UK FMCG Market

UK FMCG Market Overview:   

The UK FMCG market size reached USD 224.86 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 370.34 Billion by 2032, exhibiting a growth rate (CAGR) of 5.30% during 2024-2032. The market is driven by the increasing reliance on e-commerce websites on account of the convenience offered, along with the growing emphasis on health and wellness, which is driving the demand for organic and functional food products.

UK FMCG Market Trends:  

Rising Penetration of E-Commerce

The burgeoning e-commerce sector is positively influencing the market in the UK, owing to the increasing preferences for online purchasing on account of convenience offered. Brands are growing their digital presence by investing in user-friendly websites and apps that improve the purchasing experience. Retailers are improving their supply networks to assure speedier delivery times, fulfilling consumer demand for speedy service. As people are utilizing online platforms, they are seeking subscription services that give regular deliveries of necessities, making life easier. Companies are also leveraging data analytics to understand consumer behavior and personalize their offers for specific requirements and preferences. This customization is enhancing consumer loyalty and encouraging repeat purchases as individuals feel more connected to the businesses they choose.

In addition, influencers on social media are promoting products and increasing direct sales through social platforms, which is contributing to the market growth. Brands are taking advantage of this trend by launching specific advertising campaigns and interacting with customers through engaging content. Furthermore, advancements in payment technology, such as mobile wallets, buy now, pay later options, and one-click checkout services, are streamlining the checkout procedure, allowing consumers to easily finish their purchases. With the growing awareness among shoppers about online shopping, fast moving consumer goods (FMCG) companies are focusing on enhancing their e-commerce strategies to target the market. According to the IMARC Group’s Report, the UK e-commerce market is projected to exhibit a growth rate (CAGR) of 18.50% from 2024 to 2032.

Increasing Focus on Health and Wellness:

As per the Soil Association Certification’s Organic Market Report 2023, shoppers spend almost £8.5 million on organic products every day in the UK. The increasing popularity of organic, gluten-free, and plant-based products is driving the demand for health-conscious options. Consumers are becoming more selective, seeking clarity in ingredients and nutritional details. Brands are adapting by changing their products to lower sugar, salt, and artificial additives, as well as improving nutritional content. Besides this, the rising trend of wellness-oriented lifestyles is catalyzing the demand for functional foods that provide additional health benefits, including probiotics, vitamins, and superfoods. Companies are responding by introducing cleaner labels, emphasizing natural ingredients and ethical sourcing to ensure transparency. This shift is encouraging the elimination of artificial additives and preservatives and simplification of ingredient lists, enabling consumers to comprehend the contents of the products they are purchasing.

Moreover, the growing awareness among the masses about dietary restrictions and limitations is encouraging people to purchase gluten-free, dairy-free, and allergen-friendly choices. Retailers are incorporating health and wellness concepts into their marketing plans by using social media to connect with health-conscious customers and advertise lifestyle-related products. In line with this, innovations in food products like pre-prepared meals with improved nutrition are gaining traction. Numerous brands are also collaborating with health professionals and dietitians to develop products that match current lifestyle trends, thereby offering a favorable market outlook in the country.

UK FMCG Market News:  

• June 2024: Uber’s advertising division in the UK launched Sponsored Items on Uber Eats, partnering with PepsiCo and powered by Criteo to offer FMCG brands new advertising opportunities directly within the app.
• May 2024: Bakkavor Group plc, a leading provider of fresh prepared food, acquired Moorish, one of the most recognizable hummus brands in the UK, to enhance its existing dips business with high-quality, innovative products.

UK FMCG Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type and distribution channel.      

Type Insights:

• Food and Beverage
• Personal Care and Cosmetics
• Health Care
• Home Care
• Footwear
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes food and beverage, personal care and cosmetics, health care, home care, footwear, and others.

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Grocery Stores
• Specialty Stores
• E-commerce
• Others
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, grocery stores, specialty stores, e-commerce, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK FMCG Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK FMCG market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK FMCG market?
• What is the breakup of the UK FMCG market on the basis of type?
• What is the breakup of the UK FMCG market on the basis of distribution channel?
• What are the various stages in the value chain of the UK FMCG market? 
• What are the key driving factors and challenges in the UK FMCG?
• What is the structure of the UK FMCG market and who are the key players?
• What is the degree of competition in the UK FMCG market? 

 Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK FMCG market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK FMCG market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK FMCG industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.