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EMARKETER

UK Grocery 2023

Cost-of-Living Crisis Puts Pressure on Sales, but Opportunities Exist

Report by Carina Perkins  |  Feb 17, 2023
Download
Report
The One-Pager
Deck
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Table of Contents
Executive Summary
Grocery sales aren’t keeping pace with inflation.
Discounters are stealing market share.
Brand loyalty is coming under pressure in some categories.
Shoppers are seeking out cheaper alternatives.
Online sales are once again growing.
Delivery costs are tempering demand for the service.
Sustainability still matters—but so does price.
What should grocery brands and retailers do next?
Sources
Media Gallery
About This Report
UK food price inflation is hitting record highs—but grocery sales are flat. Faced with rising bills, consumers are changing shopping habits to keep spending in check.
Topics
Groceries & Consumer Products (CPG)
Retail Sales
Retail Ecommerce Sales
United Kingdom
Table of Contents
Executive Summary
Grocery sales aren’t keeping pace with inflation.
Discounters are stealing market share.
Brand loyalty is coming under pressure in some categories.
Shoppers are seeking out cheaper alternatives.
Online sales are once again growing.
Delivery costs are tempering demand for the service.
Sustainability still matters—but so does price.
What should grocery brands and retailers do next?
Sources
Media Gallery

Executive Summary

UK food price inflation is hitting record highs—but grocery sales are flat. Households are using a variety of methods to keep their grocery spending in check in the face of higher food prices, household bills, and interest rates. That’s forcing a shift in the grocery landscape—and consumer behaviors.

Key Question: As inflation continues to suppress grocery sales, what are the opportunities for growth in 2023?

UK Grocery Sales, 2019-2025 (billions of £, % change, and % of total retail sales)
E-Mail ChartDownload

KEY STAT: UK grocery sales will grow just 1.7% this year and remain relatively flat through 2026.

Download
Report
The One-Pager
Deck
Share
Table of Contents
Executive Summary
Grocery sales aren’t keeping pace with inflation.
Discounters are stealing market share.
Brand loyalty is coming under pressure in some categories.
Shoppers are seeking out cheaper alternatives.
Online sales are once again growing.
Delivery costs are tempering demand for the service.
Sustainability still matters—but so does price.
What should grocery brands and retailers do next?
Sources
Media Gallery
About This Report
UK food price inflation is hitting record highs—but grocery sales are flat. Faced with rising bills, consumers are changing shopping habits to keep spending in check.
Topics
Groceries & Consumer Products (CPG)
Retail Sales
Retail Ecommerce Sales
United Kingdom
Table of Contents
Executive Summary
Grocery sales aren’t keeping pace with inflation.
Discounters are stealing market share.
Brand loyalty is coming under pressure in some categories.
Shoppers are seeking out cheaper alternatives.
Online sales are once again growing.
Delivery costs are tempering demand for the service.
Sustainability still matters—but so does price.
What should grocery brands and retailers do next?
Sources
Media Gallery

authors

Carina Perkins

Contributors

Suzy Davidkhanian
Principal Analyst, Retail & Ecommerce
Blake Droesch
Analyst
Jasmin Ellis
Forecasting Analyst
Bill Fisher
Principal Analyst, UK
Angela Kim
Senior Researcher
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