Grocery Retail Market in UK Size to grow by USD 44.8 billion between 2024-2028
According to a research report “ Grocery Retail Market in UK” by Product (Food and beverages, Non food) Distribution Channel (Hypermarkets and supermarkets, Convenience stores, Discount stores, Online, Others) Geography (Europe)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 44.8 billion, at a CAGR of almost 3.2% during the forecast period. The population density in the UK exhibits significant variation, with London being the most densely populated region, boasting over 5,000 inhabitants per square kilometer. In contrast, the population density in most rural local authorities hovers around 50 people per square kilometer. The UK's urbanization trend, marked by high employment rates, increased immigration, and escalating wages, has spurred substantial growth in department stores since 2023. Consequently, this economic upswing has translated into increased consumer spending in major urban areas of the UK, generating lucrative opportunities for supermarket retailers.
Browse market data tables, figures, and in-depth TOC on “Grocery Retail Market in UK” by Product (Food and beverages, Non food) Distribution Channel (Hypermarkets and supermarkets, Convenience stores, Discount stores, Online, Others) Geography (Europe) Global Forecast to 2028. Download Free Sample
By Product, the Food and beverages segment is projected to dominate the market size in 2024
In the UK grocery retail sector, hypermarkets and supermarkets dominate the market landscape, catering to a vast assortment of consumer needs. These retail formats, which include fruits, vegetables, baked goods, canned goods, toiletries, alcohol, and cleaning products, accounted for a significant market share in 2023. Hypermarkets, characterized by their expansive sales areas exceeding 60,000 sq. ft, offer a comprehensive range of grocery items and a substantial non-food selection. Supermarkets, with sales areas ranging between 3,000 sq. ft and 60,000 sq. ft, provide consumers with a more modest but still extensive range of products. Consumers gravitate towards these retail formats due to their extensive product offerings, enabling thorough product evaluation, and the availability of knowledgeable customer service personnel.
By Distribution Channel, Hypermarkets and supermarkets segment is expected to hold the largest market size for the year 2024
The UK grocery retail market's foods and beverages segment encompasses a diverse array of products, including fruits and vegetables, dairy items, frozen foods, fresh and frozen meat, baked goods, snack foods, canned foods, and condiments. Preferred grocery items in this category consist of fresh bread, salty snacks, and cereals. This segment has experienced significant growth due to the burgeoning demand for snacks, as well as innovative product offerings from vendors in terms of flavors. With the increasing per capita income of consumers, there is a discernible shift towards organic and gluten-free products, as opposed to traditional options.
Europe is forecasted to hold the largest market size by region in 2024
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The Grocery Retail Market in UK growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The grocery retail market in the UK is a dynamic and competitive industry, dominated by omnichannel mass merchandisers such as Tesco, Asda, Sainsbury's, and Morrisons. These supermarket businesses have intricate supplier networks that enable them to offer a wide variety of products, including private label goods, at competitive prices. With the rise of cooking at home and consumer polarization, there has been a significant increase in online grocery sales. Home delivery services and curbside pickup have become essential features for retailers seeking to cater to the convenience-driven end consumers. Immigrants and residents in big cities have fueled the growth of ethnic markets, which offer a diverse range of products, including household items, clothing, and non-food products. Greengrocers, once a staple of UK high streets, have had to adapt to remain competitive. Online grocery platforms have disrupted the retail sales landscape, with retailers like Ocado and Amazon Fresh leading the charge. The focus on quality and consumer-oriented features has become a key differentiator in this market. Overall, the grocery retail sector in the UK continues to evolve, with retailers adapting to changing consumer preferences and behaviors. The future of grocery retailing will be shaped by technology, convenience, and the ability to offer a wide range of products to meet the diverse needs of consumers.
Market Research Overview
The Grocery Retail Market in the UK is undergoing significant changes due to various factors such as urbanization, environmental regulations, and the adoption of new technologies like Blockchain. The increasing urbanization and growing middle class in big cities have led to a surge in demand for convenience, variety, and quality in grocery retail. Consumers are polarized between cooking at home and relying on delivery options, leading to a rise in online grocery sales. Supplier networks are being disrupted due to shortages and supply chain disruptions, making it crucial for grocery retailers to engage with their customers through promotions, targeted product recommendations, and personalized experiences. Whole Foods, omnichannel mass merchandisers, and traditional supermarkets are adopting innovative operating models with automation and AI algorithms to improve efficiency and customer experience. Environmental regulations and consumer preferences are driving the demand for locally sourced and imported products. Urbanization and the presence of immigrants have led to the growth of ethnic markets and greengrocers selling household items, clothing, and non-food products. Consumer browsing behavior and purchase history are being leveraged to offer personalized recommendations and competitive prices. Home delivery services, curbside pickup, and convenience are key features that retailers are focusing on to stay competitive in the grocery retail market.
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