The food-to-go sector in the UK is predicted to grow to £22.8 billion (€25.3 billion) by 2023, up from £17.8 billion (€18.8 billion) in 2018, according to research organisation IGD.
This is twice the rate of the projected overall growth for the grocery retail sector in the UK.
Market Segments
IGD’s food-to-go research splits the market into five segments: food-to-go specialists, quick-service restaurants, coffee specialists, convenience, forecourt and other retailers, and supermarkets and hypermarkets.
According to Gavin Rothwell, the head of food-to-go at IGD, the sector promises a “strong growth opportunity” and is a source of inspiration and innovation.
“We’re forecasting solid growth across each of the five segments, but this will become harder to come by for operators, retailers and suppliers amid an increasingly competitive landscape," he said.
“But while growth will slow, we’re expecting it to remain strong as more consumers buy food-to-go more often and as more operators target different types of locations and missions."
Future Prospects
The report anticipates a blurring of the lines between the various segments as businesses expand their capabilities. High street operators Greggs and Coco di Mama attempting to boost their coffee credentials has been cited as a recent example.
The report also outlines a rising trend of collaboration between businesses with similar values and mutually-beneficial propositions.
The partnership between Crussh and Sainsbury’s and M&S and Wasabi are examples of high profile collaborations between retailers and food-to-go partners.
The study also predicts that understanding consumers’ demands related to health and sustainability will be essential in shaping the future of food-to-go businesses.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
