Annual grocery bills set to rise by £275 due to inflation

grocer - UK households are continuing to face financial strain, with living costs rising faster than wages despite a slight improvement in disposable income, reveals new data from Asda Income Tracker.
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Grocery price inflation reached 5.2% in July, its highest level since January 2024.

The figures from Worldpanel also revealed a rise in food prices could add £275 to household annual grocery bills.

Fraser McKevitt, Worldpanel head of retail and consumer insight said: “Just under two-thirds of households say they are very concerned about the cost of their grocery shopping, and people are adapting their habits to avoid the full impact of price rises.

“Own-label products continue to outperform brands, growing by 5.6% versus 4.9%. These inflation worries aren’t just changing what we buy, but how we prepare it too, nearly seven in ten dinner plates now have fewer than six components.”

The data also showed, the recent warm weather led to increased drinks sales, with iced coffee sales rising by 81%, while ice cream and sorbet sales went up by 9%.

There is also a growing trend of no-alcohol and low-alcohol drinks, which saw their sales rise by 21%.


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Champagne and sparkling wine sales also increased by 9% while strawberries and cream sales increased by 28% and 16%, respectively.

Online grocery orders made up 12% of all the total grocery sales from the past 12 weeks, with almost a quarter (23%) of households shopping online at least once.

The figures also revealed that Lidl has reached a record market share of 8.3% in the four weeks to 13 July.

Additionally, Tesco’s sales went up by 7.1%, and it grew its market share to 28.3%. Sainsbury’s sales increased by 5.3%, which led to its market share going up by 15.1%.

Ocado was the fastest-growing grocer in the UK, with its sales growing by 11.7% and reaching a high market share of 2%.

Sales at M&S were up by 6.5%; Morrisons saw an increase of 1% with a market share of 8.4%, while Aldi grew by 6.3% and reached a market share of 10.9%.

Asda currently holds a market share of 11.8%, while Waitrose saw a 5.5% increase in sales and holds a market share of 4.4%. Retailers Co-op and Iceland hold 5.2% and 2.2% of the market share, respectively.

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Annual grocery bills set to rise by £275 due to inflation

grocer - UK households are continuing to face financial strain, with living costs rising faster than wages despite a slight improvement in disposable income, reveals new data from Asda Income Tracker.

Grocery price inflation reached 5.2% in July, its highest level since January 2024.

The figures from Worldpanel also revealed a rise in food prices could add £275 to household annual grocery bills.

Fraser McKevitt, Worldpanel head of retail and consumer insight said: “Just under two-thirds of households say they are very concerned about the cost of their grocery shopping, and people are adapting their habits to avoid the full impact of price rises.

“Own-label products continue to outperform brands, growing by 5.6% versus 4.9%. These inflation worries aren’t just changing what we buy, but how we prepare it too, nearly seven in ten dinner plates now have fewer than six components.”

The data also showed, the recent warm weather led to increased drinks sales, with iced coffee sales rising by 81%, while ice cream and sorbet sales went up by 9%.

There is also a growing trend of no-alcohol and low-alcohol drinks, which saw their sales rise by 21%.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


Champagne and sparkling wine sales also increased by 9% while strawberries and cream sales increased by 28% and 16%, respectively.

Online grocery orders made up 12% of all the total grocery sales from the past 12 weeks, with almost a quarter (23%) of households shopping online at least once.

The figures also revealed that Lidl has reached a record market share of 8.3% in the four weeks to 13 July.

Additionally, Tesco’s sales went up by 7.1%, and it grew its market share to 28.3%. Sainsbury’s sales increased by 5.3%, which led to its market share going up by 15.1%.

Ocado was the fastest-growing grocer in the UK, with its sales growing by 11.7% and reaching a high market share of 2%.

Sales at M&S were up by 6.5%; Morrisons saw an increase of 1% with a market share of 8.4%, while Aldi grew by 6.3% and reached a market share of 10.9%.

Asda currently holds a market share of 11.8%, while Waitrose saw a 5.5% increase in sales and holds a market share of 4.4%. Retailers Co-op and Iceland hold 5.2% and 2.2% of the market share, respectively.

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