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UK Food and Non-Food Discounters Market Report 2023

UK Food and Non-Food Discounters Market Report 2023

Stay ahead of the curve and future-proof your business with Mintel’s UK Food and Non-food Discounters Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the discount retail market including discounters industry size and five-year forecast.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Key Issues Covered in this Report

How the cost-of-living crisis has impacted discounter use and perceptions of discount shopping.
Current and forecast size of the food and non-food discount sector.
Frequency of use and demographic profiling of leading discounters’ customer base.
Food and non-food categories purchased through discounters.
Satisfaction with the discount shopping experience, including opportunity areas for improvement.
Attitudes towards local sourcing, private label and value at discount retailers.

UK Discounters – Current Market Landscape

Food and non-food discounters have fared exceptionally well amidst the cost-of-living crisis. The growing consumer desire for value is naturally bringing opportunity for discount retailers. 90% of UK consumers now shop with food discounters. In 2022, the whole discount sector saw double digit growth, mostly driven by the leading food discounters, Aldi and Lidl.

UK Food and Non-food Discounters Market: Trends and Opportunities

Quality is key to retaining customers

The discount retail market has benefitted from elective trading down over the past two years. In the medium-to-long term there is a risk these shoppers will trade away. In order to retain these consumers, discounters must strengthen the quality of their private label ranges, to assuage some consumers’ concerns they are trading quality for price.

The future is online

Online remains a small element of the discount channel. However there is clear interest from consumers in shopping with discounters in the online space. Click-and-collect is a clear opportunity in the sector, as a way to give customers this convenience while reducing costs and bringing shoppers into stores.

Purchase our UK Food and Non-food Discounters Market Report to receive a five-year forecast, consumer behaviour analysis, and more recommendations for market opportunities.

Leading Discount Retail Brands in the UK Market

Aldi, Lidl, Wilko, Trago Mills, Poundland, B&M, Tiger, Original Factory Shop, Instore Retail, Qd Stores, W Boyes & Co, Poundworld, Savers Health & Beauty.

Additional Features Included with Your Purchase

Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
Consumer Confidence Tracker: Our Trackers paint the picture of the economic confidence and major concerns of up to 40 different demographics, tracking changes in attitudes over time.
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Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights from a Research Analyst

This report, written by Bridget McCusker, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the UK discount retailers market and add expert context to the numbers.

Amidst the cost-of-living crisis, discounters have invested in expansion plans as they seek to strengthen their foothold in a highly competitive and crowded sector.

Bridget McCusker
Research Analyst

Collapse All

- Key issues covered in this Report
Executive Summary
- Opportunities for the discount retail sector
- Market dynamics and outlook
- What consumers want and why
- Graph 1: discounter typically shopped at and spent the most with, 2023
- Graph 2: length of time shopping with discounters, 2023
- Graph 3: discounters shopped with online, 2023
- Graph 4: food item purchasing at food discounters, 2023
- Graph 5: non-food products purchased at discounters, 2022-23
- Graph 6: satisfaction with shopping at discounters, 2023
- Graph 7: attitudes towards food and non-food discounters, 2023
- Retailer activity
- Graph 8: attitudes towards and usage of selected brands operating in the discount sector, 2023
Market Dynamics
- Market size
- Graph 9: market size for food and non-food discounters (excluding VAT), 2018-23
- Market forecast
- Macro-economic factors
- Graph 10: CPI inflation rate, 2021-23
- Graph 11: “Have you been affected by any of these issues over the last two months? Please select all that apply”, 2023
- Graph 12: expected bahviour changes as a result of rising prices, 2022-23
- Graph 13: the financial wellbeing index, 2016-23
- Graph 14: The financial confidence index, 2016-23
What Consumers Want and Why
- Discounters shopped with
- Graph 15: discounter typically shopped at and spent the most with, 2023
- Graph 16: type of discounter used, 2022 and 2023
- Graph 17: discounters typically used, 2021-23
- Graph 18: frequency of discounter usage, 2023
- Graph 19: repertoire of discounters shopped at, 2023
- Length of discount shopping
- Graph 20: when discount shopping first started, by financial situation, 2023
- Retailer demographic comparison
- Graph 21: discounter usage, by age, 2023
- Graph 22: food discounter shoppers by age group, 2023
- Graph 23: discounter usage, by parental status and age of children, 2023
- Graph 24: Aldi and Lidl discounter shoppers by area, 2023
- Graph 25: food discounter shoppers by income, 2023
- Graph 26: non-food discounters by age group, 2023
- Graph 27: non-food discounter usage by income, 2023
- Discounters and online
- Graph 28: discounters shopped with online, 2022-23
- Graph 29: consumer interest in online services by working situation, 2023
- Food and drink purchased at food discounters
- Graph 30: food item purchasing at food discounters, 2023
- Graph 31: food item purchasing at food discounters, by financial situation, 2023
- Graph 32: alcoholic drink purchasing, by age group, 2022-23
- Non-food purchases at discounters
- Graph 33: non-food products purchased at discounters, 2022-23
- Graph 34: non-food purchasing by age group, 2023
- Graph 35: health and beauty purchases from discounters, by age group and gender, 2022 and 2023
- Satisfaction with the discounter shopping experience
- Graph 36: satisfaction with shopping at discounters, 2023
- Graph 37: satisfaction with shopping at discounters, by discount retailer where the most is typically spent, 2023
- Attitudes towards discount shopping
- Graph 38: “I would shop at discounters even if I had more money”, 2023
- Graph 39: “I have purchased food products from a non-food discounter (eg Poundland, B&M Bargains)”, by parental status,2023
- Graph 40: consumer sentiment towards quality and price at discounters, by area lived in, 2023
- Graph 41: consumer sentiment towards premium label ranges at discounters by area lived in, 2023
Retailer Activity
- Leading retailers
- Market share
- Graph 42: leading discounters’ estimated share of all discount sales, 2022
- Graph 43: estimated grocery market share, 2022
- Graph 44: Non-food discounters’ share of all mixed goods retail sales, 2018-22
- Graph 45: savers’ share of specialist health and beauty sector retail sales (ex-VAT) 2018-22
- Launch activity and innovation
- Advertising and marketing activity
- Graph 46: total recorded above-the-line, online display and direct mail total advertising expenditure by the UK’s leading discounters, 2019-23
- Graph 47: total recorded above-the-line, online display and direct mail total advertising expenditure by leading UK discounters, by month, 2020-22
- Graph 48: total recorded above-the-line, online display and direct mail total advertising expenditure by the UK’s leading discounters, by media type, 2022
Brand Research
- Graph 49: attitudes towards and usage of selected brands operating in the discount sector, 2023
- Graph 50: brand personality of selected discounters, 2023
- Graph 51: brand attitudes of selected discounters, 2023
- Graph 52: macro image, by brands operating in the discounter category
Appendix
- Supplementary data
- Graph 53: attitudes towards food and non-food discounters, 2023
- Market forecast data
- Report scope and definitions
- Methodology

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