Grocery sales inch up boosted by Dry January and Veganuary

Sales across the wider grocery market grew 0.3% for the 12 weeks ending January 26, 2020, according to the latest Kantar market share data.

Retailers saw sales boosted by spending from health-conscious consumers looking to curb the excesses of the festive period, with sales of non-alcoholic beer rising 34% and sales of meat substitutes such as soya mince and vegetarian burgers and sausages up 14% year-on-year.

Kantar said that the most popular reason for people getting involved in Veganuary this year was down to health – cited by 42% of participants, followed by environmental concerns (28%) and ethical reasons (27%).

Among individual retailers, Ocado continued to be the fastest-growing grocer – with its market share increasing by 0.2% to 1.4% during the period.

Lidl saw its market share grow in double digits, up 11.1% year on year, outstripping German discounter competitor Aldi, which sale sales grow 5.7%.

Sainsbury’s reported the best showing of the big four retailers, seeing sales fall 0.6% and its market share falling marginally to 15.8%. Online was a particular bright spot for the retailer during the period, up 7%.

Morrisons’ market share fell to 10.3%, while Asda saw sales fall 2.2% and Tesco saw its market share retreat 0.4 percentage points to 27.32%.

Co-op saw sales increase 2.7% and Iceland saw sales grow ahead of the overall market by 1.4%.

Kantar head of retail and consumer insight Fraser McKevitt, said: “Many people start the year with good intentions and pledges to make healthier choices following the excesses of the festive period.

“Those who committed to drinking less in January helped the retailers boost sales of non-alcoholic beer by 37% and adult soft drinks by 3%, as shoppers reached for alternatives to their favourite tipples. Of course, not everyone has been abstaining, and more than 15 million households still bought alcohol during the past four weeks.”