Christmas 2024 Grocery Spending Surge Driven by Alcohol Sales

7

Discover how alcohol sales, especially sparkling wine, fueled a record Christmas grocery spending in 2024, reaching £13 billion.

In December 2024, the festive spirit led to an unprecedented surge in grocery spending across the UK, primarily driven by alcohol sales. Shoppers splurged a remarkable £187 million on sparkling wine and Champagne alone, marking a 4.4% increase compared to the previous year. This growth is reflected in Kantar’s latest data which highlights that total supermarket sales exceeded £13 billion during this period for the first time ever. Fraser McKevitt, head of retail and consumer insight at Kantar, noted that consumers were eager to celebrate the season with their spending.

Alcohol Sales Dominate Holiday Shopping

The data revealed that traditional alcoholic beverages remained popular among consumers. Sparkling wines and Champagnes were at the forefront of these purchases, showcasing a strong preference for celebratory drinks during Christmas. Interestingly, there was also a rise in low and no-alcohol options as 11% of British households opted for these alternatives in December—a noticeable increase from under 10% the previous year. This trend signifies changing consumer preferences as more shoppers seek inclusive options for celebrations.

Premium Products on the Rise

The trend towards indulgence wasn’t limited to just alcohol; it extended to premium products as well. Kantar reported that premium own-label lines saw an impressive 14.6% increase, while branded goods experienced a 4.2% growth during the festive season. Notably, nine out of ten households treated themselves to at least one premium product over Christmas, reflecting a willingness to spend on higher-quality items.

Supermarkets Reap Benefits from Increased Spending

Supermarkets experienced their busiest month since March 2020 in December 2024 due to heightened consumer spending driven by festive celebrations. Households averaged nearly 17 shopping trips, with Monday, December 23rd emerging as the biggest shopping day of the year—sales surged by 30% compared to any other day that month. Tesco led the charge with a 5% sales growth, increasing its market share to 28.5%.

Online Grocery Sales Hit New Heights

The shift towards online shopping also gained momentum during this period, with online grocery sales reaching a record-breaking £1.6 billion as 5.6 million households opted for delivery or click-and-collect services. Ocado reported a significant 9.6% increase in sales, pushing its market share up to 1.8%.

Generational Trends in Alcohol Purchases

Kantar’s findings also shed light on generational differences in festive shopping habits. Younger consumers under 45 showed a distinct preference for Mediterranean-inspired foods such as antipasti and panettone, while those over 45 dominated purchases of fortified wines and traditional Christmas cakes.
As grocery price inflation climbed to 3.7%, alcohol sales displayed resilience amidst economic pressures—both premium and low-alcohol beverages played pivotal roles in supermarkets’ overall festive success.

Photo by Amy Hirschi on Unsplash