London Hotels Articles

April 8, 2010

Food Retail Market Is Increasingly In Demand In UK

Similar to many European national retail food markets, the growing market concentration in UK food sector has been a reason of concern to both food producers and consumer groups in recent years. For UK retailers, value growth is anticipated to remain slow, with continuing pressure on prices and tough competition for big market share, leading the retailers trying to establish themselves in market through differentiation.

A few multiple retailers’ dominant the food retail market in U.K. 82% of organic sales is accounted by these supermarket chains. With the increasing dominance of these supermarkets, the market shares of market stalls, independent food retailers, farms and health food stores have eroded. However, due to rising popularity of organic products, the sales value through these smaller outlets has, actually, increased.

Retailers remain dependent on imports for horticultural products and organic cereal. The technical problems of growing a wide range of high-quality horticultural crops in the climate of U.K. at competitive prices, coupled with year-round customer demand, means that import dependence will continue, although at levels lower the current levels.

The number of organic cafés and restaurants is still limited. Most of these are placed in London and are generally part of the organic retail outlets.

The UK is an advanced market that closely resembles the U.S. in foodservice and retail trends. Although domestic food production is quite advanced and U.S. products must contend with other EU countries’ imports, there are immense opportunities for U.S. products in the competitive and challenging retail environment of UK. U.S. is the third largest supplier to UK, but on an average, it represents just 5-6% of imports.

For further information about Food Retail Market please read the report “UK Food Retailing Market Forecast (2005-2010)” published by RNCOS at

RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our other reports, please visit us at or email us at

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