Convenience store grab and go remains the largest channel in the food-to-go (FTG) market, though the channel is losing share to higher spend specialists, states a report today (15).
According to the new Lumina Intelligence UK Food To Go Market Report 2022, convenience and supermarket grab and go is expected to exceed 2019 turnover this year, states a recent report, adding that the UK food-to-go (FTG) market is forecast to grow by +31.8 percent in 2022.
“Convenience store grab and go remains the largest channel in the food to go market, at a share of 28.3 percent, but the channel is losing share to higher spend food to go specialists as consumer quality expectations increase,” states the report.
Overall, the FTG market size will touch a value of £21.3 billion. The market will fully recover and exceed its 2019 pre-pandemic market value, following a growth of +38.2 percent in 2021.
Key FTG channels including convenience and supermarket grab and go, coffee shop/cafés as well as travel are expected to exceed 2019 turnover in 2022. Branded traditional fast food is expected to have a slower recovery, with delivery gaining large proportions of key operators including McDonald’s and KFC’s sales mix.
Travel, coffee shops/cafés and street food are expected to see the strongest growth in share from 2016-2022. Sandwich and bakery, coffee shop and travel to lead outlet growth.
In outlet terms, the UK food to go market is set to see a net increase of +1,517 sites in 2022, a percentage growth rate of +1.0 percent, led by sandwich and bakery, coffee shop and travel segments.
Operators across the food to go market including Greggs, Costa Coffee and Pret A Manger are diversifying outlet coverage in line with changes to consumer habits following the pandemic, with operators targeting more drive thru, travel led sites, as well as neighbourhood and suburban locations.
Top ten brands account for 34.5 percent share of total FTG market, states the report, adding that three-in-ten consumers purchase food to go every week.
Drink and lunch hold the biggest share of FTG occasions by day part – a combined 66 percent of occasions.
The drink occasion has seen a further boost to day part share of +2.4ppts with hot drink on the go purchases taking a greater share amid a raft of operator innovation around festive hot drinks.
Familiarity, good value for money and voucher/promotion/loyalty card have increased as drivers to choosing a specific establishment.
The report further adds that FTG is set to grow by +£1.7 billion from 2022-2025.
The UK food to go market is expected to total £23.0 billion in 2025, with robust growth of +2.5 percent per annum from 2022-2025.
Outlet growth in the market is expected to reach its highest figure in six years, at +1.2 percent in 2025, to a net value of 156,120 outlets.
Blonnie Whist, Insight Director at Lumina Intelligence said, “During the pandemic, the very nature of food to go was hampered by tight restrictions on movement. However, the channel has always been well placed to recover post-pandemic. This is apparent in our forecasts, which indicate a full recovery by the end of 2022. This growth is set to be driven by a number of factors. Firstly, the reopening of hospitality, as well as recovery in city centre footfall, will drive food to go occasions as more consumers return to offices at least some of the working week.
“Secondly, recovery in travel and tourism will boost food to go throughout key parts of 2022, including the summer months. Thirdly, food to go is a relatively low ticket and is well placed to capitalise on tighter budgets as consumers feel the impact of cost increases across food, fuel and utility bills as well as taxation.”
Brian McLister
