UK Food and Beverage Market

UK Food and Beverage Market Overview:

The UK food and beverage market size reached USD 149.18 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 466.32 Billion by 2032, exhibiting a growth rate (CAGR) of 12.60% during 2024-2032. The growing desire for functional foods and beverages that aid in achieving particular health objectives, rising demand for products that have eco-friendly packaging, reduced carbon footprints, and ethically sourced ingredients, and increasing popularity of meal kits, pre-made meals, and convenient snacks are some of the factors impelling the market growth.

UK Food and Beverage Market Trends:

Health and Wellness Trends

Individuals in the UK are looking for products that align with their desire for healthier lifestyles like organic, plant-based, and low-calorie choices. Brands are adapting by providing products containing less sugar, fat, and artificial ingredients while highlighting nutritional perks, including high protein, fiber, and vitamin levels. There is also an increase in the demand for functional foods and beverages that aid in achieving health objectives like gut health, immunity, and energy enhancement. Companies are reformulating their offerings for catering to these evolving preferences, introducing innovative products that blend health with convenience. This shift is not only driving sales but also encouraging further product development to meet these demands. In 2024, Zooz, a mushroom-based non-alcoholic wellness drink targeting health-conscious consumers was introduced in the UK. Designed by Daniel Soos, this beverage contains Cordyceps and Lion’s Mane mushrooms, providing a low-calorie, sugar-free option.

Sustainability and Ethical Sourcing

Sustainability plays a crucial role in the food and beverage (F&B) industry, with consumers focusing on environmental and ethical aspects when buying products. There is an interest in products that have eco-friendly packaging, reduced carbon footprints, and ethically sourced ingredients. Brands are reacting by implementing sustainable measures, including cutting down on plastic usage, sourcing local ingredients, and enforcing fair trade standards. This trend is encouraging innovation, with companies providing plant-based options and concentrating on minimizing food wastage. For example, in 2024, Aldi incorporate 100% recycled plastic in their branded beverages and bottled water. Aldi's plan aims to save 10,000 tons of new plastic each year, reaching the goal of using 50% recycled materials in plastic packaging by 2025. Apart from this, in 2024, Flora launched the inaugural paper tub without plastic for its Flora Plant B+tter Spreadable exclusively available at Sainsbury's in the UK. This fresh packaging, made from compressed paper fibers, is in line with Upfield's goal to reduce plastic usage by 80% by 2030.

Convenience and Ready-to-Eat (RTE) Options

Consumers are looking for convenient solutions that maintain taste and quality of the food and beverages without sacrificing time. The increasing popularity of meal kits, pre-made meals, and convenient snacks reflects this shift, allowing individuals to enjoy nutritious meals with minimal effort. Retailers are broadening their product selections for catering to various dietary preferences, such as vegan, gluten-free, keto, and low-carb, and aiming to provide convenient and tasty options. The rise in online grocery shopping and home delivery services is also contributing to this change, allowing consumers to conveniently obtain their preferred goods from the comfort of their own homes. Subscription meal boxes and pre-packaged meal kits are also becoming popular, offering flexible and convenient options for people with busy schedules. In 2024, Squeaky Bean introduced a fresh range of vegetarian snacks and meal kits at specific Tesco outlets in the UK. The selection features a Hoisin duck style pancakes meal kit and smaller snacks like Southern fried straws and BBQ pork style rolls, catering to the growing demand for convenient plant-based options.

UK Food and Beverage Market News:

• May 2024: Swizzels introduced its latest flavor, Drumstick Squashies Strawberry & Cream, in various locations throughout the UK. The 120g bags of the product, sold for £1.15, meet the increasing need for novel flavors in the Squashies range.
• September 2024: Fry's Family Food launched the UK's first vegan formable mince, named "Shape and Sizzle," available at Tesco outlets. Made from soy that is not genetically modified, this product is high in protein and fiber and can be used to create various meat alternatives like meatballs and burgers.

UK Food and Beverage 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, nature, process, and distribution channel.

Type Insights:

• Fruits and Vegetables
• Meat, Fish, and Poultry
• Dairy Products
• Frozen and Processed Foods
• Coffee and Tea
• Non-Dairy Beverages
• Alcoholic Beverages
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes fruits and vegetables, meat, fish and poultry, dairy products, frozen and processed foods, coffee and tea, non-dairy beverages, alcoholic beverages, and others.

Nature Insights:

• Organic
• Conventional
   

A detailed breakup and analysis of the market based on the nature have also been provided in the report. This includes organic and conventional.

Process Insights:

• Processed
• Unprocessed
   

The report has provided a detailed breakup and analysis of the market based on the process. This includes processed and unprocessed.

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• 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, convenience stores, online, 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 Food and Beverage Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK food and beverage market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK food and beverage market?
• What is the breakup of the UK food and beverage market on the basis of type?
• What is the breakup of the UK food and beverage market on the basis of nature?
• What is the breakup of the UK food and beverage market on the basis of process?
• What is the breakup of the UK food and beverage market on the basis of distribution channel?
• What are the various stages in the value chain of the UK food and beverage market? 
• What are the key driving factors and challenges in the UK food and beverage?
• What is the structure of the UK food and beverage market and who are the key players?
• What is the degree of competition in the UK food and beverage 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 food and beverage market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK food and beverage 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 food and beverage 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.