UK grocery sales increased by 4.3 per cent in January as shoppers looked to healthier choices in the first month of the new year.
During the four weeks to 26 January, more than 10 per cent of the average consumer’s grocery bill was spent on fruit, vegetables, and salad, according to the latest grocery figures from Kantar.
In total, UK shoppers spent £1.2 billion on healthier items, up from £193 million in December 2024.
“Rolling into the new year, health tends to play a bigger role in our grocery choices,” said Nathan Ward, business unit director for usage and out-of-home, Kantar. “Over a quarter of take-home food and drink in January is chosen with health at least partially in mind, as shoppers tell us they want to eat less processed food and feel the benefit of fibre and vitamins.”
Across the month, sports nutrition products increased in popularity as protein-based items like bars and drinks drove sales. This category attracted 47 per cent more sales than the same period of last year.
Sales of low and no alcohol drinks were also seven per cent higher than last January, with 6.7 per cent of households buying at least one of these alternatives.
Discounts
“Supermarkets were dishing out the discounts this New Year, and consumers responded," said Fraser McKevitt, head of retail and consumer insight, Kantar. "Spending on promotions rose year-on-year by £274 million, accounting for 27.2 per cent of sales – the highest level in January since 2021."
He said that people also turned to non-branded products to help keep costs down, with own label as a proportion of sales hitting a record high of 52.3 per cent in January.
"Spending on supermarkets’ own lines was up 5.4 per cent, helped by consumers buying premium own label products in the couple of days leading up to New Year’s Eve," continued McKevitt.
Strong sales for most UK supermarkets
Over the 12 weeks to 26 January, Lidl’s sales rose 7.4 per cent, marking three consecutive years of growth. It's grocery market share hit 7.2 per cent over the three-month period.
Aldi saw sales increase for the third month in a row, up by 4.2 per cent. The budget retailer, which in recent years has overtaken Morrisons as the fourth largest supermarket, also saw its share of the market increase to 10.2 per cent.
Ocado was the fastest-growing grocer for the ninth consecutive month. Spending at the online retailer grew by 11.3 per cent, meaning it now holds 1.9 per cent of the market.
Marks & Spencer (M&S), the joint owner of Ocado Retail, also saw a strong 12-week period of growth. Grocery sales were up 10.5 per cent in its brick-and-mortar stores.
Tesco, Britain’s largest grocer, gained the most share over the three months.
The company's 28.5 per cent share is 0.7 per cent higher than this time last year.
Additionally, Tesco saw its fastest rise in sales since April 2024 at 5.6 per cent.
Sainsbury’s also boasted strong results during the 12 weeks, with 4.2 per cent sales growth. The second largest supermarket in the country saw its market share increase by 0.2 per cent to 15.9 per cent.
Convenience retailer Co-op returned to growth, with sales rising by 0.8 per cent, giving it a 5.2 per cent share of the market.
Waitrose maintained a share of 4.6 per cent as sales jumped by three per cent.
Spending at frozen food giant Iceland was one per cent higher, maintaining its share of 2.4 per cent.
Asda and Morrisons lose market share
Asda was the only supermarket that saw sales decline, dropping by 5.2 per cent. The company also saw its market share drop by one per cent.
The figures come after the supermarket, which is currently still the third largest in the UK, lost more than one per cent of its market share and six per cent of its sales across the 12 weeks to 4 August.
With Aldi picking up market share yet again, Asda could be vulnerable to losing its third place position.
While Morrisons' sales remained the same as last year, its market share also decreased by 0.2 per cent. Aldi first overtook Morrisons as the fourth largest supermarket in 2022.
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