United Kingdom Food & Grocery Market To Reach £182.7bn By 2015

According to industry analysts IGD, United Kingdom consumers will spend £182.7bn (about $290bn) in grocery stores by 2015, a 3.9% annual growth rate. While reflecting renewed strength, the food industry needs to respond to consumer demand for value and convenience. The UK’s convenience channel is growing faster than the grocery sector generally, and IGD expects it to grow at an average annual rate of 5.8% through 2015. Non-food sales comprise 8.2% of the UK grocery market and this share should increase to 9.4% by 2015; online grocery sales are expected to double from £4.8bn to £9.5bn by 2015, driven by technological advance as well as improved websites and better delivery performance. Food and beverage suppliers are feeling more optimistic, but acknowledge the need to focus on innovation as well as providing options that better meet consumer needs and accommodate different retail formats and channels.