According to a recent L.E.K. Consulting survey on consumer sentiment, we found the UK consumer environment to be stabilising, with improving confidence and broadly steady household finances, particularly among younger cohorts. However, this has not triggered a return to pre-inflation behaviours, with spending remaining deliberate and actively managed.
Food and beverage sits at the heart of this shift, which are acting both as a protected discretionary category and a key channel for health and wellbeing behaviours. Consumers are increasingly navigating trade-offs between health and indulgence, quality and value, and convenience and effort, creating a more complex demand environment where value is actively evaluated at the point of purchase. As a result, growth is now less about demand recovery and more about aligning with structurally evolving consumer behaviour, writes Kristin Graham, Partner at L.E.K. Consulting.
A more stable but selective demand environment
Spending confidence is certainly improving, particularly among under-35s, with most households reporting that they are financially “secure”, “comfortable” or “just about managing,” alongside broadly stable disposable incomes. While consumers retain the capacity for discretionary spending, caution remains, with many continuing to prioritise saving, even among those considered financially secure. As a result, demand is stabilising rather than rebounding, and spending behaviours are becoming more deliberate and highly prioritised.
Purchases are no longer being driven by impulse but by considered decision-making, reflecting an underlying shift in consumer mindset. This means that growth will not come from a broad-based recovery in demand, but instead, it will be increasingly driven by brands and products that successfully capture these prioritised occasions, such as date night, hosting and weekend treats. Companies that understand which categories and occasions consumers are elevating and prioritising will be best positioned to win in this selective landscape.
In essence, success in the current market requires more than simply meeting baseline demand. It demands alignment with structurally evolving consumer behaviours, targeting occasions that consumers actively prioritise, and demonstrating clear value at the point of purchase.
Indulgence has shifted to frequent, lower-ticket occasions
When it comes to treats, consumers are increasingly favouring smaller, everyday indulgences over occasional large splurges, with only 40% making a splurge purchase of over £50 once a month or more, compared to 56% treating themselves to a sweet treat a few times a week or every day. Food and drink sit at the heart of this behaviour, with strong participation across dining out, takeaway, and routine treats that integrate seamlessly into daily life. Beyond its functional role, food serves a clear emotional purpose, allowing consumers to lift their mood and reward themselves in ways that are accessible and consistent.
We’ve seen that consumers are prioritising foodservice experiences over premium grocery purchases, which reinforces the competitive dynamic between channels. This shift has embedded indulgence into routine behaviour, making everyday occasions a priority for brands seeking growth. In this context, brand opportunities lie in propositions that combine accessibility with quality, such as affordable premiumisation, occasion-led innovations, and at-home formats that replicate the convenience and experience of foodservice.
For brands and operators, understanding these evolving behaviours is critical. By honing in on more frequent, lower-cost indulgence moments, businesses can capture both participation and loyalty, driving growth in a market where indulgence is no longer the exception but part of everyday consumer routines.
Health is mainstream, but defined by balance and reduction
Around 80% of consumers report following a balanced diet, with engagement in highly restrictive approaches remaining limited. Health behaviours are primarily focused on reducing perceived negatives, such as sugar, ultra-processed foods, and other ingredients viewed as detrimental to wellbeing. This shift is definitely reflected in purchasing patterns, with fresh categories dominating while more processed categories face ongoing pressure.
In this context, health is increasingly treated as a baseline expectation rather than a point of competitive differentiation. Consumers are unwilling to sacrifice enjoyment and taste in pursuit of health alone, instead seeking a “health-with-indulgence” approach that delivers both pleasure and credible wellness benefits. Key drivers of this trend include enjoyment and taste, alongside credible health signals such as freshness, ingredient quality, and naturalness.
Ultimately, the modern consumer expects health to be embedded seamlessly into everyday choices, creating opportunities for brands that can deliver on both fronts, with the most successful offerings where health becomes a facilitator of positive lifestyle behaviours rather than a constraint on choice.
Protein illustrates the shift to functional layering
Protein has become a mainstream feature of UK diets, reaching approximately 40% penetration overall and rising to around 70% among 18–24-year-olds, highlighting strong adoption, particularly among younger consumers. Gen Z’s in particular over-index on protein alongside other functional behaviours such as gut health, illustrating a wider trend toward layering functional benefits onto everyday diets rather than replacing broader health priorities.
Today, protein operates as a cross-category attribute, embedded across formats, and serves as a leading indicator of wider functional demand. Its introduction into a range of products, including snacks, dairy and meal solutions, demonstrates that consumers are increasingly seeking nutrition that fits seamlessly into daily routines. This shift highlights the importance of delivering functional benefits in ways that feel natural and accessible, rather than prescriptive or performance-driven.
Value is actively managed at shelf, reshaping margin dynamics
Consumers are highly engaged in price evaluation, and in this environment, value is constructed in real time at the point of purchase, with shoppers actively evaluating each decision rather than relying on brand loyalty alone. As a result, brand equity by itself is increasingly insufficient to sustain pricing power.
Success now depends on a combination of strategic price-pack architecture, disciplined promotional activity, and clear, well-executed SKU offerings that align with consumer expectations. Retailers and manufacturers must ensure that product formats, pricing, and promotional tactics work cohesively to reinforce value at shelf and across the purchase journey.
Products that deliver clarity, relevance, and tangible benefits in real time are better positioned to compete effectively, protect margins, and maintain engagement in a selective demand environment. By focusing on shelf-level execution and recognising that value is an active decision rather than a passive perception, companies can align their strategies with evolving consumer behaviours, driving both participation and sustainable profitability.
Strategic Imperatives for Operators and Investors
Winning in this ever evolving landscape requires alignment with structurally shifting consumer behaviours rather than incremental optimisation. Operators that successfully align proposition, pricing, and portfolio strategy to the right dynamics will be well-positioned to capture disproportionate value in an increasingly competitive market. By addressing both structural demand drivers and the everyday challenges consumers face, businesses can create offerings that resonate, foster loyalty, and sustain growth amid shifting consumption patterns.
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