UK grocery retail market to grow by $52.5bn with Amazon.com Inc. and Carrefour SA as key players
The UK grocery retail market is set to grow by $52.54 billion between 2022 and 2027, progressing at a CAGR of 3.83% during the forecast period, according to a new report by Technavio Research
Key drivers will include rapid urbanisation and rising consumer spending, growing demand for convenient food products, and rising promotions such as bundled prices, volume discounts, and seasonal sales. However, the threat of counterfeit grocery products will challenge the growth of the UK grocery retail market.
Top players in the UK grocery retail market include Amazon.com, Carrefour SA, Costco Wholesale, EG Group, EH Booth and Co, Farmfoods, Heron Foods, Hofer KG, Iceland Foods, Lidl US LLC, Marks and Spencer, National Coop Grocers, Ocado Retail, Proudfoot Supermarkets, Spar UK, Tesco, Waitrose, Wm Morrison Supermarkets, McCormick and Co, and B&M Retail.
According to the report, the market growth in the food and beverages segment will be significant over the forecast period, with the growth of the segment also driven by the increasing demand for snacks and the introduction of innovative products by vendors.
In addition, the rise in the per capita income of consumers and the rise in the demand for organic and gluten-free products will drive growth of the segment.
Finally, the UK grocery retail market is fragmented due to the presence of several international and local players operating across the country.
Vendors in the market compete by expanding their presence through mergers and acquisitions and launching marketing campaigns.
The competition is expected to intensify during the forecast period with the entry of several new players, private-label brands, price wars, and M&A.
Global vendors remain under constant threat from regional and local vendors, as well as emerging start-ups. Therefore, they need to invest in constant service innovations and ensure easy and convenient service delivery to sustain themselves in the market, the report said.
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