Latest News- Grocery Retail Market in UK: Food and beverages is expected to lead the Product segment during 2025-2029

The Grocery Retail Market in UK is being driven by Rapid urbanization and rising consumer spending

The Grocery Retail Market in UK is expected to grow at a CAGR of 3.8% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 56.2 billion. In the dynamic UK grocery retail market, shoppers are adopting a multi-channel approach to purchasing, merging traditional and online platforms. This shift is placing significant pressure on conventional distribution channels such as department stores, specialty stores, hypermarkets, and supermarkets. To remain competitive, these retailers are exploring innovative strategies, including the implementation of beacon technology in department stores. This technology enhances customer interaction, ultimately boosting sales and positively influencing the growth trajectory of the UK grocery retail sector throughout the forecast period. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Product
  • Food and beverages
  • Non food
• Distribution Channel
  • Hypermarkets and supermarkets
  • Convenience stores
  • Discount stores
  • Online
  • Others
• Geography
  • UK

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rapid urbanization and rising consumer spending
• Growing demand for convenient food products
• Rising promotions including bundled prices, volume discounts and seasonal sales

However, the market also witnesses some limitations, which are as follows:

• Threat from counterfeit grocery products
• End-user perception of online grocery shopping
• Frequent product recalls in foods and beverages sector

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Market Scope in Grocery Retail Market in UK Research Report

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Research Analysis Overview

The Grocery Retail Market in the UK experiences dynamic retail sales, catering to end consumers through various channels. Retailers, including supermarkets and online grocery platforms, offer a wide range of products from food to non-food items such as clothing, household items, and more. In big cities and ethnic markets, there's a growing demand for specialized offerings from greengrocers and suppliers, targeting immigrants and diverse consumer groups. Consumer-oriented features like quality, variety, convenience, and curbside pickup/home delivery services fuel online grocery sales. Consumer polarization drives the trend of cooking at home, leading to increased demand for private label goods and robust supplier networks. Omnichannel mass merchandisers dominate the supermarket business.

Market Research Overview

The grocery retail sector in the UK falls under the broader category of the global broadline retail market, which encompasses revenue generated by retailers offering general merchandise, department stores, online retailers, and marketplaces. According to Technavio, the market size is determined by the revenues of Internet retailing service providers, third-party online platforms, door-to-door retailers, department stores, and other general merchandise companies, including those facilitating online consumer product and service marketplaces. The market's expansion will be fueled by the increasing usage of advanced mobile devices and high Internet penetration, enabling consumers to access on-demand non-food products, clothing, household items, and more through online grocery platforms.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/