UK Canned Food Market Sees Revival Amid Cost-of-Living Crisis: Trends and Growth Opportunities

The United Kingdom’s (UK) canned food market has witnessed a significant resurgence, driven primarily by the pressures of the ongoing cost-of-living crisis. Between 2018 and 2022, the volume of canned fruits and vegetables imported by the UK increased by 4.4% annually, reaching 1.17 million metric tons (mmt) in 2022, according to Trade Map data. Simultaneously, these imports rose by 12.2% per year, amounting to EUR 1.89 billion in 2022. The positive trend continued in 2023, increasing by 7.91% year-over-year (YoY), reaching 1.26 mmt. This upward trend is fueled by British consumers turning to canned products as a cost-effective and long-lasting food solution amidst rising grocery prices.

Figure 1: UK Canned Fruit and Vegetables Import Volume 2019-2023

Source: Tridge, TradeMap

A survey by the UK-based Princes Group, a leading food and drink manufacturer with a diverse portfolio of brands and private-label products, highlighted the popularity of canned foods, with sales in this category outperforming other segments of the grocery market. Canned tomatoes saw the highest sales volume since 2018, demonstrating their sustained appeal. Additionally, 31% of surveyed British consumers indicated plans to increase their canned food purchases, further boosting the market’s prospects.

Overall, the growing popularity of canned goods can be attributed to their affordability, extended shelf life, and convenience. As inflation persists, many UK consumers are shifting their purchasing habits, with approximately 20% indicating they expect to reduce their purchases of chilled foods in favor of canned alternatives. Recipe websites such as “Canned Food Recipes” also support this trend by offering practical ideas for incorporating canned goods into everyday meals.

However, it’s important to note that much of the positive sales performance of canned food has been influenced by inflation. As of Jan-24, YoY food prices rose by 7%, and the price of canned fruits and vegetables increased by 13% YoY. Canned pickles experienced the largest price hike at 18% YoY. Despite these increases, inflation was gradually slowing in the UK, and the annual rise in food prices has entered a more stable period up until Sep-24. Most recent data from the Office for National Statistics in the UK, shows that the annual inflation rate for food and non-alcoholic beverages rose by 1.8% in Sep-24, up 1.3% month-over-month (MoM), still way below the record 19.2% in Mar-23.

Figure 2: UK's Annual Inflation Rate for Food and Non-alcoholic Beverages 2014-2024

Source: UK Office for National Statistics (ONS)

While retail volume sales of canned fruits have declined by 7.5%, the total market value increased by 1.8%, reaching GBP 118.7 million by Sep-23. Canned vegetables (excluding baked beans) declined 4.9% YoY in retail volume sales, but the total sales value grew by 12.2% YoY, amounting to GBP 487.5 million in the same period. Store-label canned products have significant market share in fruit and vegetable categories, accounting for 41% and 56% of market sales. The leading canned products imported from Asian countries are: canned pineapple, mainly sourced from Indonesia, along with imports from Thailand, the Philippines, and Vietnam; canned vegetables (typically mixed varieties) primarily from Türkiye, China and India; and canned citrus and mandarins, predominantly imported from Türkiye and China.

The UK market offers substantial opportunities for canned vegetable exports, particularly products catering to Asian cuisine. Given that 9.3% or 5.5 million of the population in England and Wales identified as Asian British in the 2021 census and that this ethnic group also saw the largest percentage point increase from 2011, up from 7.5% (4.2 million people), demand for canned Asian-style vegetables is increasing. Supermarkets are responding by stocking a wider variety of these products, meeting the preferences of this growing consumer base.

Overall, the UK’s canned food market is undergoing a revival, largely driven by economic factors and evolving consumer preferences. As inflation moderates, the demand for affordable and convenient canned products is expected to remain strong, providing continued growth opportunities for domestic and international suppliers.