NEW
YORK, July 9, 2024 /PRNewswire/ -- The global
grocery retail market in the UK is estimated to grow by
USD 44.8 billion from 2024-2028,
according to Technavio, at a CAGR of almost 3.2%. Rapid
urbanization and rising consumer spending drive market growth, with
a trend towards innovative store layouts and offerings to amplify
customer experience. However, counterfeit grocery products pose a
challenge. Key market players include Amazon.com Inc., Carrefour
SA, Tesco Plc, and Waitrose and Partners, among others.
Get a detailed analysis on regions, market
segments, customer landscape, and companies- View the
snapshot of this report
Grocery Retail
Market Scope In UK
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Decelerate at a CAGR of
3.2%
|
Market growth
2024-2028
|
USD 44.8
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
3.04
|
Regional
analysis
|
UK
|
Performing market
contribution
|
Europe at
100%
|
Key
countries
|
UK
|
Key companies
profiled
|
Amazon.com Inc., B and
M Retail Ltd, Carrefour SA, Costco Wholesale Corp., EG Group, EH
Booth and Co. Ltd, Farmfoods Ltd., Heron Foods Ltd., HOFER KG,
Iceland Foods Ltd., Lidl US LLC, Marks and Spencer Group plc,
McCormick and Co. Inc., National Coop Grocers, Ocado Retail Ltd.,
PROUDFOOT SUPERMARKETS, SPAR (UK) Ltd., Tesco Plc, Waitrose and
Partners, and Wm Morrison Supermarkets Ltd.
|
Market Driver
In the UK grocery retail market, shoppers are adopting a blend
of traditional and online shopping channels. Traditional retailers,
including department stores, specialty stores, hypermarkets, and
supermarkets, face competition from e-commerce. The prevalence of
smartphones offers an opportunity to merge physical and digital
shopping experiences through IoT devices like Beacons. These
devices enable location-based services, allowing retailers to
target customers precisely. Amid the COVID-19 pandemic, UK
retailers and supermarkets introduce various technologies, such as
3D sensor tech, enhancement and metrics, to ensure consumer safety
and curb the virus's spread. Beacons' adoption in department stores
is expected to rise, boosting sales through increased customer
interaction, and positively impacting the grocery retail market
growth during the forecast period.
The UK grocery retail market is experiencing significant trends
driven by convenience, with curbside pickup and home delivery
services gaining popularity. Competitive prices remain a key
factor, catering to a large population and growing middle class.
Urbanization and increasing automation are shaping innovative
operating models, including the use of Artificial Intelligence (AI)
for personalization and efficiency. AI algorithms analyze purchase
history and browsing behavior to provide targeted product
recommendations and promotions, enhancing customer experience.
Supply chain disruptions, shortages, and imported products pose
challenges, while online grocery sales continue to rise due to
consumer polarization and cooking at home. Grocery retailers offer
private label goods and leverage supplier networks to stay
competitive. Supermarkets and omnichannel mass merchandisers like
Whole Foods adapt to delivery options and the food cupboard
segment. Environmental regulations and urbanization push for
blockchain technologies to ensure transparency and
traceability.
Discover 360° analysis of this market. For
complete information, schedule your consultation - Book
Here!
Market Challenges
- The UK grocery retail market faces a growing challenge from
counterfeit products, particularly in the areas of fast-moving
consumer goods (FMCGs) and electronics. Counterfeiters are flooding
the market with imitation goods, making it increasingly difficult
for consumers to distinguish them from genuine items. This trend is
particularly prevalent in online and e-commerce channels. The
proliferation of counterfeit products negatively impacts the sales
of major retailers and damages the reputation of legitimate
manufacturers. Counterfeit brands undercut prices of authentic
products, but their quality and durability are inferior. The
production costs for counterfeit goods are low, enabling mass
production. Consumers are often misled by imitation packaging and
product names, especially in rural regions. Moreover, the sale of
counterfeit grocery products poses a serious health risk due to
unsanitary production conditions and potentially hazardous
ingredients. The threat from counterfeit grocery products is
expected to intensify, particularly after 2022, due to the
expansion of e-commerce and the increasing demand for organic and
premium products, which often have higher profit margins. This
situation poses a significant hurdle for the growth of the UK
grocery retail market.
- In the UK grocery retail market, browsing behavior and targeted
product recommendations are key challenges for retailers. Consumers
prefer convenience and personalized offers, requiring advanced
technology and data analysis. Promotions and customer engagement
are essential for sales growth, but supply chain disruptions and
shortages can impact stock availability. Imported products,
especially fresh produce, face uncertainty due to Brexit and
environmental regulations. Online grocery sales are increasing,
polarizing consumers between traditional supermarkets and online
platforms. Urbanization and consumer preferences for cooking at
home drive demand for private label goods and non-food items like
clothing and household items. Grocery retailers must adapt to
omnichannel mass merchandisers, supermarket business models, and
competition from Whole Foods and other niche players. Delivery
options, food cupboard segments, and supplier networks are crucial
for success. Blockchain technologies offer potential solutions for
transparency and traceability. Retailers must cater to diverse
consumer needs, including ethnic markets and immigrant communities,
while maintaining quality and variety.
For more insights on driver and
challenges - Request a sample report!
Segment Overview
This grocery retail market in UK report extensively covers
market segmentation by
- Product
- 1.1 Food and beverages
- 1.2 Non food
- Distribution Channel
- 2.1 Hypermarkets and supermarkets
- 2.2 Convenience stores
- 2.3 Discount stores
- 2.4 Online
- 2.5 Others
- Geography
1.1 Food and beverages- The UK grocery retail market's
foods and beverages segment encompasses a diverse range of
products, including fruits and vegetables, dairy, frozen foods,
meat, baked goods, snacks, canned foods, and condiments. Popular
items within this segment consist of fresh bread, salty snacks, and
cereals. This sector has experienced substantial growth due to the
increasing preference for snacks and innovative product offerings
from vendors in terms of flavors. With rising per capita income,
consumers are shifting towards organic and gluten-free options,
diverging from traditional products. The demand for frozen snacks,
particularly among teenagers, has surged. Vendors are continuously
introducing new flavors and health-conscious ingredients to cater
to this trend. For instance, General Mills
Inc. Offers Organic Grapes Galore Fruit Juice Pops, a
certified organic product made from real fruit juice. The dairy
product segment comprises milk, milk alternatives, cheese, yogurt,
and butter. Plant-based milk beverages have gained significant
traction among millennials and lactose-intolerant consumers,
fueling sales across various demographics. The revenue from dairy
products is projected to expand during the forecast period as
vendors introduce an array of new offerings. The growth in the
foods and beverages segment will, consequently, propel the
expansion of the UK grocery retail market.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
Research Analysis
The UK grocery retail market is a vibrant and diverse sector,
catering to the needs of end consumers in both urban and rural
areas. Retail sales in this market have seen consistent growth,
driven by the demand for a wide range of products including food
and non-food items such as clothing, household items, and
greengrocers. In big cities, consumers seek convenience and
variety, leading to the popularity of online grocery platforms.
Ethnic markets and immigrant communities contribute significantly
to the market's diversity, with a demand for specific products and
consumer-oriented features like quality and variety. The
supermarket business is dominated by traditional retailers, but
omnichannel mass merchandisers are gaining ground with their
curbside pickup and home delivery services. Private label goods and
supplier networks are key strategies for retailers to differentiate
themselves and compete effectively. Cooking at home remains a
consumer trend, driving sales of grocery retailers. Online grocery
sales continue to grow, with consumer polarization between those
who prefer the convenience of home delivery and those who value the
sensory experience of shopping in-store.
Market Research Overview
The Grocery Retail market in the UK is a vibrant and dynamic
sector, driven by the needs and preferences of end consumers.
Retail sales in this industry continue to grow, fueled by the
convenience and variety of products offered by retailers. Both
traditional grocers and online grocery platforms cater to the
demand for non-food items such as clothing and household items, as
well as fresh produce from greengrocers and ethnic markets. Big
cities and immigrant communities contribute significantly to the
market's growth, with consumer-oriented features like quality,
variety, and competitive prices being key drivers. Curbside pickup
and home delivery services have gained popularity, particularly in
urban areas where time is a precious commodity. The growing middle
class and increasing urbanization have led to innovative operating
models, automation, and the use of artificial intelligence (AI) to
enhance efficiency and personalize the customer experience. AI
algorithms analyze purchase history and browsing behavior to
provide targeted product recommendations and promotions, while
supply chain disruptions and shortages are addressed through
imported products and blockchain technologies. Environmental
regulations and consumer polarization towards cooking at home have
also influenced the market, with private label goods and supplier
networks becoming increasingly important for supermarkets and
omnichannel mass merchandisers like Whole Foods. Delivery options
and the food cupboard segment continue to evolve, offering
consumers a wide range of choices and convenience.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
-
- Food And Beverages
- Non Food
- Distribution Channel
-
- Hypermarkets And Supermarkets
- Convenience Stores
- Discount Stores
- Online
- Others
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
View original content to download
multimedia:https://www.prnewswire.com/news-releases/grocery-retail-market-size-in-uk-is-set-to-grow-by-usd-44-8-billion-from-2024-2028--rapid-urbanization-and-rising-consumer-spending-boost-the-market-technavio-302191059.html
SOURCE Technavio