nominal levels between 2026 to 2029, with a return to volume growth from 2026.
- Demand for a wider range of world food options will boost food category and overall sector growth out to 2029.
Reasons to Buy
- Using our five year forecasts to 2029, 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
- Sector value boosted by ecommerce expansion and inflationary uplift
- Premium own‑brand and global flavours propel food value growth
- Aldi’s slowed momentum eases pressure on ASDA
- Consumers prioritise health when grocery shopping
- KEY TRENDS
- Market drivers
- Market inhibitors
- Key Trends: Grocers must appropriately scale retail media to minimise ad fatigue
- Key Trends: Health-driven grocery shopping reshapes spending patterns
- Key Trends: Grocers double down on British sourcing
- Key Trends: Grocers must use targeted strategies to recover inflation-suppressed volumes
- Strategies for success
- MARKET SIZE AND FORECASTS
- Five year growth 2019-2029
- Market size, 2019-2029
- Market Growth Drivers, 2022-2029
- CATEGORY PERFORMANCE AND FORECASTS
- Key category trends
- Food & grocery categories
- Market by category %, 2019-2029
- Market by Sub Category, 2024 & 2029
- CHANNEL PERFORMANCE AND FORECASTS
- Online market, 2019-2029
- Channel growth, 2019-2029
- Market by channel, 2024 and 2029
- Channel value and forecast, 2024 and 2029
- REVENUE AND MARKET SHARES OF TOP 10 PLAYERS
- Top 10 UK Retailers, 2024
- Market shares of the top 10 retailers
- Top 20 most visited and purchased from retailers for food & grocery, 2025
- Food & grocery competitor overlap, 2025
- Top 10 most purchased from retailers for food & grocery, consumer penetration, 2025
- COMPETITIVE LANDSCAPE: PROFILES OF LEADING PLAYERS
- Tesco
- Morrisons
- Aldi
- Marks & Spencer
- Retailers to watch
- Brands to watch
- CONSUMERS
- Key consumer trends
- Food & Grocery penetration and profile, 2025
- Food & Grocery category penetration, 2025
- Food & Grocery channel usage, 2025
- Food & Grocery fulfilment methods, 2025
- Food & Grocery purchase locations, 2025
- Food & Grocery store types, 2025
- Food & Grocery device usage, 2025
- Food & Grocery purchase frequency, 2025
- Food & Grocery consumer drivers, 2025
- UK loyalty scheme penetration, 2025
- UK food & grocery purchase locations, by retailer, 2025
- Awareness of ultra-processed foods, 2025
- Consumption of ultra-processed foods, 2025
- Avoiding ultra-processed foods, 2025
- Statements about ultra-processed foods, 2025
- How consumers describe their daily diet, 2025
- Grocery subcategories consumers are cutting back on, 2025
- Packaging size preferences, 2025
- How consumers prioritise quality when purchasing grocery subcategories, 2025
- Own brand product perception, 2025
- Own brand purchases versus branded product preference, 2025
- How consumers describe their alcohol consumption, 2025
- Low/no alcohol drink consumption, 2025
- Low/no alcohol drinks retailer selection, 2025
- Statements about low/no alcohol drinks, 2025
- METHODOLOGY, DEFINITIONS AND CONTACTS
- UK Food & Grocery Market by Sub-Category, 2024 & 2029
- UK Food & Grocery Channel Value & Forecast, 2024 and 2029
- Top 10 UK Food & Grocery Retailers, 2024
- UK Food & Grocery Competitor Overlap, 2025
- UK Food & Grocery Category Penetration by Demographic, 2025
- UK Food & Grocery Channel Usage by Demographic, 2025
- UK Food & Grocery Fulfilment Methods by Demographic, 2025
- UK Food & Grocery Purchase Locations by Demographic, 2025
- UK Food & Grocery Store Types by Demographic, 2025
- UK Food & Grocery Device Usage by Demographic, 2025
- UK Food & Grocery Consumer Drivers by Demographic, 2025
- UK Loyalty Scheme Penetration by Demographic, 2025
- UK Food & Grocery Market Value GBP m, 2024-2029
- UK Food & Grocery Categories by Value Growth %, CAGR 2024-2029
- Agreement and disagreement with statements about ultra processed foods, 2025
- Agreement and disagreement with statements about low/no alcohol drinks, 2025
- Four month average penetration of UK consumers using weight loss medication %, 2025
- Agreement with statements about locally sourced products %, 2025
- UK food & grocery annual sector inflation %, 2022-2029
- UK Food & Grocery Market GBP m, 2019, 2024, 2029 & CAGR %
- UK Food & Grocery Market Value GBP m, 2019-2029
- UK Food & Grocery Market Annual Growth %, 2019-2029
- UK Food & Grocery Market Growth Drivers, 2022-2029
- UK Food & Grocery Categories by Value GBP m, 2024 & 2029
- UK Food & Grocery Categories by Value Growth %, CAGR 2024-2029
- UK Food & Grocery Market by Category %, 2019, 2024, 2029
- UK Food & Grocery Online Market Size GBPm and Online Penetration %, 2019-2029
- UK Food & Grocery Channel Growth, 2019-2029
- UK Food & Grocery Market by Channel, 2024 and 2029
- Market Shares of Top 10 UK Food & Grocery Retailers, 2023, 2024 & 2025e
- Top 20 Most Visited Retailers for Food & Grocery %, 2025
- Top 20 Most Purchased from Retailers for Food & Grocery %, 2025
- Tesco UK Food & Grocery Penetration %, 2025
- Sainsbury's UK Food & Grocery Penetration %, 2025
- Aldi UK Food & Grocery Penetration %, 2025
- ASDA UK Food & Grocery Penetration %, 2025
- Lidl UK Food & Grocery Penetration %, 2025
- Morrisons UK Food & Grocery Penetration %, 2025
- Iceland UK Food & Grocery Penetration %, 2025
- Marks & Spencer UK Food & Grocery Penetration %, 2025
- Co-op UK Food & Grocery Penetration %, 2025
- B&M UK Food & Grocery Penetration %, 2025
- Tesco UK Food & Grocery market share %, 2019-2025e
- Morrisons UK Food & Grocery market share %, 2019-2025e
- Aldi UK Food & Grocery market share %, 2019-2025e
- Marks & Spencer UK Food & Grocery market share %, 2019-2025e
- UK Food & Grocery Penetration %, 2025
- UK Food & Grocery Profile %, 2025
- UK Food & Grocery Category Penetration %, 2025
- UK Food & Grocery Channel Usage %, 2025
- UK Food & Grocery Fulfilment Methods %, 2025
- UK Food & Grocery Purchase Locations %, 2025
- UK Food & Grocery Store Types %, 2025
- UK Food & Grocery Device Usage %, 2025
- UK Food & Grocery Purchase Frequency, 2025
- UK Food & Grocery Consumer Drivers %, 2025
- UK Loyalty Scheme Penetration %, 2025
- UK Food & Grocery Purchase Locations, by Retailer %, 2025
- UK Consumer Awareness of Ultra-Processed Foods by Age %, 2025
- UK Consumer Change in Consumption of Ultra-Processed Foods Over the Past Year by Age %, 2025
- UK Consumers' Primary Reasons for Avoiding Ultra-Processed Foods %, 2025
- How UK Consumers' Spending on Groceries Overall has Changed in the Last Year %, 2025
- How UK Consumers' Spending on Groceries Overall has Changed in the Last Year by Generation %, 2025
- Category Impact of Consumers Avoiding Ultra-Processed Foods %, 2025
- Agreement and Disagreement With Statements about Ultra-Processed Foods, 2025
- How UK Consumers Describe Their Daily Diet %, 2025
- How UK Consumers Describe Their Daily Diet by Generation %, 2025
- How UK Consumers Stated They Are Spending Less on Grocery Shopping Are Cutting Back by Subcategory %, 2025
- Which Packaging Sizes UK Consumers Prefer by Subcategory %, 2025
- How UK Consumers Prioritise Quality When Purchasing Grocery Subcategories %, 2025
- How UK Consumers Describe Stores’ Own Brand Products by Subcategory %, 2025
- Why UK Consumers Purchase Own Brand Products Instead of Branded %, 2025
- How UK Consumers Describer Their Alcohol Consumption %, 2025
- Penetration of UK Consumers That Have Tried Low/No Alcohol Drinks, by Gender and Generation %, 2025
- How UK consumers’ Spend on Low/No Alcohol Drinks Compared to Last Year %, 2025
- How UK consumers’ Spend on Low/No Alcohol Drinks Compared to Last Year by social grade %, 2025
- Reasons UK Consumers Have Spent More on Low/No Alcohol Drinks this Year %, 2025
- Top 10 Retailers Consumers Who Have Purchased Low/No Alcohol Drinks From %, 2025
- Agreement and Disagreement With Statements about Low/No Alcohol Drinks, 2025
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aldi
- Amazon
- ASDA
- B&M
- Co-op
- Costco
- Deliveroo
- Farmfoods
- Gousto
- HelloFresh
- Heron Foods
- Home Bargains
- Iceland
- Lidl
- Marks & Spencer
- Morrisons
- Ocado
- One Stop
- Premier
- Sainsbury's
- Sett
- Spar
- Tesco
- Waitrose & Partners
- VPZ
- Vape UK
- TK Maxx
- The Range
- Mother Root
- British Airways
- David Lloyd Gyms
- The Ivy
- Instacart
- The Food Warehouse
- Majestic Wine
- Whittard of Chelsea
- Boost
- XOXO Soda
- Seep
- Better Nature
- Pret
- Blank Street

