The convenience sector was worth £47.4bn in 2023, up 5%, with food to go sited as a key driver of growth, according to Lumina Intelligence’s UK Convenience Market Report 2024.
The market’s growth was restricted by weak household spending, and a colder-than-average summer, stated the report.
However, improvements to household spending in 2024 were expected to contribute to convenience channel growth of 4.2% in 2024, predicted Lumina. The firm claimed that food to go was a “lever of growth”, with store and ranging development including meal deals, hot counters and brand partnerships.
The report also forecast that symbol groups would account for 38% of convenience market value in 2024, up +0.8ppt versus pre-pandemic. Asda Express was expected to lead outlet growth at +41.7%, driven by site conversions from Co-op and EG Group acquisitions. Nisa was also predicted to grow outlets, up +17.7% through targeted forecourt store recruitment.
Lumina claimed the convenience market was forecast to see a compound annual growth rate (CAGR) of +3.4% from 2024 to 2027. Stronger economic indicators, including average earnings, would support a more regular market growth rate from 2025, it added.
