Grocery market set to grow while big four lose share

The grocery market will be worth £174.5bn by the end of 2024. However, the big four grocers will lose 1.1% of the market share – worth £1.9bn according to Global Data.

At the big four supermarkets – Tesco, Sainsbury’s, Asda and Morrisons – grocery sales will grow 12.6% between 2019 and 2024. However, online grocers and discounters will grow 55.1% and 25% respectively.

Global Data retail analyst Thomas Brereton said: “The recent set of supermarket Christmas trading results shows that UK shoppers still have an unsatisfied appetite for the proposition of the discounters; Lidl performed especially admirably, growing year-on-year sales 11% in December.

”While there is evidence of a slowdown in like-for-like sales growth at Aldi and Lidl, both retailers still have substantial expansion plans for the UK – particularly within the M25 – over the next few years.

“The rise of these value operators has significantly impacted the market share of the big four, declining from 57.9% in 2010 to 51.0% in 2020 and expected to reduce a further percentage point by 2024.

“To help prevent further decline, the major supermarkets must not only remain competitive on average basket spend but need to also target growing shopper concerns on product sustainability and retailer ethics.”