UK Food and Non-Food Discounters Market Report 2022

The UK Food and Non-Food Discounters Market Report examines consumers’ attitudes towards shopping at discounter stores, the leading players and the impact of rising inflation on the discounter market. This report covers the discounter market size, market forecast, market segmentation and discounter industry trends.

Discounter Market Current Landscape        

We are in an unprecedented period of economic uncertainty as inflation reaches record highs and consumer confidence hits record lows. Ultimately, this period of financial uncertainty is set to benefit the value-focused discounter market and will likely see a transfer of market share away from leading grocery retailers. As the cost-of-living crisis grows we expect to see more consumers turning to the non-food and food discounter market to help balance their budgets.

Discounter Market Size and Key Discounters Industry Trends

Although things look positive for the discounter market, as time goes on and the sector continues to mature, retailers will no longer be able to rely on store openings to drive growth. As a result, in the next decade, we expect to see competition between the non-food and food discounters heat up. This increased competition will see discounters entering new sectors – such as garden products – as they seek new growth and expand their usual offerings. Retailers must make sure that they do this carefully and without the new operations affecting their main lines of business and value-first models.

• Discounter market size: The discount market is expected to grow by 9.4% in 2022, recording a market value of £37,033 million.
• Food discounters market share: Aldi is a leading retailer in the food discounters market; 82% of UK consumers have used their grocery store.
• 74% of Brits use food discounters to purchase food cupboard items.
• 37% of Brits agree that they would like an improved range of products in discounter stores.

Future Discounters Industry Trends

Looking further ahead at the increasingly competitive discounter market, retailers will need to cultivate a loyal customer base even as the economy recovers, and one of the ways they can do this is by introducing a loyalty scheme similar to the one Lidl operates. Other opportunities can come from expanding retailers’ online channels, which remain underutilised in the discounter market, and the potential use of checkout-free technology in stores to help streamline and improve the shopping experience.

To discover more about the UK Food and Non-Food Discounters Market Report 2022, read our UK Online Grocery Retailing Market Report 2022, or take a look at our Retail Market Research Reports.

Quickly Understand

• How the cost-of-living crisis will affect the discount market and how to tap into additional demand.
• Who the leading players are in the discount market, including key metrics and discount market shares.
• Who shops at the discounters and what do they buy.
• How discount shoppers are using the online channel.
• What could be improved in the discount shopping experience.
• Key attitudes towards shopping at the discounters and discounter industry trends.

Covered in this Report

Our definition of a discounter is a retailer that uses price as its defining feature but also follows the discount model of having extremely tight cost controls and very focused buying.

Brands: Aldi, Lidl, B&M, Wilko, Home Bargains, Savers, Poundland, Poundstretcher, The Original Factory Shop, QD Stores, Jack’s, Heron Foods Ltd, W Boyes & Co. Trago Mills, Quality Save, One Below, Flying Tiger, In-Excess.

Expert Analysis from a Specialist in the Retail Sector

This report, written by Piers Butel, a leading analyst in the retail sector, delivers in-depth commentary and analysis to highlight current trends in the discounter market and add expert context to the numbers.

Following two years of pandemic-impacted trading the UK’s economy has now been hit by record inflation. Amid this growing cost-of-living crisis, consumers are increasingly looking at ways to stretch already tight budgets. The discounters with their clear value focus are set to benefit from this period of financial uncertainty. As the sector matures however, we expect to see retailers looking at new ways to differentiate themselves from the competition.”

Piers Butel
Retail Analyst