The UK Food & Drink Market in 2020
Life was certainly interesting in the UK throughout 2019. Of course, Brexit has dominated the agenda and by the end of the year following a general election, there was at least some clarity about the way forward – which seems to have marked an uptick in confidence among consumers.
Winners and Losers in UK Grocery in 2019
Let’s take a look at what has happened in grocery. Nielsen’s end of year analysis of category performance published in The Grocer shows us the winners and losers:
Top 10 fastest growing categories
1. Chocolate
2. Rolling Tobacco
3. Spirits
4. Carbonated beverages
5. Bagged snacks
6. Free-from
7. Sports/energy drinks
8. Lager
9. Meat-free
10. Vegetables
Top 10 fastest falling categories
1. Meat
2. Cigarettes
3. Juices and smoothies
4. Cider
5. Cosmetics
6. Yoghurt
7. Handheld ice cream
8. Bottled Water
9. Bread
10.Baby milk
Indulgent categories are performing well – as they traditionally do in times of uncertainty when small treats are welcome, while the gin boom and sugar tax have boosted spirits and soft drinks. Free-from continues strong growth (+£122m) with dairy-free leading the charge, while meat-free innovations drove £62m of increased sales.
Meat suffered the biggest decline (-£185m) thanks to the flexitarian trend and a less BBQ friendly summer, while concerns over sugar content in juices and smoothies dented their sales by £90m. A backlash against single-use plastic drover bottled water sales down by £39m.
What will 2020 hold for Food and Drink Manufacturers?
So what about 2020? Well, confidence seems a little higher, Veganuary is likely to be bigger than ever and Brexit will actually happen – with all industry observers hoping for a rapid EU free trade deal. If that looks like it will emerge, then expect a good year, and one with plenty of opportunities for international suppliers to the UK.
Looking to grow your food and drink brands in 2020? Contact us to find out how we can help you.