Insight of the Day: Polarisation and premiumisation: Food to go in 2025
- InsightTrendsWorld
- Mar 7
- 8 min read
Why it is the topic trending:
The food-to-go market is trending due to evolving consumer behaviors in a post-inflationary environment. Despite easing inflation, consumers are still financially cautious, leading to a complex market dynamic where both value and premium options are relevant. Understanding these shifts is crucial for businesses in this sector to adapt and thrive.
Overview:
The UK food-to-go market in 2025 is characterized by polarisation, with consumers split between seeking value and premium experiences. While value remains important due to ongoing financial pressures, premiumisation is also emerging, particularly in urban areas. Functional foods and brand engagement are also key trends shaping the market. The market is predicted to grow, but at a slower pace, requiring businesses to adopt nuanced strategies.
Detailed findings:
Uneven Market Growth: The 5.3% growth in 2024 wasn't uniform, indicating diverse consumer needs.
Value Prioritization: Affordability and reliability are still key for many consumers, benefiting value-focused brands.
Premiumisation Emergence: Consumers, especially in city centers, are willing to pay more for perceived higher quality and premium ingredients.
Functional Foods Demand: Health and wellness are influencing choices, with interest in functional foods and drinks.
Brand Engagement Importance: Younger consumers are driven by social media and experiences, making brand storytelling and "eatertainment" crucial.
Slower Growth Prediction: The market is expected to grow at a slower rate of 3.3% in 2025, stabilizing around 2.8% later.
Key takeaway:
Success in the 2025 food-to-go market hinges on businesses understanding and catering to the diverging consumer needs for both value and premium options, while also embracing functional foods and effective brand engagement. A one-size-fits-all strategy is no longer viable.
Main trend:
Polarisation and Premiumisation.
Description of the trend (Polarisation and Premiumisation):
This trend describes the simultaneous existence and growth of two seemingly opposite consumer demands within the food-to-go market. Polarisation refers to the widening gap between consumers primarily focused on affordability and value, and those who are willing to spend more. Premiumisation is the increasing consumer desire for higher quality ingredients, enhanced experiences, and often healthier or more functional food options, even if it comes at a higher price point. This trend signifies a fragmented consumer base with diverse needs and motivations.
What is consumer motivation:
Value Consumers: Driven by economic pressures and a need for affordability and reliability. They prioritize getting the best deal and ensuring their spending is sensible during times of financial uncertainty.
Premium Consumers: Motivated by a desire for quality, experience, and perceived value beyond just price. They seek enhanced taste, better ingredients, and functional benefits, linking quality to overall value and well-being.
What is driving trend:
Persistent Financial Concerns: Despite easing inflation, the lingering impact of cost-of-living pressures continues to drive value-seeking behavior.
Desire for 'Treats' and Experiences: Even with financial constraints, some consumers are still willing to spend on smaller indulgences and premium experiences, especially in social settings or as a form of self-care.
Increased Health Consciousness: Growing awareness of health and wellness is pushing demand for functional foods and higher quality ingredients, contributing to premiumisation.
Social Media and Brand Influence: Social media and pop culture amplify trends and influence younger consumers to seek out brands that align with their values and offer engaging experiences.
What is motivation beyond the trend:
Beyond the immediate drivers, consumers are motivated by:
Control and Smart Spending: Value-seeking is about feeling in control of finances and making smart choices in uncertain times.
Self-Worth and Aspiration: Premiumisation is linked to self-worth and aspirational lifestyles. Consumers may use premium food-to-go as a small luxury or a way to express their identity.
Well-being and Proactive Health: The focus on functional foods reflects a deeper motivation towards proactive health management and overall well-being.
Social Connection and Identity: Brand engagement and "eatertainment" tap into the human need for social connection and belonging, particularly for younger generations who build identity through online and offline experiences.
Description of consumers article is referring to:
The article refers to a diverse consumer base, but implicitly highlights two main segments:
Value-Conscious Consumers: Likely to be across various age groups and genders, but potentially more prevalent among lower to middle-income households and those feeling the pinch of the cost-of-living crisis. Their lifestyle is characterized by practicality, budgeting, and seeking reliable, affordable options.
Premium-Seeking Consumers: Likely concentrated in city centers, potentially skewed towards younger demographics (Gen Z, Millennials) and those with higher disposable incomes or those willing to allocate a portion of their budget to premium food experiences. Their lifestyle may be more focused on experiences, quality, health, and aligning with trendy brands.
Conclusions:
The food-to-go market in 2025 is complex and requires a dual approach. Businesses cannot solely focus on value or premium; they must understand and cater to both segments. Functional foods and brand engagement are crucial elements for success. The market's slower growth necessitates strategic adaptation and a nuanced understanding of evolving consumer needs.
Implications for brands:
Dual Strategy Required: Brands need to develop strategies that cater to both value-seeking and premium consumer segments, potentially through tiered product offerings or distinct brand positioning.
Value Proposition Clarity: Value-focused brands must emphasize affordability and reliability, while premium brands need to clearly communicate quality, ingredients, and experience.
Functional Food Integration: Incorporate healthy and functional options to appeal to health-conscious consumers and tap into the growing wellness trend.
Digital and Social Engagement: Invest in strong digital presence, social media marketing, and brand storytelling to connect with younger consumers and build brand loyalty.
"Eatertainment" Exploration: Consider incorporating experiential elements and "eatertainment" to drive foot traffic and create memorable brand experiences.
Implication for society:
Increased Market Fragmentation: Society may see a greater divide in food consumption patterns, reflecting economic disparities and varying lifestyle priorities.
Focus on Health and Wellness: The rise of functional foods could contribute to a broader societal focus on health and preventative well-being.
Evolution of Food Culture: "Eatertainment" and brand engagement could further blur the lines between food consumption and entertainment, shaping a more experience-driven food culture.
Implications for consumers:
Wider Choice, More Complexity: Consumers will have a wider range of food-to-go options, but navigating the market may become more complex, requiring them to balance value, quality, and personal preferences.
Potential for Value and Premium Fatigue: Consumers might experience "value fatigue" if only presented with basic, low-cost options, or "premium fatigue" if premium options become unaffordable or feel inauthentic.
Increased Focus on Health and Brands: Consumers will likely become more discerning about ingredients and brand values, potentially leading to more conscious and informed food choices.
Implication for Future:
Market Segmentation Deepens: The polarisation trend is likely to intensify, leading to even more segmented and specialized food-to-go offerings.
Personalization and Customization: Future success may lie in brands offering more personalized and customizable food-to-go options to cater to individual needs and preferences within both value and premium segments.
Technology Integration: Digital platforms and technology will play an even greater role in brand engagement, ordering, and delivery, further shaping the food-to-go experience.
Consumer Trend:
Name: The Divergent Diner
Detailed description: This trend describes the emergence of two distinct consumer profiles in the food-to-go market: the Value Seeker and the Premium Explorer. Value Seekers prioritize affordability, reliability, and convenience above all else, driven by economic prudence. Premium Explorers, conversely, seek enhanced quality, unique experiences, and functional benefits, willing to pay a premium for these attributes. This divergence necessitates a nuanced approach from brands to effectively cater to both segments.
Consumer Sub Trend:
Name: Functional Fuel Focus
Detailed description: Within both Value Seekers and Premium Explorers, there's a growing sub-trend of prioritizing functional foods and drinks. Consumers are increasingly motivated by health and wellness, seeking food-to-go options that offer specific health benefits, such as hydration, gut health support, or enhanced nutritional value. This trend is driven by a proactive approach to well-being and a desire to make healthier choices even when eating on-the-go.
Big Social Trend:
Name: The Experience Economy Extends to Food
Detailed description: The broader social trend of the Experience Economy is significantly impacting the food-to-go market. Consumers, particularly younger generations, are increasingly valuing experiences over purely transactional purchases. This manifests in the "eatertainment" trend and the importance of brand storytelling and digital engagement. Food-to-go is no longer just about sustenance; it's becoming integrated with entertainment, social connection, and lifestyle expression.
Worldwide Social Trend:
Name: Global Health & Wellness Imperative
Detailed description: The global focus on health and wellness is a worldwide social trend that underpins the functional food sub-trend in the food-to-go market. Across the globe, there's a rising awareness of preventative health, nutrition, and the link between diet and well-being. This global trend drives the demand for healthier food options and influences consumer choices in various food sectors, including food-to-go.
Social Drive:
Name: Economic Uncertainty & Aspiration Paradox
Detailed description: This social drive captures the tension between economic uncertainty and consumer aspiration. While financial pressures push many towards value-seeking behaviors, the underlying human desire for aspiration, small luxuries, and self-expression persists. This paradox fuels the polarisation trend, where value and premium demands co-exist and shape consumer choices in the food-to-go market.
Learnings for brands to use in 2025:
Embrace Market Segmentation: Acknowledge and strategically address the polarised consumer base.
Communicate Value Clearly: Define and communicate your brand's value proposition, whether it's affordability, quality, or both.
Innovate with Functional Foods: Explore opportunities to integrate functional ingredients and health benefits into your offerings.
Invest in Digital Storytelling: Build a strong digital presence and engage consumers through compelling brand narratives and social media strategies.
Experiment with Experiences: Consider incorporating "eatertainment" elements to enhance brand engagement and attract customers.
Strategy Recommendations for brands to follow in 2025:
Develop Tiered Product Lines: Offer both value-focused and premium product ranges to cater to different consumer segments.
Enhance Value Perceptions: For value lines, focus on perceived quality and reliability, not just low prices.
Highlight Premium Attributes: For premium lines, clearly communicate ingredient quality, provenance, and unique selling points.
Integrate Functional Options Across Tiers: Offer functional food options in both value and premium lines to broaden appeal.
Create Engaging Digital Content: Develop social media campaigns, interactive content, and online experiences that resonate with target consumer groups.
Explore Experiential Partnerships: Collaborate with entertainment venues or events to create "eatertainment" opportunities and drive foot traffic.
Final sentence (key concept) describing main trend from article:
The food-to-go market in 2025 is defined by the dynamic interplay of polarisation and premiumisation, requiring brands to strategically navigate the diverging needs of value-conscious and experience-seeking consumers.
What brands & companies should do in 2025 to benefit from trend and how to do it:
Brands should adopt a dual-pronged strategy in 2025. To benefit from the value-seeking segment, offer affordable, reliable, and convenient options, emphasizing clear value communication and potentially loyalty programs. To capitalize on the premiumisation trend, develop high-quality, experience-driven offerings with functional benefits, focusing on brand storytelling, digital engagement, and potentially "eatertainment" initiatives. Effectively segmenting the market and tailoring offerings and messaging to each segment is key to success.
Final Note:
Core Trend:
Name: Polarisation and Premiumisation
Detailed description: The simultaneous rise of value-seeking and premium consumption within the food-to-go market, driven by economic uncertainty and evolving consumer aspirations.
Core Strategy:
Name: Dual-Market Segmentation
Detailed description: Developing and implementing distinct strategies to cater to both value-conscious and premium-seeking consumer segments, with tailored product lines, messaging, and experiences.
Core Industry Trend:
Name: Functional Food Integration
Detailed description: The increasing incorporation of functional ingredients and health benefits into food-to-go offerings across all price points, driven by growing health consciousness.
Core Consumer Motivation:
Name: Value & Experience Balance
Detailed description: Consumers are seeking a balance between getting good value for their money (affordability, reliability) and enriching their lives with positive experiences (quality, health, engagement) through food-to-go choices.
Final Conclusion:
The food-to-go market in 2025 is at a crossroads, demanding adaptability and strategic agility. Brands that successfully navigate the polarisation trend by offering differentiated value propositions, embracing functional foods, and engaging consumers effectively will be best positioned to thrive in this evolving landscape.
Core Trend Detailed Summary:
The core trend of Polarisation and Premiumisation in the 2025 food-to-go market reflects a fundamental shift in consumer behavior driven by a complex interplay of economic and aspirational factors. Post-inflationary financial anxieties persist, pushing a significant consumer segment towards prioritizing value, seeking affordable and reliable food options. Simultaneously, another segment, particularly in urban centers and among younger demographics, is increasingly drawn to premiumisation, willing to pay more for enhanced quality, unique experiences, and functional benefits. This divergence is not simply about price; it’s about evolving consumer motivations, where "value" is redefined to encompass both affordability and perceived quality, and "premium" extends beyond price to include experience, health, and brand alignment. This core trend necessitates a strategic overhaul for brands, moving away from a one-size-fits-all approach towards nuanced market segmentation and tailored offerings that effectively address the diverse and evolving needs of the "Divergent Diner."
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