Latest insights on the UK CPG market

Latest insights on the UK CPG market 1

The UK CPG market is being impacted by economic pressure

As the leading advisors for high-growth consumer brands in the UK, we have been asked a lot about the market appetite today for FMCG / CPG innovation.

Indeed we have been through a turbulent period in the UK with more challenges to come economically, politically and socially – this is true of much of Europe. The economy is under pressure, born from cost increases from Russia-Ukraine, Brexit and Chinese lockdowns (among other drivers).

This has impacted inflation, interest rates and most recently the strength of the sterling.

But the doors are open for the right innovation

As you will know, the UK is probably the best region for US, Canada and brands from Australasia to launch into for the consumer market – where shoppers follow many of the same macro trends.

Cost of acquisition for D2C is high at present but consumers are looking for innovation more than ever before and new, different and interesting products are landing well both D2C and also through our major retailers.

At YF we have good relationships with Tesco, Sainsbury’s, Morrisons, Asda, Ocado, Waitrose and the majority of big players outside of grocery too – they remain firmly open for business and are keen to take on new brands that solve category gaps. In particular health, value and environmental USPs are sought after.

It has never been a better time to explore this side of the pond

For overseas brands, this feels like a very good time to be scoping out the UK market. Dollar-sterling movements have made it cheaper than it has ever been to invest in the UK – and the right innovation is landing really well with our consumers and retailers.

If you are interested in expanding in the UK and would like a no-obligation chat with one of our consultants, get in touch today

Who are YF?

Nowhere needs change more than the consumer goods industry, but nowhere is change harder. The products we consume every day have a profound impact on our health, wellbeing, and that of the world around us.

However, what is accessible to the average consumer remains stuck in the past. YF is here to fix that. Our goal is to drive innovation in FMCG.

We do this by working hand in hand with retailers and investors to make it easier for them to identify and get behind high potential brands. At the same time, we provide advisory and support services to brands to help them achieve mainstream scale. By supporting both sides, we can drive the flywheel of progress.

Our services span Market Entry and Expansion, Discovery Support, Portfolio Management, Innovation Consulting, Training, Supply Chain Management, Recruitment, HR, Commercial and Financial Advisory.

Our insight is uniquely fueled by our not-for-profit Brand Community which gives us a pulse over more than 1,500 brands in the UK.

Want to scale your brand? Get in touch with us today.

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