The market share of the leading supermarkets in Great Britain (GB) has begun to shift from the traditional market leaders to discounters in recent years. However, Tesco and Sainsbury's have continually had the largest share over the period under consideration, holding **** percent of the market together as of July 2025. Prior to the popularity of the discounters, the grocery retail market was dominated by the 'big four' supermarkets: Tesco, Sainsbury's, Asda, and Morrisons. On the back of the post-Brexit uncertainty and growing inflation, consumer behavior has shifted in favor of cheaper alternatives such as Aldi and Lidl. In September 2022, Aldi took over fourth place in the grocery store ranking from Morrisons for the first time. In April 2023, Aldi's market share reached double digits for the first time. In July 2025, this figure stood at **** percent.

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UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is valued to increase USD 56.2 billion, at a CAGR of 3.8% from 2024 to 2029. Rapid urbanization and rising consumer spending will drive the UK grocery retail market.

Major Market Trends & Insights

By Product - Food and beverages segment was valued at USD 176.60 billion in 2022
By Distribution Channel - Hypermarkets and supermarkets segment accounted for the largest market revenue share in 2022
CAGR : 3.8%

Market Summary

The Grocery Retail Market in the UK is a dynamic and evolving sector, characterized by the adoption of core technologies and innovative applications. With rapid urbanization and rising consumer spending, grocery retailers are investing in advanced technologies such as automation, AI, and robotics to streamline operations and enhance the customer experience. For instance, the use of self-checkout kiosks and mobile apps for contactless shopping has surged in popularity, particularly in response to the COVID-19 pandemic. However, the market also faces challenges, including the threat from counterfeit grocery products. According to a report by the Food Standards Agency, around 10% of all food and drink products sold in the UK are believed to be counterfeit.
To mitigate this issue, regulatory bodies are implementing stricter regulations and collaborating with retailers to ensure product authenticity. Despite these challenges, opportunities abound for grocery retailers in the UK. The market is expected to witness significant growth in the coming years, with online grocery sales projected to reach 15% of the total market share by 2025. Innovative store layouts and offerings, such as click-and-collect services and subscription-based models, are also gaining popularity among consumers. Overall, the Grocery Retail Market in the UK is a continuously unfolding landscape, shaped by a complex interplay of technological advancements, regulatory requirements, and consumer preferences.

What will be the Size of the UK Grocery Retail Market during the forecast period?

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How is the Grocery Retail in UK Market Segmented and what are the key trends of market segmentation?

The grocery retail in UK industry 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.

Product

  Food and beverages
  Non food


Distribution Channel

  Hypermarkets and supermarkets
  Convenience stores
  Discount stores
  Online
  Others


Sales Channel

  In-Store
  Online Delivery
  Click-and-Collect


Consumer Segment

  Urban Consumers
  Rural Consumers
  Premium Shoppers


Product Types

  Fresh Produce
  Packaged Foods
  Household Goods
  Health and Beauty


Geography

  Europe

    UK

By Product Insights

The food and beverages segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving grocery retail market in the UK, loss prevention strategies continue to be a priority for retailers, with online grocery shopping seeing a significant increase in adoption, reaching 7.1% of total sales in 2020. Sales promotion techniques, such as promotional pricing models and loyalty programs, are essential tools to attract and retain customers. Food safety regulations play a crucial role in ensuring product quality and consumer trust. Stock rotation and inventory optimization are essential for maintaining freshness and reducing waste. Automated checkout systems and self-checkout kiosks streamline the shopping experience, while e-commerce platforms enable seamless online ordering and last mile delivery.

Product traceability and quality control measures are vital for ensuring the authenticity and safety of goods. Retail technology integration, including demand forecasting and data analytics dashboards, enables retailers to optimize store operations efficiency and adapt to changing consumer behavior. Customer service metrics, such as response times and resolution rates, are key performance indicators for maintaining customer satisfaction. The grocery market is expected to grow further, with online sales projected to reach 11.7% of total sales by 2025. The adoption of advanced technologies, such as RFID tagging, AI-driven demand forecasting, and warehouse automation, will continue to transform the industry.

Category management techniques and waste reduction initiatives will help retailers optimize their offerings and reduce costs. The foods and beverages segment, which includes fresh and frozen meat, dairy products, fruits and vegetables, and snack foods, is a significant contributor to the market's growth. The most preferred grocery products in this segment include fresh bread, salty snacks, and ce

In 2025, the value of the leading sales channels in grocery retailing came to approximately ***** billion British pounds (GBP) in the United Kingdom. Of the major sales channels, supermarkets had the largest share of the market value with over *** billion pounds. Supermarkets had more than twice as big a market value as the convenience channel, the second largest channel. By 2030, the value of grocery retailing is expected to increase to over *** billion British pounds. Where UK shoppers buy groceries Some ** percent of surveyed grocery shoppers stated that they regularly shopped at supermarkets in the UK. Online retailers ranked in second place, with*** percent. Market leader Tesco held just over *********** of the market share of all grocery stores in Great Britain in July 2025. Together with Sainsbury's, the two retailers had a combined market share of **** percent. Tesco operated roughly ***** stores in the United Kingdom and the Republic of Ireland in 2025. With this presence, the company regularly reached ** percent of shoppers according to a recent survey.

This statistic displays the distribution of the grocery market among leading grocery retailers in the United Kingdom (UK) from 2011 to 2015. Tesco held the largest share at 25 percent in 2011, dropping by six percentage points to a 19 percent share of the grocery retail market by 2015. Prior to the popularity of the discounters, the grocery retail market was dominated by the 'big four' supermarkets: Tesco, Sainsbury's, Asda and Morrisons. On the back of the economic recession and growing inflation, however, consumer behavior has shifted in favor of cheaper alternatives and discount supermarkets. The resulting 'price wars' has led to supermarkets lowering their prices and the highest share of food volume sales on promotion in Europe. Crucially, this has caused increased volatility in the grocery retail market and, as of 2017, Aldi overtook the Co-operative to become the fifth largest supermarket in the UK according to data from Kantar Worldpanel.

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The United Kingdom's grocery retail landscape is poised for subtle shifts in the coming years, with supermarkets maintaining their dominant position. Projections indicate that supermarkets will hold onto approximately ** percent of the market share through 2030, while online channels are expected to grow to nearly ** percent. This forecast reflects the evolving preferences of British consumers and the ongoing competition among various retail formats. Market dynamics and consumer behavior The total value of the leading grocery retail channels in the UK is anticipated to reach over *** billion British pounds by 2030, up from ***** billion in 2025. Supermarkets are set to retain their leading position, with a market value exceeding *** billion pounds in 2025. Recent surveys show that 83 percent of grocery shoppers regularly visit supermarkets, while ** percent use online retailers. Tesco and Sainsbury's combined hold a substantial **** percent market share, with Tesco alone reaching ** percent of shoppers through its extensive network of stores. Rise of discounters and shifting market shares Discount and value brands have been gaining ground in the UK grocery market. In 2024, they accounted for 86 percent of new supermarket openings, though this figure decreased to ** percent by mid-2025. Aldi's rise to become one of the "Big Four" supermarkets, surpassing Morrisons, exemplifies this trend. As of July 2025, Aldi's market share reached **** percent, reflecting changing consumer preferences in response to economic uncertainties and inflation. Meanwhile, loyalty programs continue to play a significant role in food shopping behavior, with over three-quarters of consumers using Tesco's Clubcard, the most popular scheme in Great Britain.

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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.

Market Size statistics on the Online Grocery Retailers industry in the UK

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