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UK grocery retailing

How much is the UK grocery market worth? And which are its most important channels?

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  • Retail

  • Published

    04 Jun 2015
  • For regular updates

- What is the size of the UK grocery market?
- What channels make up the UK grocery market?

What is the size of the UK grocery market?

  • IGD expects the UK grocery market to be worth £179.1bn in 2016, an increase of 0.6% on 2015
  • We forecast that the UK grocery market value will be worth £196.9bn in 2021, a 9.9% increase on 2016
  • The grocery market accounts for 50.2p in every £1 of UK retail sales 


What is the size of the UK grocery market?

Source: IGD UK Channel Opportunities: UK market and channel forecasts 2016 - 2021 

What channels make up the UK grocery market?

 Source: IGD UK Channel opportunities: UK market and channel forecasts 2016-2021

  • Hypermarkets: Large format stores that sell a full range of grocery items and a substantial non-food range. Sales areas are typically 60,000 sq ft+
  • Supermarkets: Defined as food-focused stores with sales areas of between 3,000 and 60,000 sq ft
  • Convenience stores: Stores with a sales area of less than 3,000 sq ft, which are open for long hours and sell products from at least seven grocery categories. Includes standalone forecourts with convenience stores
  • Discounters: Includes all sales through food discounters Aldi, Lidl and Netto and the grocery sales of the high street discounters such as Poundland and B&M
  • Other retailers: Includes stores with a sales area of less than 3,000 sq ft, typically newsagents, off-licences, some forecourts and food specialists, such as butchers and bakeries. This channel also includes the grocery sales of predominantly non-food retailers such as department stores
  • Online: Internet orders placed at grocers and online food specialists for home delivery and customer collection

Market data includes VAT and excludes fuel sales. All data is for calendar years.



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Free report - Referendum 2016: possible outcomes for UK grocery businesses

Referendum 2016: possible outcomes for UK grocery businesses

Following a referendum on 23 June 2016, the UK has voted to leave the European Union

In the wake of this decision, we examine the key issues for grocery businesses and explore different scenarios and possible outcomes you should consider.

To download 'Referendum 2016: possible outcomes for UK grocery businesses' simply click on the link below and complete your details. 

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Free download - Discount shoppers - top trends

Free download: Discount shoppers - top trendsThe discount channel is set to double in value over the next four years. This complimentary guide will help you understand the behaviours, motivators and intentions of shoppers who use food discount and high street discount stores.

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