New research suggests 42% of industry professionals from across the UK food & drink sector expect the market to deteriorate in 2020. However, this is a much more positive picture compared to 2019, when 71% said they expected the market to deteriorate.
The data from the MCA and HIM Top Of Mind Report 2020 shows industry professionals from the eating out market are slightly more positive than those in grocery retail. 27% within the eating out market expect market conditions to improve vs. 17% within grocery retail.
Interestingly, in 2019, grocery retail professionals were more positive about market conditions than their eating out counterparts. When asked about current trading conditions a year ago, 76% of professional from the eating out market described them as challenging. In contrast, grocery retail executives saw the current conditions as more positive, with only 50% describing them as challenging.
Fast forward 12 months and 54% of eating out professionals describe current trading conditions as challenging, versus 59% for grocery retail professionals. This highlights a clear shift in attitudes towards current and future trading conditions.
Sarah Coleman, Project Manager at MCA Insight & HIM commented: “Unsurprisingly, business professionals across both the eating out and grocery retail markets are feeling the pinch from the UK’s decision to leave the EU. This year, 73% of the people who completed our survey said that Brexit had already had a negative impact on their business – last year this number was 59%. However, Brexit continues to remain out of the control of operators, retailers and manufacturers.
“Embracing the trend towards health, creating an experience in a store or outlet and investing in NPD are three areas that remain within their control and have been highlighted as growth opportunities for businesses to target in 2020.
“Furthermore, despite challenging conditions, both the eating out and grocery retail markets are forecast to grow in 2020, indicating that there are reasons to be positive. However, it will be those that understand their consumers best and meet demand that will capitalise on the opportunities.”
