United Kingdom Grocery Market Report and Forecast 2025-2034

United Kingdom Grocery Market Size

The United Kingdom Grocery market reached USD 273.96 billion in 2024. The market is expected to grow at a CAGR of 2.16% between 2025 and 2034, reaching USD 332.19 billion by 2034.

United Kingdom Grocery Market Outlook

• In FY 2022, the UK government's reported median household disposable income was £32,300, marking the midpoint of household earnings.

• According to ONS UK, the population in mid-year 2022 was estimated at 67.6 million, an increase of 6.8% since 2011.

• According to the UK government, the agri-food sector contributed £128.3 billion i.e. 6.3%, to the national Gross Value in 2021.

United Kingdom Grocery Market Growth

The Drinks segment comprises a diverse array of beverages catering to various consumer preferences and occasions, including soft drinks, carbonated sodas, energy drinks, and non-alcoholic beverages like juices, bottled water, and sports drinks. Each subcategory within the Drinks segment appeals to different consumer demographics and consumption patterns, ranging from health-conscious individuals seeking low-sugar beverages to adults looking for fizz drinks. Retailers strategically position themselves to target specific consumer segments, leveraging factors like taste, packaging, and branding.

In August 2023, Coca-Cola launched its Coca-Cola Lemon in the UK, combining its classic taste with a zesty lemon flavour. Available in both Zero Sugar and Original Taste variations, the new flavour caters to consumer demand for fruity twists. Described as "happiness bottled," it was made available in various formats at major UK retailers. The company also expressed their excitement about expanding the flavour portfolio and hinted at more new variations in the future.

The Household Products grocery market encompasses essential items used for household cleaning, maintenance, and personal care, and includes a wide range of products such as detergents, surface cleaners, dishwashing liquids, laundry supplies, and air fresheners. Consumers require these products for maintaining cleanliness, hygiene, and personal grooming within their homes. Retailers often organize this segment into subcategories based on usage, such as kitchen cleaners, bathroom supplies, and laundry care, to facilitate easy navigation and promote cross-selling opportunities.

United Kingdom Grocery Market Segmentation

United Kingdom Grocery Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Packaged Food

• Unpackaged Food

• Drinks

• Tobacco

• Household Products

• Others

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets

• Convenience Stores

• Online Channels

• Others

Market Breakup by Region

• England

• Wales

• Scotland

• Northern Ireland

United Kingdom Grocery Market Share

Based on the distribution channel, the grocery market is divided into hypermarkets, supermarkets, and convenience stores. Hypermarkets and supermarkets offer one-stop shopping and extensive variety, attracting steady customers. Over the forecast period, the grocery market is expected to emerge as an important market segment and is expected to grow due to a focus on fresh and organic goods and convenience store expansion into healthier options. Also, convenience stores provide quick service and accessibility, catering to on-the-go needs.

Leading Companies in the United Kingdom Grocery Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and the latest developments like mergers and acquisitions, investments, and capacity expansion.

• Nestlé S.A. 

• The Procter & Gamble Company

• Unilever plc

• The Coca-Cola Company

• Pepsico, Inc.

• Mondelez International Inc. 

• Danone SA

• General Mills Inc.

• Kraft Heinz Co.

• Kellanova 

• Others

Major players in the grocery market enhance user experience by offering user-friendly online platforms, in-store technology integration, optimized product assortments, and loyalty programs. They prioritize customer service excellence and sustainability initiatives while integrating online and offline channels for seamless shopping experiences.

Key Highlights of the Report