05 December 2011, 13:19 PM
  • The UK's food and grocery market is predicted to be worth £184 billion by 2016, compared to £156.8 billion in 2011, according to a study

The research, published by retail analysts IGD, stated that discount retailers were the main driving force behind the increase.

The online sector is also the fastest growing channel, with an average annual growth rate of 13.7%. It is set to double in value in the next five years.

Joanne Denney-Finch, chief executive at IGD, said, “Despite the extraordinary economic climate and the ongoing uncertainty caused by the eurozone crisis, there are a number of exceptional events in 2012 that could provide opportunities for growth – the Queen’s Jubilee celebrations, the Euro 2012 football championship and the London Olympics.

“We still buy most of our groceries at supermarkets and hypermarkets but we are also using different types of stores more often, such as online and convenience. And leading retailers are building their presence in these areas.

“Another growth area is discounters and with people increasingly experiencing a squeeze in incomes, this format will benefit despite counting for a small share of the overall grocery market,” she added.