Rising demand for food to go pumped growth into convenience stores last year, as the channel enjoyed a 5% rise in value to £47.4bn, new data has shown.
According to the Convenience Market Report 2024 by Lumina Intelligence, hybrid work patterns were fuelling the need for quick and convenient food-to-go options during commuting and work-from-home days.
Time-poor shoppers were also increasingly turning to their local convenience stores for dinner solutions, the report added, highlighting the opportunity for a diverse chilled and frozen range.
The channel saw wholesalers and symbol groups ramp up their food-to-go offer to cater for demand over the past year.
Bestway, for example, recently launched its first Best-one hybrid store with Bargain Booze, targeting impulse and top-up shopping missions. It featured a new Grab & Go concept, acting as Bestway’s flagship brand for food to go.
Henderson Group also ramped up its food-to-go offer with a new Pizza Bar concept last year.
The report said meal deal offers, including those stemming from loyalty programmes, have helped provide convenience shoppers with affordable choices to meet their food-to-go needs.
“Our latest data showcases notable growth in the convenience market, reaching £47.4bn in 2023, 5% growth,” said Lumina Intelligence insight lead Katie Gallagher.
“This is attributed to the rising demand for food to go, despite challenges including weak household spending power and an unusually cold summer which tempered potential gains.”
The report added food to go was a “lever of growth” for convenience stores as the channel looks to continue its “upward trajectory”, with an anticipated growth rate of 4.2% in 2024, reaching £49.4bn.
More financially confident consumers following improvements to household spending power is also expected to drive stronger volumes within convenience.
“The convenience market is projected to continue its upward trajectory with an anticipated growth rate of 4.2% in 2024,” added Gallagher.
“This sustained growth is expected to be driven by increased consumer confidence and improved household spending power. Key factors contributing to this growth include enhanced store offerings and expanded meal deals, hot counters, and strategic brand partnerships.”
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