British convenience retailers are facing a major shift in shopper behaviour as consumers increasingly seek healthier, moderation-led and functional food and drink products while remaining highly price-sensitive, a new consumer insight report has revealed.
The latest Consumer Horizon report from product intelligence business Vypr, based on more than 10,000 UK consumer responses, highlights growing demand for non-UPF alternatives, functional beverages, smaller portions and products linked to wellness benefits such as gut health, immunity and energy.
According to the report, awareness around ultra-processed foods (UPFs) has now gone mainstream, with 93 per cent of consumers aware of the term and 71 per cent concerned about its health impact. Six in 10 shoppers said they intend to cut back on UPFs this year, particularly in categories such as processed meats, ready meals and breakfast products.
However, the research suggests convenience retailers may face challenges converting this health intent into spending. More than four in 10 consumers said they would pay nothing extra for non-UPF alternatives, while cost remains the biggest barrier preventing shoppers from reducing consumption.
The report also points to a major in-store opportunity for retailers, with only 40 per cent of shoppers saying they can easily identify non-UPF products on shelves. Researchers said clearer shelf-edge labelling, simpler on-pack messaging and better signposting could help retailers drive healthier purchases.
Tea and coffee habits are also evolving. While more than half of UK adults drink coffee daily (52 per cent) and 57 per cent consume tea, the report also found growing demand for functional and wellness-led beverages.
44 per cent of consumers are open to adaptogenic teas containing ingredients such as herbs, mushrooms and root extracts. Sustainability is also increasingly important, with 68 per cent of coffee pod users saying that recyclable pods would positively influence purchasing decisions.
Meanwhile, health functionality is increasingly important across wider grocery categories. Among consumers considering wellness shots, 39 per cent expressed interest in ginger, 38 per cent in magnesium and 37 per cent in turmeric, signalling strong demand for products linked to energy, immunity and recovery.
Claims around gut health and better sleep were also the most likely to encourage trial of unfamiliar drinks, both cited by 33 per cent of respondents.
The report further highlighted the growing “moderation economy”, with consumers increasingly seeking smaller portions, cleaner labels and guilt-free alternatives across food and drink categories.
Vypr founder Ben Davies commented, “There have never been so many challenges for the grocery sector at all stages of the supply chain. More unpredictable weather affects growers, geopolitical events affect imports, latest government restrictions around HFSS are in play, and there are rising health concerns around UPF.
"Add the cost of living crisis, and it’s become very difficult to forward-plan.
“The gap between what consumers say they want and what they do, often formed by barriers of cost, confidence, access and knowledge, is preventing intent from becoming action.
"For brands, these spaces are where commercial opportunity lies. Brands and retailers with clear messaging and positioning are needed within this complicated landscape.”