As we pass the halfway point of 2025, FMCG companies across the UK and Ireland are asking the same question: where is growth really happening?
The answer is no longer “just grocery.” In an increasingly complex landscape—shaped by inflation fatigue, evolving shopper missions, and aggressive retail innovation—channel strategy has become a critical commercial lever.
Here’s a breakdown of the retail channels driving the most growth for FMCG brands this year, based on what we’re seeing across the market:
1. Discounters: Value + Premium = Growth
Aldi and Lidl are once again outperforming the rest of the market in terms of value and volume growth. Shoppers may no longer be in crisis mode, but they’re still value-conscious—and discounters are doubling down on their appeal by expanding branded ranges, improving store formats and pushing premium private-label lines.
Why it matters:
- Brands with EDLP-friendly formats and pricing are securing more listings
- Dedicated discounter account teams are now the norm
- Shopper marketing and secondary space are playing a bigger role—even in minimalist environments
In 2025, discounters are no longer a secondary channel—they’re a strategic battleground.
2. Online Grocery: Resilient and Smarter
After stabilising post-pandemic, online grocery has found a new rhythm. Platforms like Tesco.com, Ocado, Sainsbury’s and Amazon Fresh are investing in smarter delivery windows, AI-driven personalisation and integrated loyalty ecosystems.
What’s driving performance:
- AI-led replenishment, tailored promotions and product discovery
- Strong growth in premium, healthy and specialist categories online
- Increased FMCG investment in retail media, especially on high-traffic product pages
Retailers are also integrating retail media more effectively into the online journey, making it easier for brands to target, convert and measure ROI.
3. Convenience & Impulse: The Return of the Top-Up Shop
Hybrid working is here to stay—but so is the need for convenience. C-stores, symbol groups and forecourt retailers are benefiting from increased urban footfall, with shoppers returning to ‘little and often’ missions.
Channel highlights:
- Growth in ready-to-consume categories: chilled snacks, premium soft drinks, food-to-go
- Greater demand for smaller, mission-based pack formats
- Brands investing more in range optimisation and in-store execution
With average basket value rising and impulse back on the radar, convenience is once again a growth engine—especially for brands that play well in quick-trip missions.
4. International Retail & Export: Expanding Horizons
With the UK market maturing, many challenger and mid-sized FMCG brands are looking overseas for growth—particularly in Europe, the Middle East and parts of Asia-Pacific.
What’s working:
- Distributor partnerships for rapid market entry
- Market-specific NPD and compliant packaging
- Strategic listings with global retailers and local eComm channels
Export is no longer the preserve of large multinationals—it’s a major growth lever for agile UK brands with a clear story and proven demand.
5. Wholesale & Foodservice: Bouncing Back
After years of volatility, foodservice is stabilising—and brands are stepping up. Think education, healthcare, workplace catering, and growing QSR chains. Wholesale (Booker, Bestway, Unitas) is also performing well, supported by better tech and improved buyer-supplier collaboration.
Trends to watch:
- Demand for healthier, sustainable, and allergen-friendly ranges
- Smart pricing and pack design to cater for margin-pressured operators
- Opportunity for brands with food-to-go, snacking or lunch occasion offerings
While often overlooked, foodservice and wholesale now offer strong volume opportunities for brands with the right channel fit.
6. Retail Media Networks: Not a Channel, But a Game-Changer
Every major retailer now offers some form of retail media network (RMN)—and FMCG brands are taking it seriously. From Sainsbury’s Nectar360 to Tesco Media & Insight, brands are accessing more shopper data, ad inventory and ROI attribution than ever before.
Why it matters:
- More targeted campaigns across both digital and in-store
- Measurable return on trade marketing spend
- Deeper insights into shopper behaviour by region, basket type and more
Retail media isn’t a standalone channel—but it’s a critical accelerator across online, grocery, and convenience.
Closing Thoughts: Focused, Not Fragmented
FMCG brands that are winning in 2025 aren’t just “everywhere.” They’re strategically focused—investing in the retail channels where they have the best product-channel fit, the clearest path to the shopper, and the highest commercial return.
To succeed, sales and marketing teams must align closely on:
- Channel-specific pack, price, and promo strategy
- Tailored activation across priority accounts
- Talent and capability to drive execution at pace
Whether you're doubling down on discounters, building DTC presence in new export markets or fine-tuning your RMN spend, the right commercial structure—and the right people—can make all the difference.
If you're building your team to meet these shifts, Allexo can help. We've spent the last decade helping FMCG brands hire top-tier sales, marketing and category talent across every major channel.
Let’s talk about how we can support your next phase of growth.
