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Grocery Retail Market in UK to Grow by USD 56.2 Billion (2025-2029), rapid urbanization and rising consumer spending to boost revenue, Report on Market Evolution powered by AI – Technavio

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NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The grocery retail market in UK size is estimated to grow by USD 56.2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 3.8% during the forecast period. Rapid urbanization and rising consumer spending is driving market growth, with a trend towards innovative store layouts and offerings to amplify customer experience. However, threat from counterfeit grocery products poses a challenge. Key market players include Amazon.com Inc., B and M Retail Ltd, Carrefour SA, Costco Wholesale Corp., EG Group, EH Booth and Co. Ltd, Farmfoods Ltd., Heron Foods Ltd., HOFER KG, Iceland Foods Ltd., Lidl US LLC, Marks and Spencer Group plc, McCormick and Co. Inc., Ocado Retail Ltd., PROUDFOOT SUPERMARKETS, SPAR UK Ltd., Tesco Plc, Waitrose and Partners, and Wm Morrison Supermarkets Ltd..

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Forecast period

2025-2029

Base Year

2024

Historic Data

2019 – 2022

Segment Covered

Product (Food and beverages and Non food), Distribution Channel (Hypermarkets and supermarkets, Convenience stores, Discount stores, Online, and Others), and Geography (Europe)

Region Covered

UK

Key companies profiled

Amazon.com Inc., B and M Retail Ltd, Carrefour SA, Costco Wholesale Corp., EG Group, EH Booth and Co. Ltd, Farmfoods Ltd., Heron Foods Ltd., HOFER KG, Iceland Foods Ltd., Lidl US LLC, Marks and Spencer Group plc, McCormick and Co. Inc., Ocado Retail Ltd., PROUDFOOT SUPERMARKETS, SPAR UK Ltd., Tesco Plc, Waitrose and Partners, and Wm Morrison Supermarkets Ltd.

Key Market Trends Fueling Growth

The UK grocery retail market is thriving, with retail sales reaching record highs. End consumers drive demand for a wide range of products, including non-food items like clothing and household essentials. Retailers cater to diverse populations in big cities and ethnic markets, offering consumer-oriented features such as quality, variety, convenience, and competitive prices. Online grocery platforms are growing in popularity, providing curbside pickup and home delivery services. Automation, innovative operating models, and AI algorithms enhance efficiency and personalize the customer experience. Urbanization and a growing middle class increase demand for grocery retail, with supermarkets and omnichannel mass merchandisers like Whole Foods leading the way. Supply chain disruptions and shortages can impact sales, making imported products essential. Environmental regulations and blockchain technologies are shaping the future of the industry. Cooking at home remains a trend, driving sales of private label goods and food cupboard staples. 

The UK grocery retail market is experiencing a shift as shoppers combine traditional and online channels for their purchases. This trend puts pressure on distribution channels such as department stores, specialty stores, hypermarkets, and supermarkets. To attract customers, these retailers are focusing on innovative strategies, including the adoption of beacon technologies in department stores. This technology enhances customer interaction and is expected to positively impact the growth of the grocery retail market in the UK during the forecast period. 

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Market Challenges

Grocery retail in the UK faces several challenges in the dynamic retail landscape. Retail sales in this sector continue to grow, driven by end consumers’ demand for quality and variety in non-food products like clothing and household items. Retailers compete with online grocery platforms, requiring innovative operating models, automation, and AI algorithms for personalization and efficiency. Big cities and ethnic markets cater to diverse populations, with immigrants driving demand for consumer-oriented features. Consumer polarization pushes retailers to offer competitive prices, convenience through curbside pickup and home delivery services. Urbanization and a growing middle class increase demand for grocery retail, especially in food cupboard segments. Supply chain disruptions and shortages can impact sales, making importing products crucial. Environmental regulations and urbanization call for blockchain technologies to ensure transparency and traceability. Overall, grocery retailers must adapt to changing consumer behavior, supply chain complexities, and technological advancements to stay competitive.The UK grocery retail market faces a growing challenge from counterfeit goods, particularly in the fast-moving consumer goods (FMCG) sector. Counterfeit products, available both online and offline, are increasingly difficult for consumers to distinguish from genuine items. Major retailers are seeing sales decline due to this influx of fake products, damaging their reputation and that of legitimate manufacturers. Counterfeit brands undercut prices to gain market share, but the quality and durability of their products are inferior. This issue is negatively impacting the grocery retail industry in the UK.

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Segment Overview

This grocery retail market in UK report extensively covers market segmentation by

Product 1.1 Food and beverages1.2 Non foodDistribution Channel2.1 Hypermarkets and supermarkets2.2 Convenience stores2.3 Discount stores2.4 Online2.5 OthersGeography 3.1 Europe

1.1 Food and beverages- The UK grocery retail market’s foods and beverages segment encompasses a diverse range of products, including fruits and vegetables, dairy, frozen foods, meat, baked goods, snacks, canned items, and condiments. Consumers’ preferences lean towards fresh bread, salty snacks, and cereals. This segment has experienced substantial growth due to the increasing popularity of snacks and continuous product innovation. With rising per capita income, there is a noticeable shift towards organic and gluten-free products. Frozen snacks, particularly among teenagers, have seen significant growth. Vendors are continually introducing new flavors and ingredients, focusing on offering healthy and nutritious options for children. For instance, General Mills Inc. Provides Organic Grapes Galore Fruit Juice Pops, certified organic and made from real fruit juice. The dairy product segment comprises milk, milk alternatives, cheese, yogurt, and butter. Plant-based milk beverages have gained significant traction among millennials and lactose-intolerant consumers, driving sales across various demographics. The revenue from dairy products is projected to increase during the forecast period due to the introduction of new and innovative products. The growth in the foods and beverages segment will, in turn, contribute to the expansion of the UK grocery retail market.

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Research Analysis

The UK grocery retail market is a dynamic and diverse sector, serving end consumers with a wide range of products beyond just food. Retail sales in this industry continue to grow, driven by the convenience and consumer-oriented features offered by retailers. Online grocery platforms have gained significant traction, allowing consumers to order non-food items such as clothing, household items, and even greengrocers’ produce online for delivery or curbside pickup. Big cities and ethnic markets cater to the needs of immigrants and diverse populations, offering a variety of products and cultural specialties. Grocery retailers focus on quality, variety, and competitive pricing, with many investing in private label goods and strengthening their supplier networks to maintain a strong supermarket business. Omnichannel mass merchandisers further blur the lines between grocery and other retail categories, offering consumers a seamless shopping experience across channels. Consumer polarization continues to shape the market, with some opting for cooking at home while others rely on ready meals and takeaways. Overall, the UK grocery retail market remains a vibrant and evolving landscape, responding to the changing needs and preferences of consumers.

Market Research Overview

The Grocery Retail market in the UK is a dynamic and evolving industry, driven by the needs and preferences of end consumers. Retail sales in this sector continue to grow, with both traditional retailers and online grocery platforms vying for market share. Non-food products, including clothing and household items, are increasingly important categories. Urban areas, big cities, ethnic markets, and immigrant communities offer unique opportunities for retailers to cater to diverse consumer needs. Consumer-oriented features such as quality, variety, convenience, and competitive prices remain key drivers. Innovative operating models, automation, and AI are transforming the industry, with curbside pickup, home delivery services, and personalized product recommendations becoming increasingly popular. However, challenges such as supply chain disruptions, shortages, and imported product issues persist. The growing middle class, increasing urbanization, and environmental regulations are also shaping the market. Blockchain technologies are being explored to enhance transparency and traceability in the supply chain. Overall, the UK Grocery Retail market is an exciting and complex ecosystem, requiring continuous adaptation and innovation to meet the evolving needs of consumers.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductFood And BeveragesNon FoodDistribution ChannelHypermarkets And SupermarketsConvenience StoresDiscount StoresOnlineOthersGeographyEurope

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026

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SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.

Spotlight: 1.6T LPO Performance & High Customer Traction

AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:

Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.

Surging Market Interest

Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.

Overview of Other Innovations at OCP 2026

In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:

12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.

About Linktel Technologies

Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.

For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.

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SOURCE Linktel Technologies

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Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair

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GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.

Smart Life Solutions Address an Aging and Globalized Market

A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.

For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.

Service Robots Demonstrate Expanding Real-World Applications

The Service Robot Zone remains one of the fair’s most popular attractions in this edition.

Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.

More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.

The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.

As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.

For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16

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SOURCE Canton Fair

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October 2026 Global Sources Hong Kong Shows Phase II Opens Today

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Asia’s first dedicated B2B Pre-Owned Mobile Devices focus pavilion 
Tencent Brings AI Ecosystem Products to the Show

HONG KONG, Oct. 18, 2026 /PRNewswire/ — Phase II of the October 2026 Global Sources Hong Kong Shows opened today at AsiaWorld-Expo, running from October 18 to 21. The four-day event focuses on four core tracks — mobile electronics, smart home security and appliances, lifestyle electronics, and sports and outdoor — bringing together more than 2,100 quality Asian suppliers across more than 4,000 booths, showcasing approximately 160,000 new products including mobile devices, smart wearables, AR/VR, smart home, energy storage and charging, personal health care, pet products, and sports and outdoor equipment.

John Kao, Vice President of Hong Kong Shows & Overseas Shows at Global Sources, said: “Hong Kong possesses a regulatory framework aligned with international standards, efficient intellectual property protection, and proximity to the Greater Bay Area’s manufacturing heartland — enabling it to meet buyers’ dual demands for compliance and efficiency. Buyers no longer need to travel to multiple locations: right here in Hong Kong, they can assess Asian manufacturing supply, complete compliance reviews, and place orders — all in a single visit. The trust established between buyers and sellers on site is often difficult to achieve through months of email exchanges. We aim to continuously strengthen Hong Kong’s role as an international trade hub, enabling genuinely capable suppliers and serious buyers to connect efficiently on this platform.”

Asia’s First B2B Phone Trade Focus Pavilion Officially Debuts

Hong Kong has long been an important transit hub for the global second-hand phone trade. According to IDC data, global used smartphone shipments reached 225.7 million units in 2024 and are projected to maintain a compound annual growth rate of 4.9% through 2029. While the market continues to expand, compliant distribution capability remains the key threshold for entering this space.

For the first time, the show has partnered with the Hong Kong International Communications Electronic Chamber (HKICEC) to unveil the “HKICEC Global Mobile Exchange Pavilion,” Asia’s first dedicated B2B pavilion for Pre-Owned Mobile Devices. The pavilion brings together nearly 60 leading companies from Chinese Mainland, Hong Kong SAR, India, Japan, the United Arab Emirates, the United States, the United Kingdom, and beyond — including Zhuan Zhuan, ATRenew, US Mobile Phones Inc., Belong Inc., and ecoATM LLC — exhibits and services span new mobile devices, professionally tested and data-sanitized refurbished smart devices compliant with EU WEEE standards, intelligent testing technologies, recycling solutions, and compliant export services. The pavilion offers buyers from Europe, North America, and Southeast Asia a trusted and comprehensive sourcing platform, creating a green trade corridor that connects Chinese Mainland’s manufacturing strengths, Hong Kong SAR’s international platform, and global markets.

Tencent AI Makes Show Debut; AI Mass Production Enters the Delivery Phase

The product selection logic for AI products has undergone a marked shift in the second half of the year. The focus has moved entirely from “What new AI products are available?” to deployment capability and delivery efficiency — no longer chasing feature gimmicks alone, buyers place greater emphasis on whether products can effectively address real needs and ship reliably on schedule. Suppliers’ overall fulfillment capability has surpassed mere product highlights to become the primary assessment criterion in sourcing decisions. The Phase II “AI+ Theme Zone” features over 1,200 booths spanning seven segments: AI terminal devices, AI wearables, AI glasses, AI toys, AI pet products, AI personal health devices, and AI-integrated products, showcasing suppliers’ proven ability to move from concept to mass production. The zone also extends to lifestyle electronics including wearable electronics, smart pet products, personal care and beauty tech, sports, outdoor and fitness tech, gifts, and smart living, covering a wide range of real-world application scenarios.

Tencent joins forces with its ecosystem partners to exhibit under the theme “AI-Empowered Business Growth,” showcasing Tencent’s AI office assistant WorkBuddy alongside enterprise-grade AI solutions from ecosystem partners, including the AI-powered business growth tool Buda.im and Busabase. Running concurrently with the fair, the “AI Agent Summit” brings together over 100 industry, investment and technology leaders to explore how AI Agents are moving beyond demos into real-world deployment and revenue generation, with in-depth discussions on commercialisation pathways, industry standardisation and emerging opportunities across the AI Agent ecosystem. In addition, the show has partnered with the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) to launch a Taiwan AI Supply Chain Theme Pavilion, showcasing the region’s established industrial cluster strengths in AI modules, components, and contract manufacturing.

Vietnamese Manufacturing and Mobile Accessories Take Center Stage; Diverse Sourcing Zones Debut

Phase II features a dedicated “Vietnam Sourcing Fair” zone, bringing together approximately 50 Vietnamese manufacturers with mature export capabilities, covering three product categories: fashion products and apparel, home and kitchenware, and gifts and packaging. For buyers seeking to diversify sourcing risks, the zone enables them to simultaneously access China’s main supply chain and Vietnam’s emerging production capacity at the same show, and negotiate directly face-to-face with Vietnamese factories.

With new-generation flagship smartphones from major brands hitting the market, demand for compatible mobile accessories is ramping up. The show floor features over 2,000 mobile-accessory booths showcasing new offerings including phone cases, charging gear, stands, and data cables, providing global buyers with an extensive range of options. The event also hosts the “Global Buyer’s Top Picks” creative phone-case contest to identify case designs with strong market potential.

The concurrent Hong Kong Security Tech Show, supported by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), showcases products and solutions spanning security surveillance, smart access control, and cybersecurity.

Best of Innovation Awards Recognize Outstanding Products; Global New Product Launches Converge in Hong Kong

The Phase II Best of Innovation Awards focus on products across mobile electronics, smart home, security and appliances, lifestyle electronics, and sports and outdoor categories, with judging criteria emphasizing practicality, cost-effectiveness, technological maturity, and market relevance — identifying innovative products with genuine commercial deployment potential. Phase II also introduces a dedicated “AI Innovation Award” to recognize exhibits with outstanding applications of AI technology. The awards program continues its partnership with the internationally renowned European Product Design Award (EPDA)™ to present the “Best Product Design Award,” honoring products that combine innovative thinking with exceptional design. The show also serves as the preferred launch platform for multiple exhibitors’ annual new products, featuring heavyweight global and Asia premieres that further consolidate Hong Kong’s position as the world’s premier stage for consumer electronics product debuts.

About Global Sources

Global Sources is an internationally recognized multi-channel trade platform, connecting Asia with the world for 55 years. The company has been dedicated to facilitating global trade by connecting verified suppliers with qualified buyers worldwide. To date, it has successfully served more than 14 million registered buyers and users globally, providing efficient and convenient trade solutions.

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