Discounters to lead the way as food industry set to grow 15pc by 2022

 
Helen Cahill
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Lidl has been gobbling up market share in the UK (Source: Getty)

The UK's food and grocery industry is set to grow 15 per cent by 2022, new research published today has shown.

Figures from grocery experts IGD reveal that the food retail sector will be worth £213bn in five years.

Read more: Food prices outpace overall UK inflation, according to Kantar Worldpanel

The highest-growth parts of the overall industry will be the discounters and online supermarkets, which are set to grow in value by 50 per cent and 53 per cent respectively over the next five years.

This means the value of discount supermarkets, which include budget grocers Aldi and Lidl, will increase from £20.1bn to £30.1bn by 2022. One in every £7 spent in the food industry will go to a discounter, up from one in every £9 at the moment.

Meanwhile, the overall value of online food retail will grow from £10.4bn to £16bn during the same period.

Read more: Consumer confidence climbs in May as UK brushes off inflation concerns

Supermarkets, which are by far the biggest sector by value, will experience growth of 5.9 per cent, rising from a 2017 value of £86bn to a value of £91.1bn in five years.

2017 value (£bn)

2022 value (£bn)

Change in value

%

2017-22

Hypermarkets

16.2

16.3

+1.0

Supermarkets

86.0

91.1

+5.9

Convenience

40.0

47.1

+17.7

Discounters

20.1

30.1

+49.8

Online

10.4

16.0

+53.8

Other retailers

11.8

12.2

+3.6

Total

184.5

212.9

+15.4

Joanne Denney-Finch, IGD chief executive, said the figures were higher than the forecast the group made last year due to rising inflation.

Denney-Finch said: "All channels are set to see growth, but we anticipate that encouraging shoppers to trade up or buy more will remain as competitive as it always has been – and potentially even more so, given the challenging economic outlook.

“Discounters will contribute most to the cash growth in the market over the next five years, as they continue to open new stores and keep improving the shopper experience with new additions such as food-to-go, self-checkouts and larger stores."