The fortunes of the grocery sector and its numerous categories have been revealed in a joint survey between The Grocer and researchers NIQ.
It seems customer spending is having just as much impact as ever, with a decline in eating out, a rise in scratch cooking, inflation (of course) and a healthy desire to snack amongst shoppers all affecting the sector.
Fresh meat, fish and poultry were among the fastest growing categories in 2024, while only roll your own tobacco and cigarettes have fared worse than meat-free lines.
Wine was among the top 10 fastest growing categories but alcohol brands make up 50% of the top 10 fastest falling products in value sales.
For meat, beef is the year’s fastest growing product in terms of absolute value gain, with vaping brand SKE Crystal Bar the fastest growing brand. ElfBar and energy drink Prime are the fastest falling products, retailers will not be surprised to learn.
However, inflation is back to near normal levels in most categories, but a £533m increase in chocolate confectionery sales masks volume declines linked to price hikes as cocoa commodity prices hit record highs, the survey shows.
The cost-of-living crisis is also likely to blame for the decline in sales in many alcoholic drinks categories, although the government’s duty hikes have also played a part. Spirits, sparkling wine and Champagne all fared badly, and alcohol brands accounted for 50% of the top 10 fastest falling products, including Foster’s and Carling as well as the UK’s leading gin brand.
It was a different story in energy drinks. Monster and Red Bull were the strongest performing brands in terms of value sales. But after enjoying stratospheric growth following its social-media fuelled launch, sales of Prime came crashing down to earth.
Yet the biggest overall casualty was disposable vape brand ElfBar, down £284m amid signs the vaping category may have passed its peak ahead of duty hikes and increased legislative restrictions due in 2025.
The fastest-growing grocery categories of 2024 were chocolate with an actual growth of £532.6m, fresh meat (£481.3m), fresh fruit (£463.5m) and vegetables (£374m). Meanwhile milk, toilet tissue and yellow fats were the categories falling fasting in 2024.
Adam Leyland, editor-in-chief at The Grocer, said: “This year’s Top Products Survey is a treasure trove of invaluable data and incredible insight. The biggest surprise is the resurgence in sales of red meats such as beef and lamb. The category has been in decline for a number of years amid widespread health and environmental concerns. The strong growth partly reflects the overall revival of scratch cooking.”
Rachel White, managing director for the UK & Ireland at NIQ, agreed: “Shopping habits have changed once again. What we’re seeing in this year’s survey is a return to the preparation of fresh meals, perhaps a nod to trends in healthier living – with consumers sourcing fresh and healthy products and consuming less alcohol – but it’s also a product of the cost-of-living crisis, as shoppers cut back on takeaways and eating out to save money.”
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