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Verdict sector series: Food and Grocery 2016

Verdict sector series: Food and Grocery 2016

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Executive Summary

F&G spend rose over 2011-16. A return to sustained, albeit minimal volume growth, combined with a rise in inflation is set to create an uplift in growth over 2016-2021. Spend on tobacco is set to be the weakest as consumption continues to fall. Food is set for fairly weak growth as deflation takes time to ease off. Soft drinks and alcoholic drinks are forecast to see the strongest growth due to inflation and innovation

Key Findings

Price competition in the Food & Grocery (F&G) sector became even more intense in 2015 leading to inflation falling, with consumers remaining increasingly fickle and shopping around in search of the best value-for-money offerings

F&G spend has been polarised in recent years, with up market retailers M&S and Waitrose broadly outperforming, alongside discounters Aldi and Lidl. However, 2015 saw the discounters and subsequent wider pricing rivalry squeeze growth of these up market grocers

Through 2015 and 2016 the Big Four, who lost the most ground to the discounters, have been aggressively fighting back, committing sizeable investments to price competitiveness and, importantly, shifting more towards everyday low prices, with varied success.


The Food & Grocery Sector report offers comprehensive insight into the food & grocery market in the UK, analysing the market, the major players, the main trends, and consumer attitudes. It covers food, alcohol, soft drinks, tobacco and non-durable household goods.

It provides in-depth analysis of the following:

What people buy

Where people shop

How people shop

Why people shop

Reasons To Buy

Utilise the detailed market data and insight to help form an effective growth strategy across the food & grocery market

It covers forecasts to 2021, covering food, alcohol, soft drinks, tobacco, and non-durable household goods.

Identifies the drivers and inhibitors operating on the market helping to inform growth strategy.

Detailed look at channel and retailer shares in this market

Understand the opportunities in the market by learning who shops for food & grocery, how frequently they shop and what drives their store selection.


The hot issues

What people buy

where People shop

How people shop

Why people shop


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Marks and Spencer


The Co-op






Food, alcohol, soft drinks, tobacco and non-durable household goods, ambient food, chilled food, fresh food, Tesco, Sainsbury's, Asda, Morrisons, The Co-Operative, Marks & Spencer, Aldi, Lidl, Iceland.

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