The Institute of Grocery Distribution (IGD) has launched its UK trend reports for 2026 from a Grocery Retail and Shopper perspective, while also unveiling its European channel forecasts 2025-2030.
IGD’s channel forecasts predicted that the Grocery channel will experience 3% CAGR (compound annual growth rate) to £297 billion by 2030. It said that supermarkets will remain the largest channel, followed by convenience, and online is expected to be the fastest growing channel.
Sneha Haria, insight manager at IGD, commented: “The UK leads the European online grocery market, with over a tenth of all grocery sales occurring through this channel. Retailers and suppliers should study this leading market for best practices and inspiration on how to successfully expand and gain market share in an increasingly digital landscape.”
The four key trends that IGD has identified for 2026 are Affordable and accessible, Elevated experiences, Sustainability simplified, and Health as a lifestyle driver, with IGD stating that technology acts as an enabler for each of these trends.
The reports examine current responses from industry and highlight actions to take in 2026, as well as considerations for 2027 and beyond.
The four trends for 2026:
- Affordable and accessible – IGD said as economic pressures persist, value will remain a top priority. Shoppers will seek products and services that deliver quality at a fair price, balanced by the growing expectations for instant gratification.
- Elevated experiences – While price still matters, according to IGD, shoppers will be drawn to retailers and brands that offer something memorable, creating opportunities to build deeper emotional connections. These connections drive trade-up, especially as a substitute for out-of-home occasions. Provide personalised deals and an elevated in-store experience to enable this.
- Sustainability simplified – Shoppers expect Government, retailers and brands to lead on sustainability. Making sustainable choices visible and their benefits clear will be key to driving engagement with shoppers, said IGD.
- Health as a lifestyle driver – Health and wellness will be increasingly integrated into everyday choices. Shoppers will look to retailers and brands to help make informed purchase decisions. Shoppers want simple, clear guidance and products that support their evolving needs.
Alex Rowberry, senior insight analyst at IGD, commented: “Retailers and brands have a lot to contend with in 2026. Meeting the demands of an evolving regulatory landscape while satisfying shoppers’ expectations for value, convenience and wellbeing will define success in the year ahead. Despite a challenging operating environment, there is reason for optimism, with pockets of growth still emerging across the grocery retail market.”
