Rising demand for food-to-go options boosted the size of the convenience market to grow 5 per cent last year to reach £47.4 billion, states a recent report, highlighting the importance of hot food offering in local stores.
According to the recently launched Convenience Market Report 2024 by Lumina Intelligence, convenience market will continue its upward trajectory with a forecast growth rate of 4.2 per cent in 2024.
This growth is expected to be driven by increased consumer confidence and improved household spending power. Key factors contributing to growth include enhanced store offerings and expanded meal deals, hot counters, and strategic brand partnerships.
The report said meal deal offers, including those stemming from loyalty programmes, have helped provide convenience shoppers with affordable choices to meet their food-to-go needs.
“Our latest data showcases notable growth in the convenience market, reaching £47.4bn in 2023, 5 per cent growth,” said Lumina Intelligence insight lead Katie Gallagher.
“This is attributed to the rising demand for food to go, despite challenges including weak household spending power and an unusually cold summer which tempered potential gains.”
Convenience market will achieve a compound annual growth rate (CAGR) of 3.4 per cent from 2024 to 2027. Enhanced economic indicators, including rising average earnings, are expected to underpin a more stable market growth rate from 2025 onwards.
“This robust performance underscores the critical role of convenience food-to-go in driving market expansion. Retailers are increasingly focusing on store and product range enhancements to cater to evolving consumer preferences," states the report.
