A new report has revealed a notable increase in retail's share of the UK's food-to-go market.
The Food to Go Market Report 2023 by Lumina Intelligence highlights how retail has enjoyed a +1ppt boost in its channel share, with grocery outlets well positioned to capitalise on consumers' increasing value-led attitude.
The report noted that the retailers are offering higher quality and broader ranges of value-led food-to-go options as well as reaping the rewards of partnerships with foodservice operators.
Consumers are facing increasing financial pressures, with 78 per cent aligning with a very value-led attitude, this has increased year-on-year and is seeing consumers trade down to inexpensive alternatives.
The report forecasts retail's share of the UK's food-to-go market to rise, with convenience store grab-and-go options alone expected to add £550 million in value to the sector in the next three years.
The UK food-to-go market is expected to reach £22.2 billion in 2023, reflecting 4.1 per cent year-on-year growth, with total retail being the largest segment of the food-to-go market. This includes convenience stores, supermarket grab-and-go outlets, coffee shops, sandwich shops and bakeries.
Sandwiches, particularly, have grown by 2 per cent year-on-year, making them the most popular food item consumed at lunch. This trend has been driven by consumers returning to offices and driving demand for classic lunch options. The increase in the number of lunch meals bought from retailers is also responsible for this trend, with many stocking extensive sandwich ranges within low-cost meal deals.
