Food to Go: The Trends to Watch Out for in 2024!

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On Monday, April 30, 2024, I had the opportunity to attend The Food and Drink Expo 2024 in Birmingham. The Food and Drink Exhibition is an annual event that provides the number one route to the UK food and drink market and helps companies showcase their products.

Here are some highlights from my experience:

The expo was bustling with energy, featuring an impressive array of exhibitions ranging from artisanal producers to multinational companies. I had the chance to network with industry experts, sample delicious foods, and discover new/upcoming brands that are now going to shape the future of food and drink.

One of the most interesting aspects of the event was trend spotting. I noticed a significant focus on sustainability, with brands highlighting their commitment to eco-friendly practices and packaging.

Plant-based alternatives also continued to be a major trend, with innovative offerings that cater to the growing demand for vegan and vegetarian options.

One of the highlights of my experience was attending The Grocer Food to Go: The trends to watch out for in 2024 seminar.

Throughout this insightful seminar, a member of the Lumina Intelligence team shared valuable information about emerging consumer preferences and market opportunities in the food-to-go sector that I would like to share.

Let’s take a look at the food-to-go trends we need to watch out for in 2024!

TREND 1: Nuanced Healthier Eating

In a post-pandemic world, health and wellness have taken centre stage in consumer preferences.

According to Lumina Intelligence, 44% of food-to-go lovers prioritise healthier food options. The shift towards mindful dietary choices has even sparked government initiatives aimed at improving national health.

One notable food brand in this space is LEON, which introduced a plant variety rating system, using menu symbols to encourage consumers to increase their plant intake and opt for more diverse and nutrient-dense dishes.

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Chipotle is also leveraging the power of plants to cater to health-conscious consumers. Chipotle’s new menu features nourishing lifestyle bowls designed to align with contemporary wellness trends, offering convenient and healthy options suitable for various dietary preferences, including vegan, vegetarian, high protein, gluten-free, and grain-free.

Furthermore, the session discussed the expanding market for functional drinks.

For instance, M&S recently partnered with science-based nutrition pioneer ZOE to introduce a milk-based gut health shot. This collaboration reflects the increasing consumer interest in gut health, with searches for ‘gut health’ on platforms like Ocado rising significantly since 2021. M&S has further expanded its range of gut health products, including cereals, yoghurts, and drinks, positioning itself at the forefront of gut health innovation.

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TREND 2: Digital Innovation

The digital innovation is reshaping the food-to-go landscape, transforming how customers choose where to eat and here are the key reasons why:

Fast service (16.5%)
Lot of choice (11.6%)
Friendly service (8.7%)
Easy ordering and payment options (7.4%)
Vouchers, promotions, and loyalty cards (7.3%)

Brands across the market are utilising digitalisation to align with the on-the-go consumer needs.

Costa Coffee, for instance, has introduced its first touchscreen ordering system and order-to-table feature via the Costa Coffee app, streamlining operations, and enhancing the overall customer experience.

Knoop, a beloved hot chocolate brand, has launched a next generation app that allows customers to customise and pre-order their favourite chocolate drinks, increasing their customers experiences and expanding its multi-channel offerings.

Similarly, Subway is using digitalisation through self-service kiosks, marketing a strategic move to modernise the brand and effectively compete with fast food giants within the quick-service restaurant sector.

TREND 3: Partnerships

Partnerships are proving to be a key driver of consumer spending and premiumisation within the food-to-go market.

Study shows that 86% of consumers believe that good quality comes at a price with 73% willing to pay extra for higher quality offerings.

A great example of this trend is the Tesco tiered meal deal offering, featuring a £5 premium deal that allow shoppers to elevate their lunch options while still enjoying recognisable brands like Itsu and Yo Sushi at a better value.

This inclusion of premium add-ons provides operators with opportunities to upsell, enhancing retail occasions and maintaining strong value for money credentials compared to out-of-home dining. Tesco is also pushing boundaries by innovating its standard meal deal offerings to capture consumer interest, such as their new limited-edition Ham, Egg, and Chips Sandwich.

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Moreover, the market is witnessing the rise of limited-edition premium products that focus on elevated and innovative flavour combinations, driving excitement and increasing footfall and incremental sales.

For instance, Burger King launched their ‘Gourmet King’ range, catering to consumers seeking a more premium dining experience.

https://www.instagram.com/burgerkinguk/p/CU5IEE3I_cy/

Another notable example of premium brand innovation is Gail’s. The brand continues to break new ground with items like the Crispy Sage Squash Challah which is priced at £7.50 – a higher price point for a high street brand, justified by its exceptional quality and unique appeal.

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TREND 4: Multiple Formats

Brands are diversifying their presence across various formats, anticipating accelerated outlet growth expected in coffee shops, bakeries, sandwich outlets, and travel hubs.

According to Lumina Intelligence, there has been a notable recovery in high street (35.7%) and city centre (20.5%) food-to-go locations over the past year, due to being a high footfall area. On the other hand, retail/industrial park locations experienced a contraction in share of occasions (21.7% in 2023 to 16.6% in 2024) as consumer volumes shifted back towards high streets and city centres.

This shift towards city centres is anticipated to strengthen further in 2024, driven by more people returning to full-time office work.

The resurgence in domestic and international travel over the past year, influenced by improved financial situations and the lifting of COVID-19 restrictions, has led to a return to traditional commuting patterns and increased foot traffic in travel hubs.

This resulted in travel hubs being the best locations for food-to-go operators, with drive-thru presenting a cost-effective opportunity for brands to expand into new markets, enhance accessibility, and boost transaction levels.

Studies anticipate further acceleration in drive-thru expansion in the coming year, spurred by these favourable market conditions.

TREND 5: Sustainability

Sustainability has emerged as a top priority for food-to-go brands, with 48% of brands strictly focusing on sustainability in the next 12 months, according to research.

Gail’s Bakery adopts a comprehensive three-pronged approach to sustainability, aiming to have a positive impact on the environment across its supply chain, in-house operations, and within the communities it serves. Key sustainable practices include supporting small producers who are engaged in regenerative farming and partnering with Wild Farmed—a company dedicated to restoring and diversifying natural habitats.

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