Food and beverage market in the United Kingdom
The United Kingdom food and beverage industry is the third largest in the European Union (EU) after Germany and France.
Groceries account for around 10 percent of total household spend in the UK, making it the third largest category of consumer expenditure behind housing and transport. The share of household expenditure on food and beverage is lower than most other European countries. There is high demand for economy brands and private label products.
The main suppliers of food and beverage products to the United Kingdom are other EU countries. Their advantages include relatively no import tariffs, low transport costs, fast delivery times and harmonised labelling and ingredient regulations.
Food retail is the United Kingdom’s largest consumer market. The sector is dominated by supermarkets and superstores (68.3 percent), followed by convenience retailing (20.7 percent), traditional retail (4.4 percent) and alternative channels (6.6 percent).
The large chains compete intensely on price and exert considerable pressure on suppliers to keep costs down.
Discounters have experienced growth during the recession. On-line food shopping is also experiencing high levels of growth.
