The fast changing world of food-to-go

Market, shoppers and innovations

Rhian Thomas

Shopper Insight Manager

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Who we are

© IGD 2017 Source: IGD Research

© IGD 2017 Source: IGD Research Pag

e 2

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Market dynamics and forecasts

Food-to-go shoppers and

missions

Innovation & inspiration

Six key developments in the past year

Continuing expansion attracting greater interest More deliberate focus on dayparts

Driving food credentials further Enhanced focus on snacking as a mission

Increased focus on innovation

More flexible locational targeting

© IGD 2017 Source: IGD Research

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£1.3bn Supermarkets

&

hypermarkets

£5.1bn Food-to-go specialists

£5.4bn QSRs (Quick Service

Restaurants)

£2.9bn Coffee specialists

£2.7bn Convenience,

forecourt & other

retailers

How we define the food-to-go market

Source: IGD Research

Which are all seeing significant growth

2017 £bn 2022 £bn CAGR 2017-

2022 %

Coffee

specialists

2.7

5.1

5.4

2.9

3.6

7.7

6.3

4.2

QSRs

FTG

specialists

Convenience, forecourt &

other retailers 6.1%

3.4%

8.4%

7.4%

1.3 1.7 5.9% Supermarkets &

hypermarkets

© IGD 2017 Source: IGD Research

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Market dynamics and forecasts

Food-to-go shoppers and

missions

Innovation & inspiration

Lots of missions are fuelling this growth

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“Today for

lunch I

bought a

meal deal

including a

sushi salad”

“On my way

to work I

popped in to

buy a mint

tea”

“For

breakfast I

bought a

sausage roll

and ate it

straight

away”

“I bought a

smoothie

and some

choc chip

cookies, I

had a

cookie as an

afternoon

snack”

“Had a

coffee and a

Danish

before we

went to

work, we sat

in to have it”

Source: IGD Research

315 food-to-go missions a year

© IGD 2017 Source: IGD Research

A stable pattern across all missions

31%

71% 75%

51% 52%

31%

66%

75%

50% 53%

33%

66%

75%

51% 50%

29%

[VALUE]%

77%

52% [VALUE]%

Breakfast Drink Lunch Snack Leisure

Food-to-go missions conducted in the last four weeks

Q3 2016 Q4 2016 Q1 2017 Q2 2017

© IGD 2017 Source: IGD Research

Mission Q3 2016 Q4 2016

Q1 2017

Q2 2017

I only bought food-to-

go

58% 54% 51% 55%

During a top-up shop

21% 24% 25% 24%

During a main shop

15% 15% 17% 15%

Food-to-go missions create other opportunities

© IGD 2017 Page 11 Source: IGD Research

However, using more than one store to complete their missions is not unusual

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53%

52%

45%

Percentage of shoppers who used more than one food-to-go operator or shop to complete their last mission

Source: IGD Research

© IGD 2017 Source: IGD Research

46%

41%

36%

21% 19%

15% 14%

10%

4%

Loyalty card Ability to orderpre-arriving at

store

Free Wi-Fi Self-servicecheckout

Themed foodweeks

Personalisedorder

Limited editionmenus

Technology tonotify order when

order is ready

Other

If you owned your own food-to-go shop, which of the following services and features would you look to provide?

It is not just about the food……

Food-to-go shopper repertoire is broad

Independent

coffee/

sandwich

shop

38%

30%

35%

33%

60%

46%

© IGD 2017 Source: IGD Research

Majority of shoppers are seeking to improve their diets

© IGD 2017 Source: IGD Research

Health and wellness reflected in shopper interest in specific ranges

Q3 2016 Q4 2016 Q1 2017

33%

23%

14%

23%

35%

25%

32%

25%

33%

23%

23%

23%

Vegetarian

Vegan

Dairy free

Gluten free

Percentage of shoppers who like a larger range of these types of products

30%

20%

22%

20%

Q2 2017

© IGD 2017 Source: IGD Research

Leading to a rise in health & wellness propositions

© IGD 2017 Source: IGD Research

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Market dynamics and forecasts

Food-to-go shoppers and

missions

Innovation & inspiration

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Some final thoughts

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Multiple missions likely to fuel further growth 1

2

3

4

Technology is having a bigger impact on the food-

to-go shopping experience than in other areas

Expect much more fusion between food-to-go,

foodservice and retail

For those with the right proposition and that

continue to innovate, the growth opportunities are

huge Source: IGD Research