Consumers will spend £182.7bn in grocery retailers by 2015, an average annual growth of 3.9%, according to grocery research house IGD.
The report, UK Grocery Retail Outlook: Opportunities Beyond 2010, found the UK convenience sector, currently valued at £32.1bn, will continue to outperform, projected to increase sales by 5.8% per year to £42.6bn in 2015.
Non-food sales reached £12.4bn this year, accounting for 8.2% of the UK grocery sector, and are predicted to increase to £17.1bn by 2015.
Online grocery retailing is set to double in value from £4.8bn to £9.5bn by 2015.
Gavin Rothwell, UK research manager, IGD said: “Many UK retailers have announced major development plans in areas such as convenience and online – all of which are helping drive growth. Multi-format and multi-channel strategies are gaining traction and scale as retailers seek to reach shoppers in different ways.”
Joanne Denney-Finch, chief executive, IGD, said: “Despite a tough trading environment, the food and grocery industry has demonstrated a resilient performance in the last 12 months. Companies have responded quickly to shifting shopper trends and adapted their business models accordingly to win the contest for value and convenience. The road ahead remains uncertain, but those businesses that keep up with the pace of change will continue to reap the rewards and prosper.”