UK Food and Grocery Market to Reach £183 Billion by 2015
UK consumers will spend £182.7b in grocery retail outlets by 2015 – an average annual growth of 3.9% – according to latest figures released by IGD, the international food and grocery retailing expert.
IGD’s ‘UK Grocery Retail Outlook: Opportunities Beyond 2010’ report, predicts that the UK convenience sector, currently valued at £32.1b, will continue to outperform the grocery market and is projected to increase sales by 5.8% per year to £42.6b in 2015
Accounting for 8.2% of the UK grocery sector, non-food sales reached £12.4b in 2010 and are predicted to increase to £17.1b by 2015.
Online grocery retailing is set to double in value from £4.8b to £9.5b by 2015. This is due to technological enhancements, improvements to websites and delivery/collect methods, and greater confidence among shoppers.
Joanne Denney-Finch, chief executive of IGD.
The report, which also includes a supplier survey, found that food and drink manufacturers expressed a high level of optimism about the prospects of their businesses in the next three years, with 63% scoring 8 out of 10 or higher.
They are also aware of the need to innovate to grow. When asked how they would change their product strategy in the next three years, nearly two thirds (64%) of suppliers said that they envisage creating products and pack sizes tailored to meet different store formats or channel-specific needs.
“Despite a tough trading environment, the food and grocery industry has demonstrated a resilient performance in the last twelve months. Companies have responded quickly to shifting shopper trends and adapted their business models accordingly to win the contest for value and convenience,” says Joanne Denney-Finch, chief executive of IGD. “The road ahead remains uncertain, but those businesses that keep up with the pace of change will continue to reap the rewards and prosper.”
