2025
9
UK Supermarkets Market Report 2025
2025-12-04T12:00:56+00:00
REP5B894718_71F0_4B9D_AE57_D20EA7CC7DC9
2195
189354
[{"name":"Food and Drink Retail","url":"https:\/\/store.mintel.com\/industries\/retail\/food-drink"},{"name":"Market Intelligence Reports","url":"https:\/\/store.mintel.com\/report-type\/market-intelligence-reports"},{"name":"UK","url":"https:\/\/store.mintel.com\/markets\/uk-market-research"}]
Report
en_GB
The supermarket channel is estimated to grow by 2.1% in 2025 in value terms. However, adjusted for inflation, volume sales fell and the channel continued to lose share of the…
UK
Food and Drink Retail
simple

UK Supermarkets Market Report 2025

The supermarket channel is estimated to grow by 2.1% in 2025 in value terms. However, adjusted for inflation, volume sales fell and the channel continued to lose share of the wider market.

Trusted by leading global brands

Amazon logo
Deutsch brand logo
waitrose
Bauer-Media-Group
mediacom-logo-e1438678858172 (1)
VML Logo
Epsilon Logo
VocaLink_Mastercard_logo-PNG-1
Amazon logo
Deutsch brand logo
waitrose
Bauer-Media-Group
mediacom-logo-e1438678858172 (1)
VML Logo
Epsilon Logo
VocaLink_Mastercard_logo-PNG-1
4.5 stars
Source: G2.com, Inc.
Collapse All
  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for the UK supermarket sector
    • Opportunities
    • Become a ‘health partner’ to counter volume decline
    • Use health and wellness support as a USP in loyalty
    • As stores get smarter, ensure they don’t add friction and remain human
  2. THE MARKET

    • Snapshot – market size and forecast
    • The UK’s economic outlook remains challenging
    • Graph 1: British household financial confidence, 2019-25
    • Inflation remains at the forefront of consumers’ thoughts
    • Shoppers are prioritising spending in other areas
    • Interest in weight-loss medicines to squeeze volumes
    • Grocery retail in a more-regulated HFSS landscape
    • Grocery retail sales reflect population growth, inflation and consumer choice
    • Grocery sector to see steady growth through to 2025
    • Graph 2: market value forecast for all grocery retail sales (inc. VAT), 2019-30
    • Supermarket sales to climb in 2025, but growth driven by inflation
    • Supermarkets have been ceding share to discounters and online
    • Growth forecast to slow in the supermarket channel
    • Graph 3: market value forecast for supermarket retail sales (inc. VAT), 2019-30
    • Supermarkets remain the largest channel, but are under pressure
    • Online and discount channels gaining greater share
    • Graph 4: estimated share of total grocery sales, by format/channel, 2015-25
  3. THE CONSUMER

    • How and where consumers shop for groceries
    • Shoppers are happy to use various formats to meet needs
    • Tesco dominates and has widened the gap with rivals
    • Tesco’s market leadership results from strong appeal across the age spectrum
    • Graph 5: leading grocery retailers, shopper demographics (main and top-up shoppers combined), 2025
    • Responding to consumer needs in health and wellness
    • Consumers are hungry for information about healthy eating
    • Enabling healthier eating
    • Shoppers want to make their own choices
    • Subtle strategies for healthier swaps
    • Physical stores are underutilised for personalised health engagement
    • Graph 6: interest in diet-related in-store initiatives, by generation, 2025
    • Turn the store into a supportive health environment
    • Elevating loyalty to meet future needs
    • Loyalty schemes remain a core driver of patronage
    • Price-focused loyalty is still a key footfall driver…
    • …but consumers will increasingly demand more
    • Reframing own-label
    • Own-label is a key driver of choice of retailer
    • Private-label innovation is critical to stand out in the market
    • Graph 7: launches by the top ten leading grocery retailers carrying the claim ‘premium’, 2020-25
    • Drive in-store traffic with private label buzz
    • Position a private label as an everyday wellness partner
    • Enhancing the in-store experience
    • Store enhancements must complement the core motivators of value and convenience
    • Create reasons to visit by investing in the experience
    • Convenience-driven technology should also boost the in-store experience
    • Don’t forget the importance of the personal touch
  4. RETAILER ACTIVITY

    • Leading retailers
    • Tesco continues to stretch its lead over rivals
    • Graph 8: estimated market share of the top 10 grocery retailers, 2025
    • Discounters continue physical expansion and upgrades
    • Countering inflation and discounters: the return of the ‘price war’
    • Rapid delivery becomes a key battleground
    • Launch activity and innovation
    • Retailers switch focus of investment and innovation back to stores
    • Harnessing tech to enhance the in-store experience
    • ESLs become a more common sight in UK retail
    • Guiding consumers to make healthier choices
    • Innovation aims to boost the appeal of loyalty schemes
    • Tesco leads in ad spend, but discounters are growing their investments
    • Graph 9: top ten grocery retailers spending on above-the-line online display, direct mail and social media advertising expenditure, 2025
    • Waitrose puts a nostalgic spin on its premium range
    • Tesco’s Clubcard challenges look to nudge healthier eating
    • Sainsbury’s – Waynesbury’s Nectar Prices campaign emphasises personalisation
    • Lidl goes viral with AI-generated products
  5. APPENDIX

    • Market definition
    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • Market size and forecast of all grocery retail sales
    • Market forecast and prediction intervals
    • Market size of supermarkets
    • Market forecast and prediction intervals
    • The consumer
    • Consumer research questions
    • Consumer research methodology – UK
    • UK generation groups
    • Retailer activity – supplementary data
    • Leading retailers: historic market shares
    • Leading retailers: revenue
    • Leading retailers: outlets
    • Leading retailers: sales per outlet
    • Leading retailers – sales area
    • Leading retailers: sales density
    • Leading retailers: operating profits
    • Leading retailers: operating margins
    • Advertising spend
    • Share of spending by advertising channel
    • Other data source methodologies
    • Mintel Spark
    • Nielsen Ad Intel coverage
    • Abbreviations and terms
Download Report Summary

"Value-for-money remains top of the consumer agenda, but moving forward large-format stores have to lead more on the healthy eating revolution"

Michael Oliver, Senior Retail Analyst

Michael Oliver, Senior Retail Analyst

UK Supermarkets Industry – Trends and Insights

  • The supermarket channel is estimated to grow by 2.1% in 2025 in value terms. However, adjusted for inflation, volume sales fell and the channel continued to lose share of the wider market.
  • Volume decline is not a trend unique to large-format stores, with 47% of shoppers actively cutting grocery spend, but a growing need for convenience better insulated rival channels, namely discounters and online, from volume decline.
  • In a high inflationary market, margins in the sector have been squeezed both due to external factors and the growing price-war, as leading players react to shoppers’ demands for value.
  • The biggest threat to large-format stores is complacency, failure to sharpen value perception and differentiate in a crowded market.
  • The biggest opportunity lies in bold repositioning: using tech and consumer demands for wellness and experiential formats to redefine the role of the physical store. The largest players are uniquely positioned to leverage data, technology and store space to move beyond simply price leadership, to experience-rich, health-centric destinations.

Key Issues Covered in the Report:

  • The size of the UK grocery and supermarket sector, and the continued evolution in channel use
  • How consumers are balancing need for value with rising interest in health, wellness and transparency
  • Key drivers of retailer choice, including the impact of price, store design and technology
  • The evolving role and expectations of loyalty schemes in driving patronage
  • Attitudes towards shopping for groceries, including impact of retail media and use of AI
Report AttributesDetails
Published DateNovember 2025
Report AuthorMichael Oliver, Senior Retail Analyst
Market Size Data2019-2025(est)
Market Forecast Data2026-2030
Measurement MetricsRetail Sales (inc VAT) in £
Consumer Data2,000 internet users aged 16+, August 2025
Leading UK RetailersTesco, Sainsbury’s, Asda, Aldi, Lidl, Morrisons, M&S, Co-op, Waitrose, Iceland

Report Scope

The main focus of this Report is the supermarkets of the market leaders – those stores in which people have historically done their main shop.

The term ‘supermarket’ takes in a very broad selection of store sizes. Tesco, for example, has stores ranging from 10,000 sq ft, small high-street supermarkets to over 100,000 sq ft hypermarkets, with an average supermarket size of around 39,000 sq ft. Broadly speaking, the unifier between these stores is the ability to serve, first and foremost, a shopper’s main shop, or primary grocery needs. As size increases, the range of non-foods and other services accommodated also increases, with the trade-off being that the largest stores are usually located outside of urban areas and often need a dedicated trip to visit.

While touched upon in this report, discounters are excluded from our definition of supermarkets as, while often similar in size to the supermarkets of the leading players, in reality they fall between the supermarket and convenience sectors.

£ 2,195 excl. Tax
Secure direct checkout
Instant PDF download
Portal access included
Need help deciding? Get in touch

Trusted by global industry leaders

4.5 stars
Source: G2.com, Inc.
Epsilon logo

We utilize Mintel Reports, Trends and Comperemedia to mine for insights across the numerous business verticals that Epsilon serves, such as CPG, automotive, telecom, healthcare/pharma, retail and financial services.

By integrating Mintel insight into new business opportunities, we have been able to gain the competitive edge necessary to advance partnerships with global brands and key business players.

For our organization, it’s about depth and breadth. Having one without the other doesn’t enable success in our business.

Virginia Harvey, Secondary Research Manager, Epsilon
Amazon logo

Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.

Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.

Ngozi Ngonadi-Nkwoji, Senior Marketing Manager, Amazon
Wincanton logo

When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.

They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.

So overall, it’s the level of detail and the quality of forecasting that really stand out for me.

Rebecca Green, Market Insight Manager, Wincanton
Abacus logo

There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.

However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.

Stephen Taylor-Brown, Managing Director, Abacus
VocaLink logo

We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.

As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.

We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.

 

Andrew Neeson, Market Intelligence Manager, VocaLink
Bauer Media Group logo

We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.

They’re an innovative company, with a client-focused team that always delivers.

Abby Carvosso, Group Managing Director, Bauer Media Group
VML logo

We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.

Mintel gives us all that. It’s a great brand and one that is trusted by clients.

Marie Stafford, European Director, The Innovation Group, VML
Jackman logo

At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.

Alana Gavin, VP Research and Insights, Jackman
Deutsch logo

One of the biggest challenges we face is the need to get smart on a business or category real quick.

We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.

We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.

Jeff White, Business Development Director, Deutsch
Mediacom logo

Mintel is really good for getting a handle on a particular category quickly. If we are working on a new business pitch in an area we don’t have much experience in, it’s a brilliant way to get up to speed with what’s going on, what’s changing and what the key trends are in any category.

It’s very rare now that anyone will plough through a 200-page report – that’s why the summaries are really useful. We know they are backed up by a lot of detail, so if you need to go into something in more depth you know the information will be all there for you.

Pauline Robson, Managing Partner, Mediacom
Waitrose & Partners logo

We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.

Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.

Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
Tenth Wave logo

Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.

When carrying out background research, I find Mintel an excellent starting point.

The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.

Ben Zeidler, Director - Research and Analytics, Tenth Wave