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April 5, 2005

UK: Grocery wholesaling market to reach £18.3bn by 2009, says IGD

The UK grocery wholesaling market will reach £18.3bn (US$34.3bn) by 2009, almost a 10% increase on the current value of £16.7bn, according to food and grocery think tank IGD.

The UK grocery wholesaling market will reach £18.3bn (US$34.3bn) by 2009, almost a 10% increase on the current value of £16.7bn, according to food and grocery think tank IGD.

In its new research report Grocery Wholesaling 2005, IGD anticipates that delivered will continue to fare better than cash & carry.  It will reach £8.5bn in 2009, an average annual growth rate of 3.5%. This growth will be boosted by the predicted ongoing growth of symbol groups, as well as growth through forecourt retailing and foodservice. Cash & carry is expected to reach £9.8bn, an average annual growth rate of 0.5%.

Key considerations for the future include consolidation in both the wholesale sector, as shown by the recent Bestway acquisition of Batley’s, and in the convenience market. IGD believes that franchising is also likely to drive growth as it presents opportunities for non-affiliated independents who seek to benefit from the advantages of belonging to a larger business. 

IGD’s supplier survey revealed that 88% of suppliers say they are committed to investing in the wholesale sector, while 66% are devoting more resources to it than last year. And 86% believe that communication between wholesalers and suppliers is continually improving; encouragingly IGD found that three-quarters of suppliers state that they work with wholesalers to provide category plans and support for independent retailers.

“The wholesale sector continues to grow, albeit at a slower rate (1.9%) than the grocery sector, which grew by 3.3% last year. However, our research shows that both suppliers and wholesalers are positive about the future of the sector, with suppliers devoting more resources and wholesalers expecting to see growth across convenience stores, forecourts and foodservice in 2005,” said IGD chief executive Joanne Denney-Finch.

“However, we also found that a key opportunity is to improve communication and ensure that continual improvements in information flow and collaborative planning take place. Initiatives of this type already underway are definitely proving successful,” she added.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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