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Premiumisation: Customers Are Still Trading Up

Even when budgets feel tight, not every shopper trades down. In fact, plenty of convenience customers still pay more for the ‘better’ option, whether that’s a premium snack, a branded treat, or a nicer drink and meal for a Friday night in.

Not everyone spends more all the time, but many shoppers still choose premium products for specific moments. And for convenience retailers, those moments offer a meaningful margin opportunity.

Premiumisation: The ‘Little Treat’

Recent UK grocery analysis from Kantar shows branded grocery value growth outpacing own label in mid-2025 (6.1% vs 4.1% for that period), suggesting shoppers are still making room for brands, especially in categories like confectionery, soft drinks, and hot drinks[1].

Kantar also flags that premium own label continues to perform strongly, with sales up 11.5% in the same year.

In other words, value matters, but so does that feeling of a product being ‘worth it’.

Premiumisation in Convenience

Premium snacking

In convenience, shoppers often trade up through single-serve, better ingredients, bolder flavours and ’posh’ variants. Mintel’s latest snacks reporting still points to a market that’s recovering in volume and evolving in shopper expectations, which is exactly where premium lines can win[2].

Drinking less but better

Premiumisation sits neatly alongside moderation. Consumers aren’t necessarily cutting out alcohol or treats completely, they’re being more selective. NielsenIQ’s recent UK beverages commentary focuses on moderation reshaping baskets, with more shoppers mixing occasions across alcoholic and non-alcoholic choices[3].

Premium soft drinks and mixers

Premium soft drinks are a big part of the story too. NielsenIQ reports soft drinks and mixers reaching £4.7bn sales (12 months to mid-July 2025), with the main growth in segments like flavoured carbonates, juice and water[4].

For convenience, this supports a desire for more premium adult soft drinks, better mixers, functional drinks, and meal-deal upgrades.

How can retailers get the most out of premium without losing value shoppers?

Retailers tend to do best when premium is positioned as an option, not a replacement.

  • Good, better, best ladders on shelf (value, core, premium)
  • Clear premium occasion lines (treat, gifting, Friday night, post-gym)
  • Strong secondary siting (premium snacks near till, premium mixers near spirits)
  • Keep premium ranges tight (winners only), and rotate NPD seasonally

Premiumisation isn’t a straight-line trend. Some shoppers will trade down, some will trade up, and many will do both in the same week. For convenience retailers, the opportunity is to keep premium visible, easy to shop, and clearly worth the price – because when customers do decide to spend a bit more, they usually buy what’s right in front of them.


[1] Kantar: Brands bounce back as consumers swap meals out for little treats at home

[2] Mintel: UK Crisps, Savoury Snacks and Nuts Market Report 2025

[3] Nielson: How moderation is changing the UK beverage basket

[4] Nielson: Premium soft drinks in 2026: how moderation, premiumisation and discovery are redefining growth

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