Top 10 UK Consumer & Shopper Trends
In 2024, the Fast-Moving Consumer Goods (FMCG) sector experienced notable shifts in consumer behavior within grocery retail and convenience shopping. These developments were influenced by economic pressures, technological advancements, and evolving lifestyle preferences. For FMCG marketing teams, understanding these trends is crucial for strategic planning and market positioning.
Here is on top 10 consumer and shopper trends from the UK last year, that we see continuing into 2025:
1. The Thrift Economy
Economic challenges have led consumers to adopt more budget-conscious shopping habits. Inflation concerns remained prominent, prompting shoppers to seek value without compromising on quality. Retailers responded by offering creative solutions to assist consumers in maximizing their budgets. For instance, Canadian food delivery app SkipTheDishes introduced an AI-powered ‘Inflation Cookbook’ that curated affordable, chef-inspired recipes based on weekly price drops. Additionally, French supermarket chain Carrefour took a stand against “shrinkflation” by highlighting products that reduced in size without a corresponding price decrease, positioning themselves as consumer advocates.
2. Health and Wellness Focus
Consumers increasingly view retailers as partners in promoting health and wellness. This shift has led to the emergence of ‘food pharmacies,’ where food brands and retailers play a role in healthcare. In the U.S., U.K., and Australia, doctors have begun prescribing fresh produce to patients with certain conditions or on lower incomes. Retailers like Tesco have set ambitious goals, such as ensuring 65% of shopping baskets comprise healthy foods and pledging to cut 100 billion calories from their own-label range by 2025.
3. Community-Centric Retail
The desire for community connection has given rise to community-led retail initiatives. Revitalizing local shopping areas by incentivizing local traders has proven successful. For example, Kingland Crescent in Poole, Dorset, transformed into a bustling hub featuring diverse local businesses, generating an additional £2.2 million in spending in its first year. This approach demonstrates the potential of integrating local services to boost footfall and local economies.
4. Technological Integration in Retail
Advancements in technology have reshaped the shopping experience. Tesco trialed ‘magic till’ technology, allowing customers to pick items and have them automatically registered at checkout without scanning. This innovation aims to enhance convenience and streamline the shopping process. However, retailers must balance technological advancements with the need for human interaction, as exemplified by Boot’s decision to remove self-checkouts to prioritize customer service.
5. Revival of Food-to-Go
The food-to-go sector rebounded significantly in 2024, with annual unit sales recovering from the pandemic-induced slump. Consumers returned to pre-pandemic routines, increasing demand for convenient meal solutions. This resurgence presents opportunities for retailers to innovate and cater to the on-the-go consumer market.
6. Growth of Free-From Products
The free-from category, encompassing products free from allergens or specific ingredients, continued its growth trajectory, reaching a market value of £3.9 billion. This expansion reflects consumers’ desire for healthier and more inclusive food options, prompting retailers to diversify their product offerings to meet this demand.
7. Sustainability and Ethical Practices
Sustainability remains a key concern for consumers, influencing their purchasing decisions. Brands that integrate sustainable practices, reduce waste, and promote recyclability are building stronger brand loyalty. This trend underscores the importance for FMCG companies to align their operations with environmental and ethical standards to meet consumer expectations.
8. Embracing Global Flavours
Consumers’ palates have become more adventurous, with a growing interest in global cuisines. The popularity of Korean food, for instance, has surged, leading to increased product offerings in mainstream retailers. Brands have responded by introducing Korean-inspired sauces, noodle bowls, and meal kits, reflecting the influence of global flavors on consumer preferences.
9. Rise of Functional Foods
Health-conscious consumers are driving demand for functional foods that offer specific health benefits, such as improved mental or gut health. This trend has led to the introduction of products enriched with nutrients or probiotics, catering to consumers seeking both convenience and health benefits in their food choices.
10. Evolution of Convenience Stores
The convenience store format has evolved, with retailers like Waitrose planning to open 100 convenience shops as part of a £1 billion investment drive. This expansion reflects the growing consumer demand for quick and easy shopping options that do not compromise on quality or product range.
In conclusion, 2024 has been a transformative year for FMCG consumer trends in grocery retail and convenience shopping. Marketing directors must stay attuned to these developments, adapting strategies to meet evolving consumer expectations and leveraging opportunities for growth in a dynamic market landscape.
