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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 the 16 weeks ending on April 16, 2023, branded goods made up 45 percent of all supermarket sales in the United Kingdom. Own-label standard goods made up the same share, while own-label value ranges made up just three percent.

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.

The UK e-commerce market size reached USD 297.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,483.7 Billion by 2033, exhibiting a growth rate (CAGR) of 18.1% during ​2025-2033​. The growing online shopping activities among the masses, rising convenience-driven purchasing behaviors, competitive offerings from both established retailers and agile digital-native brands, and increasing user confidence in secure online transactions are some of the factors impelling the market growth.

The United Kingdom Food Spreads Market is Segmented by Product Type (Honey, Chocolate-Based Spread, Fruit-Based Spread, and More); Nature (Conventional and Organic), Packaging Type (Jars, Tubs, Sachets/Pouches and Others), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail Stores, and Others). The Market Forecasts are Provided in Terms of Value (USD).

The UK IT Services Market Report is Segmented by Service Type (IT Consulting and Implementation, IT Outsourcing, Business Process Outsourcing, and More), End-User Enterprise Size (Small and Medium Enterprises, and Large Enterprises), Deployment Model (Onshore Delivery, Nearshore Delivery, and More), and End-User Vertical (BFSI, Government and Public Sector, and More). The Market Forecasts are Provided in Terms of Value (USD).

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

The UK Cloud Computing Market Report is Segmented by Cloud Type (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size (Small & Medium-Sized Enterprises, Large Enterprises), End-User Industry (Manufacturing, Education, Retail, BFSI and More), Service Model (Infrastructure-As-A-Service, Platform-As-A-Service, Software-As-A-Service, Business-Process-As-A-Service). The Market Forecasts are Provided in Terms of Value (USD).

UK IT Services Market size was valued at USD 105.14 Billion in 2024 and is projected to reach USD 180.65 Billion by 2032, growing at a CAGR of 7% from 2025 to 2032.UK IT Services Market DynamicsThe key market dynamics that are shaping the UK IT services market include:Key Market DriversDigital Transformation Acceleration Post-COVID: The pandemic has dramatically accelerated digital transformation initiatives across UK businesses, creating sustained demand for IT services. According to the Office for National Statistics (ONS), the percentage of UK businesses using cloud computing services increased from 42% in 2020 to 53% in 2023, with enterprise spending on digital transformation reaching USD 66.46 billion in 2023. The UK government's Digital Strategy initiative has further committed USD 3.23 billion in digital skills training through 2025 to support this transformation.

Largest UK companies by market cap

The largest UK companies by market cap are those listed on the UK stock exchange with the highest total value of all shares, representing their perceived worth by investors. These companies, such as BP, Shell, Unilever, HSBC Holdings, and GlaxoSmithKline, are considered some of the most valuable and powerful in the country, with a significant impact on the global economy. AstraZeneca, Rio Tinto, and Reckitt Benckiser are also notable high-market cap companies in the UK, reflecting their strong foothold in their respective markets.

The UK E-Commerce Market analyzes platform adoption, fulfillment strategies, and consumer behavior shifts to guide retailers and tech providers in shaping competitive digital commerce strategies.

The Report Covers Business Intelligence Companies UK and the Market is segmented by Organization Size (Small & Medium-scale, Large-scale) and End-User (BFSI, IT & Telecom, Retail & Consumer Goods, Manufacturing & Logistics, and Public Services). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

The UK Food testing Services market is expected to reach USD 1,370.6 million in 2025, reaching a total value of USD 3,279.7 million by 2035. This represents a compound annual growth rate (CAGR) of 9.1% during the forecast period from 2025 to 2035.

Metric	Value
Industry Size (2025E)	USD 1,370.6 million
Industry Value (2035F)	USD 3,279.7 million
CAGR (2025 to 2035)	9.1%

The United Kingdom Payment Market Report is Segmented by Mode of Payment (Point of Sale, Online), Interaction Channel (Point-Of-Sale, E-commerce/M-commerce), Transaction Type (P2P, C2B, B2B, Remittances and Cross-Border), End-User Industry (Retail, Entertainment and Digital Content, Healthcare, Hospitality & Travel, and More). The Market Forecasts are Provided in Terms of Value (USD).

The United Kingdom Gluten Free Food and Beverage Market Report is Segmented by Product Type (Bakery Products, Meats/Meat Substitutes, Dairy/Dairy Substitutes, Sauces/Dressings/Seasonings, and More), Nature (Conventional, Organic), Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, and More), and Geography (United Kingdom). The Market Forecasts are Provided in Terms of Value (USD).

Online retail in the United Kingdom has been gaining ground in the past decade. With the onset of the coronavirus (COVID-19) crisis, the value of online retail sales in the United Kingdom is estimated to reach just below 120 billion British pounds in 2021. In 2022, the figure decreased to 106 billion British pounds. What ranks high in UK e-commerce? In the United Kingdom, clothing and household goods were the most popular retail items consumers purchased through the internet in 2020. Data published by the Office for National Statistics (UK) showed that other leisure activities and services such as booking holiday accommodations, travel arrangements and event tickets were other areas consumers depended on the internet to buy. German e-commerce market The UK might have the highest share of online sales in retail trade, but other European countries such as Germany and France have had impressive track records over the years as well. According to the forecasts provided by German E-commerce and Distance Selling Trade Association (bevh), the market volume of Germany’s e-commerce sector was projected to see over 90 billion euros in 2021.

UK Pulses sales will reach approximately USD 3,301.2 million by the end of 2025. Forecasts suggest the market will achieve a 4.1% compound annual growth rate (CAGR) and exceed USD 4,933.8 million in value by 2035.

Attributes	Values
Estimated UK Industry Size (2025)	USD 3,301.2 million
Projected UK Industry Value (2035)	USD 4,933.8 million
Value-based CAGR (2025 to 2035)	4.1%

The UK software distribution market is anticipated to grow exponentially in the next decade, owing to the growing acceptance for cloud-based solutions, digital transformation across various sectors, and the increasing prevalence of subscription-based software models. At an estimated market value of USD 22,115.2 million in 2025, the market is expected to be on a rise at a CAGR of 12.8% till USD 73,743.7 million by 2035.

Attributes	Values
Estimated UK Market Size in 2025	USD 22,115.2 million
Projected UK Market Size in 2035	USD 73,743.7 million
Value-based CAGR from 2025 to 2035	12.8%

Semi-Annual Market Update for UK Software Distribution Market

Particular	Value CAGR
H1 2024	11.9% (2024 to 2034)
H2 2024	12.4% (2024 to 2034)
H1 2025	12.6% (2025 to 2035)
H2 2025	13.1% (2025 to 2035)

An Analysis of the UK Software Distribution Market by Segment

Deployment Type	Market Share (2025)
Cloud-Based Distribution	65.4%
On-Premise Distribution	34.6%

Organization Size	Market Share (2025)
Small and Medium Enterprises (SMEs)	38.2%
Others	61.8%

Market Concentration and Competitive Landscape

Vendors	Market Share (2025)
Softcat	26.7%
Bytes Technology Group	21.5%
Computacenter	19.4%
SCC UK	15.3%
Others	12.8%

The UK Fixed Connectivity Market Report is Segmented by Connection Technology (Fiber To the Premises [FTTP], Fiber To the Cabinet [FTTC/VDSL], and More), Service Type (Fixed Data [Broadband], Fixed Voice, and Bundled Triple-/Quad-Play), Speed Tier (Sub-30 Mbps, 30–100 Mbps, and More), and End User (Residential Consumers, Small and Medium Enterprises, and More), and Industry Vertical (IT and Telecom, BFSI, Healthcare, and More).