The FAO Food Price Index (FFPI) averaged 130.1 points in August 2025, almost the same figure as the previous month. The highest value for the index in the past 23 years was reached in March 2022. The rate of food price increases has been decreasing since, yet has started to pick up again in 2025.

Food prices worldwide Some food commodities have been hit harder than others in the past years. Global dairy, meat, and vegetable oil prices were on an upward trajectory in the first half of 2025. Regionally, the European Union (EU) and the UK have experienced a particularly high increase in the annual consumer prices for food and non-alcoholic beverages, as compared to other selected countries worldwide. Inflation in Europe The inflation rate for food in the EU grew from 0.2 percent in May 2021 to 19.2 percent in March 2023, as compared to the same month in the previous year. In the following months, the food inflation started decreasing again, yet has picked up again in 2025 in line with the global trend. The overall inflation rate in the Euro area reached its peak in December 2022 at 9.2 percent. The rate has since fallen to 2.4 percent in December 2024. As measured by the Harmonized Index of Consumer Prices (HICP), inflation rates in Europe were highest in Turkey, Romania, and Estonia as of April 2025.

In July 2025, the inflation rate for food prices in the United Kingdom was measured at 4.9 percent. A period of continuous deflation between March 2015 and January 2017 preceded a return to a sustained rise in the cost of food from February 2017 onwards. While food prices were deflating between September 2020 and July 2021, they started increasing rapidly from August 2021 to March 2023. The inflation rate started to decline from April 2023, but is picking up again in 2025.Inflation rate and consumer price indexInflation is commonly measured via the consumer price index, which illustrates changes to prices paid by consumers for a representative basket of goods and services. An annualized percentage change in the price index constitutes a measure of inflation. In order to maintain an inflation rate at a stable level, to enable the general public and businesses to plan their spending, the Government set a two percent inflation target for the Bank of England. The discounter boom The increase in food prices in the United Kingdom has shifted shopping behaviors amongst consumers. Value is now key and shoppers are changing their retailer loyalties. Aldi, the German discount supermarket retailer, overtook Morrisons as Great Britain's fourth largest supermarket in September of 2022. Aldi's market share reached double digits for the first time in April 2023. It is yet to be seen if Lidl, Aldi's discounter competitor, can also continue to rise up in the ranks and eventually take over Morrisons as the fifth leading food retailer.

Cost of food in the United Kingdom increased 5.10 percent in August of 2025 over the same month in the previous year. This dataset provides the latest reported value for - United Kingdom Food Inflation - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The UK inflation rate was 3.8 percent in August 2025, unchanged from the previous month, and the fastest rate of inflation since January 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years. As of the most recent month, prices were rising fastest in the education sector, at 7.5 percent, with prices increasing at the slowest rate in the clothing and footwear sector. The Cost of Living Crisis High inflation is one of the main factors behind the ongoing Cost of Living Crisis in the UK, which, despite subsiding somewhat in 2024, is still impacting households going into 2025. In December 2024, for example, 56 percent of UK households reported their cost of living was increasing compared with the previous month, up from 45 percent in July, but far lower than at the height of the crisis in 2022. After global energy prices spiraled that year, the UK's energy price cap increased substantially. The cap, which limits what suppliers can charge consumers, reached 3,549 British pounds per year in October 2022, compared with 1,277 pounds a year earlier. Along with soaring food costs, high-energy bills have hit UK households hard, especially lower income ones that spend more of their earnings on housing costs. As a result of these factors, UK households experienced their biggest fall in living standards in decades in 2022/23. Global inflation crisis causes rapid surge in prices The UK's high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. Following the initial waves of the virus, global supply chains struggled to meet the renewed demand for goods and services. Food and energy prices, which were already high, increased further in 2022. Russia's invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops. As a result of these factors, inflation surged across Europe and in other parts of the world, but typically declined in 2023, and approached more usual levels by 2024.

In July 2025, the inflation rate for food in the European Union (EU) reached 3.9 percent compared to the same month the year prior. Starting in the beginning of 2022, food prices started to rise rapidly. In March 2023, the food inflation rate in the EU reached its peak at 19.19 percent. Since April 2023, the rate started to decrease. Food inflation in Europe One of the main drivers of the increase in consumer prices was the rapid rise in energy prices. In the energy sector, the harmonized index of consumer prices inflation of the EU, a concept to measure and compare inflation internationally, was at 41.1 percent in June 2022, whereas the other categories were all below 10 percent. In Germany, the year-on-year consumer price index development for food and beverages was at 12.33 percent in the year 2023, just a slight dip from the all-time high of 12.51 percent in 2022. By 2024, this had dropped to 1.92 percent. There are a number of ways in which European consumers are trying to save on food costs due to rising prices. The most popular way to deal with the rising food prices is to reduce at-home food waste. An average of about half of consumers in selected European countries stated that this is how they responded to the price increases. Other popular ways were to buy only the essentials or to purchase mostly store brands. Food inflation worldwide In 2022, Europe and Central Asia were the regions with the highest food inflation rates worldwide. The rate of food inflation in those regions was about 18 percent in 2022, which is more than twice as high as it was in the previous year. In Latin America and the Caribbean, the food inflation rate rose from 5.4 to 11.9 percent during the same period. When categorized by income classification, low-income countries have significantly higher food price inflation, as compared to lower-middle-, upper-middle-, and high-income countries. On average, low-income countries had a food price inflation rate of about 30 percent in 2023. The world average rate was at 6.5 percent. Zimbabwe was the country with the highest level of real food inflation worldwide. The southern African country experienced a food inflation of approximately 46 percent in 2024. This was more than two times as high as in any other country in the world.

When surveyed in February 2025, some ** percent of respondents in the United Kingdom stated that they are reducing at-home food waste to save on food costs. Additionally, ********* stated that they purchase mainly store brands.

As of the second quarter of 2025, the CPIH index in the United Kingdom was ***, indicating that consumer goods and services had increased in price by ** percent when compared with the baseline year of 2015. In June 2025, the CPIH inflation rate was *** percent, unchanged from the previous month. The CPIH index is the consumer price index, which also includes costs related to owning and maintaining a home. Inflation falls to more usual levels in 2024 After reaching a peak of *** percent in October 2022, the CPIH inflation rate fell throughout 2023 and into 2024, eventually falling to a low of *** percent in October 2024. Although the decline in energy inflation led to a significant fall in prices early in the 2023, other aspects of inflation, such as food prices remained high for a longer period. Throughout 2023 inflation in the UK was still quite high across many sectors, indicated by persistently high core inflation (inflation excluding food and energy prices) rates reported that year. UK economy continues to struggle Since the COVID-19 pandemic, the UK's economic performance has been quite lackluster. Although the economy bounced back from the initial drop in GDP caused by lockdowns, it has alternated between months of low growth and declines in GDP since 2021. In the last two quarters of 2023, the UK economy shrank by *** percent and then by *** percent. As a result, the UK economy officially ended 2023 in a technical recession. While growth picked up in the first half of 2024, there was no growth in the third quarter of the year.

Measures of monthly UK inflation data including CPIH, CPI and RPI. These tables complement the consumer price inflation time series dataset.

In 2024, approximately 69 percent of respondents in England, Wales, and Northern Ireland stated that they have concerns about food prices. This was the most common food-related concern among consumers. Moreover, the share of respondents who have concerns about food waste was about 63 percent. Food price inflation in the UK Food prices have been a major concern for households in the United Kingdom (UK) in recent years. In August 2021, the inflation rate for food prices started to increase in the UK was measured at 0.3 percent. Food prices started to climb rapidly in the following months, peaking at 19.1 percent in March 2023. The inflation rate started to decline from April 2023 and was measured at 1.9 percent in October 2024. Given this spike in food prices, many UK consumers worry about their households not being able to afford food in the next month. This concern is highest in Northern Ireland, where 35 percent of consumers stated this as a concern. The North East region follows, with 28 percent of consumers being concerned about not being able to afford food next month. Food concerns in the UK by age group British consumers between the ages of 35 and 44 are most worried about affording food for themselves and their households. Approximately 30 percent of consumers in this age group state this as a concern. Younger age groups display similar levels of concern, while the share of consumers worried about this issue among the elderly population is considerably lower. An issue with even higher levels of concern is the quality of food produced in the UK. The share of concerned consumers regarding this issue in the middle and younger age groups ranges between 54 and 56 percent. Concern levels on this topic also decline with age. By contrast, genetically modified food in the UK is a topic that particularly concerns older age groups. The younger the age group, the less concerned they are with this topic, although concern levels regarding genetically modified food are above or close to half of the consumers in each age group.

The inflation rate for food and drink in the United Kingdom was ****percent in the second quarter of 2025, which was above the overall inflation rate for that quarter.

In August 2025, the Consumer Price Index including owner occupiers' housing costs (CPIH) inflation rate of the United Kingdom was *** percent, down from *** percent in the previous month. The inflation rate fell noticeably after the COVID-19 pandemic but rose sharply between Spring 2021 and Autumn 2022. After peaking at *** percent in October 2022, CPIH inflation declined throughout 2023 and into 2024, falling to *** percent by September of that year, before increasing again recently. Cost of living problems persist into 2025 Although it is likely that the worst of the recent inflation surge may have passed, the issues caused by it look set to linger into 2025 and beyond. While the share of households experiencing living cost rises has fallen from ** percent in August 2022, to ** percent in July 2024, this share rose towards the end of the year, with more than half of households reporting rising costs in December. Even with lower inflation, overall consumer prices have already increased by around ** percent in the last three years, rising to almost ** percent for food prices, which lower income households typically spend more of their income on. The significant increase in people relying on food banks across the UK, is evidence of the magnitude of this problem, with approximately **** million people using food banks in 2023/24. Other measures of inflation While the CPIH inflation rate displayed here is the preferred index of the UK's Office of National Statistics, the Consumer Price Index (CPI) is often more prominently featured in the media in general. An older index, the Retail Price Index (RPI) is also still used by the government to calculate certain taxes and rail fares. Other metrics include the core inflation rate, which measures price increases without the volatility of food and energy costs, while price increases in goods and services can also be tracked separately. The inflation rate of individual sectors can also be measured, and as of December 2024, prices were rising fastest in the communications sector, at *** percent, with costs falling in the transport and furniture sectors.

European supermarkets’ revenue is forecast to inch upwards at a compound annual rate of 0.6% over the five years through 2025 to reach €1.7 trillion. European supermarkets face intense price competition amid lingering cost pressures. Though EU food inflation stabilised at 2.7% in April 2025 according to Eurostat, consumer focus on value remains high. Discounters like Aldi and Lidl continue to gain share as shoppers seek lower prices. Supermarkets are investing heavily in price-matching schemes, though sustaining these is financially challenging. Tesco and Sainsbury’s have begun scaling back such initiatives, while Asda has abandoned its price match strategy. Private label growth is reshaping the sector, with sales reaching €352 billion in 2024, the Private Label Manufacturers Association (PLMA) notes. Retailers are diversifying these ranges to balance value, quality and margins. Smarter product mixes are emerging as retailers prioritise local sourcing and premium niches to build loyalty. Strategies like Sainsbury’s ‘Supporting British’ and Mercadona’s local sourcing model resonate with values-driven shoppers. Loyalty programmes have become a strategic pillar, offering personalisation and margin-friendly growth. Programmes like Tesco Clubcard and Carrefour+ drive retention and profitability beyond price wars. Finally, rising labour costs add further pressure. Recent minimum wage increases across Europe have prompted supermarkets to pursue automation, cost savings, and operational efficiencies to protect profitability in an evolving retail landscape. In 2025, revenue is expected to grow at 0.9%, while profit is expected to reach 5.2%, a minor drop from 5.6% in 2020, thanks to intense price competition. Over the five years through 2030, supermarkets’ revenue is slated to climb at a compound annual rate of 2.9% to €2 trillion. Private label growth remains a structural trend while health, convenience and on-the-go meals are driving new demand, particularly among younger shoppers. Supermarkets must diversify their ranges to capture this growth, blending value, quality and functionality. Convenience is also fuelling an ongoing channel shift. Online grocery sales remain, with consumers willing to pay premiums for faster delivery. Retailers are scaling up e-commerce, partnering with delivery apps and innovating store formats to meet demand for flexibility. Smaller urban stores, hybrid models and grocerants are gaining traction. Supermarkets are accelerating investment in automation and AI to boost efficiency and margins. Personalised loyalty schemes are driving customer retention, while automation in warehouses and stores enhances productivity. Trials in drone delivery and robotic shelf scanning signal further innovation. Consolidation and integration are key to navigating sustained margin pressure. Larger grocers are pursuing M&A and pan-European alliances to drive scale, while moving upstream into food production for resilience. Supermarkets that adapt rapidly – blending private labels, convenience, technology and scale – will outperform in Europe’s increasingly competitive grocery landscape.

As of December 2024, UK consumers had to pay prices for hot chocolate that were 40 percent higher than in December 2022. The price of coffee pods decreased by two percent in past year, but were still up 12 percent compared to 2022.

Over the five years through 2024-25, online food ordering and delivery platforms revenue is anticipated to rise at a compound annual rate of 15.2%. Meal stipends and sales from commercial markets are rising as workers return to the office and the workload increases. Time-poor consumers increasingly turn to food ordering and delivery platforms for convenient, quick and high-quality food.Growing demand from food outlets has enabled platforms to expand their food range. In particular, restaurants and takeaways have joined online food platforms to gain access to a broader consumer base and greater exposure with little additional expenditure. Nevertheless, platforms continue to face numerous challenges, primarily in the form of pricing pressures, employment litigation and waning demand as consumer confidence stumble, despite inflation dropping. However, the ultra-rapid grocery segment offers a degree of relief. In 2024-25, revenue is expected to grow by 5% to £3.8 billion, while the average industry profit margin is slated to be 6.3%.Over the five years through 2029-30, revenue is forecast to grow at a compound annual rate of 2.9% to reach £4.4 billion. Increasingly busy consumer lifestyles will continue to raise demand and convenience will remain king. Demand from restaurants and takeaways is anticipated to follow an upward trajectory as food outlets seek the benefits of increased exposure and wider market reach at little extra cost. The range of cuisines and products will remain important and platforms can boost interest by targeting niche markets and personalising content. More members of Gen Z will enter the workforce and become a significant source of spending power.

EU UK: HICP: Weights: Food & Non Alcoholic data was reported at 101.000 Per 1000 in 2018. This records a decrease from the previous number of 102.000 Per 1000 for 2017. EU UK: HICP: Weights: Food & Non Alcoholic data is updated yearly, averaging 110.000 Per 1000 from Dec 1996 (Median) to 2018, with 23 observations. The data reached an all-time high of 156.000 Per 1000 in 1996 and a record low of 101.000 Per 1000 in 2018. EU UK: HICP: Weights: Food & Non Alcoholic data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s UK – Table UK.Eurostat: Harmonized Index of Consumer Price: Weights .

EU UK: HICP: Weights: Food, Alcohol & Tobacco data was reported at 142.000 Per 1000 in 2018. This records a decrease from the previous number of 143.000 Per 1000 for 2017. EU UK: HICP: Weights: Food, Alcohol & Tobacco data is updated yearly, averaging 154.000 Per 1000 from Dec 1996 (Median) to 2018, with 23 observations. The data reached an all-time high of 226.000 Per 1000 in 1996 and a record low of 142.000 Per 1000 in 2018. EU UK: HICP: Weights: Food, Alcohol & Tobacco data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s UK – Table UK.Eurostat: Harmonized Index of Consumer Price: Weights .

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UK Foodservice Market Size 2025-2029

The UK foodservice market size is forecast to increase by USD 57 billion at a CAGR of 6.7% between 2024 and 2029.

Foodservice market is experiencing significant shifts, driven by the increasing popularity of food delivery apps and online ordering platforms. This digital transformation is revolutionizing the way consumers interact with foodservice providers, leading to increased convenience and flexibility. However, regulatory hurdles impact adoption, as stringent food safety regulations and complex licensing requirements pose challenges for new entrants. Additionally, labor shortages in the foodservice sector are tempering growth potential, as operators struggle to find and retain skilled workers. Virtual restaurants and ghost kitchens are gaining traction as potential solutions to labor challenges, enabling businesses to operate with reduced overheads and increased efficiency. The foodservice market encompasses a diverse range of establishments, including cafes, bars, cloud kitchens, full service restaurants, quick service restaurants, chained outlets, independent outlets, and various mobile food services such as food trucks and fast-food chains.
These trends present both opportunities and challenges for market participants. Companies that can effectively navigate regulatory requirements and adapt to changing consumer preferences will be well-positioned to capitalize on the market's growth potential. Meanwhile, addressing labor shortages through innovative operational models and investing in technology will be crucial for long-term success.

What will be the size of the UK Foodservice Market during the forecast period?

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The foodservice industry continues to evolve, with a focus on data-driven insights from foodservice analytics shaping business decisions. Industry standards prioritize sustainable practices, as reflected in the latest foodservice trends report. Innovation in foodservice is evident in the adoption of kitchen automation and smart kitchen technology. Foodservice consulting firms help businesses optimize operations through food safety certifications and efficient foodservice business models. Restaurant management technology adoption is transforming the industry, from customer loyalty programs to restaurant design trends. Foodservice distribution and equipment leasing companies are integrating technology to streamline supply chain management. Foodservice equipment maintenance is also becoming more efficient with the integration of IoT sensors and predictive analytics. Moreover, the cloud kitchen concept is emerging as a significant trend, enabling foodservice providers to operate without a physical storefront, reducing overhead costs and increasing operational efficiency.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. {{segments_for_ai.nslist}

By Type Insights

The fast foodservice segment is estimated to witness significant growth during the forecast period. The foodservice market in the US is characterized by various trends and dynamics shaping the industry. Off-premise catering continues to gain traction as customers seek convenience and flexibility. Customer feedback is increasingly important for foodservice operators, influencing menu offerings and improving customer experience. Ingredient sourcing, with a focus on local and organic options, is a growing concern for both casual dining establishments and fine dining restaurants. Cloud kitchens and ghost kitchens are emerging business models, optimizing workflow and reducing overhead costs. Food trends, such as healthy eating and dietary restrictions, are driving innovation in meal kits and menu offerings. The increasing number of full-service restaurants and the popularity of online catering services are additional growth factors.

Catering equipment and commercial kitchen equipment are essential investments for foodservice operators, while staff training and food cost control remain critical areas of focus. Cloud-based solutions, including employee scheduling and inventory management software, are streamlining operations and enhancing operational efficiency. Customer satisfaction is a top priority, with digital menu boards and table management systems contributing to an enhanced dining experience. Foodservice design, from kitchen layout to restaurant technology, is evolving to accommodate these trends. Food allergies and food waste reduction are key concerns, with table management systems and delivery services addressing these issues. Sustainability initiatives and brand loyalty programs are becoming increasingly important in the hospitality industry. Community outreach programs and e-commerce channels further enha

The Grocery Market industry in the UK is expected to grow at a compound annual rate of 6.4% during the five years through 2025-26. In the current year, revenue is estimated to expand by 10.1% to reach £406.7 million. The Grocery Market industry's performance is highly sensitive to the level of household disposable income, as well as competition from other grocery retailers like supermarkets. Health consciousness and environmental awareness are ever-growing, with individuals increasingly more concerned about the provenance of their food than the ease of buying it. Organic, sustainable and local products are growing in popularity and boosting revenue as consumers are happy to pay a premium for higher-quality goods with traceable production. This health consciousness, coupled with the industry's adoption of digital payment, has helped spur industry growth. The adoption of digital payment is an essential shift for grocery market holders as consumers carrying cash is becoming less frequent. Over 2022-23, food inflation surged to its highest in over four decades, peaking at around 19% in March 2023, according to ONS data. This significantly impacted grocery markets, which faced similar hikes in the cost of domestic and imported food inputs, placing significant pressure on stall operators' purchase costs. Local councils, faced with tight budgets, raised the price of pitch rents, adding to the operational costs of stall operators. A combination of these two things and depressed purchasing power among shoppers led to a drop in sales volumes. Yet, the industry's revenue has remained fairly stable. The rise of social media is a tool that, when appropriately wielded, can be of great advantage to grocery market operators and stallholders. Viral trends boost footfall and sales, allowing for premium prices to be maintained. However, relevant and quality content must be maintained to retain a loyal customer base and avoid one-timers. Looking forward, supermarket competition will continue to expand. Grocery markets must find innovative ways to boost their competitiveness by improving the shopping experience, like subscription-type models, speedy delivery or personalised services and expanding the product range. Grocery markets' revenue is forecast to swell at a compound annual rate of 7.4% to reach £580.2 million over the five years through 2030-31.

UK: HICP: Weights: All Items: excl Energy & Unprocessed Food data was reported at 890.000 Per 1000 in 2018. This records a decrease from the previous number of 891.400 Per 1000 for 2017. UK: HICP: Weights: All Items: excl Energy & Unprocessed Food data is updated yearly, averaging 874.000 Per 1000 from Dec 1996 (Median) to 2018, with 23 observations. The data reached an all-time high of 899.000 Per 1000 in 2004 and a record low of 846.000 Per 1000 in 1996. UK: HICP: Weights: All Items: excl Energy & Unprocessed Food data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s UK – Table UK.Eurostat: Harmonized Index of Consumer Price: Weights .

The Meat Processing and Preserving industry in Europe has faced several challenges over the past five years despite receiving government support. Over the five years through 2025, revenue is forecast to inch upwards at a compound annual rate of 1.1%. Europe’s meat sector faces mounting pressure from shifting demand, tighter supply, and rising costs. Health and sustainability concerns are eroding red meat consumption, while plant-based alternatives grew fivefold between 2011 and 2023. Southern markets such as Spain and Portugal remain culturally attached to meat, but Northern Europe is shifting faster towards alternatives. Affordability has become the decisive factor. With living costs high, consumers are trading down to pork and poultry, valued for versatility and relative affordability. Even wealthier households are cutting back, squeezing processor margins and weakening demand for premium cuts.Exports now provide a buffer. In Q1 2025, the EU shipped 1.12 million tonnes of pigmeat worth €3.14 billion (+3% volume, +2.7% value), with China and the UK as top buyers, Eurostat notes. But beef is retreating: output is forecast to fall 1.3% in 2025 while imports from Brazil and Argentina rise. Adding to pressures, processors face herd contraction, labour shortages, and high energy costs, pushing many to invest in automation, renewables, and value-added lines to protect profitability. In 2025, revenue is expected to dip 0.7% to €376.3 billion while profit is expected to reach 5.1% of revenue, a drop from 5.8% in 2020 thanks to cost pressures. Looking ahead, Europe’s meat processors face a challenging landscape. Over the five years through 2030, revenue is slated to grow at a compound annual rate of 3.3% to €442.3 billion, and profit is expected to reach 7.5% of revenue. The looming shadow of eco-consciousness will stifle meat demand, with the OECD projecting EU per-capita consumption will fall by 1.6 kg by 2035. Faced with swelling competition from alternative proteins, traditional meat processors will seek innovative strategies to retain market share. Still, meat's engrained cultural value in European societies will offer some relief. Traditional meals, culinary heritage involving meat and strong demand for locally-sourced produce will serve to protect meat processors’ sales over the coming years. Supply chains face added pressure from regulation. The EU Deforestation Regulation (EUDR), effective December 2025, will require geolocation tracking for all beef and leather holdings, with non-compliance risking fines of up to 4% of turnover. Meanwhile, the new EU packaging law adds costs, requiring recyclable formats and higher recycled content. Despite the subdued outlook, opportunities remain. The CAP 2025 reform shifts subsidies towards smallholders and young farmers while tightening import standards, creating cost risks for scale players but potentially strengthening rural networks.