30th April 2021
The food and drink industry is forecast to grow 12% to £195.4bn in 2021, taking it to 97% of its 2019 pre-Covid level. This will be driven by both the retail and foodservice sectors as the easing of restrictions benefits the overall market.
This is according to the latest ‘Eating In vs Dining Out’ report – produced by IGD, in collaboration with foodservice consultant Peter Backman. The increase is expected to result from strong retail growth in the first quarter of the year and foodservice sales which will strengthen over the coming months as pent-up demand for socialising boosts the sector.
The study is forecasting that the foodservice sector will grow by 54% (£18.6bn) this year vs 2020. Some of this growth is likely to impact retail, but elevated levels of home working, at-home social gatherings and financially stretched shoppers who are unable to divert spend to eating out, will see the retail sector continue to grow. The value of retail is expected to grow £1.8bn on 2020 and £14.5bn on 2019.