The market share of the leading supermarkets in Great Britain (GB) from January 2017 to March 2025 has remained fairly stable. Tesco and Sainsbury's had the largest share over the period under consideration, holding **** percent of the market together as of March 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 March 2025, this figure stood at ** percent.

In 2021, the total market value of grocery retailing came to approximately ***** billion British pounds (GBP) in the United Kingdom. Of the five major sales channels, supermarkets had the largest share of the market value with ** billion pounds. Supermarkets had more than twice as big a market value as the convenience channel, the second largest channel. By 2027, the value of grocery retailing is expected to increase to over *** billion British pounds. Where UK shoppers buy groceries Some 88 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 one-quarter of the market share of all grocery stores in Great Britain in September 2022. 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 2022. 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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UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is forecast to increase by USD 56.2 billion at a CAGR of 3.8% between 2024 and 2029.

The UK Grocery Retail Market is segmented by 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), and geography (Europe: UK). This segmentation reflects the market's diversity, driven by increasing demand for Fresh Produce and Health and Beauty products, growing Online and Click-and-Collect channels in urban areas, and a mix of Hypermarkets and Discount Stores catering to both Premium Shoppers and Rural Consumers across the UK.
The Grocery Retail Market in the UK is witnessing significant growth, driven by the trend of rapid urbanization and the resulting increase in consumer spending. These trends are driving the industry to innovate and offer more personalized shopping experiences through unique store layouts and expanded product offerings such as online grocery delivery services.
However, the market faces challenges, including the threat from counterfeit grocery products or instant grocery, which can negatively impact consumer trust and brand reputation. Retailers must prioritize measures to ensure product authenticity and maintain transparency with customers to mitigate these risks.
Navigating this complex landscape requires a strategic approach, with a focus on building strong relationships with suppliers, implementing effective pricing strategies, and leveraging technology to enhance operational efficiency and customer engagement. Companies that can successfully address these challenges while capitalizing on the market's growth opportunities will be well-positioned for success in the dynamic and competitive Grocery Retail Market in the UK.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic UK grocery retail market, sustainability practices are increasingly shaping consumer behavior. Retailers are adopting store designs that prioritize energy efficiency and waste reduction. Customer experience is a key differentiator, with retailers investing in promotion optimization, loyalty programs, and personalized marketing. Consumer trends towards healthier eating and convenience drive product assortment decisions. Retail management focuses on supply chain optimization, retail analytics, and category management to meet demand. Grocery technology, including digital marketing, e-commerce logistics, and inventory control, is transforming food retailing.
Store formats are evolving to include omnichannel retail and demand forecasting to better serve customers. Brand management and social media marketing are essential for building customer loyalty and engagement. Shelf space optimization and category management are crucial for maximizing sales and profitability.

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.

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 grocery retail market, various entities shape the industry landscape. Hygiene standards are prioritized to ensure food safety, while value products cater to consumers' increasing demand for affordability. Warehouse management systems streamline operations, and seasonal produce offers freshness and variety. Free-from products, such as gluten-free and vegan, cater to diverse dietary needs. Self-checkout kiosks enhance the shopping experience, and convenience stores cater to on-the-go consumers. Dairy products, canned goods, and dietary supplements are essential staples, while premium and private label brands differentiate offerings. Meat products, dairy, and bakery items are popular, with sales forecasting and local sourcing ensuring freshness and availability.

Sales in the household goods segment

The Supermarkets industry has undergone something of a shift over the past decade – discounters Aldi and Lidl have penetrated the customer base of the traditional “Big Four” supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), with their low prices and improving quality of products resonating with price-conscious shoppers. Over the five years through 2024-25, supermarkets' revenue is forecast to dip at a compound annual rate of 1.1% to £192.1 billion, though it's expected to inch up by 0.6% in 2024-25. Grocery price inflation has eased in 2024-25, with this stabilisation supporting consumer confidence, which has sparked greater sales volumes across major supermarket chains. Over the five years through 2024-25, the cost-of-living crisis has constrained households’ budgets, with shoppers spending less on non-essentials, shopping around more and turning to discount supermarkets. The landscape for UK supermarkets has been characterised by intense competition and emerging consumer trends. Discount retailers like Lidl and Aldi have aggressively expanded their market presence by capitalising on streamlined supply chains and low operational costs, enticing budget-conscious shoppers. Their success has prompted traditional supermarkets to embark on price wars and promotional strategies like Aldi price matches, illustrating the sector's dynamic nature. Concurrently, loyalty programmes have proven instrumental in bolstering supermarkets' profitability. Tesco, for instance, reported exponential growth in its Clubcard membership, thereby solidifying its market share. Looking forward, consumer preferences for quick and convenient shopping will threaten the traditional weekly shop. Convenience stores are likely to benefit from the little, local and often trend, stealing sales away from supermarkets. Sustainability is a growing concern for both shoppers and supermarkets. As disposable incomes recover, shoppers will emphasise sustainably produced, sourced and packaged products. Supermarkets will invest heavily in decarbonising their operations by purchasing electric fleets. However, additional costs caused by hikes to employers’ National Insurance contribution outlined in the 2024 Autumn Budget will force supermarkets to pass on additional costs to consumers, threatening their price competitiveness. Over the five years through 2029-30, supermarkets' revenue is forecast to swell at a compound annual rate of 2.1% to £213.4 billion.

The United Kingdom Hardware Stores Retail Market Report is Segmented by Type (Door Hardware, Building Materials, Kitchen and Toilet Products, and Other Product Types). by Distribution Channels (Offline and Online). The Report Offers the Market Size and Forecasts for the United Kingdom Hardware Stores Retail Market in Value (USD) for all the Above Segments.

Over the five years through 2025-26, industry revenue is expected to decline at a compound annual rate of 3.3% to £23.8 billion. The post-pandemic unwinding has been sharp, with online grocery orders falling from their lockdown highs as consumers return to physical stores. Meanwhile, aggressive pricing from discounters like Lidl and Aldi has pressured full-service grocers to match value, often through margin-eroding tactics like loyalty pricing, discounting and delivery subsidies. Demand for online grocery hasn’t disappeared – far from it – but it has normalised, and the cost of fulfilment remains high. Supermarkets continue to struggle with thin margins as the price of labour, fuel and delivery infrastructure weighs heavily on profit. In 2025-26, revenue is expected to rise modestly by 1.7%, reflecting a more stable consumer backdrop and slower inflation, particularly in food categories. Retailers have continued investing in automation and fulfilment innovations – from robotic picking systems to hyperlocal delivery hubs. Still, many of these upgrades are capital-intensive and have yet to ease the industry’s cost burden fully, but price sensitivity remains high. While loyalty schemes and one-hour delivery services help retain customers, they also demand substantial ongoing investment, limiting any meaningful recovery in profitability. Looking ahead, revenue is forecast to climb at a compound annual rate of 2.5% over the five years through 2030-31 to £26.8 billion. Growth will likely remain tepid as household budgets stay under pressure and the market becomes increasingly saturated. Major companies will likely consolidate their lead by expanding automation, refining logistics and bundling services through apps and loyalty platforms. Still, with delivery speed expectations rising and margins staying thin, grocers must carefully balance convenience with cost discipline to remain competitive.

UK retail market is leading the way in industry innovation, whether it's high-end retail, sustainable fashion, mobile retailing, or tech capabilities.

Grocery markets' performance is sensitive to the level of household disposable income, health consciousness, environmental awareness and competition from other grocery retailers like supermarkets. Health consciousness and environmental awareness are ever-growing, with individuals more concerned about the provenance of their food. 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. Grocery markets experienced a 45-year high in food price inflation in 2023, with similar rises 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. In 2024-25, revenue is forecast to grow by 0.4%, supported by growth in consumer confidence. Over the five years through 2024-25, industry-wide revenue is anticipated to grow at a compound annual rate of 8.3% to £370.8 million, supported by growing spend on premium products like artisan bread and organic meats, as real wages recover. Looking forward, supermarket competition will continue to rise. 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 grow at a compound annual rate of 9.7% to reach £589.1 million over the five years through 2029-30.

************ held the largest share of the organic food and drink market in the UK in 2024 at almost ** percent. ************* ranked in second place with a share of **** percent.

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

The report covers UK Online Retail Debit Card Payment Market, Total Number of Retail Categories UK Online Retail Market.t, UK Online Retail Pet Care Market, UK Online Retail Consumer Electronics Market.

In March 2025, internet sales accounted for 26.8 percent of all retail sales in Great Britain. Over the considered period, food online sales did not go over nine percent of total retail sales.

Home and Garden Retailing in United Kingdom (UK) – Sector Overview, Market Size and Forecast to 2025 provides both the historic and forecast market data of total retail sales, and the home market in United Kingdom (UK). It illustrates the data with charts, graphs and tables summarizing the value, with category details in home sector. The forecasts include the impact of COVID-19 on growth. The report also reveals major retailers share in home sector with their price and market positioning in 2020. Read More

In Great Britain, internet sales accounted for 26.8 percent of all retailing sales, as data from March 2025 showed. In February 2021, the share of online sales as a proportion of total retail reached its peak at 37.5 percent.

Health and Beauty Retailing in the United Kingdom (UK) – Sector Overview, Market Size and Forecast to 2025 provides both the historic and forecast market data of total retail sales, and the health and beauty market in United Kingdom (UK). It illustrates the data with charts, graphs and tables summarizing the value, with category details in health and beauty sector. The forecasts include the impact of COVID-19 on growth. The report also reveals major retailers share in health and beauty sector with their price and market positioning in 2020. Read More

Over the five years through 2024-25, revenue is forecast to climb at a compound annual rate of 1.9% to £12.9 billion. Sports events that boost levels of sports participation significantly impact industry revenue as demand for sporting equipment and clothing drastically grows. The pandemic heavily affected industry revenue; however, larger retailers used their solid brand name by shifting revenue channels online and retaining income. Smaller retailers with little capital couldn’t quickly create an extensive online presence and struggled to stay afloat. After revenue rebounded in 2021-22, it dipped over 2022-23 as consumers pulled back their spending habits amid challenging cost of living pressures. In 2023-24, revenue fell following a year with high inflation, causing consumers to lower discretionary spending on sports equipment. During the year, the industry's operating profit margin remained pressured by an increased minimum wage and a weak pound, inflating import costs. As the market share concentration for the big four retailers has grown, key industry suppliers (i.e., Nike) have shifted their focus to awarding larger retailers exclusive distribution rights. However, these key suppliers also externally compete with traditional sports retailers through e-commerce channels. According to Salience Search Marketing's latest report on the e-commerce sector, Nike was the UK's most prominent e-commerce brand in 2023. Over 2024-25, revenue is expected to expand by 7.6% as cost-of-living pressures alleviate and sports participation increases. Over the five years through 2029-30, revenue is forecast to expand at a compound annual rate of 4.5% to reach £16.1 billion. Using new artificial intelligence technologies and checkout store automation is estimated to elevate footfall beyond pre-pandemic levels in the short term by strengthening the personalised in-store consumer feel. Complimenting these new technologies with a modern online experience is likely to expand industry revenue as retailers look to create a 'one-stop-shop' for consumers. Meanwhile, government schemes to tackle childhood obesity and investments of £300 million to enhance cycling tracks and footpaths are all estimated to accelerate sports participation rates, growing the industry's consumer base.

The online sporting clothing retail industry has shot up in recent years, boosted by the penetration of internet-enabled devices, changing consumer preferences and a hike in the number of active people. Sports participation has risen in line with rising health consciousness, stoking demand for sportswear. A preference for comfort has also raised demand for sporting clothes worn for fashion, also known as athleisure. Revenue is estimated to climb at a compound annual rate of 7.4% over the five years through 2024-25 to reach £1.2 billion. The top contributor to the industry's success has been changing consumer preferences towards online shopping. Convenience and an enhanced consumer online shopping experience have supported demand for online stores. Investments in technological improvements and marketing strategies have also encouraged growth. The temporary closure of non-essential retail stores amid the COVID-19 outbreak supported the accelerated shift in spending habits, with many switching their preferences to online retail platforms. This sheltered industry retailers from wavering consumer demand and a drop in participation in sports activities over the same period. Despite a dip in line with the reopening of non-essential retailers, online shopping will continue to grow in popularity in the coming years. Renewed growth in sports participation and the swelling popularity of athleisure are set to support an estimated revenue jump of 5.4% in 2024-25. Industry revenue is forecast to rally at a compound annual rate of 5.1% over the five years through 2029-30 to £1.6 billion. As inflation continues to trickle down, consumer confidence and disposable incomes are set to improve, benefitting active wear demand. The share of retail sales made online will continue to expand as consumers display an enduring preference for value and convenience. Investment in e-commerce will continue to boost revenue as smartphone usage booms and offers greater ease for shopaholics. However, growing competition and online fraud are likely to squeeze revenue growth.

The UK AI in retail market size reached USD 466.99 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,201.19 Million by 2033, exhibiting a growth rate (CAGR) of 18.80% during 2025-2033. The market is driven by increasing innovations in technology that enhance retail operations and customer experiences, along with the expanding e-commerce industry, which is catalyzing the need for seamless shopping interactions in the UK.

"Food & Grocery Retailing in the UK, Market Shares, Summary and Forecasts to 2021", provides data for historic and forecast retail sales, and also includes information on the business environment and country risk related to UK retail environment. In addition, it analyzes the key consumer trends influencing UK food and grocery retail industry. Read More