Navigating the Rapid Growth of the UK Food to Go Market: Trends and Opportunities
The UK food to go market is experiencing a steady growth rate, defying previous setbacks and poised for growth in the coming years. Lumina Intelligence forecasts a 3.5% expansion, reaching a staggering value of £23 billion in 2024. Market growth will mean that the market is +9.3% larger than its pre-pandemic value, led by evolving consumer preferences and strategic industry adaptations. Let’s delve into the insights driving this phenomenon and the trends shaping the future of food to go in the UK.
- UK food to go market set to grow by 3.5% in 2024 to reach £23 billion, surpassing pre-pandemic levels by 9.3%.
- Strong net space growth expected with 0.7% increase in outlets, fuelled by diverse formats such as travel hubs, drive-thrus, and kiosks.
- Demand for nuanced health and premium quality driving new product development, with a focus on healthier options and elevated flavours.
- Convenience store grab and go witnessing robust growth post-COVID, supported by investment in ranges and value.
- Forecast predicts a market value of £25 billion by 2027, propelled by economic tailwinds, tourism, and continued outlet expansion.
Market Growth and Outlook: The UK food to go market is on an upward trajectory, with projections indicating a steady growth rate of 3.5% in 2024. Falling inflation is also expected to alleviate pressure on business margins and consumers, with average earnings expected to out-pace inflation for the first time in two years. A stabilising economy will be positive for the food to go market, fostering appetite for food on the go following a period of stringent budgeting.
Consumer Trends and Preferences: Consumer confidence reached the highest level since January 2022 in January 2024 at -19. Increased optimism in personal finances has driven the improved figure, expecting to lead to more bullish consumer spending on non-essentials.
Consumer preferences are evolving, with a clear emphasis on health and quality driving purchasing decisions. New product development is aligned with these trends, focusing on healthier options and premium offerings. Vegan, high protein, and high fibre products are gaining traction, catering to a growing segment of health-conscious consumers. Additionally, the introduction of tiered meal deal ranges and innovative flavour combinations is enhancing the overall dining experience and generating excitement among customers.
Convenience Store Revolution: Convenience stores have emerged as key players in the food to go market, experiencing robust growth post-COVID. Investment in product ranges and value propositions has propelled convenience store grab and go to new heights, offering consumers convenient and affordable options for on-the-go dining. This shift underscores the importance of accessibility and convenience in shaping consumer behaviour, with convenience stores becoming go-to destinations for quick and satisfying meals.
Future Opportunities and Expansion: Looking ahead, the future of the UK food to go market appears promising, with continued growth and expansion on the horizon. Economic tailwinds, boosted tourism, and record employment levels are expected to drive market value to £25 billion by 2027.
Moreover, investments in travel infrastructure present new opportunities for a variety of formats, further diversifying the market and catering to evolving consumer needs. With a focus on nutrient-dense, high-quality offerings and innovative product ranges, the food to go market is primed for continued success in the years to come.
Conclusion: The UK food to go market is undergoing a period of rapid growth and transformation, fuelled by changing consumer preferences and innovative industry initiatives. Despite challenges, the market remains resilient, with projections indicating sustained expansion in the coming years. By embracing trends such as health consciousness, convenience, and product innovation, stakeholders in the food to go market are well-positioned to capitalise on emerging opportunities and shape the future of on-the-go dining experiences.