The UK grocery market will increase in value by 16% to £203bn by 2019 – driven by continued growth in the discount, convenience and online channels, the IGD has predicted.
The discount market would double in value from £10.8bn now to £21.4bn in 2019, while online would soar in value from £7.7bn to £16.9bn, the IGD said.
Last month, it also predicted convenience would grow from £37bn to £49bn by 2019.
By 2019, discounters, online and convenience would command a 10.5%, 8.3% and 24.1% share of the total grocery market respectively – up from 6.2%, 4.45 and 21.4% - it added.
This will come at the expense of superstores and hypermarkets, which will see their share of the market fall from 42.2% now to 34.9%. Small supermarkets will also see their share fall - from 20.4% to 17.6% - while ‘other’ retailers share will fall from 5.4% to 4.6%.
“Shoppers now expect grocery retailing to organise itself around their lives rather than building their routines around store opening hours. They expect to buy whatever they want, anytime, anyplace in the most convenient way to them,” said IGD CEO Joanne Denney-Finch.
“While price was initially what attracted people to discounters, shoppers tell us they feel there’s been an increase in quality.
“Convenience stores have upped their game by going beyond providing the staples, such as bread, milk or eggs, and now offer a better quality and range of fresh fruit, vegetables and meat.
“The online sales momentum is set to continue, with people using several digital devices to place orders and taking advantage of home delivery subscription schemes.”