1 minute read
Food-to-go
by 55 North
BUSINESS INTELLIGENCE: IGD FOOD-TO-GO REPORT
Food-to-go recovering 'faster than expected'
FOOD=TO-GO WILL RETURN TO ITS PRE-COVID LEVELS IN THE SECOND HALF OF 2022, BUT RECOVERY IS NOT CONSISTENT ACROSS SUB-SECTORS, SAYS IGD
Food-to-go will return to its pre-Covid levels in the second half of 2022, but recovery is not consistent across sub-sectors, says IGD.
The food-to-go channel will be worth £15.6bn at the end of 2021, which is 82.5% of its 2019 value, new research reveals.
The annual food-to-go forecast report from IGD forecasts the sector will return to its pre-Covid levels in the second half of 2022, six months earlier than expected.
Nicola Knight, senior analyst for food-to-go, said the result bettered expectations: “By 2026, the market will be worth £22.7bn which is 20.5% more than 2019. This will be the outcome of five years of growth at above pre-pandemic levels, following significant contraction in 2020, and will predominantly be driven by foodservice operators.”
However, recovery is not consistent across sub-sectors, the report finds. Foodservice food-to-go operators have been the main driver of the growth, increasing market share from 77% in 2019 to 79% in 2021.
In retail, the share of the food-to-go market is forecast to reduce to 21% in 2021 from 24% in 2019. This will gradually increase to 23% by 2026 as momentum starts to return to retail food-to-go.
Knight said: “In 2021, retailers have faced increased competition from foodservice operators who adapted quickly to changing consumer habits and demands. And, due to the decrease in demand and shift in shopping habits, retailers reallocated space to other categories. While larger stores have benefitted from consolidated shopping missions, smaller stores have experienced a greater dip in sales but, conversely, are likely to recover more quickly as some pre-pandemic behaviours return.”
She concluded: “Whilst there have been some new product launches and major projects that were delayed due to the pandemic are now beginning to appear in stores, the challenge for retailers now is whether they can close the gap in market share. It will depend on how far consumers return to pre-Covid habits and how fast retailers adapt to changes in behaviour that stick.”
