Global marketing research firm NielsenIQ (NIQ) has reported that total till sales at UK supermarkets grew by 3% in the four weeks ending 27th December 2025.

Over the four weeks to 27th December 2025, Tesco achieved a 27.3% market share, while Sainsbury’s reported a market share of 16%, both up slightly on the period last year.

Discounters Aldi and Lidl reported market shares of 9.2% and 6.7%. Aldi’s 9.2% remained the same as the year prior, while Lidl’s share increased from 6.3%.

Morrisons reported no change in its market share as it remained at 8.7%, with NIQ confirming the supermarket had its best trading in six months after sales fell in December last year. Co-op’s share decreased from 3.6% to 3.5%, and Asda saw its share decline by 6.5% on the year to reach 11.2%.

At Waitrose, market share increased by 5.5% on the year to reach 4.2%, and Marks & Spencer increased by 4% to reach 4.9%. Iceland’s share saw no change from 2024’s 2.3%, and online retailer Ocado’s share increased by 12.8% to reach 1.8%.

Shoppers spent a total of £19.6 billion over the four weeks to 27th December, with NIQ confirming that grocery sales peaked in the week ending 20th December when shoppers spent £5.3 billion.

Premium private label value sales grew by 5.6% (and unit sales by 3.1%) accounting for 28% of all private label sales during December 2025, with NIQ stating that this indicated consumers were still keen to treat and indulge where they could afford.

In terms of category performance, impulse (snacks, confectionery and soft drinks) grew by 5.7% and fresh foods grew (4.9%), as “intense competition” drove retailers to make price cuts to win-out the category in the last week before Christmas. Frozen foods also saw an increase (1.2%).

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “It’s clear that the convenience of shopping online benefited a lot of UK shoppers over the 2025 Christmas period. By taking advantage of booking delivery slots in advance, shoppers could do a ‘big Christmas shop’ online, including fresh foods, which helped drive growth. This was then supplemented with in-store visits in the last few days before Christmas, allowing shoppers to search for further seasonal discounts, treats and indulgences.” 

Watkins added: “Those retailers with sales momentum at the start of the quarter were able to extend this through to the end of December. Considering the external mood, music and the continued pressure on household finances, it was a Christmas of cautious celebration and a good four weeks for most food retailers.”

Industry reviews 2025 trade

Looking back at 2025, Balwinder Dhoot, director of growth and sustainability at the Food and Drink Federation (FDF), commented: “2025 has been a challenging year for food manufacturers, characterised by the impact of regulatory pressures like changes to National Insurance Contributions and invoices landing for the new EPR packaging tax.

“Food inflation has climbed through the year while business confidence has fallen to -60% as businesses say their costs have risen by 5% on average. Meanwhile, consumer confidence is also low, with retail sales almost 10% lower than they were in 2019. 

“However, ambition in our industry remains strong. Growing UK sales, finding new customers abroad, developing innovative products, and driving digital transformation across the supply chain are top priorities for businesses in our sector, according to our latest industry survey. And that ambition will continue into 2026.”

Chantelle Brennand, commercial director at ingredients company Innovative Food Ingredients Ltd (IFI), agreed that 2025 had brought challenges to industry: “2025 has been defined by continued trading pressures across the sector, sharpening the focus on smarter ways to protect margins while responding to evolving customer expectations.

“With ongoing cost increases, operational challenges and more discerning consumers, IFI’s focus has been on helping customers navigate this uncertainty with more confidence. Our strategy centred on collaboration, support and innovation — not through constant new product launches, but by helping the trade work smarter with what they already have.

“Looking ahead to 2026, customer insight will play an increasingly important role in shaping product development and support for the trade.”

Leonards Ingredients identified sweet-heat flavour profiles, fermented notes and American smoke styles as the flavours that will drive NPD in the year to come. It also highlighted that demand for phosphate replacers and sulphite-free preservation systems across the UK meat sector would increase as clean-label expectations continue to rise.