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<\/p>\nGrocery price inflation fell to four per cent in January, marking its lowest level since April.<\/p>\n
The inflation rate declined from 4.3 per cent in December, easing pressure on household budgets after months of elevated costs as shoppers swapped branded products for store-brand goods.<\/p>\n
The figures from market research firm Worldpanel show consumers are continuing to adapt their shopping habits in response to the cost of living, with value remaining a central consideration for many households.<\/p>\n
Supermarket own-label products accounted for a record 52.2 per cent of total grocery spending, meaning more than half of all grocery sales were directed towards store-brand items rather than branded products.<\/p>\n
Spending on promotional items rose by 10.9 per cent compared with the same period last year, representing the fastest rate of growth since October 2024.<\/p>\n
By contrast, sales of full-price grocery products increased by just 1.7 per cent over the same four-week period.<\/p>\n
Worldpanel said the data highlights the continued importance of price promotions and discounts for shoppers navigating ongoing financial pressures.<\/p>\n
Fraser McKevitt, head of retail and consumer insight, said: “For most shoppers, January is all about resetting household budgets, and this year was no exception.<\/p>\n
“While grocery sales continue to grow and inflation eased to its lowest level in months, value remained front of mind for many, with own-label hitting a record high, accounting for more than half of all grocery spend.”<\/p>\n
Grocery price inflation fell to its lowest level since April<\/p>\n
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Health-focused purchasing patterns were also evident in January as shoppers responded to seasonal wellness trends.<\/p>\n
Cottage cheese recorded a 50 per cent increase in sales compared with last year, with 2.8 million households purchasing the product, an increase of around 600,000 households year on year.<\/p>\n
Nearly a quarter of shoppers bought high-protein food products during the period, while 26 per cent sought out high-fibre options.<\/p>\n
Fresh fruit and dried pulses both recorded sales growth of six per cent, while fresh fish sales rose by five per cent.<\/p>\n
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Health-focused purchasing patterns were particularly evident <\/p>\n
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Poultry sales increased by three per cent, and chilled yoghurt sales grew by four per cent over the same period.<\/p>\n
Functional drinks, which are marketed with benefits such as energy, gut health or mood enhancement, were purchased by 11 per cent of households.<\/p>\n
Mr McKevitt said: “In a month when consumers typically look to rein in spending, it is notable how many are still willing to pay a premium for wellness, with functional drinks costing nearly four times as much as typical soft drinks at \u00a34.69 per litre.”<\/p>\n
Supermarket performance varied across retailers during the period.<\/p>\n
Lidl recorded the strongest growth among physical retailers, with sales increasing by 10.1 per cent over the 12 weeks to January 25 compared with the same period last year.<\/p>\n
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Asda and Co-op were two of the only retailers to fail to show growth<\/p>\n
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Online grocer Ocado saw sales rise by 14.1 per cent, increasing its market share to 2.1 per cent.<\/p>\n
Sainsbury\u2019s reported sales growth of 5.3 per cent over the same period.<\/p>\n
Tesco\u2019s sales rose by 4.4 per cent, allowing it to retain the UK\u2019s largest grocery market share at 28.7 per cent.<\/p>\n
M&S grocery sales increased by 6.9 per cent, while Waitrose recorded the largest rise in average spend per trip, although its market share remained unchanged at 4.7 per cent.<\/p>\n