Report
UK Grocery Retail Market 2025-2029
UK Grocery Retail Market Outlook (2025–2029)
The UK grocery retail market is projected to expand by USD 56.4 billion between 2024 and 2029, registering a CAGR of 3.9% during the forecast period.
Market Overview
The market is witnessing steady growth, primarily driven by:
- Rapid urbanization
- Rising consumer spending
- Demand for personalized shopping experiences
Retailers are responding with innovative store designs and expanded services such as online grocery delivery, catering to evolving consumer behaviors.
However, challenges persist—particularly the threat of counterfeit goods and the growing presence of instant grocery providers, both of which risk eroding consumer trust. To overcome these hurdles, companies must:
- Ensure product authenticity
- Maintain transparency
- Strengthen brand reputation
Overall, the UK grocery retail sector remains competitive and fast-evolving, requiring continual adaptation to shifting consumer preferences and technological advancements.
Key Market Trends
The industry is being shaped by changing lifestyles, sustainability concerns, and digital transformation:
- Online grocery shopping and fast delivery are increasingly popular
- Eco-conscious consumers seek:
- Sustainable packaging
- Zero-waste stores
- Organic, vegan, and gluten-free products
- Technological integration includes:
- AI-powered inventory management
- Smart checkout systems
- Automated picking solutions
Retailers are focusing on convenience with:
- Click-and-collect
- Subscription grocery boxes
- Plant-based product offerings
- Affordable grocery options
In addition, non-food categories such as clothing and household goods are gaining shelf space in supermarkets, expanding their appeal.
Market Dynamics
Key forces influencing the UK grocery retail market include:
- Growth in online grocery sales
- Expansion of supermarket and discount chains
- Rising popularity of private label and organic products
- Shift towards sustainable packaging
- Consumer interest in local sourcing and ethical brands
Technology and services enhancing convenience and efficiency include:
- Grocery delivery
- Click and collect
- Subscription models
- Smart checkouts
- Grocery comparison apps
- Loyalty programs
Meanwhile, inflation, especially in the fresh food category, is affecting purchasing behavior. The rise of plant-based diets, mobile commerce, and digital transformation continues to shape the sector’s future.
Table of Content
1 Executive Summary
1.1 Market overview
- Executive Summary - Chart on Market Overview
- Executive Summary - Data Table on Market Overview
- Executive Summary - Chart on Country Market Characteristics
- Executive Summary - Chart on Market Segmentation by Product
- Executive Summary - Chart on Market Segmentation by Distribution Channel
- Executive Summary - Chart on Company Market Positioning
2 Technavio Analysis
2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
- Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
2.2 Criticality of inputs and Factors of differentiation
- Overview on criticality of inputs and factors of differentiation
2.3 Factors of disruption
- Overview on factors of disruption
2.4 Impact of drivers and challenges
- Impact of drivers and challenges in 2024 and 2029
3 Market Landscape
3.1 Market ecosystem
- Parent Market
- Data Table on - Parent Market
3.2 Market characteristics
- Market characteristics analysis
3.3 Value chain analysis
- Value chain analysis
4 Market Sizing
4.1 Market definition
- Offerings of companies included in the market definition
4.2 Market segment analysis
- Market segments
4.3 Market size 2024
4.4 Market outlook: Forecast for 2024-2029
- Chart on UK - Market size and forecast 2024-2029 ($ billion)
- Data Table on UK - Market size and forecast 2024-2029 ($ billion)
- Chart on UK: Year-over-year growth 2024-2029 (%)
- Data Table on UK: Year-over-year growth 2024-2029 (%)
5 Historic Market Size
5.1 Grocery Retail Market in UK 2019 - 2023
- Historic Market Size - Data Table on Grocery Retail Market in UK 2019 - 2023 ($ billion)
5.2 Product segment analysis 2019 - 2023
- Historic Market Size - Product Segment 2019 - 2023 ($ billion)
5.3 Distribution Channel segment analysis 2019 - 2023
- Historic Market Size - Distribution Channel Segment 2019 - 2023 ($ billion)
6 Qualitative Analysis
6.1 Impact of AI on the grocery retail market in UK
7 Five Forces Analysis
7.1 Five forces summary
- Five forces analysis - Comparison between 2024 and 2029
7.2 Bargaining power of buyers
- Bargaining power of buyers - Impact of key factors 2024 and 2029
7.3 Bargaining power of suppliers
- Bargaining power of suppliers - Impact of key factors in 2024 and 2029
7.4 Threat of new entrants
- Threat of new entrants - Impact of key factors in 2024 and 2029
7.5 Threat of substitutes
- Threat of substitutes - Impact of key factors in 2024 and 2029
7.6 Threat of rivalry
- Threat of rivalry - Impact of key factors in 2024 and 2029
7.7 Market condition
- Chart on Market condition - Five forces 2024 and 2029
8 Market Segmentation by Product
8.1 Market segments
- Chart on Product - Market share 2024-2029 (%)
- Data Table on Product - Market share 2024-2029 (%)
8.2 Comparison by Product
- Chart on Comparison by Product
- Data Table on Comparison by Product
8.3 Food and beverages - Market size and forecast 2024-2029
- Chart on Food and beverages - Market size and forecast 2024-2029 ($ billion)
- Data Table on Food and beverages - Market size and forecast 2024-2029 ($ billion)
- Chart on Food and beverages - Year-over-year growth 2024-2029 (%)
- Data Table on Food and beverages - Year-over-year growth 2024-2029 (%)
8.4 Non food - Market size and forecast 2024-2029
- Chart on Non food - Market size and forecast 2024-2029 ($ billion)
- Data Table on Non food - Market size and forecast 2024-2029 ($ billion)
- Chart on Non food - Year-over-year growth 2024-2029 (%)
- Data Table on Non food - Year-over-year growth 2024-2029 (%)
8.5 Market opportunity by Product
- Market opportunity by Product ($ billion)
- Data Table on Market opportunity by Product ($ billion)
9 Market Segmentation by Distribution Channel
9.1 Market segments
- Chart on Distribution Channel - Market share 2024-2029 (%)
- Data Table on Distribution Channel - Market share 2024-2029 (%)
9.2 Comparison by Distribution Channel
- Chart on Comparison by Distribution Channel
- Data Table on Comparison by Distribution Channel
9.3 Hypermarkets and supermarkets - Market size and forecast 2024-2029
- Chart on Hypermarkets and supermarkets - Market size and forecast 2024-2029 ($ billion)
- Data Table on Hypermarkets and supermarkets - Market size and forecast 2024-2029 ($ billion)
- Chart on Hypermarkets and supermarkets - Year-over-year growth 2024-2029 (%)
- Data Table on Hypermarkets and supermarkets - Year-over-year growth 2024-2029 (%)
9.4 Convenience stores - Market size and forecast 2024-2029
- Chart on Convenience stores - Market size and forecast 2024-2029 ($ billion)
- Data Table on Convenience stores - Market size and forecast 2024-2029 ($ billion)
- Chart on Convenience stores - Year-over-year growth 2024-2029 (%)
- Data Table on Convenience stores - Year-over-year growth 2024-2029 (%)
9.5 Discount stores - Market size and forecast 2024-2029
- Chart on Discount stores - Market size and forecast 2024-2029 ($ billion)
- Data Table on Discount stores - Market size and forecast 2024-2029 ($ billion)
- Chart on Discount stores - Year-over-year growth 2024-2029 (%)
- Data Table on Discount stores - Year-over-year growth 2024-2029 (%)
9.6 Online - Market size and forecast 2024-2029
- Chart on Online - Market size and forecast 2024-2029 ($ billion)
- Data Table on Online - Market size and forecast 2024-2029 ($ billion)
- Chart on Online - Year-over-year growth 2024-2029 (%)
- Data Table on Online - Year-over-year growth 2024-2029 (%)
9.7 Others - Market size and forecast 2024-2029
- Chart on Others - Market size and forecast 2024-2029 ($ billion)
- Data Table on Others - Market size and forecast 2024-2029 ($ billion)
- Chart on Others - Year-over-year growth 2024-2029 (%)
- Data Table on Others - Year-over-year growth 2024-2029 (%)
9.8 Market opportunity by Distribution Channel
- Market opportunity by Distribution Channel ($ billion)
- Data Table on Market opportunity by Distribution Channel ($ billion)
10 Customer Landscape
10.1 Customer landscape overview
- Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
11 Drivers, Challenges, and Opportunity/Restraints
11.1 Market drivers
11.2 Market challenges
11.3 Impact of drivers and challenges
- Impact of drivers and challenges in 2024 and 2029
11.4 Market opportunities/restraints
12 Competitive Landscape
12.1 Overview
12.2 Competitive Landscape
- Overview on criticality of inputs and factors of differentiation
12.3 Landscape disruption
- Overview on factors of disruption
12.4 Industry risks
- Impact of key risks on business
13 Competitive Analysis
13.1 Companies profiled
- Companies covered
13.2 Company ranking index
- Company ranking index
13.3 Market positioning of companies
- Matrix on companies position and classification
13.4 Amazon.com Inc.
- com Inc. - Overview
- com Inc. - Business segments
- com Inc. - Key news
- com Inc. - Key offerings
- com Inc. - Segment focus
- SWOT
13.5 B and M Retail Ltd
- B and M Retail Ltd - Overview
- B and M Retail Ltd - Product / Service
- B and M Retail Ltd - Key offerings
- SWOT
13.6 Costco Wholesale Corp.
- Costco Wholesale Corp. - Overview
- Costco Wholesale Corp. - Business segments
- Costco Wholesale Corp. - Key offerings
- Costco Wholesale Corp. - Segment focus
- SWOT
13.7 EG Group
- EG Group - Overview
- EG Group - Product / Service
- EG Group - Key offerings
- SWOT
13.8 EH Booth and Co. Ltd
- EH Booth and Co. Ltd - Overview
- EH Booth and Co. Ltd - Product / Service
- EH Booth and Co. Ltd - Key offerings
- SWOT
13.9 Farmfoods Ltd.
- Farmfoods Ltd. - Overview
- Farmfoods Ltd. - Product / Service
- Farmfoods Ltd. - Key offerings
- SWOT
13.10 Heron Foods Ltd.
- Heron Foods Ltd. - Overview
- Heron Foods Ltd. - Product / Service
- Heron Foods Ltd. - Key offerings
- SWOT
13.11 HOFER KG
- HOFER KG - Overview
- HOFER KG - Product / Service
- HOFER KG - Key offerings
- SWOT
13.12 Iceland Foods Ltd.
- Iceland Foods Ltd. - Overview
- Iceland Foods Ltd. - Product / Service
- Iceland Foods Ltd. - Key offerings
- SWOT
13.13 Lidl US LLC
- Lidl US LLC - Overview
- Lidl US LLC - Product / Service
- Lidl US LLC - Key offerings
- SWOT
13.14 Marks and Spencer Group plc
- Marks and Spencer Group plc - Overview
- Marks and Spencer Group plc - Business segments
- Marks and Spencer Group plc - Key offerings
- Marks and Spencer Group plc - Segment focus
- SWOT
13.15 Ocado Retail Ltd.
- Ocado Retail Ltd. - Overview
- Ocado Retail Ltd. - Product / Service
- Ocado Retail Ltd. - Key offerings
- SWOT
13.16 Tesco Plc
- Tesco Plc - Overview
- Tesco Plc - Business segments
- Tesco Plc - Key news
- Tesco Plc - Key offerings
- Tesco Plc - Segment focus
- SWOT
13.17 Waitrose and Partners
- Waitrose and Partners - Overview
- Waitrose and Partners - Product / Service
- Waitrose and Partners - Key offerings
- SWOT
13.18 Wm Morrison Supermarkets Ltd.
- Wm Morrison Supermarkets Ltd. - Overview
- Wm Morrison Supermarkets Ltd. - Product / Service
- Wm Morrison Supermarkets Ltd. - Key offerings
- SWOT
Research Methodology
All our research reports employ a mixed-methods approach, leveraging both primary and secondary research techniques to develop a comprehensive and well-informed analysis. The methodology ensures a balanced perspective by combining data-driven insights with expert opinions.
1. Secondary Research
Secondary research formed the foundation of the study, offering a contextual understanding of the market landscape, historical trends, and existing data. This phase involved gathering and analyzing information from:
- Industry reports and whitepapers (e.g., McKinsey, Deloitte, Statista)
- Academic journals and case studies
- Company reports, investor presentations, and press releases
- Government databases and regulatory publications
- Trade publications, industry blogs, and news articles
2. Primary Research
To validate and complement secondary findings, extensive primary research was conducted. This included both quantitative data collection and qualitative insights, particularly through expert consultations.
a. Expert Consultations (Qualitative Primary Research)
In-depth interviews were conducted with a wide range of industry stakeholders, including:
- Industry experts and consultants
- Senior executives and decision-makers
- Product managers and supply chain professionals
- Academic researchers and analysts
b. Surveys and Questionnaires (Quantitative Primary Research)
Structured surveys were distributed among:
- End-users/consumers
- Retailers and distributors
- Business-to-business (B2B) buyers
3. Data Validation and Triangulation
Findings from secondary and primary sources were cross-validated through data triangulation to ensure accuracy, consistency, and reliability. This process involved comparing insights from different sources and reconciling discrepancies through expert feedback.
4. Analytical Tools and Frameworks
Various analytical models were applied to interpret the collected data:
- SWOT Analysis for understanding strengths, weaknesses, opportunities, and threats
- Porter’s Five Forces to assess market competitiveness
- PESTLE Analysis to evaluate external macroeconomic influences
- Forecasting Models using historical data trends and regression analysis
Conclusion
The combination of comprehensive secondary research and robust primary data collection—enhanced by expert consultations—ensured the development of a well-rounded and in-depth analysis. This approach enables strategic decision-making backed by both empirical evidence and industry expertise.
For detailed methodology for this particular report please write to us on info@syovi.com