The UK food & grocery market: Trends to watch out for

The changing consumer landscape and future trends

We’re presently sailing in unchartered waters when it comes to the UK food and grocery sector. Emerging technology, more consumer choice, increased competition and unexpected industry consolidations have shifted the power dynamics within the industry. Brexit and other policy implications continue to bear down on an already hyper-competitive market, but what does this all hold for the future?

In addressing this question, we conducted a thorough analysis of the changing consumer landscape from both a buyer’s and seller’s point of view. Various insights have been accumulated and assessed in order to identify emerging trends. The following is a snippet of a wider piece of research looking at these various trends to watch out for:

1. Consumers are shopping more often, but buying less 

Consumers are shopping more often, but buying less – visits to the store went up by 14.3% from 2013 to 2018, according to data from Nielsen Homescan. This could be an opportunity for retailers to attract more casual shoppers.

More visits to the shop has reduced average basket values

Source: Nielsen Homescan (2013 – 52 weeks to 4 January 2014 and 2018 – 52 weeks to 11 August 2018). Includes grocery multiples and discounters.

2. Demand for lower prices has led to less brand loyalty

Meanwhile, demand for lower prices has led to less brand loyalty. As a result, the Big Four market share declined to 68% in 2018 from its peak of just over 77% in 2011.

3. Takeaway food platforms are taking off

Also, takeaway food platforms are taking off. The market has grown by 34% since 2009, almost twice the rate of the retail food sector over this period.