The value of the UK grocery and foodservice market is forecast to rise by 2.9 per cent and reach £26.3 billion by the end of 2010, according to latest figures published by food and grocery analysts IGD.
The economic downturn caused substantial difficulties to some of the wholesale sector however Grocery and Foodservice Wholesaling 2010 has unveiled the opportunities it has created for others.
Cash and carry operators helped increase sales by 6.1 per cent to £10.3bn in 2009, which was the fastest growth this decade. More and more business customers were drawn to lower prices and the flexible source of supply.
The wholesale sector was sustained thanks to growth of the UK convenience sector. There was a 3.6 per cent increase to £8.8 bn in sales within delivered grocery wholesalers.
Delivered foodservice wholesalers had the hardest task of combating the drop in consumers eating out, generating sales of £6.3bn, down 1.2 per cent. The wholesale sector, however, has seen steady growth in recent times as it was valued at £25.6bn in 2009, an increase of 3.3 per cent on 2008.
The author of the report and IGD senior business analyst Patrick Mitchell-Fox said: “Despite a tough economic climate, wholesaling remains a resilient and adaptable channel within the food and grocery industry. Many wholesalers are moving beyond their traditional boundaries by broadening their offer and extending their proposition to appeal to a wider range of customers. When more favourable times return, these operators will be well placed to benefit from the strong underlying consumer trends towards eating out, as well as convenience shopping, which remain in place.”
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