Grocery Insights you need going into 2025 🛒
Whatever you’ve been up to over the last few weeks, I hope you’ve been able to switch off from work and reset for the new year.
As a little reminder to get you back into the swing of things, here are 10 grocery trends you need to know to set you up for success in 2024.
Grab a cuppa and read the summary below, or head to our website to download the slides.
1. Inflation continues 💷
Prices continue to rise as we head into 2025. Although inflation eased in early 2024, it rose again towards the end of the year.
Retailers are responding by cutting prices across their ranges. Asda entered 2025 by announcing price cuts on 2,500 products, delivering an average reduction of 26%.
Consumer confidence took a dip in September but is slowly improving, ahead of where it was a year ago.
2. Shoppers are willing to trade up ✨
The cost-of-living crisis forced many shoppers to cut back and purchase affordable own label products.
Now, as the crisis begins to ease and supermarkets introduce more deals, some shoppers are starting to trade up to brands and premium own-label ranges.
Expect this trend to continue, with promotions playing a key role in enabling shoppers to make these upgrades.
3. Loyalty Schemes get bigger 📲
The growth of loyalty price mechanics, such as Clubcard Prices, has significantly shaped the retail landscape in recent years. However, growing concerns about the legitimacy of loyalty pricing have led to multiple investigations.
Retailers are starting to increase focus on areas beyond just price savings.
Lidl Plus, for example, emphasises gamification through personalised offers and competitions.
Many experts believe that increased personalisation is the next step in the evolution of retailer loyalty schemes. By tailoring experiences, offers, and interactions to individual needs, brands can deepen their relationships with consumers.
4. Retailers invest in technology 🖥️
Supermarkets are increasingly investing in in-store technology to enhance the shopper experience and explore new revenue streams.
Tesco have rolled out smart screens to the front of 502 Tesco Extra and Superstores, as well as over 1,800 advertising screens, managed by DunnHumby.
Stores are also utilising technology to save money. Asda trial digital shelf labels by installing 3,000 electronic shelf-edge labels at an Asda Express store in Manchester.
5. Sustainability targets are key 🌱
UK supermarkets are taking various steps to improve their sustainability and do the right thing for the environment.
Tesco have committed to partnering with suppliers to halve food waste in their supply chains by 2030. The retailer also supports over 5,500 charities, providing unsold food to those who need it most.
Sainsbury’s commitment to social and environmental sustainability can be seen in their three pillars - Better for You, Better for the Planet, and Better for Everyone.
Co-op continue their commitment to Fair trade with a Future of Food ambition set out as a sustainability priority for 2030 where they have invested for the Future of Health with technology, formats and ingredient trials.
These sustainability initiatives present a key opportunity for brands with strong sustainability credentials to stand out and support retailers in achieving their targets.
6. Retailers invest in convenience 🏪
Grocers are increasingly focusing on the convenience channel to meet evolving shopper needs.
Waitrose plan to further expand into the convenience sector with 100 new stores planned over the next five years, alongside £1 bn of investment.
Tesco also plan to open 150 new convenience stores in the next three years.
Co-op have announced 75 new stores for 2025 and plan to refurbish up to 80 of their current stores this year.
Meanwhile, Sainsbury’s invest in competitive pricing within Local stores, becoming the first retailer to bring a discounter price match to its convenience locations.
With more convenience stores on offer, we could see shifts in shopper missions as accessibility improves.
7. Online continues to grow 👩💻
The online grocery channel has grown ahead of total stores in the latest year and is predicted to maintain growth over the next few years.
Ocado leads the way, showing +9.6% year on year sales growth in the 12 weeks to 29th December 2024.
Omni-channel grocers including Tesco and Sainsbury’s also see a focus on online growth, investing in their sites and infrastructure.
Retailers are likely to look to suppliers to support the continued expansion of their online businesses.
8. Quick Commerce evolves 🏍️
The UK quick commerce landscape is shifting.
Stand alone players such as Gorillas and Getir exited the UK in 2024, with others like Gopuff and Zapp remaining focused on major cities like London.
Meanwhile, takeaway delivery platforms like Deliveroo, Uber Eats, and Just Eat are expanding their grocery delivery by partnering with more grocery retailers.
Retailers are also developing their own in-house quick delivery solutions to meet this demand, with Tesco’s Whoosh emerging as one of the most prominent services.
9. Retailers are eager to show their support for local suppliers 🇬🇧
Retailers are placing a growing emphasis on supporting British farming and agriculture.
Morrisons are committed to buying British produce first and are the biggest direct single customer to British farming, while Lidl have pledged to increase sales of ‘healthy and healthier products’ to at least 80% of total sales by 2025.
We can expect retailers to spotlight their partnerships with local suppliers and community engagement in their marketing, promotions, and events.
Relevant suppliers have an opportunity to collaborate with participating retailers to promote their “Made in the UK” credentials.
10. People care about their health but need some guidance 🍎
Shoppers are increasingly focused on improving their health through diet, exercise, and mental wellbeing. This is evident in stores, as they shift away from ultra-processed foods and prioritise healthier options.
However, a “Say-Do” gap remains when it comes to turning intentions into action.
Retailers are stepping in to help bridge this gap with initiatives like Tesco’s Better Baskets. Tesco aims to educate shoppers about healthier choices by promoting nutritious recipes and products both online and in-store.
So what does all of this mean for 2025?
The retail landscape will continue to balance value, convenience, and sustainability as retailers adapt to evolving shopper needs.
Inflation remains a challenge, but shoppers are cautiously trading up, looking for both affordability and quality.
For brands, aligning with retailer priorities is essential. Supporting loyalty programmes, delivering sustainable solutions, and innovating healthy products will position brands to help retailers meet their goals and succeed in 2025.
January 2025