The grocery market in the United Kingdom has witnessed continuous year-on-year growth since 2004 that culminated in a
exceeding 211.9 billion British pounds in 2021. This market is expected to continue its steady growth path every year until 2027, with the fastest growth occurring in the discounter retail channel. Between 2021 and 2027, discounters are expected to gain additional
in the UK grocery market at the expense of brick-and-mortar supermarkets and hypermarkets. An increase in
has fueled market growth, increasing from around 67 billion British pounds in 2005 to over 126.5 billion pounds in 2022.
The discount shopper
Consumers in Great Britain are worried about food prices; some 82 percent of surveyed shoppers in April 2023 were
expecting food prices to increase in the coming six months. Such concerns could further fuel the growth of discount supermarkets further in the UK. The cost-of-living crisis and price of day-to-day groceries has pushed some consumers to think twice about
where they do their food shopping. Among survey respondents who had
switched their main supermarket when asked in 2022, Aldi and Lidl were the top two most popular alternatives. Over 40 percent of shoppers had switched to Aldi and 24 percent to Lidl. The
growth in Aldi's sales mirrors this shift in shopper behavior, as levels of growth reached new highs throughout 2023. As well as switching supermarkets, consumers are
replacing name brand products with own brand products in their shopping baskets. Shoppers were the most likely to have done so for crisps, snacks, cereals, biscuits, and sweets.
Sustainability remains important
Food shoppers in the UK not only flocked towards discounters and online purchase channels in recent years but are also moving towards more conscious consumerism. Buying more seasonal produce and locally produced products are some of the
most popular sustainable habits among survey respondents from the UK. Sustainable production methods also impact shopper decisions; almost 50 percent of consumers would be incentivized to purchase a supermarket product if it was
sustainably farmed. However, the increased
cost of sustainable food and beverage products compared to their standard counterparts remains a barrier for many food shoppers. When surveyed in summer 2023, almost half of respondents stated price as a reason for not purchasing such products. Shoppers also want to see supermarkets doing their bit to help the environment. Food waste management systems, a reduction in plastic usage, and increased energy efficiency were the three
top practices that respondents wanted food retailers to implement.
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