Retail & Consumer Products

The Goods UK – 28 March 2025

Welcome back to The Goods UK. This week, we’re chatting toaster pastries, pricey pints, and how to up your gut health game. 

Stats of the week 

  • Transatlantic travel to the US from Western Europe fell 1% YoY in February, according to preliminary data from the US National Travel and Tourism Office, after rising 14% in the same period the year before. (The Independent ) 
  • 65% of the 55,221 polled take naps, with 33 minutes being the average length of our midday snoozes. (IKEA)
  • Brits aged between 25 and 34-years-old are set to spend significantly more than the national average on holidays this year, with an overseas budget of £5,400. (Daily MirrorAviva)

What’s in: this week’s trends

  • Shrinkflation strikes again: It’s a bad time to be the Easter Bunny as the price of our favourite seasonal springtime treats have jumped according to the consumer champion Which?. The price of easter eggs made by big names including Cadbury, Mars and Terry’s have risen by as much as 50% this year, as the cost of chocolate has spiked by a considerable 16.5%. Whilst the declining cost of some larder essentials like milk, cheese and eggs have brought some relief for cost conscious shoppers, one of the nation’s best loved sweet treats has been getting more expensive for several years due to poor harvests in west Africa where more than half of the world’s cocoa beans are harvested. (The Guardian)
  • Tanning takes off: The UK’s two biggest tanning chains have experienced rapid growth as more young people are using sunbeds as part of their luxury wellness regimes. The popularity of the likes of The Tanning Shop, which has expanded its number of outlets by nearly 40% since 2018, with 109 locations across the UK, is a clear cause for concern, according to Cancer Research UK. The charity warns sunbeds are never safe to use because UV radiation can irreparably damage DNA in skin cells. But despite this, an investigation by The Times has found examples of tanning salons using marketing terms such as “Vitamin D therapy” and suggesting that sunbeds “promote relaxation and reduce stress”. What’s more, some particularly trendy “tanning routine” influencer-led posts on social media platforms have amassed more than 900,000 views. (The Times)
  • Great sleep-spectations: In need of some bedtime reading? Look no further than IKEA’s 2025 Sleep Report, which is reportedly based on one of the most extensive surveys ever conducted on sleep behaviours across the globe. The Swedish furniture giant polled 55,221 people across 57 IKEA markets and found that despite over half of us prioritising sleeping over a social activity, the average sleep gap (the gap between how much sleep we want vs how much we actually get) is 1 hour and 20 minutes. So what can we do to help us drift off? According to the report, 24% of people rely on air conditioning or a fan, 14% need a good book just beating the 13% that use a speciality mattress or pillow, and 10% of us can’t snooze without aromatherapy or white noise. (IKEA)

Cash or card: shopper behaviour

What’s in and out of our baskets right now? This week, we’re talking cereal killers, friendly competition and saying goodbye to cheaper pints.

  • Brits just wanna have buns: Traditional breakfast cereals are losing ground fast as Brits opt for grab-and-go treats. Sales of classic cereals have dropped; even good old porridge is slipping, while toaster pastries are up 13% in sales and 10% in volume. (Talking Retail) Meanwhile, Gen Z is driving a bakery boom, swapping expensive brunches for £7 croissants and queuing for viral pastries. From bakery crawls to limited edition bakes, breakfast is no longer about convenience; it’s about indulgence. The cereal bowl is out, and Britain’s obsession with pastries is on the rise. (The Times)
  • Cheers to competition: Competitive socialising is reshaping pubs, with venues adding everything from smartphone quizzes to ‘Publympics’ to attract younger crowds. (Morning Advertiser) From boutique bowling to interactive darts, the market is thriving, offering experience-led nights out that don’t always revolve around drinking. Red Engine, the owner of Flight Club and Electric Shuffle, is betting big on competitive socialising and it plans to open over 45 new venues in the next five years, expanding its footprint to 84 sites by 2030. (Completely Retail)
  • Last call for cheap pints: The average price of a pint is set to surge past £5 for the first time, driven by higher labour costs and tax changes (City AM). At the same time, a growing trend of moderation among younger consumers, particularly Gen Z, is reshaping the market (Financial Times). As health-conscious choices gain traction, many are drinking less or opting for non-alcoholic alternatives, causing concern among industry leaders. With the cost of doing business rising, pub owners warn that the pressures could force them to pass on further price hikes to customers.

Making moves: industry changes & innovation

ICYMI, industry icons are reinvigorating their brand through unique and creative ways. Here are some movers and shakers that you should know about: 

  • Retail therapy: Holland & Barrett has opened its largest store yet in Cardiff, designed with the help of a creative agency to tap into the booming wellness trend. (Retail Week) Blending digital innovation with personalisation, the store features interactive screens showcasing product benefits, self-checkouts and in-aisle payments for speed and convenience. In-store tech also tracks customer behaviour, while wellness offerings include blood tests, health checks and a studio hosting 26 hours of classes per week. (Retail Times
  • Trust your gut: Businesses are capitalising on the gut health craze, with nutrition app ZOE leading the way. Backed by influencers, the app (which also boasts a podcast listened to by 2.5 million people) charges £300 upfront and then £25 per month to offer personalised health advice compiled by AI. (The Economist) Gut health hacks can also now be found almost everywhere we shop as ZOE founder Tim Spector also launched The Gut Shot, a fermented milk drink now sold in M&S, while Pepsi has invested £1.95m in prebiotic drinks brand Poppi. (Forbes)
  • Luxury on tap: In a world where almost anything is just a click away, Britain’s oldest department store doesn’t want to be left behind. Fortnum & Mason has partnered with Zapp to offer instant delivery of luxury treats, premium champagne and hampers worth up to £1,000. (The Grocer) This mirrors a wider trend, with supermarkets like Waitrose, Sainsbury’s and Asda partnering with Deliveroo, Just Eat and Uber Eats. (Retail Gazette) Deliveroo’s founder even suggested that grocery deliveries could soon outpace takeaway orders, highlighting a broader societal shift in on-demand convenience culture. (London Standard

For more information about FTI Strategic Communications Retail & Consumer Products sector service offerings and expertise, please contact [email protected] and [email protected] 

The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.

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