Customer habits of snacking and alcohol consumption are expected to see a major shift in the coming years with growing evidence that weight loss medication users show little interest in snacking, consuming alcohol, or even eating between meals, a recent report has stated.
This was one of the key messages from ‘The 2025 Show’, a virtual event hosted by MMR Research, where top industry voices unpacked what’s coming next for brands and product innovation.
According to event host Andrew Wardlaw, Chief Ideas Officer at MMR Research, GLP-1 medications appear to work in two ways- physically, by lowering blood sugar, delaying gastric emptying, and in some cases, creating feelings of nausea. And neurologically, by interfering with the brain’s reward systems.
“In effect, GLP-1 medications are shutting down desire,” Wardlaw said.
The event featured several real-world consumer experiences, where users shared stories of dramatic reductions in daily cravings.
With the food and beverage industry at risk from the rising incidence of GLP-1 households, Wardlaw highlighted the importance of maximising curiosity at the shelf to mitigate the effects of this unprecedented assault on impulsive behaviour.
Lori Herman, insights leader at Mondelez, North America, acknowledged the impact of GLP-1 medications on the food and beverage.
She said, “You need to eat a lot of protein apparently when you are utilising this medication, and I feel like that’s going to benefit brands that are inherently protein rich. I think we will see the emergence of even more protein-rich snacks come into the market as a result.”
Herman added, “So, I do think it will impact the types of products we are seeing as it potentially becomes a little bit more mainstream.”
The event further covered the importance of new and novel experiences among consumers.
Pointing to recent research by MMR Research across key economic regions, Wardlaw urged manufacturers to escalate innovation that champions new flavours, new pack formats, extreme and unexpected sensory profiles, and product experiences that have the potential to go viral.
“We know that conversations about new and novel experiences are rising dramatically – up 23% in posts involving food and drink in the last 12 months, for example”, Wardlaw claimed.
Interactions with over 3000 consumers showed that people are interested in discovering new products and experiences to break the monotony of everyday life, adding daily glimmers – often FOMO fueled by platforms such as TikTok.
Wardlaw concluded: “Beyond industry yardsticks such as ‘liking’ and ‘overall appeal’ lies a complex network of emotional needs.
"We know that people are often drawn to brands and products because they make them feel adventurous, socially connected, discerning, and so on.
"These motivations have little to do with ‘liking’ and everything to do with identity and aspiration. Increasing our efforts on building superior emotional outcomes will help manufacturers mitigate the risks that GLP-1.
“We think brands can still market irresistible products, but via a different kind of reward system.”
Sales of low and no-alcohol beer were 20 per cent higher in December than January, shows recent data, suggesting that traditionally the month of abstinence has been overtaken by December in terms of alcohol consumption.
According to a recent report in The Times, supermarket Tesco experienced record demand for alcohol-free beverages in the four weeks running up to Christmas with sales up by more than 15 per cent on the previous year. The demand was largely driven by young Brits.
According to David Albon, a beer and cider buyer at Tesco, quite contrary to five years ago when the main demand for no and low drinks came in ‘dry January’, it is now a trend, especially in young people, to moderate drinking at these key occasions of the year as well.
“It’s a very different picture to what we were seeing, even just five years ago, when the main demand for no and low drinks came in ‘dry January’.”
Tesco confirmed that interest in dry January is still growing, with demand for no and low-alcohol wine particularly strong during the month and sales up 15 per cent. Sales of alcohol-free beer were up 10 per cent and alcohol-free spirits up 5 per cent.
Among the most popular choices from the chain in January were 12-packs of Corona 0.0%, with demand up by more than 250 per cent ,and 10-packs of Guinness 0.0, up by more than 100 per cent.
Tesco says the nation’s changing relationship with booze is seeing sales of alcohol-free drinks increase across every month of the year. It added that the increasing quality of low and no-alcohol alternatives was encouraging consumers to buy in multi-pack sizes rather than single bottles or cans.
Another trend giving momentum to alcohol-free range is "zebra stripping", when people alternate between alcoholic and non-alcoholic drinks on a celebratory night in order not to get too drunk.
In the words of Sarah Holland, a buyer at Waitrose, 2024 has certainly been the year of zebra striping, driven by the wonderful variety of delicious no and low which are available on the market now.
This comes weeks after IWSR data reported similar picture.
The firm stated that the total UK no and low market is expected to have more than doubled in 2024 versus 2023. Preliminary data shows no-alcohol beer grew 20 per cent in 2024 vs 2023 while alcohol-free beer now accounts for more than 2 per cent of total beverage alcohol market sales in the UK, highlighting just how big a part the subcategory is beginning to play in the overall drinks sector.
IWSR added that growth of no-alcohol spirits has slowed, but is expected to have grown +7 per cent in 2024 vs 2023 while sales of low-alcohol wine fell -5 per cent in 2024 vs 2023, no-alcohol wine grew by +8 per cent.
Cost of living is still consumers’ number one concern, shows recent data, highlighting how shoppers are turning to scratch cooking to both save money and have a healthier diet.
According to new data released today byNielsenIQ (NIQ), total till sales grew at UK supermarkets (+5.3 per cent) in the last four weeks ending 27th January 2025, up from +3.6 per cent recorded in December.
With a better outlook on food inflation (+1.6 per cent) compared to last year (+6.4 per cent), there was good unit growth of +0.9 per cent at the Grocery Multiples. However, growth slowed after the new year.
January is typically a time of year for a healthy reset for consumers, and NIQ data shows 12 per cent of British households purchased meat-free substitutes in the last four weeks. Whilst this is a small drop from 14 per cent last year, shoppers have not cut back on healthy diets with double-digit growth in freshly prepared fruit (+16 per cent) and fresh veg accompaniments which grew by +9 per cent.
Meat, fish and poultry was the fastest growing super category (+9.1per cent) as shoppers sought to cook protein-rich meals as part of New Year diets. This was followed by pet care (+8.3 per cent) and dairy products (+6.8 per cent).
In addition, NIQ data shows that half of all UK households now say they cook from scratch every day or most days, with around 16 per cent doing so more due to the rising cost of living.
The impact of this shift in behaviour marks a spike in demand for easy hacks to speed up or elevate the dining experience, with a boost in sales for fresh gravy (+28 per cent), fresh dough and pastry (+18 per cent), fresh dips (+15 per cent) and fresh cream and custard (+14 per cent).
In terms of retailer performance, Ocado led with a sales growth of +15.6 per cent compared with the same period last year.
This was followed by Marks & Spencer (+9.7 per cent) helped by its bigger store formats motivating shoppers to add more items to their baskets as well as its dine-at-home deals. There was also continued growth at the discounters Lidl (+7.8 per cent) and Aldi (+3.8 per cent) with both retailers gaining new shoppers and more store visits.
Mike Watkins, Head of Retailer and Business Insight at NIQ said, “The lift to grocery sales in the last four weeks was helped by the timing of the New Year, with a proportion of sales coming from the new year festivities which was week ending 4th January (+10.0 per cent).
"However, after this, weekly growth in January was slightly lower. Whilst overall Total Till sales growth was higher than December, the underlying trend is closer to +3 per cent which is the average growth in the most recent three weeks.”
Watkins adds, “NIQ Homescan data shows that the cost of living is still firmly consumers’ number one concern at the start of 2025. Shoppers are looking to save money and eat healthier leading to a growing trend in scratch cooking, which is one of the key behaviours driving the strong unit growth (+2 per cent) and value growth (+6.8 per cent) in fresh food categories in the last four weeks.”
Using cash not only affects consumer spending habits but also supports a deep psychological sense of ownership - something rarely experienced with digital transactions, shows a new research exploring how different payment methods influence spending behaviour.
The study, published in Qualitative Market Research in late 2024, reinforce the well-documented advantages of cash, such as its accessibility, resilience, and data privacy.
The study concludes that "when we handle cash, we are not just spending money; we are parting with a piece of ourselves." While digital payments are undoubtedly convenient, the research underscores the vital role cash continues to play in both monetary systems and society.
Cash remains the most inclusive payment method, accessible to everyone, including the elderly, unbanked individuals, and those in rural areas, states the report. With increasing bank closures, access to cash has been under threat.
However, new laws from the Financial Conduct Authority (FCA) regulations introduced in September 2024 ensure continued protection and improvement of cash access for businesses and consumers alike.
During natural disasters, power outages, and cyberattacks, cash serves as a crucial fail-safe. Unlike digital payments, which depend on electricity and internet connectivity, cash transactions remain unaffected, ensuring that businesses can continue operating in critical situations, states the report.
As digital transactions grow, so do concerns over data privacy and fraud risks. Cash payments remain anonymous, providing consumers with peace of mind that their financial activities are not being monitored or exploited.
A 2021 white paper study from cash handling specialists Volumatic highlighted strong consumer demand for payment choice, with many preferring a combination of cash and digital methods. A diverse payment ecosystem strengthens economic stability, allowing banks and businesses to mitigate risks associated with system failures and cyber threats.
Mike Severs, Sales & Marketing Director at Volumatic, said: “With the upcoming rise in National Insurance and the National Living Wage rates, coupled with increasing business costs, we understand the challenges businesses face. Investing in cash handling equipment not only boosts efficiency but also improves financial performance - further proving the enduring value of cash.
“With cash usage on the rise and its benefits extending beyond financial considerations to consumer well-being, businesses must adapt to customer preferences.
"Offering a choice between cash and digital payments is key to meeting customer needs and ensuring a resilient, stable economy.”
For retailers concerned about handling and processing cash, innovative solutions from Volumatic offer seamless and secure management. As experts in cash handling technology, Volumatic provides tailored solutions that enhance efficiency while reducing costs.
Volumatic’s all-in-one cash-handling solution, the CounterCache intelligent (CCi), has helped retail businesses cut cash processing costs by up to 75 per cent. Acting as a secure storage device, forgery detector, and cash counter, the CCi - when paired with CashView Enterprise software - delivers real time reporting and full visibility from POS to bank deposit.
For businesses seeking simpler solutions, Volumatic also offers a range of money-counting scales, friction note counters and secure deposit devices - designed to improve efficiency and security while saving valuable time and resources.
Take-home sales at the grocers rose by 4.3 per cent over the four weeks to 26 January compared with one year ago, according to the latest data from Kantar, which also shows a consistent rise on spending on promotions and fresh produce. Share of symbols and independents however continued on a decline.
January spelled relief for shoppers as grocery price inflation slowed to 3.3 per cent over the four weeks.
With household budgets typically stretched at this time of year, retailers played their part in easing the pressure on purse strings.
Fraser McKevitt, head of retail and consumer insight at Kantar, comments, “Supermarkets were dishing out the discounts this New Year, and consumers responded. Spending on promotions rose year-on-year by £274 million, accounting for 27.2 per cent of sales – the highest level in January since 2021.
“People also turned to non-branded products to help keep costs down, with own label as a proportion of sales hitting a record high of 52.3% in January. Spending on supermarkets’ own lines was up 5.4%, helped by consumers buying premium own label products in the couple of days leading up to New Year’s Eve."
Typically, shoppers have an eye on wellness, not just their wallets, at the start of the year – and 2025 was no exception. More than 10 per cent of the average consumer’s January grocery bill was spent on fresh fruit, vegetables and salad, totalling £1.2 billion – £193 million more than in December.
Nathan Ward, business unit director for usage and out-of-home at Kantar, adds, “Rolling into the new year, health tends to play a bigger role in our grocery choices. Over a quarter of take-home food and drink in January is chosen with health at least partially in mind, as shoppers tell us they want to eat less processed food and feel the benefit of fibre and vitamins.”
Protein products pulled their weight at the tills too as demand for bars, bites and drinks boosted spend on sports nutrition products. Sales for this category at supermarkets were 47% higher than last year, with over two million households buying these items during the month.
Sales of low and no alcohol drinks were 7 per cent higher than last January, and 6.7 per cent of households bought at least one of these alternatives.
Fraser McKevitt comments: “It’s no surprise to see the low and no alcohol trend make its mark in January, but given some of the generational splits we have seen in grocery, it’s interesting that older shoppers are just as likely to take these products home as younger ones. Not everyone signed up for dry January though, with 49% of people buying an alcoholic drink this month – but this is a pretty big drop from December’s 76%.”
Lidl’s sales rose 7.4% over the 12 weeks to 26 January, making it three continual years of growth for the discounter, whose share hit 7.2%. Aldi accelerated for the third consecutive month with sales up 4.2% and its market share increasing to 10.2%.
Ocado was the fastest-growing grocer for the ninth consecutive month. Spending at the online retailer grew by 11.3% meaning it now holds 1.9% of the market. Joint owner of Ocado Retail, M&S has also seen a strong 12 week period of growth with grocery sales increasing by 10.5%* in its brick-and-mortar stores.
Britain’s largest grocer Tesco gained the most share, its 28.5 per cent hold of the market is 0.7 per cent higher than this time last year, and it also saw its fastest rise in sales since April 2024 at 5.6 per cent. Sainsbury’s outpaced the market at 4.2 per cent sales growth, increasing its share from 15.7 to 15.9 per cent. Morrisons has 8.6% of the market while Asda’s portion is 12.6 per cent.
Convenience retailer Co-op returned to growth, with sales rising by 0.8 per cent giving it a 5.2 per cent share of the market while symbols and independents again saw dip of 5.8 per cent.
The year 2025 is set to be another difficult year for high street retail as rising costs continue to mount, shows the latest industry report, states that the UK is navigating a tough economic climate marked by sluggish growth, stubborn inflation, and weak consumer confidence, creating challenges for both businesses and households.
According to BDO’s latest High Street Sales tracker, total retail sales in discretionary spend categories grew by 7.1 per cent in January.
The growth however came off the back of a very weak set of results in January 2024 (-0.8 per cent) and was largely driven by growth in online sales, which jumped 15.5 per cent compared to the same period the previous year.
Meanwhile, sales in bricks and mortar stores grew by only 3.2 per cent, from a poor base of a 4.2 per cent decline, serving as a stark reminder that high street retail is struggling to recover from the trends experienced in 2024.
BDO noted that results indicate a large drop in volumes over the past two years.
Fashion and homewares retailers faced particularly challenging conditions in January, with sales in-store growing by 3.3 per cent and 3.4 per cent respectively against poor performances last year when sales fell 6.7 per cent and 10.1 per cent.
The report suggested that January’s poor weather may have contributed to mixed footfall on the high street and driven a better result for online sales, but this is also a continuation of the sector’s overall poor performance in 2024 and a disappointing final "Golden Quarter".
Consumer confidence has also taken a knock, dropping to -22 in January 2025, highlighting a general sense of pessimism about the economic outlook.
In summary, the UK is navigating a tough economic climate marked by sluggish growth, stubborn inflation, and weak consumer confidence, creating challenges for both businesses and households, states the report.
“These results may seem positive on the surface, but the underlying numbers show that the weak growth in the run-up to Christmas has continued into the new year,” said Sophie Michael, Head of Retail and Wholesale at BDO.
“While many retailers may have seen a rise in sales through the release of some of the pent-up consumer spending that didn’t come through before Christmas, January trading for discretionary spend requires heavy encouragement through discounting; this delayed spending will no doubt have a significant impact on already thin margins.
“The sector has been challenged for some time by the impact of significant cost increases, which will continue to mount throughout the year, particularly post the implementation of the changes in the budget this April.
"Raising the thresholds for National Insurance contributions will disproportionately affect retailers, who tend to have large workforces with lower average earnings. Add in increases to the National Living Wage, business rates and the Plastic Packaging Tax all coming together and at fast pace, their thin margins will be under even more pressure.
“Retailers need to find a way to balance the increased cost of doing business while investing in product development, customer service and underlying technology, like AI, that will maintain their competitiveness. They need clear visibility on how their costs will increase to identify effective actions to mitigate the impact.
"This includes clarity over how their supply chain costs will rise, with many of the businesses they rely on being subject to some of the same pressures as themselves.
"The sector already saw a high number of job losses in 2024 and retail store closures; with the oncoming cost increases, these numbers are unlikely to ease in 2025.”