Food-to-Go Sector Surges
Recent research from the Agriculture and Horticulture Development Board (AHDB) reveals a significant boost in the UK food-to-go market, with expenditure exceeding £48.2 billion in 2024. This marks a robust 14% increase from the previous year, as reported by Kantar Out-of-home for the 52 weeks ending on 9 June 2024.
Looking forward, the food-to-go sector is poised for substantial expansion. By 2028, it is expected to grow by nearly 40% compared to 2019 levels, according to the Institute of Grocery Distribution (IGD). While inflation has been a key driver of value growth in recent years, the rebound in volume growth in 2024 is expected to become the primary performance driver from 2025 onwards.
Evolving Consumer Trends
Consumer behaviour in the food-to-go market has evolved considerably since the pandemic. Nearly half of all food-to-go occasions are linked to daily routines such as work commutes or post-exercise meals. However, IGD research highlights that over 50% of these purchases are spontaneous and unplanned.
The reduction in daily commuting has impacted interactions with the out-of-home market. Nevertheless, individuals who commute once or twice a week exhibit a tendency to spend significantly more on food-to-go, often up to 18% more per trip than other commuter groups, as noted by Kantar Out-of-home for the 52 weeks ending 24 December 2023.
Lunch: The Prime Meal Occasion
Lunch remains a dominant category in the food-to-go sector. According to IGD, 71% of food-to-go purchases in early 2024 were for this meal occasion. The convenience of meal deals makes them a popular choice for budget-conscious consumers, whether opting for a classic sandwich or more unique items like a slice of pizza.
In the 12 weeks ending 9 June 2024, food-to-go meals featuring beef, lamb, and pork accounted for 92.2 million occasions, reflecting a 24% increase year-on-year. Pork alone contributed to nearly three-quarters of this growth. Sandwiches led in pork-based food-to-go purchases, comprising 41%, while pasties were a preferred choice for beef, accounting for almost 13% of the total volumes.
Adapting to Consumer Demands
Charlotte Forkes-Rees, Retail and Consumer Insight Analyst at AHDB, noted, “The food-to-go market continues to thrive, but supermarkets and retail chains need to stay adaptable to meet shifting consumer preferences. AHDB remains committed to researching these trends to support retailers and help them capitalise on market opportunities.”
Forkes-Rees further emphasised the importance of evolving beyond traditional meal deals. Quick-service restaurants are increasingly integrating into the lunchtime food-to-go market, and retailers are expanding their offerings to include hot options, premium upgrades, and diverse meal choices.
Currently, older consumers (aged 55+) are the primary demographic for food-to-go purchases, likely due to higher disposable incomes. To attract younger consumers, retailers should focus on introducing new products that align with current food trends and flavours to appeal to a broader audience.