RESEARCH
FOOD MARKET FORECASTS IGD
FOOD MARKET ‘TO GROW 10%’ BY 2022 THE UK FOOD AND GROCERY MARKET IS SET TO GROW BY 10% BY 2022 FUELLED IN PART BY THE PANDEMIC, ACCORDING TO THE LATEST FORECAST RESEARCH FROM IGD.
rising unemployment while convenience will grow by more than 13%.
CHANNEL FORECASTS 2019 – 2022 ONLINE: UP £7.0BN (59.2%)
T
he UK food and grocery market is set to grow by 10% – or by £19.1bn to £211bn – between 2019 and 2022, according to the latest market and channel forecast research from IGD. The new report reveals the impact of Covid-19 on the overall market over the next three years with a breakdown of expected implications and performance on individual channels. The research highlights that the pandemic has accelerated a major shift to online, a channel IGD expects to mostly retain the loyalty of new shoppers gained during the pandemic. Discount will, however, become the fastest-growing channel in 2021 and 2022, as shoppers looking to economise due to
18 I SLRMAG.CO.UK / ISSUE 19 / WEDNESDAY 26 AUGUST 2020
Q Online market share will increase from 6.2% in 2019 to 8.9% in 2022 Q Online will be the fastest-growing channel in 2020, following dramatic increases in shopper numbers and bigger order sizes Q The value of the online channel will overtake that of hypermarkets in 2020 Q Online will take £1 in every £11 spent on grocery in 2022. Simon Wainwright, Director of Global Insight at IGD, said: “We forecast e-commerce will gain market share faster than previously predicted, following the dramatic influx of new shoppers and bigger order sizes in 2020 as a result of Covid-19. While we expect growth to pause in 2021, it will later resume, with continuing expansion from Amazon and the launch of online operations by M&S through Ocado supplementing activity by the Big Four.
DISCOUNT: UP £6.3BN (25.4%) Q Discount market share will increase from 12.8% in 2019 to 14.6% in 2022 Q Discount will be the fastest-growing channel in 2021 and 2022 Q Aldi and Lidl’s rapid expansion is expected to continue Q Some variety discounters will see rapid growth as they
