A passionate journalist with about a decade of experience, Pooja has developed a strong hold on the UK grocery retail sector. From exploring legislative changes, supply chain shifts, consumer buying habits, trends to retail crime, her work is driven by a deep belief in investigating, finding the truth and telling authentic unbiased stories.
Be it convenience pathbreakers, wholesale trendsetters or Post Office Horizon scandal victims, Pooja has an equal flair for deciphering industries as well as human complexities. At Asian Trader, she aims to bridge the gap between policy, trade, and the shop floor, always keeping a finger on the pulse of what matters most to retailers.
With an increasingly growing number of Brits participating in this month-long celebration of veganism each year, Veganuary is now a very much an established and popular yearly event.
More than 706,965 people signed up to the challenge to try a vegan diet for the month of January in 2023 and numbers are expected to cross this benchmark this year. With Veganuary 2024 proclaimed to be the biggest one yet, it’s essential for retailers to stock up on a range of best-selling and well-known brands to entice customers.
The campaign, which invites people to try a vegan diet during January, was first launched from a York kitchen table in 2014 by Jane Land and Matthew Glover. The number of people signing up for this has been growing ever since. According to a YouGov poll, 9 per cent of GB adults have participated in Veganuary since the first pledge in January 2014.
Popularity of this campaign can be ascertained by the fact that people from every country in the world have taken part in Veganuary only except for Vatican City and North Korea.
Interestingly, it's not just about a month. Habits formed in this campaign are proven to last long with many making permanent changes in their lifestyle. Over 50 per cent of Veganuary participants planned to maintain their new diet in some capacity after the challenge was over, substituting vegetarian or vegan products into their daily lifestyle.
In fact, the flexitarian lifestyle has become one of the most common dietary paths now. In 2023, more and more Brits are following a meat-free diet by choosing to become vegetarian, pescatarian or vegan.
According to Finder, there were 3.4 million vegetarians in the UK in 2023. The latest figures show there are also 1.4 million vegans in the UK. Overall, there are around 14 per cent of adults in the UK (7.2 million) following a meat-free diet.
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There is a clear age divide when it comes to views on eating meat. Studies show that millennials are currently the most meat-free generation. Almost one in four (18 per cent) of millennials currently go without meat by following a pescatarian, vegetarian or vegan diet. Gen Z are not far behind, with 16 per cent of this generation currently following a meat-free diet. However, those in this age group are the most optimistic when it comes to cutting meat out of their diet with, with 43 per cent of gen Z’s intending to do so.
London is leading the trend with almost half of Greater London (46 per cent) expected to be following a flexible diet. With one in four Londoners currently following either a vegetarian, pescatarian or vegan diet, London is already the most meat-free region in the UK.
Following London is the West Midlands, East Midlands, Yorkshire and the Humber, East of England, Northwest and Wales. On the other end of the intention spectrum is the Northeast, where just 9 per cent of the population is interested in adopting a meat-free lifestyle.
Munching and Meals
In this month or otherwise too, having an aisle or a section dedicated to healthy and vegan snacks can be a store’s highlight and can go a long way in attracting both curious as well as loyal customers.
Fairfields Farm Crisps, particularly their vegan Cheese and Onion flavour, is a great bet here. With an increase in vegan and dairy-reducing diets, some shoppers have been left missing the days they could indulge in their favourite flavour and this offering comes as a perfect solution.
Since reformulating as vegan-friendly, Fairfields Farm Crisps’ Cheese & Onion skin-on potato crisps has seen a significant boost in sales, increasing by 89.3 per cent, almost doubling year on year.
Fairfields Farm Crisps’ growth is expected to speed up even more in convenience channels with the introduction of the brand’s new A.F. Blakemore & Son’s direct-to-store initiative, which will allow the brand to sell to Spar franchise stores and Harvest forecourts using A.F. Blakemore & Son's central invoicing system.
Apart from snacking, it is important that the store has a fairly good collection of vegan and plant-based meals to cater to the ever-growing demand for vegan products.
Richard Cooper, Senior Brand Manager at Chicago Town, Dr. Oetker Professional, also feels that over the last year,there has been an increase in demand for free-from, plant-based meat alternatives, vegetarian and vegan products and healthy eating has been a major driver of change in legislation and consumer behaviour.
“44 per cent of UK adults is very health conscious, up +3ppts year-on-year, which includes embarking on various types of diets. As a result, healthy eating is a contributing factor towards consumers opting for more sustainable solutions, as 46 per cent of Brits admit that this plays a role in their food choice decision making”, Cooper said.
He further added that from 2022, the trends of free-from, vegetarian and veganism are showing no signs of slowing, with almost half (48 per cent) of new products being vegan in 2022. On the other hand, many consumers have been experimenting with ‘flexitarian’ lifestyles, and this accounts for one-third of the market.
Dr. Oetker has seen a growth in sales for its Pizza Perfettissima vegan options, Cooper told Asian Trader, adding that the maker has also just launched the Chicago Town Vegan Pepper-no-ni into the market, which is performing extremely well.
Dr Oetker Professional has seen its vegan pizza share increase by 2ppts within its full pizza range vs last year. Dr. Oetker Professional’s Pizza Perfettissima has also launched several vegetarian and vegan options such as the Puro Base, which is a vegan and halal base only, no sauce and therefore it can be used for starters such as garlic bread, bruschetta, a main pizza with any desired toppings, or dessert pizzas too, for example an apple pie pizza.
Popular Chicago Town products to consider in this aisle are Chicago Town Loaded Cheese (RRP £2.50 per quarter slice), Chicago Town BBQ Jackfruit (RRP £2.50 per quarter slice), Chicago Town Vegan Stuffed Crust Pepper-no-ni, Pomodoro (£10.99 RRP per pizza) and Puro Base (£10.99 RRP per pizza).
Apart from stocking vegan and vegetarian snacks and meals, having an equally wide and rich food to go section can add a cherry on this cake. Whilst sandwiches are still considered a traditional go-to for lunchtime snacks, more innovations in this sector are emerging.
In order for retailers to maximise sales, it is important to have a wide, well-stocked range of food to go on offer for key times of the day and also offering options for different dietary needs and missions.
Chicago Town’s Pizza To Go offers both vegetarian and vegan options and, as a brand, is proud to be able to tap into the mindset of ‘just like the real thing’ products, stated Cooper, adding that Chicago Town Pizza To Go has seen rise in sales of its vegetarian and vegan offering.
A particular store could add an additional SKU, add pizza to their meal deals or food delivery options to boost their revenue. All these things Dr Oetker Professional support with PoS and activation assets, including but not limited to posters, window stickers, A boards, feather flags as well as digital assets for screens in store.
A Veganuary round-up wouldn’t be complete without mentioning VFC – the vegan fried chicken company founded by Veganuary’s own Matthew Glover.
With activism at its heart, VFC is a brand on a mission to save as many chickens as possible and change people’s perception of vegan food. Last year, VFC launched a new Spicy range that includes fillets, tenders and popcorn – perfect for wraps, tacos and burgers or just to dip and eat on their own.
VFC is continuing its trail-blazing NPD drive with a range of fakeaway ready meals- market-first Chick*n Sausages and a new chilled Chick*n Mince SKU.
New VFC One Bag frozen ready meals are single serve and can be pan-fried from freezer to bowl in eight minutes, offering the ultimate convenience to time-poor shoppers. The range, which is made with pea-protein, includes Chick*n Fried Rice and Chick*n Curry, and has been developed to offer all the flavour of the nation’s takeaway favourites in a healthier, convenient, meat-free format.
Following years of requests, Heinz also finally released vegan versions of two of its most popular soups- Creamy Tomato and Beanz & Vegan sausages.
Not to forget THIS, the brand offering hyper realistic alternatives to chicken, and bacon meat-alternatives made using peas and soya beans.
Following two years of research and development, partnering with world-leading texture and flavour scientists, THIS certainly has a huge fan following for its unique products that perfectly mimic meat in taste, texture, appearance and smell. THIS isn’t chicken and THIS isn't bacon have been bestsellers as well as talked-about brands.
This year, THIS has teamed up with BrewDog for a limited edition Veganuary menu item – Europe’s first skin on vegan chicken wings. The skin on wings promise an unparalleled sensory experience, following a two year development and three patent-pending technologies. THIS Isn’t Chicken Wings feature a seaweed-based crispy skin that mimics the texture and taste of traditional chicken wings.
Other product lines to consider stocking are products from Beyond Meat, Heura, Meatless Farm, Bird’s Eye, Vivera and VBites.
Sweet and milky
Veganism and Veganuary requirements are often linked to snacks and meals section though confectionery is another aisle where retailers can tap this trend to offer something extra.
The plant-based category is growing at an exponential rate, creating demand for confectionery products that taste and feel like traditional confectionery. In fact, confectionery giant Swizzels has been urging retailers to stock up on its vegan range as it continues to grow in popularity.
Swizzels has seen a surge in sales of its vegan range post-Covid, with a 19 per cent increase in its vegan Variety Range, including popular Curious Chews, Luscious Lollies, and Scrumptious Sweets.
The company has also seen a 28 per cent increase in its vegan Countlines, including Drumstick Choos, Love Hearts and Refreshers Choos, as well as an 18 per cent increase in its Originals bag range, including Double Lollies, Mini Love Hearts rolls and Parma Violets packs.
In its fourth year running a campaign in support of Veganuary, Swizzels has made what started as a Veganuary-only movement a year-round trend with the key focus message- ‘All These, All year, All Vegan’, to promote the extensive range of vegan sugar confectionery.
SWIZZELS
Swizzels’ vegan range is a popular addition to any retailer’s sugar confectionery selection. As the leading supplier of Variety bags, including Curious Chews, Scrumptious Sweets and Luscious Lollies, retailers should not miss out on the opportunity to supply the whole range.
Other vegan fan favourites from the range include Love Hearts, Parma Violets, Minions Tropical Chew bars, Refreshers Choos, Drumstick Choos, and more.
Clare Newton, trade marketing manager at Swizzels, said, “Vegan sugar confectionery is becoming increasingly popular as vegan options move beyond the established categories of meat and dairy alternatives.
“We’ve found that innovation within the vegan sugar confectionery category is a strong driver to entice consumers to try out vegan products and keep them coming back for more. Plant-based sugar confectionery is in high demand and vegan alternatives have never been more important. Social media movements have helped fuel the interest in vegan lifestyles with the growth of food-related accounts and influencers.
“We want our customers to feel confident that they can still enjoy their favourite confectionery products all year round, not just during Veganuary.”
Furthermore, Fruit-tella’s best-selling chews are also transitioning to a fully vegan recipe.
The switch to vegan is being implemented across the full range of chews including the Fruit-tella favourite Strawberry Mix Chews, the moreish Fruit-tella Duo Stix, and the more recent edition of Fruit-tella Berries & Cherries.
The delectable chews will still contain real fruit juice and be made with all-natural colourings and flavours. All Fruit-tella sharing bag sweets are individually wrapped, and as such they are a treat that promotes hygiene and portion control. This makes them the perfect portable snack for families.
Free-from and vegan chocolate brand Moo Free is also a great option to stock in stores. The latest NPD to join Moo Free’s festive line-up is the Christmas Cracker Selection Box (£3.45 RRP) and Oscar the Bear (marbled) (£3.95 RRP). With over a decade of experience, Moo Free’s entire range is dairy, gluten and soya free, whilst also being suitable for vegans. Each product is made using its free from chocolate, sourced from ethical cocoa from Rainforest Alliance certified farmers. As with all Moo Free products, the range doesn’t use any single-use plastic and the packaging can be fully recycled.
Another interesting name to consider here is Protein Ball Co- the West Sussex snacking company famous for its vegan snacking options. Launched by a couple back in 2015 who didn't want healthy snacks to have to be compromised on taste or texture, The Protein Ball Co has launched two new flavours just in time for Veganuary- Choc Chip Muffin and Salted Caramel protein + vitamin balls.
Krispy Kreme is also here to celebrate Veganuary with their brand-new limited edition vegan doughnut Cookie Indulgence range. Revamping their fan-favourite Cookies & Kreme doughnut, Krispy Kreme has launched a vegan version of their delicious Kreme frosting, so plant-based fans don’t need to miss out on the crunchiest doughnut.
For those looking for more variety of vegan-friendly confectionery, Hancocks is the one-stop solution as Bradford-based confectionery wholesaler offers more than 200 vegan, vegetarian and Halal lines filling 50-foot-long aisle with tasty treats on each side to cater to the specific dietary requirements.
The launch of the new vegan and halal line seems to be gaining popularity with sales having increased by 40 per cent since it launched. Top-selling lines include Vegan Assorted Fizzy Mix, Vegan Jully Blue Babies, Vegan Blue Raspberry Bonbons and Ooze Tubes.
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Plant-based milk in another section wherein a store can create its own niche and clientele.
Plant-based milk and meat alternatives are seeing a meteoric rise in popularity, particularly in the UK, considered the European stronghold for alternative milks. With non-dairy options accounting for 16 per cent of beverage sales at Starbucks in 2023, the shift towards these alternatives seems unstoppable.
Vegan brand The Coconut Collab, best known for their yoghurts, have recently launched their first plant-based milk. Called M!LK, the barista-style milk appears exactly like its mainstream dairy counterpart, and describes itself as 'surprisingly un-coconutty-tasting!'
Galaxy’s vegan instant hot chocolate is another great option if enthusiasts are looking for a comforting drink to keep themselves warm and cozy.
Wrap
It is the time of the year when convenience stores should ramp themselves to cater to the needs of both Veganuary first-timers and seasoned vegans alike.
The rise of veganism in the UK is continuing its upwards trajectory, seeing a 40 per cent increase over the last 12 months. In addition to this, it's predicted that by 2025, a staggering one quarter of the UK is going to be vegan.
While the inclination is increasing, yearly events like Veganuary works as a booster, pacing up the sales of plant-based products as this is the time when people are highly motivated to go meat free. Even those who have not signed up are still curious and somewhat inclined to try vegan products.
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As ever, supermarket giants are leaning into Veganuary with a huge focus on vegan food items – but this time, they are spotlighting their own ranges, following a year where private-label products ruled the roost thanks to the cost-of-living crisis.
Local stores can have their own niche addition too by taking some small steps like giving space to startup vegan brands. One can also consider offering month-long discounts on milk alternatives and meat analogues, enabling people to overcome the cost barrier and initial hesitation.
It is important to remember here that apart from encouraging people to try new foods, Veganuary also manages to achieve sustained dietary changes for many. In 2023, a half-year survey found that more than a quarter of new signups had kept up a plant-based diet six months after taking part in Veganuary.
Needless to say, it is imperative to catch shoppers’ attention this month when both newbies and seasoned ones are looking out for more options. Go vegan!
Chewing gum releases hundreds of tiny plastic pieces straight into people's mouths, researchers said on Tuesday, also warning of the pollution created by the rubber-based sweet.
The small study comes as researchers have increasingly been finding small shards of plastic called microplastics throughout the world, from the tops of mountains to the bottom of the ocean - and even in the air we breathe.
They have also discovered microplastics riddled throughout human bodies - including inside our lungs, blood and brains - sparking fears about the potential effect this could be having on health.
"I don't want to alarm people," Sanjay Mohanty, the lead researcher behind the new study which has not yet been peer-reviewed, told AFP.
There is no evidence directly showing that microplastics are harmful to human health, said Mohanty of the University of California, Los Angeles (UCLA).
The pilot study instead sought to illustrate yet another little-researched way that these mostly invisible plastic pieces enter our bodies - chewing gum.
Lisa Lowe, a PhD student at UCLA, chewed seven pieces each of 10 brands of gum, before the researchers then ran a chemical analysis on her saliva.
They found that a gram (0.04 ounces) of gum released an average of 100 microplastic fragments, though some shed more than 600. The average weight of a stick of gum is around 1.5 grams.
People who chew around 180 pieces of gum a year could be ingesting roughly 30,000 microplastics, the researchers said.
This pales in comparison to the many other ways that humans ingest microplastics, Mohanty emphasised.
For example, other researchers estimated last year that a litre (34 fluid ounces) of water in a plastic bottle contained an average of 240,000 microplastics.
'Tyres, plastic bags and bottles'
The most common chewing gum sold in supermarkets is called synthetic gum, which contains petroleum-based polymers to get that chewy effect, the researchers said.
However packaging does not list any plastics in the ingredients, simply using the words "gum-based".
"Nobody will tell you the ingredients," Mohanty said.
The researchers tested five brands of synthetic gum and five of natural gum, which use plant-based polymers such as tree sap.
"It was surprising that we found microplastics were abundant in both," Lowe told AFP.
David Jones, a researcher at the UK's University of Portsmouth not involved in the study, said he was surprised the researchers found certain plastics not known to be in gum, suggesting they could have come from another source in the lab.
But the overall findings were "not at all surprising", he told AFP.
People tend to "freak out a little bit" when told that the building blocks of chewing gum were similar to what is found "in car tyres, plastic bags and bottles", Jones said.
Oliver Jones, a chemistry professor at Australia's RMIT University, said that if the relatively small number of microplastics were swallowed, they "would likely pass straight through you with no impact".
"I don't think you have to stop chewing gum just yet."
Lowe also warned about the plastic pollution from chewing gum - particularly when people "spit it out onto the sidewalk".
The National Confectioners Association, which represents chewing gum manufacturers in the United States, said in a statement that the study's authors had admitted "there is no cause for alarm".
"Gum is safe to enjoy as it has been for more than 100 years," it said, adding that the ingredients were approved by the US Food and Drug Administration.
The study, which has been submitted to a peer-reviewed journal, was presented at a meeting of the American Chemical Society in San Diego.
A.G. Barr, the company behind popular UK beverage brands like IRN-BRU and Rubicon, has on Tuesday announced its decision to discontinue its Strathmore brand.
This announcement comes as the company reported its results for the year ended 25 January 2025, showcasing strong revenue growth and increased profitability.
The discontinuation of Strathmore could lead to the closure of the manufacturing site in Forfar, Scotland, subject to employee consultation.
Despite this, the company's overall performance has been robust. Revenue increased by 5.1 per cent to £420.4 million, driven largely by a 6.4 per cent growth in soft drinks. Rubicon and IRN-BRU were particular highlights, with distribution gains and successful new product launches contributing significantly to this growth.
Adjusted profit before tax saw a substantial increase of 15.8 per cent, reaching £58.5 million. The company's strategic programme to improve operating margin is reportedly ahead of schedule, with adjusted operating margin up by 130 basis points to 13.6 per cent.
A.G. Barr also reported a strong financial foundation, with net cash at bank of £63.9 million. Shareholders are set to benefit, with adjusted return on capital employed improving to 20.1 per cent and adjusted EPS up by 17.4 per cent. The company has also recommended a final dividend of 13.76p.
A.G. Barr said current trading aligns with expectations, and the outlook for the 2025/26 financial year anticipates continued revenue growth and margin improvement. This positive forecast takes into account the 53-week year, the proposed Strathmore discontinuation, and additional regulatory compliance costs.
“2024/25 was a successful year for the company,” Euan Sutherland, chief executive, said. “Looking forward, we have a refreshed strategy centred on growth and are committed to our long-term financial targets. I am confident that successful execution of our plans will see another year of positive progress towards our long-term goals.”
In February 2025, A.G. Barr announced an organisational simplification, integrating Barr Soft Drinks and FUNKIN into a unified operation.
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Scottish Anti-Illicit Trade Group relaunches to combat counterfeiting
The Scottish Anti-Illicit Trade Group (SAITG) has relaunched this month, with the aim of combating counterfeiting and intellectual property crime in Scotland.
Supported by the UK Intellectual Property Office (IPO), the group brings together law enforcement, government and businesses to strengthen Scotland’s fight against this illicit trade.
According to IPO research, almost one in three of those asked (29%) across the UK have purchased counterfeit goods in the past. Almost one in five (19%) said they purchase them often, sometimes or on an occasional basis.
For 2021, the overall estimated value of imported counterfeit goods into the UK was over £7 billion.
The group will focus on developing best practice and enhancing collective strategies to tackle the supply of counterfeit goods across Scotland. They will form a coordinated response to protect Scottish products, businesses and consumers from the threat of IP crime.
“The Scottish Anti-Illicit Trade Group has an important role to play in disrupting the production and distribution of counterfeit and illicit goods," Scottish justice secretary Angela Constance said.
"As well as harming legitimate businesses, the profits of such activities fund other criminal activity. The Serious Organised Crime Taskforce, which I chair, will continue to work with the SAITG to do everything we can to tackle this illegal activity.”
Panel discussion at the relaunch of the SAITG on 3 March 2025
SAITG brings together members including the Scotch Whisky Association, Police Scotland, Trading Standards, The Wine & Spirit Trade Association and The Anti-Counterfeiting Group. Together, they will create a forum for distinct industry areas to share insight, intelligence and provide training and support for law enforcement agencies.
The group’s work will also help build a greater understanding among the wider public of the harms this trade causes, emphasising that counterfeiting is anything but a victimless crime.
“We are pleased to support the re-launch of the Scottish Anti-Illicit Trade Group, which marks an important moment in tackling this significant threat to businesses and consumers in Scotland,” Miles Rees, the IPO’s deputy director of enforcement, said.
“Counterfeit goods not only harm those using them, but also cause wider harms to society, our economy and communities. Government, industry and law enforcement all have a crucial role to play in working together to combat counterfeiting and piracy, and the group represents a vital forum, helping drive action together.”
Rachel Jones, newly appointed chair of the Scottish Anti-Illicit Trade Group and founder of Snapdragon, said: “Counterfeiting is not a victimless crime. It is the second largest source of criminal income in the world, after drugs. I’m very honoured to chair this group as we bring together key partners to protect Scotland’s heritage brands and consumers.”
Alan Park, director of legal affairs at the Scotch Whisky Association, highlighted the importance of protecting Scotland’s premium products.
“Food and drink products strongly associated with their origin, like Scotch Whisky, carry a significant reputation based on their quality, authenticity and generations of investment,” Park said.
“Those who attempt to take fraudulent advantage of that reputation will always face strong action, and the formation of this group is a significant step to help serve a strong message that this illegal activity won’t be tolerated.”
Members of the public can report suspected counterfeit goods to Police Scotland by calling 101 or anonymously through Crimestoppers.
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UK Easter spending shifts amid cost concerns - Vypr research
Chocolate purchasing intent for Easter is expected to slide due to factors like the ongoing cost of living crisis and growing concerns over sustainability while Easter-themed wrapping paper is expected to be in demand this year, states a recent report.
According to a UK consumer survey by product intelligence platform Vypr, 39 per cent of people are cutting back on chocolate eggs this year, while 24 per cent plan to spend less than £5 on Easter gifts.
While health concerns have led 29 per cent of consumers to scale back their Easter egg purchases, sustainability is a factor for many shoppers.
The desire for more eco-friendly options is evident for some, as 17 per cent of people are looking to choose gifts with less packaging, and another 17 per cent are prioritising items wrapped in less plastic.
Additionally, 15 per cent are opting to skip Easter altogether this year to avoid contributing to waste.
Despite these preferences, many shoppers are still planning to spend this Easter, although most say it’s going to be very low-key, with the majority (53 per cent) expecting to spend less than £10 in total, covering gifts, decorations, and entertaining.
Encouragingly for retailers, over a third (35 per cent) of consumers plan to spend between £10 and £50.
Chocolate eggs will still play a key part in these purchases, but for some, alternatives are gaining popularity. Cash gifts (10 per cent) and toys (9 per cent) are among the most popular choices.
Additionally, 10 per cent are looking for chocolate that isn’t egg-shaped, while 8 per cent will be buying Easter decorations.
Vypr noted that many supermarkets, convenience stores and wider retailers have expanded their range of Easter decorations this year, with 21 per cent of shoppers saying they have noticed the increased variety.
However, only 8 per cent report that this is likely to persuade them to purchase. Overall, 54 per cent of people do not decorate for Easter, and of those who do, 14 per cent plan to reuse last year’s decorations, while only 10 per cent will buy new ones.
Ben Davies, founder of Vypr, commented, “Retailers have plenty to consider when planning their 2025 Easter ranges.
"A quarter of shoppers are looking to gift-wrap Easter presents this year, making Easter-themed wrapping paper a clear opportunity to drive sales.
"Meanwhile, one in ten plan to buy Easter-themed clothing for children – which is something supermarkets could tap into to boost seasonal sales.
“Sustainability is also becoming a bigger priority for consumers, and demand for eco-friendly alternatives will only grow. This is a key area for NPD teams to explore, ensuring their ranges appeal to increasingly eco-conscious shoppers.”
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UK consumers cut spending as economic worries grow - KPMG
Majority of Brits feel that the economy is heading in the wrong direction, and this feeling is leading many to cut everyday spend, defer big ticket buying, and save more, a recent report has stated.
According to the latest quarterly Consumer Pulse survey from KPMG in the UK, three in five people say that the UK economy is worsening, leading even consumers feeling financially secure to cut back on spending.
The number of people feeling that the UK economy is worsening grew by fifteen percentage points in the last three months to 58 per cent.
But despite the perception of a downbeat economic picture, the majority (55 per cent) of people currently feel financially secure (which is just 2 percentage points lower than the previous quarter).
The research gauged the confidence of 3000 UK consumers and assessed their buying behaviour over the last quarter.
Those feeling insecure about their finances grew from 21 per cent to 24 per cent over the last three months, but within that only 15 per cent of people reported that their finances are such that they are having to actively cut discretionary spend to pay for essentials – with a further 2 per cent saying they are incurring debt to pay bills.
The growing negative economic perception is leading more consumers to take spending action than those who say their financial situation means they need to, with:
43 per cent saying they are reducing spend on everyday items.
36 per cent saying they are saving more as a contingency.
29 per cent saying they are deferring big ticket purchases.
19 per cent feeling less inclined to leave their current employment.
Reflecting upon the findings, Linda Ellett, head of consumer, retail and leisure for KPMG UK, said, “Our research continues to show that while only a minority of consumers feel financially insecure, the majority feel that the economy is heading in the wrong direction.
"And this nervousness about the economy is leading many, including some of those who are secure in their current personal financial circumstances, to cut everyday spend, defer big ticket buying, and save more.
“Some may be taking this action as they prepare for higher costs, such as a new mortgage deal or the higher cost of travel.
"But other cautious consumers are certainly preparing for the potential impact on them from what they believe to be a worsening economy. This week’s Spring Statement needs to give people the confidence in the longer-term UK economic outlook.”
Comparing consumer spending in the first quarter of 2025 to the results from the final quarter of 2024:
Eating out remains the most common target (38 per cent) for those cutting spend. Takeaway was second, with 34 per cent of consumers reporting less spend over the last three months. The number of people saying they are cutting back was 2 percentage points higher than the last survey.
The number of consumers reporting they cut clothing and footwear spend in the last three months rose 3 percentage points from the last survey to 32 per cent.
Cost cutting behaviour when shopping was once again evident, with:
Nearly a quarter of consumers (23 per cent) saying they shopped for promotional or discount goods more in the last three months.
Just over a fifth (22 per cent) of consumers saying they bought more own brand or value goods in the last three months.
A fifth (21 per cent) of consumers saying they used loyalty schemes more this quarter.
70 per cent of consumers said that price was a top purchasing driver for everyday items – rising 3 percentage points from the last survey.
Holiday spend was again the most common ‘big ticket’ quarterly spend, with 21 per cent of consumers reporting related spend in the last three months. 30 per cent of consumers say they will spend on a holiday in next three months.
45 per cent of consumers said they bought no ‘big ticket’ items in December, January and February. And 38 per cent said they won’t make any larger purchases in the coming three months.