The cost of living crisis has caused a massive correction in shopping habits, reveals new data from NIQ (NielsenIQ) for The Grocer’s Top Products survey 2023, with leading brands losing sales to own-label alternatives, as shoppers cut back on discretionary purchases in increasing numbers.
One of the worst performing categories was meat-free (-£34.8m), data from NIQ shows, as shoppers in 2023 swapped sustainability for survival amid the cost of living crisis. Another casualty was alcoholic beverages. Spirits (-£181.2m), Champagne (-£29.7m), sparkling wine (-£16.6m) and cider (-£4.4m) were all categories in decline, with beers, wines, and spirits brands accounting for half of the top 10 fastest falling products overall.
Volume declines were recorded across a number of FMCG categories in the report, but in many cases, inflation masked the declines. Commodity items such as fresh poultry (+£273.1m), beef (+£141.6m), milk (+£497.6m), and cheese (+£423m) which saw some of the highest sales growth but sales volumes fell in each case.
A similar plight befell HFSS categories, with bagged snacks (+£523.7m), chocolate (+£410.3m), sweet biscuits (+£307.1m), all in value growth as higher energy prices and inflation on cooking oil, sugar, chocolate were passed on to shoppers, while volumes fell.
But some products and categories prevailed, achieving value and volume growth. Chief among them was vaping, the fastest growing category for the second year running However, last year’s top product, Elf Bars (+£273m), fell into third place, with Lost Mary (+£310.6m) vapes now the fastest growing product overall.
The other exception was sports & energy drinks (+£390.1m), where the viral success of Prime Hydration (+£130.5m) helped boost the category yet further. Fronted by KSI and Logan Paul and distributed by Congo Brands, the US import was initially listed in Asda and the limited supply caused stampedes in stores as it rolled out to Aldi, Sainsbury’s, Tesco and convenience chains.
Fastest-growing grocery categories of 2023
| Category | Actual growth (£ millions) in value sales | |
| 1 | Vaping | £897.4m |
| 2 | Bagged snacks | £523.7m |
| 3 | Milk | £497.6m |
| 4 | Cheese | £423m |
| 5 | Chocolate | £410.3m |
| 6 | Sport & Energy Drinks | £390.1m |
| 7 | Fresh Meat | £352.5m |
| 8 | Petcare | £340.9m |
| 9 | Sweet Biscuits | £307.1m |
| 10 | Fresh Poultry | £273.1m |
Fastest-falling grocery categories of 2023
| Category | Actual decline (£ millions) in value sales | |
| 1 | Cigarettes & Cigars | -£849.1m |
| 2 | Loose Tobacco | -£393.1m |
| 3 | Spirits | -£181.2m |
| 4 | Meat-Free | -£34.8m |
| 5 | Champagne | -£29.7m |
| 6 | Sparkling Wine | -£16.6m |
| 7 | Liquid Soap | -£5.9m |
| 8 | Cider | -£4.4m |
| 9 | Dried Fruits | -£606.1k |
Note: There were only nine categories in value decline
Rachel White, Managing Director UK & Ireland at NIQ, said: “The cost-of-living crisis continues to impact UK consumers and our data shows that this has had an effect on how they shop for groceries and what they choose to put in their baskets. There has been a real emphasis, despite inflation, on stripping it back to traditional items, such as fresh meat and dairy products and a move away from trying more expensive meal solutions, which have shifted the dial in terms of the meat-free category. Whether this will have an impact in January when many like to experiment with Veganuary, remains to be seen.
“Shoppers have been looking to cut costs where they can and this has meant that many beers, wines and spirits categories have suffered. However, it is evident that Brits are still looking for those little moments to treat themselves, or grab something on the go, and despite HFSS regulations top of mind with the industry.”
