WM asked wholesalers what the next big trends will be
As we bid farewell to 2024 and look ahead to 2025, Wholesale Manager has asked the industry what will be the biggest trends impacting the industry in the next 12 months.
During a time of economic uncertainty, wholesalers will need to balance offering value for money products with offering premium options at the same time.
The last 18 months have seen more cost price increases than ever before and this is likely to continue into the new year. Both suppliers and wholesalers have made acquisitions in recent times and there may be more consolidation ahead. With suppliers increasing their minimum order quantities, wholesalers may have to consolidate more orders.
The single use vape ban is the big news in terms of product categories. It will be interesting to see how consumers react to this, how their purchasing patterns willl change and what products they will switch to. The question then becomes how retailers and wholesalers will react to these new purchasing behaviours.
Consumers will continue to expand their horizons, both when they eat out and eat at home. Fusion food will be important, as will regional flavour cuisines.
Technology and automation will make wholesalers’ operations more efficient and will improve the shopping experience for wholesalers’ customers.
Wholesalers can grow their business by investing in technology, including improving cybersecurity and updating e-commerce features, customer portals and payment systems.
Artificial intelligence is set to make wholesaling smoother and more efficient. The evolution and application of machine learning has the potential to revolutionise practically every aspect of wholesaling, from logistics and finance to sales and marketing.
The industry will want to be seen to be doing the right thing when it comes to sustainability. All through the supply chain, in areas ranging from energy to waste and packaging, the industry will want to reduce the impact it has on the planet.
Perhaps the best way wholesalers can prepare for 2025 is to focus on what they do best – looking after their customers, making sure they have the best product ranges their customers demand, keeping prices at the right level and ensuring their staff are providing the highest level of service possible. If wholesalers source their products well, invest their resources wisely and maintain their most valuable customers, they can win.
Wholesale Manager spoke to some of the UK’s leading wholesalers to ask what they think will be the biggest trends to emerge in the new year and how the industry can be prepared for 2025.
Tech is crucial
Tim Adams, Sales and Marketing Director at Bidfood, says automation will make wholesaling more efficient.
What do you think will be the biggest emerging trends in wholesaling in 2025?
Technology and automation are fast becoming the game changers of wholesale, having emerged as a crucial element for enhancing the customer experience and improving operational efficiencies.
Technological investment is also being made in developing and improving cybersecurity, keeping ahead with e-commerce features, customer portals and payment systems to ultimately accelerate growth and the customer experience.
Whilst not necessarily emerging, sustainability will continue to be front of mind for wholesale in 2025, as businesses continue to implement and develop sustainable practices, often leaning on technological advancements to help, as the journey to net zero continues.
What will be the key categories to watch out for?
One of the five key trends we have identified for 2025 is ‘friendly fibre’. This trend focuses on incorporating this essential nutrient into dishes as healthy eating and the importance of gut health becomes increasingly pertinent to consumers.
It’s great to also see sustainability continue to be at the heart of our category trends, with regenerative farming and products from sustainability-conscious suppliers being of greater importance to consumers.
Another trend we’re seeing attract high demand is around ’quick solutions’. These include fully finished products which provide less preparation time for operators, such as our balsamic roasted beetroot and our hot roast salmon flakes launched as part of this year’s Christmas range. Thaw and serve salads are also a growing trend, offering operators inspiring, quick to serve solutions which can also reduce wastage and preparation time.
What can wholesalers do more of to improve in the area of sustainability?
Businesses and consumers are increasingly conscious of the impact they are having when they make choices, and this isn’t showing any signs of slowing down.
We know from our research conducted this year that when it comes to eating out of home, consumers are on the lookout for more sustainable dishes, ingredients, how venues are actively supporting charities and local communities, and of course how they are reducing emissions.
Sustainability is a big subject, and the areas we found consumers are prioritising include:
• Reduction of emissions
• Minimising food waste
• Choosing seasonal produce
• Supporting regenerative farming practices
• Choosing fish, meat and other produce from sustainable sources
As wholesalers, not only do we need to reduce our own impacts, but we need to help our customers in all of these areas, and to achieve this it takes collaboration right the way through the supply chain.
Offering sustainable choices, supporting innovative suppliers, sharing accurate product information, food waste reduction, lowering emissions, reducing packaging waste and plastic, and collaborating with organisations that are driving change are all key opportunities to make positive changes. It’s also crucial for wholesalers to share important data and educate and inspire customers and chefs when it comes to what’s in season, the current most sustainable seafood choices, accreditations, how ingredients are produced, ways to reduce food waste, and how to navigate packaging options and waste streams.
Will wholesalers need to make better use of technology and AI in 2025 to survive?
Technology is already crucial to wholesalers and by not engaging with it now, they run the risk of getting left behind.
Technology lies at the heart of operational efficiencies and the overall customer experience, and as a result is an essential part of thriving in the short term and surviving in the long run. The key is to focus on the right tech for your business and customer needs and avoid getting distracted by every new tool available.
AI and advanced analytics continue to develop at a rapid pace and is a tool within wholesale we can absolutely expect to see rolled out, over time. However, to operate an efficient business, these tools should be utilised but approached with caution, to ensure data is understood before it’s used.
Along with health and wellness, what other trends will be popular in 2025?
Amongst a variety of other food and drink trends, premium on-the-go dishes are set to be popular amongst consumers. In today’s fast-paced world, on-the-go options have become a staple for busy individuals seeking convenience, without sacrificing quality with items such as fresh salad bowls and hot sandwiches popular options.
Other consumer trends include value and quality, along with experience-led venues and a host of foodie trends containing, world flavours, sustainability, chocolate and many more. For further information visit bidfood.co.uk/food-and-drink-trends-2025
Let’s get greener
Peter Innes, Customer Marketing Manager at Brakes, says the wholesale industry must reduce the impact it has on the environment
What do you think will be the biggest emerging trends in wholesaling in 2025?
The topic on everyone’s lips is sustainability. There is no doubt that this is increasingly important throughout the supply chain right up to and including consumers. The microscope is on all aspects of what we do and from energy to waste to packaging to deliveries the industry needs to focus its efforts on minimising its environmental impact.
How is the cost of living crisis affecting the wholesale sector?
Consumer prices have risen significantly over the last couple of years and, while inflation may not be at its peak, levels are still high. This is putting significant pressure on consumer spending and consumers are being cautious about discretionary spending, impacting footfall and volumes in hospitality. However, while the footfall may be lower, customers are reporting that consumers are compensating for eating less often with more indulgent or higher quality food and drink.
There is further good news in that, while consumer confidence remains low, it is on a positive trajectory, and the hospitality sector is expected to continue its steady growth over the coming months.
What will be the key categories to watch out for?
The critical thing here may not be specific categories, but value within them. It has been a challenging time for the hospitality sector, and we have been working hard to provide products and solutions that helps operators to run their businesses, whether that’s plant forward, prepared products or even our unique mybrakes rewards personalised programme.
How can wholesalers best prepare for 2025?
] Think about what value they are adding to the customer. Understanding the end consumer and their needs and motivations and translate that into the products and services that help customers to deliver that.
Do you think online shopping will increase over the next year?
Foodservice customers want the flexibility to order in a way that fits their work patterns. That’s one of the reasons we’ve seen so much growth in online shopping. We expect this to continue and have invested heavily in developing our digital platforms to improve the customer experience.
Will wholesalers need to make better use of technology to survive?
Within Brakes, technology is helping to develop all aspects of our business. We’re fortunate to be part of Sysco which has some world-leading proprietary technology that we’re implementing within our business. While technology does and will continue to play a pivotal role in our sector, we are still a people business and focusing on great personal interactions. For example, there’s nothing quite like our development chefs cooking up food that customers can taste and experience or our food expos where customers can meet face to face and sample an array of products.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
Consumers want to socialise and spend time together out of home, but there is no doubt that it may be challenging for some in 2025.
However, despite the doom and gloom that many have predicted, we continue to see a steady recovery in out of home consumption.
What is absolutely vital for operators is that they continue to offer consumers ‘value’ and that they deliver the experience that customers are looking for. And we will continue to deliver the innovation and NPD to help them do this.
Will healthy eating and wellness be even bigger trends in 2025?
Healthy eating and wellness are important trends. Whether they are bigger in 2025 remains to be seen, as with consumers looking for better experiences, they could indulge more.
Day part is likely to have the greatest influence on the healthy choices that consumers make.
Sustainability is key
Viki Wilkinson, Category Buyer, Country Range Group, says a responsible approach to foodservice is needed.
What do you think will be the biggest emerging trends in wholesaling in 2025?
Sustainable practices are now a fundamental part of doing business and with the future of the sector being shaped by consumer trends, government legislation and technology, we must focus on our environmental impact and adopt a responsible approach to foodservice. Between 2019 and the end of 2022, CRG members reduced operational emissions by 20% and carbon intensity by 40%. Between 2022 and 2023, they reduced operational emissions by a further 12% and carbon intensity by 20%, meaning they generated 20% less emissions for every £1 of revenue generated.
What will be the key categories to watch out for?
Convenience in foodservice will continue to be a big area of interest, driven by creative food-to-go concepts, products and solutions. Demand will remain for the classic pasties, pies and fried treats but healthier options that offer the same excitement will also be key. Think loaded open sandwiches, vibrant salads, enriching pulse-laden stews, curries and dhals and nourishing hand-held snacks. With the drive to cut down on wastage, costs and ensure menus are accessible to all, even for those allergic to certain foods, many operators will simplify and take a quality over quantity approach.
How can wholesalers best prepare for 2025?
It will be vital that we continue to listen and communicate with customers so we can introduce and offer the support and solutions that they need to grow in 2025. Continuous improvement is crucial in every area of the business. It’s about constantly measuring to increase efficiency, improve work practises, work in more sustainable ways and to improve our portfolio, service and support. Embracing new technology and driving sign up and engagement in digital, e-commerce and online ordering apps will lay the foundations for future success.
Do you think online shopping will increase over the next year?
Consumers and professionals will increase online shopping exponentially. Our members have invested heavily in digital infrastructure and have moved customers to digital ordering.
Will wholesalers need to make better use of technology to survive?
Yes. Our members are investing heavily, measuring and setting objectives across the whole business as they look for continuous improvement. Technology is pivotal to any gains and in providing further insights. The right technology can save time, increase departmental efficiencies, enhance processes in the warehouse, make the business more sustainable, improve delivery routes, maximise the ordering process and help decision making.
Do consumers still love local shopping?
Consumers have appreciated their local hospitality outlets more since the pandemic and like the fact that the money they put in the till supports local suppliers. They like to see a local wholesaler delivering and there is no doubt chefs benefit from the local knowledge, service and support.
Will wholesalers need to do more in the area of sustainability?
After partnering with ClimatePartner last year, we’ve become more sustainable. Most members have significantly decreased their carbon intensity since 2019. While their revenue increased, their emissions either decreased or did not increase at the same rate. Whilst recent increases in food prices have impacted the carbon intensity figures, this consistent reduction across the Group clearly demonstrates successful sustainability measures, improved operational efficiency, and the adoption of greener practices and technologies.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
The big night in is a central part of family life, especially in the colder seasons so it won’t be going away but we’ll see consumers heading out a bit more in 2025 in search of memories and experiences. Caterers and chefs must have the food, drinks, service and theatre to get them to spend more.
Will healthy eating and wellness be even bigger trends in 2025?
Health and wellness will continue to be an important trend but the vegan phase may have calmed down slightly. We will still see plenty of plant-based offerings but fresh vegetables and locally sourced ingredients will be the main focus in 2025. More people are looking for foods that aren’t over processed, that are traceable and showcase real provenance.
Value vs quality
Anna Clapson, Insights Manager at Creed Foodservice, says wholesalers must balance lower-ticket items with premium options.
What do you think will be the biggest emerging trends in wholesaling in 2025?
Wholesalers need to respond to what consumers want – as the majority of their customers are ultimately consumers – whether that’s university students, diners at a restaurant or pub, or people enjoying lunch at a café. Sustainability will continue to be a key trend next year. No longer a nice to have, it is now ingrained into purchasing decisions, with 63% of consumers very sustainability-conscious (Lumina). Equally, all of our customers have their own sustainability and CSR targets to achieve and simply won’t consider products that don’t align with these. Think of not just the product itself but how it’s sourced and packaged which also plays an important part, with nearly half (46%) of people saying sustainability is important when it comes to drinks packaging (Mintel).
Another key trend is value vs quality. With an extended period of economic uncertainty, consumers are reshaping their version of ‘value’ and looking at things differently. Lower ticket items will always appeal, so it’s important to ensure a healthy stock of own-brand products, but there is also an emphasis on perceived value for money. We’re seeing dining out promotional offers, steak dishes with sides at a lower price point than average menu prices and revamped experience-led dining all performing well. Wholesalers need to balance their lower-ticket items with more premium options, and help customers create menus, meal options and offers which will appeal to consumers.
What will be the key categories to watch out for?
The frozen category has been emerging for a while and perceptions have completely changed. Once considered a poor version of a freshly made product, frozen dishes are now transforming menus and it is increasingly difficult to tell the difference between frozen and fresh. In our festive range, we have some delicious frozen desserts that look visually incredible including lemon meringue tarts topped with Italian meringue, blowtorched and then frozen through to a selection of festive pop dots which now come in Christmas tree and star shapes. Frozen also helps to overcome any staffing or skills issues that operators are encountering – easy to prepare, virtually any staff member can heat and plate a frozen meal up, and serve it; delivering consistent quality to consumers every time.
How can wholesalers best prepare for 2025?
It’s all about really having their ears to the ground in terms of what their customers want. It sounds simple, but stocking products that don’t tick the boxes will mean they just sit on the shelf, taking up valuable space in the warehouse. Ask your customers what they are looking for, align this to your product offering, be open to new products if you don’t have the right mix and, above all, make sure every product you stock is working hard and delivering for you.
Do consumers still love local shopping?
Yes absolutely. Not only do local, artisan products bring in a level of quality and point of difference, they also dovetail into sustainability in terms of where food is sourced from, the carbon footprint and miles travelled.
Will wholesalers need to make better use of technology to survive? Will wholesalers make more use of artificial intelligence, data analytics and inventory management?
I don’t know if you will need it to survive, but wholesalers will definitely get left behind if they don’t weave technology into their operations. It’s about harnessing tech to enhance and streamline your operation. Over a third (37%) of business leaders are prioritising digitalisation in the next 12 months (Lumina). We’re seeing supermarkets using robots to scan shelves as a form of stock management, schools utilising tech-led systems to track students’ food purchases, 3D-printed foods aimed at individuals with dysphagia and DIY-self-serve ramen bars. Technology can also play a role in tracking waste.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
Although, due to the cost-of-living people are eating out less often, the experience of eating out will always have a place. The Eating Out Market is set to accelerate at around 2.4% from 2024-2027 (Lumima). The emphasis for a lot of consumers is on ensuring when they do eat out, that it’s really worth the money. Businesses should embrace the opportunity to elevate their guest’s experience, drive loyalty, spend and leave them wanting to come back for more. Customisable menus, experience-led dining and build-your-own artisan produce boxes are just some of the ways operators can offer consumers a personalised experience.
Will healthy eating and wellness be even bigger trends in 2025?
Yes, health and wellness will play a key role in 2025. 44% of consumers are health-led (Lumina) and we’re seeing this particularly in the younger generations. It’s not just about nutrition providing physical health benefits but also mental health benefits too. Accessibility for all is key; over half (58%) of people would like to see financial support given to low-income families to help them buy fresh fruit and vegetables (The Food People). Buying healthy comes at a cost, and it’s important that solutions deliver not only on nutrition, but taste and value too.
Cuisines diversify
Sarah Hall-Attar, Head of Sales & Marketing, Harvest Fine Foods, says consumers will want food from around the world.
What do you think will be the biggest emerging trends in wholesaling in 2025?
Global cuisines will gain more traction, with a particular focus on Southern States comfort food, Turkish, Greek, Portuguese, Argentinian, and Swiss dishes. Consumers will seek playful nostalgic dining experiences and premium on-the-go dishes, especially for breakfast and lunch. Spectacular stacked sandwiches, smoothie bowls, and Buddha bowls may become staples.
What will be the key categories to watch out for?
Health-conscious consumers will seek out foods rich in fibre, focusing on gut health and overall wellness. Whole grains, legumes, and fibre-rich fruits and vegetables will grow. Innovative chocolate drinks will become trendy, offering a comforting and indulgent treat. New flavour blends into tea flavour infusions will gain popularity alongside other growing hydration options for adults and children as the focus will be on health benefits.
How can wholesalers best prepare for 2025?
Buyers will need to negotiate harder for improved pricing, better product ranges and terms of business that will enable continuation of great value and cost savings to customers. All technology options will need to be fully embraced, and investments made where clear efficiencies are identified. AI tools will improve forecasting, inventory management and customer interaction. Customers will expect greater personalisation, improved offers, recommendations that best meet needs and enhance their customer retention. Sustainability with traceable sourcing that is ethical and holds sustainable manufacturing methods will be desirable for buyers who are more climate conscious.
Do you think online shopping will increase over the next year?
Technology is continuously advancing bringing an improved shopping experience for the customer that also may deliver a more personalised basket through streamlining and consolidation. It will drive greater efficiency for wholesalers and customers and with an active e-commerce platform entice bulk ordering that will drive greater customer and wholesaler loyalty.
Do consumers still love local shopping?
Consumers truly value local due to the community support and general appreciation of local businesses providing unique personalised services. There is still a growing emphasis on sustainability, local and carbon footprint reduction. Most like the option of local, towns and online for a hybrid shopping experience.
Will wholesalers need to make better use of technology to survive?
Online ordering, e-commerce platforms will need to improve, be engaging and enable seamless transactions that are quick but insightful to attract browsing, impulse, trial purchasing and selling opportunities. They must deliver value in holding key information that supports the customer’s business type or food sector needs.
Will wholesalers need to do more in sustainability?
Disruptions in global supply will push category buyers to look at local and regional suppliers for a reliable route to the market. Wholesalers will continue their sustainability journeys and continue to deliver small changes that drive eco-friendly behaviours such as reducing overall waste and carbon footprint. There will be a demand to continue the focus on improving packaging materials. Transparency in sourcing, including widening the use of certified local suppliers will help customers select and promote local produce for their menus whilst offering a desirable field to fork dining experience that enables future repeat business.
Will wholesalers make more use of artificial intelligence, data analytics and inventory management?
Including the use of digital or “Phygital” (combination of physical and digital) will play a significant part in driving efficiency and reducing operating costs during 2025. Expectations that multiple software companies developing tools to improve inventory alongside manual operations will flood the market space. This will drive new opportunity, potentially drive-up additional costs and changes in the workplace that wholesalers will need to weigh up and fully evaluate.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
This is likely to continue into 2025 and beyond with health and indulgence being prominent themes. The key consumer desire will be to have a replicated restaurant entertainment themed dining experience leading retailers to produce greater personalised ready to eat and gourmet frozen options that are creative and different. Healthy snacking and beverages will continue to grow with artisanal snacking becoming greater in popularity and choice.
Focus on the core
David Lunt, Managing Director, NBC, says wholesalers should focus on customers, product ranges, pricing and service levels.
What do you think will be the biggest challenges for independent businesses in wholesaling in 2025?
Sustainability – not the environmental kind, but businesses of all shapes and sizes remaining commercially sustainable. Our members are keen to provide a great service to their customers and on behalf of their suppliers. Whilst supply chain consolidation continues, they are becoming more reliant upon groups like NBC to assist them. Once we know the full effect of the recent budget measures, our members will be able to appreciate the scale of changes flowing through the supply chain. Our suppliers will have cost pressures; our members will have cost pressures; their customers will have cost pressures – and it all flows through the supply chain to the end consumers. The balancing act is how much will flow through, how much it affects demand, how it affects inflation and interest rates, and will it affect the forecasted outcome the Chancellor expected, and if not, will it cause further measures?
What will be the key challenges to watch out for?
Price pressure, wages pressure, and cost to serve. All of these will impact channels in different ways, but we would be particularly concerned about the hospitality channel with relatively higher levels of staffing. Ultimately, consolidated purchasing is very efficient but there are only so many savings to be had without resorting to cost cutting measures, and usually this will be driven through employment levels.
How can wholesalers best prepare for 2025?
Concentrate on their core proposition – customers, product ranges, pricing and service levels. Source well, spend wisely, keep the customers who are the most valuable to you.
Do you think online shopping will increase over the next year?
We are experiencing a rise in the number of membership enquiries from businesses that focus upon online shopping – not just through Amazon, but direct to consumers as well. There is obviously a growing market for this route to market, and it will be interesting to see if our traditional members spend more time and energy here.
Do consumers still love local shopping?
Yes – and this channel is well served by both independents and chains. The standards continue to improve and as long as the independents keep pace or drive the innovation in local retailing they should continue to prosper.
Will wholesalers need to make better use of technology to survive?
Technology has a key role to play in efficiency drives – through connected data streams to ensure smooth order to cash processes, and using data to establish what ranges to keep, discontinue and find.
Will wholesalers need to do more in the area of sustainability?
Everyone must do their bit for the environment, from individuals, communities, businesses and the Government. But the scale of improvement needs to be kept realistic and not micro managed by others.
Will wholesalers make more use of artificial intelligence, data analytics and inventory management?
Yes, and the biggest benefits will be in inventory management, customer spends, and range consolidation.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
Price pressures will undoubtedly have an impact, and when consumers do go out, they will want quality and experience – those providers who do not meet both might start to struggle.
Will healthy eating and wellness be even bigger trends in 2025?
This will continue, but products will not be immune to price pressures and perhaps some products or ranges may feel the effects of price increases more than others.
Costs to go up
Emma Senior, Managing Director at Sugro UK, says cost price increases will continue in the new year.
What do you think will be the biggest emerging trends in wholesaling in 2025?
We have seen an unprecedented amount of cost price increases in the last 18 months and I think they will unfortunately continue into 2025. Consolidation is also at the forefront of mind at the moment, with acquisitions on both the supplier and wholesaler side. Wholesalers may also need to consider consolidating more orders as minimum order quantities set by manufacturers, also continue to rise.
What will be the key categories to watch out for?
Trusted brands continue to do well when times are tough. Snacking is seen as an affordable treat for the family and is important for those consumers who are staying in more. Price mark packs will also play an important role, as consumers want to see a price they can afford.
How can wholesalers best prepare for 2025?
Wholesalers should be very focused on having the right range on offer, focusing on best sellers, with a high rate of sale. This will certainly aid their cash flow. We do not yet fully understand the impact of a Labour government, but the impending budget is sure to bring further changes, that will impact wholesaler costs, perhaps directly with a potential increase in business rates, minimum wage etc, but also the environment in which they serve. Wholesalers will need to keep abreast of new legislation and the impacts on their business.
Do you think online shopping will increase over the next year?
Although growth has slowed down since the pandemic, online is still projected to be on the increase. Wholesalers will also see that trend continuing from their own customers, with more and more retailers using online platforms, saving them very precious time.
Do consumers still love local shopping?
Absolutely! The data is still showing that convenience is still performing very strongly.
Growth in convenience is projected at just over 10% by 2027, according to Lumina intelligence. These are extremely strong numbers and show that retailers are still investing in their stores, offering top up services to entice consumers into their shops.
Will wholesalers need to make better use of technology to survive?
We are already seeing our Sugro members embracing new technology in their businesses and this is essential for them to remain ahead of the game, against the competition. Sugro pride themselves on being digitally advanced with our offering to members, whether that be through our digital app, whatsapp or open banking solutions, to name just a few.
Will wholesalers need to do more in the area of sustainability?
Wholesalers are all at different stages in their sustainability journey. Some are extremely advanced with full electric vehicles as an example, but others have very different businesses – smaller premises, renting vs owning and therefore have more restrictions and cost considerations. As a Buying Group, Sugro are supporting our members with information, invitations to webinars etc so they are able to build their knowledge and make choiceful decisions when it comes to their sustainability progression.
Will wholesalers make more use of artificial intelligence, data analytics and inventory management?
In time, I am sure our digitally minded wholesalers certainly will look at these in more detail, however, whilst cost pressures are on the increase, it is quite possibly further down the list of priorities. Getting the basics right, with the likes of online ordering will ensure that wholesalers are doing everything they can to stay in front and keep their businesses thriving. We are seeing TikTok shops becoming established and it’s certainly an exciting way for wholesalers to attract new direct consumers to their business.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
Eating out is certainly still seen as a treat and with pubs closing at an astonishing rate – 50 pubs/month in the first half of this year, you would definitely expect to see more in home consumption. However, the fast food industry is booming, with independent FTG outlets offering good quality food and a point of difference, this is certainly an area that wholesalers can focus on and maximise sales. Having the right range for those outlets will ensure that wholesalers can take full advantage of these new distribution points.
Will healthy eating and wellness be even bigger trends in 2025?
Manufacturers continue to respond to consumer and government demand, with HFSS compliant products and many snacks less than 100 calories. However, with cost at the forefront of every wholesaler and retailer’s mind, it is important that suppliers make these an affordable alternative.
More consolidation
Colin Smith, SWA chief executive, believes the biggest trend will be further consolidation within the wholesale marketplace.
Will wholesalers need to do more in the area of sustainability?
More wholesalers will invest in sustainability during 2025. Our members are doing fantastic work in this area by installing on-site renewables, investing in EV fleets, and taking measures to reduce waste. As we get closer to net-zero target dates set by governments, failing to start the journey to reduce the environmental impact of our businesses could prove risky.
What do you think will be the biggest emerging trends in wholesaling in 2025?
The biggest trend will be further consolidation within the wholesale marketplace.
While the channel is strong, it is under pressure, with growth plateauing and margin erosion, caused by stubbornly high prices, particularly with our input costs such as energy and labour, it’s not allowing businesses to rebuild cash reserves depleted during the pandemic, coupled by debt taken to sustain the businesses over that challenging time.
Add in the new and impending regulations facing the food and drink sector, particularly in Scotland, and we have a challenging 12 months ahead.
What will be the key categories to watch out for?
The single use vape ban will be the biggest to watch out for, and to see what consumers switch to within this category and whether the ban will alter consumers’ purchasing behaviours, particularly in the c-store channel – where they won’t necessarily need to purchase a vape as frequently, and how the retailer will adapt to this.
Christmas will be a significant test of MUP (minimum unit pricing) in Scotland and may confirm or appease our concerns on the pricing differential, especially on promotion, between England and Scotland influencing consumers to shop south of the Border for their alcohol.
Do you think online shopping will increase over the next year?
This will remain a growing trend especially within the foodservice channel, which is behind the retail channel. SWA affiliate members such as Orderlion are providing very effective integration app ordering systems for wholesalers and that allows the chef or outlet to order in a way that’s easy and comfortable for them.
Many wholesale members have joined forces with last-mile delivery platforms such as Deliveroo or Just Eat, giving the wholesaler and their customers access to new markets and ways of buying their goods. We could see an increase in consumers purchasing alcohol online, but general online grocery purchasing will also increase, current data would suggest. There could also be regional variations in this.
Do consumers still love local shopping?
Growth in grocery marketplace is coming from ‘local’ smaller store formats located in towns and villages across Scotland. Investment in local retailing has never been greater than in the past five years, and this continues as the multiples, struggling to maintain their strength and sales, are encroaching ever more into the small store formats to capture share from the independent retail channel.
Will wholesalers need to make better use of technology to survive?
Wholesalers are using technology to make their businesses more sustainable, through EV fleets, solar energy and bringing more automation into warehouse storing, picking and packing. With ever-increasing costs in energy and labour, technology is becoming an ever-cheaper alternative to filling labour shortages.
Will wholesalers make more use of artificial intelligence (AI), data analytics and inventory management?
Software and technology provides the data that allows businesses to make decisions, analyse their customers, and analyse their sales.
Coupling data with AI will be a game-changer. Businesses will be ahead of the curve by using AI that can scrape the market, analyse consumer purchasing trends in and marry that with data about where your customers are, what they buy, what products the wholesaler stocks versus what is happening in the marketplace now and in the future.
Will healthy eating and wellness be even bigger trends in 2025
Yes. Addressing obesity and diet-related diseases remains a key focus in public health and food systems discussions for both the Scottish and UK governments. This commitment is evident in ongoing initiatives aimed at improving public health by increasing access to healthier choices and tightening regulations.
AI will help
Jess Douglas, joint MD, The Wholesale Group, says artificial intelligence will make wholesaling more efficient.
What do you think will be the biggest emerging trends in wholesaling in 2025?
Artificial intelligence looks like it will be making wholesaling easier and more efficient in 2025. Whether within the sales, marketing, operations, logistics or finance functions, the rapid development and implementation of computer learning is set to revolutionise our lives, with wholesale no exception. If you are not looking at how AI can help your business, then it is very likely that you will very likely be left behind.
What will be the key categories to watch out for?
World foods – whether this is food to go, grocery or snacking, the trend for new tastes from around the globe looks set to continue.
How can wholesalers best prepare for 2025?
Be agile and innovative. Wholesalers have always been good at adapting to ever-evolving customer demand and this will be required more than ever over the next few years as the UK economy shows little sign of short-term growth.
Do you think online shopping will increase over the next year?
Among the younger demographic yes, but not at the same rate of growth we have seen during the past decade.
Do consumers still love local shopping?
Yes, more than ever. Whether this is for a top-up shop or food for tonight, as our lives become more complex and busy, the need for local shopping accelerates.
Will wholesalers need to make better use of technology to survive?
Definitely, AI is technology that shouldn’t be ignored. Digital is now a given for wholesalers as it is vital that all our systems communicate with each other and provide data and insight that can be used to future proof each and every wholesale business.
Will wholesalers need to do more in the area of sustainability?
Sustainability, CSR and ESG are now at the core of how big business is conducted and wholesale should be no exception. Not only is sustainability key to the consumer, businesses are now incentivised to lower carbon emissions via taxes such as EPR and Ulez. Tax on emissions will only ramp up as the UK looks to reach its carbon pledges.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
I don’t think so. We seem to be back to normal in terms of going out post-pandemic, as we have returned to socialising. However, the way we consume food and drink is changing with quick-serve restaurants, themed bars and street food looking to grow ahead of restaurants and pubs.
Will healthy eating and wellness be even bigger trends in 2025?
Yes, I believe so. Electrolytes seem to be a significant growth area currently. Natural energy via drinks or snacks allow consumers to remain focused and energised in a healthy way and may well overtake protein as the go-to product for those focused on health and fitness.
Comments are closed.