24th July 2019
The UK food-to-go market is forecast to increase by more than a quarter (26.4%) to reach £23.4bn by 2024, up from £18.5bn in 2019, according to research from retail analysis company IGD.
The channel is to undergo double the growth of the wider UK food and grocery retail market (12.5%) during the next five years, according to the report. IGD forecasts food-to-go specialists such as Greggs, Subway, Pret A Manger and Leon will see sales increase from £5.0bn in 2019 to £6.3bn in 2024, with market share falling slightly from 27% to 26.9% during the same period.
For quick service restaurants (QSR), IGD forecasts sales will increase from £5.8bn in 2019 to £7.2bn in 2024, with the sector’s market share falling slightly from 31.5% to 30.9%. IGD forecasts coffee shop operators will see their sales share increase from £3.3bn in 2019 to £4.3bn in 2024.
The sector’s market share will increase from 17.8% to 18.2% during the same period, according to the report. Rhian Thomas, head of shopper and food-to-go insight at IGD, said: “Significant growth opportunities exist for those with a relevant proposition who target the right locations, as the combination of high rents and increased competition encourages a growing number of operators to vary their location strategy.
The QSR channel has remained strong despite an increase in the choice of food-to-go options and a greater focus on healthier eating – not usually associated with QSRs.
Growth is being driven through in-store environments improvements, technology advancements along and targeted marketing.
There is also a clear trend towards the expansion of smaller, more niche coffee chains as they focus on different shopper needs, whether a stronger all-round food offer at the likes of Costa, Starbucks and Caffe Nero, a targeted offer such as waffles at Black Sheep Coffee.