Analysts Lumina Intelligence has just released its annual Food To Go report, providing a comprehensive overview of the fast-paced UK food to go market landscape and how consumer behaviour is changing it – and how it impacts on convenience stores.
The figures are impressive - the total market is set to reach a value of £24bn in 2025, driven by stronger footfall in city centres and around travel hubs. The sector has also attracted investment from an array of channels including convenience stores of course, fuelled by persistent demand for on the go options. Recovering tourism, a return to offices and a polarisation in consumer spending capabilities will also support market growth.
Affluent millennials in management roles in London – on salaries over £50k - are driving the market forward, the report finds. Lunchtimes have seen the most notable growth in share of occasions this year (+1.0ppt) to 32.2%, being driven by solo missions on Mondays and Wednesdays during the working day.
It also highlights that convenience stores – alongside coffee shops and bakeries - are set to grow their share of food to go running up to 2028. Aligning product ranges to contemporary tastes has been critical to the success of these channels, it continues. Drilling down, the report says that convenience store ‘grab and go’ is the largest sub segment, boosted by the volume of convenience stores.
In terms of trends, the consumer demand for higher quality, healthier products is strengthening, the report shows, with quality-led and health-conscious psychographics increasing year-on-year to beyond 2022 levels.
The demand for elevated classics and functional health in food to go highlights an opportunity to drive transaction values, it continues. Operators are elevating classics like sandwiches and adding functional ingredients including lion’s mane into drinks and food to offer consumers accessible ways to boost health.
But in tandem with our wider industry, the main challenges are set to be increased national insurance contributions, inflation, wage increases and business rates relief, Lumina says. Food to go has the edge over service-led channels in its ability to invest in technology to mitigate costs, and key areas will be service and back of house automation, it notes.
Finally, also something of a challenge will be the Government’s further obesity legislation to be introduced from October 2025, bringing in volume price promotion bans on HFSS foods. As a result, “meal deal-focused food to go operators and retailers will have an opportunity to position deals including healthier alternatives,” the report finds. However it acknowledges that these foods remain integral to many food to go channels and warns operators should expect further legislation.
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