U.K.: Aldi's grocery market share soars amid high food inflation

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U.K.: Aldi's grocery market share soars amid high food inflation

After ten months of double-digit price growth, the British public is continuing to turn to own label lines to help manage spending, according to research by Kantar Worldpanel

Grocery price inflation rose by 17.3% in the four weeks to 16 April 2023, down marginally on the 17.5% recorded in the previous four weeks according to the company's latest data. Take home grocery sales grew by 8.1% over the month to mid-April.

Own label lines, which are often cheaper, are still growing at 13.5% this period suggesting shoppers are finding better value for money on these shelves, Kantar said.

"The very cheapest value own label lines are doing even better, with sales soaring by 46% versus a year ago. These products now find their way into nearly one in five baskets. Branded sales are going up but more slowly at 4.4%," Kantar said.

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Amid rising prices, both Aldi and Lidl - two German discount chains - hit new record market shares over the latest 12-week period at 10.1% and 7.6% respectively.

Lidl was the fastest growing grocer with sales increasing by 25.1%, while Aldi is just behind on 25.0%. Consumers are continuing to shop around, visiting at least three major retailers every month on average.

"The discounters have been big beneficiaries of this, with Aldi going past a 10% market share for the first time this month," Kamtar said.

"That’s up from 5% eight years ago in 2015, so we can see just how competitive the market can be. Retailers are really battling it out to show value to shoppers, but if consumers feel their offer isn’t quite right then they’ll go elsewhere."

Kantar added it thinks grocery inflation will come down soon, but that’s because the company will start to measure it against the high rates seen last year.

"It’s important to remember, of course, that falling grocery inflation doesn’t mean lower prices, it just means prices aren’t increasing as quickly," the company said.

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