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United Kingdom Food and Drink Report Q2 2016

United Kingdom Food and Drink Report Q2 2016

BMI View: We maintain our favourable consumer outlook for the UK, with household spending growthoutperforming most Western European markets. This will boost sales of food and drink, although the sectorwill expand at a more moderate pace than headline household spending due to the existing maturity of theindustry. In addition, the ongoing price war in the food retail sector will continue to put downward pressureon nominal sales.

Latest Updates & Industry Developments

The UK remains one of our favourite consumer markets in Western Europe. Nonetheless, we seeincreasing risks to household spending over the coming quarters. We do not expect further significantreductions in unemployment, while the expansion of wages has cooled down. With consumptionaccounting for a large share of household income and high leverage, any external shock couldsignificantly affect our growth prospects.

Our positive consumer outlook will boost sales of food and drink. Nonetheless, sales will expand at aslower pace compared with headline household spending, due to existing sector immaturity. In addition,the price war in the food retail sector will continue to impact nominal sales. German discounters Aldi and Lidl continue to invest heavily in the UK, taking market share away from legacy retailers (Tesco,Sainsbury's, Asda and Morrisons).


BMI Industry View
SWOT
Food & Drink
Industry Forecast
Consumer Outlook
Latest Updates
Structural Trends
Food
Latest Updates
Structural Trends
Table: Food Sales (United Kingdom 2013-2020)
Drink
Latest Updates
Structural Trends
Table: Non-Alcoholic Drink Sales (United Kingdom 2013-2020)
Mass Grocery Retail
Latest Updates
Structural Trends
Industry Risk Reward Index
Western Europe Risk/Reward Index
Table: Western Europe Food & Drink Risk/Reward Index Q216
United Kingdom - Risk/Reward Index
Market Overview
Food
Drink
Mass Grocery Retail
Competitive Landscape
Table: Key Players In The UK's Food Sector
Table: Key Players In The UK's Drink Sector
Table: Key Players In The UK's Mass Grocery Retail Sector
Company Profile
Associated British Foods
Unilever
Dairy Crest Group
Mondelez International
Premier Foods
Diageo
Sainsbury's
Asda
Tesco
Demographic Forecast
Table: Population Headline Indicators (United Kingdom 1990-2025)
Table: Key Population Ratios (United Kingdom 1990-2025)
Table: Urban/Rural Population & Life Expectancy (United Kingdom 1990-2025)
Table: Population By Age Group (United Kingdom 1990-2025)
Table: Population By Age Group % (United Kingdom 1990-2025)
Glossary
Food & Drink
Mass Grocery Retail
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Sources
Risk/Reward Index Methodology
Table: Food & Drink Risk/Reward Index Indicators
Table: Weighting

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