2023 Britvic Soft Drinks Review Foodservice - Flipbook - Page 20
WELCOME
SUSTAINABILITY
However, the cost-of-living crisis continues to impact the
outlook for foodservice operators. Business leaders cite
“squeeze on household budgets” and “value scrutiny”
as the top two long-term trends impacting the industry;
78% of consumers are “very value led”, up 6% points
on 2021.4 42% of consumers say they expect the UK’s
economic output to fall in 2023.5
What’s more, 38% of consumers say they are eating
out less frequently because of the squeeze on
finances6. Consumer confidence remains depressed
year-on-year but is slowly improving.7 Market value
CATEGORY OVERVIEW
is forecast to increase by £7.6billion to £102.8billion
by 2025, achieving a compound annual growth rate
(CAGR) of 2.6% from 2022.8
Clearly, foodservice is facing huge challenges. The
market is polarising between value and convenience-led
missions on the one hand, and less frequent but more
indulgent, premium occasion-led missions on the other.9
By thinking differently about soft drinks, which in 2022
saw out-of-home sales fizz up by 31% to hit £7.1billion
compared to 2020 levels,10 operators can rise to these
challenges. But how?
The big squeeze
Consumer confidence tumbled in 2022 as budgets were squeezed by
soaring food and energy prices. Russia’s February invasion of Ukraine
started a consistent month-on-month slide that hit its nadir in September,
the month of Kwasi Kwarteng’s mini-budget. Confidence has steadily
increased since then but remained depressed at the end of the year.11
WHAT’S KEEPING FOOD & BEVERAGE BUSINESS LEADERS
AWAKE AT NIGHT? (TOP TWO CONCERNS)12
50%
41%
THE SQUEEZE ON
HOUSEHOLD BUDGETS
CONSUMER VALUE
CONSCIOUSNESS
CONSUMER CONFIDENCE, GFK, OCTOBER 2020 - OCTOBER 2022
National lockdown
iii
LOCKDOWN
EASING
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ENERGY
RUSSIA PRICE CAPS
INVADES ALTERED
UKRAINE & NI RISE
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-9
-23
-7
-8
-13
CPI INFLATION
RISES TO 10%
UK POLITICAL
TURBULENCE
-17 -14 -15 -15
-26
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4 Lumina Intelligence, Menu & Food trends report, December 2022
5 Mintel: Recession and the cost of living crisis: Key challenges and opportunities for brands in the UK January 2023
6 CGA, Cost of Living Consumer Pulse (1,032 UK&I Consumers), December 2022
7 GFK Consumer Confidence, January 2023
8 Lumina, eating out report, June 2022
9 Lumina Intelligence, UK-Eating Out Market Report, 2022 P4
10 CGA, total FSL soft drinks, value sales, MAT February 2023
11 GFK Consumer Confidence, May 2022
12 Lumina Intelligence, Menu & Food trends report December 2022 Note: Business leaders were asked what the most important long-term trends facing the food &
beverage industry were
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FOODSERVICE CATEGORY OVERVIEW