Table of Contents
Overview
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- Key issues covered in this Report
- COVID-19: Market context
- Economic and other assumptions
- Products covered in this Report
Executive Summary
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- Impact of COVID-19 on processed poultry and red meat main meal components
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- Figure 1: Short, medium and long-term impact of COVID-19 on processed poultry and red meat main meal components, 13 January 2021
- The market
- Inflation and 2020 sales boom drive category growth over 2015-20
- Some inflation plus diminishing volume sales predicted for 2020-25
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- Figure 2: Retail value sales of processed poultry and red meat main meal components, 2015-25 (prepared on 24 November 2020)
- Government health initiatives necessitate action from companies
- Need for companies to win over younger consumers
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- Figure 3: Limiting/reducing meat/poultry consumption and interest in doing so in future, by age, August 2020
- Companies and brands
- Own-label extends its lead in multiple segments in 2020
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- Figure 4: Leading brands’ sales in the UK retail frozen meat/poultry/meat-free meal components market, 2018/19 and 2019/20
- Scope for further innovation in healthier and eco-friendly options
- Brands target at-home occasions in their 2020 advertising
- The consumer
- Usage of processed meat products is near-universal
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- Figure 5: Usage of processed meat and poultry products, by broad type, August 2020
- Lunch is an underutilised opportunity for processed meat products
- Local sourcing and high animal welfare claims can help to add value
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- Figure 6: Attributes deemed worth paying more for in a processed meat product, August 2020
- Recipe suggestions should help to drive usage frequency
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- Figure 7: Behaviours relating to processed meat products, August 2020
- Need for companies to reassure consumers on their safety and quality standards
- Mine the emotional associations around meals with processed meat products
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- Figure 8: Attitudes towards processed meat products, August 2020
Issues and Insights
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- Offering recipe suggestions would help to drive usage frequency
- Premium products have the chance to do well amid income squeeze as alternative to eating out
- Focus on transparency and community support can help butchers/farm shops to maintain their sales gains from the pandemic
The Market – Key Takeaways
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- Inflation and 2020 sales boom drive category growth from 2015-20
- Some inflation plus diminishing volume sales predicted for 2020-25
- Government health initiatives necessitate action from companies
- Need for companies to win over younger consumers
Market Size and Forecast
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- Pandemic’s economic aftermath set to benefit processed meat products
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- Figure 9: Short, medium and long-term impact of COVID-19 on processed poultry and red meat main meal components, 13 January 2021
- Inflation and 2020 volume sales uplift drive value sales growth over 2015-20
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- Figure 10: Retail value sales of processed poultry and red meat main meal components, 2015-25 (prepared on 24 November 2020)
- Further inflation and declining volume sales expected for 2021-25
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- Figure 11: Retail value sales of processed poultry and red meat main meal components, 2015-25 (prepared on 24 November 2020)
- Market drivers and assumptions
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- Figure 12: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 27 November 2020)
- Learnings from the last recession
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- Figure 13: Growth in retail value sales of meat and poultry^, 2008-12
- Forecast methodology
Market Segmentation
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- Lockdown and hot summer boost sales of red meat meal components in 2020
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- Figure 14: Value retail sales of red meat meal components, by segment, 2015-20
- Coated poultry sees further sales growth in 2020
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- Figure 15: Value retail sales of frozen and chilled coated poultry, 2015-20
- Additional segmentation
- Rise in homeworking boosts cooked sliced meats
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- Figure 16: Value retail sales of cooked sliced meat/poultry, 2015-20
- Consumer stockpiling drives a revival in the canned meats segment
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- Figure 17: Value retail sales of canned meat, 2015-20
Market Drivers
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- January 2021 lockdowns to further support processed meat sales
- Multiple factors affect meat prices
- Supply chain disruptions lead to price volatility in 2020
- Retailer price competition to curb post-Brexit price inflation within the category
- The UK’s new international trade relations are pivotal for the category
- Government takes action on health
- Restrictions on HFSS foods promotions impact sausages and bacon
- Government sets new salt reduction targets for 2024
- Environmental impact of meat production continues to attract attention
- Need for companies to win over younger consumers to sustain meat eating long term
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- Figure 18: Limiting/reducing meat/poultry consumption and interest in doing so in future, by age, August 2020
- Meat substitutes offer stiff competition for meat products
Companies and Brands – Key Takeaways
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- Own-label extends its lead in multiple segments in 2020
- Scope for further innovation in healthier and eco-friendly options
- Brands target at-home occasions in their 2020 advertising
Market Share
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- Own-label dominates sales in chilled raw products
- Own-label surges forward amid frozen foods boom
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- Figure 19: Leading brands’ sales and shares in the UK retail frozen meat/poultry/meat-free meal components market, 2017/18-2019/20
- Barbecue summer boosts chilled cooked sausages
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- Figure 20: Leading brands’ sales and shares in the UK retail chilled cooked sausages market, 2017/18-2019/20
- Princes and own-label benefit from canned meats revival
- Nostalgia value boosts Spam
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- Figure 21: Leading brands’ sales and shares in the UK retail cold canned meats market, 2017/18-2019/20
Launch Activity and Innovation
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- Restaurant chains cross over into retail
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- Figure 22: Examples of processed meat product launches from restaurant brands, 2020
- Scope for expansion in healthier variants
- Trend in premium low-fat products continues over 2019-20
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- Figure 23: Examples of own-label processed meat launches combining L/N/R fat and premium claims, 2020
- Figure 24: ‘We Hae Meat’ Skinny Katsu Burgers, 2020
- Bernard Matthews revives the Turkey Twizzler
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- Figure 25: Bernard Matthews revives Turkey Twizzlers, 2020
- Sainsbury’s redesigns the Be Good to Yourself range with stronger health emphasis
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- Figure 26: Sainsbury’s Be Good to Yourself British Finely Sliced Ham – Before and After, 2015 and 2020
- Opportunity for premium products to do well amid income squeeze
- M&S launches its ‘best ever’ Chicken Kiev
- Ramsay of Scotland emphasises heritage and expertise
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- Figure 27: Examples of premium processed meat launches, 2020
- Seasonal launches focus on summer and Christmas occasions
- Retailers explore international flavours in their summer barbecue launches
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- Figure 28: Examples of own-label seasonal summer barbecue processed meat product launches, 2020
- Own-label Christmas 2020 launches draw inspiration from foodservice
- The Black Farmer marks Black History Month with limited edition sausages
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- Figure 29: The Black Farmer marks Black History Month with limited edition sausages, 2020
- Iceland celebrates its 50th anniversary
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- Figure 30: Iceland Chicken Cordon Bleu, 2020
- Environmentally friendly packaging is the most widespread ethical claim
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- Figure 31: New product launches in the meat and poultry^ category, by ethical claims, 2016-20 (sorted by 2019)
- Companies explore sustainable packaging options
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- Figure 32: Examples of unprocessed/processed meat/poultry product launches with sustainable packaging claims, 2020
- Animal welfare claims feature on 23% of launches in January-October 2020
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- Figure 33: Examples of processed and unprocessed meat/poultry launches giving tangible details of their animal welfare policies, 2020
Advertising and Marketing Activity
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- Birds Eye leads adspend, despite cutting back in 2020
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- Figure 34: Total above-the-line, online display and direct mail advertising expenditure on processed poultry and red meat products*, by leading advertisers, 2019 and 2020 (sorted by total over 2019 and 2020)
- Kerry supports Richmond sausages
- Morrisons and Heck increase spend
- Morrisons pushes British burgers
- Heck launches first TV campaign
- Nielsen Ad Intel coverage
The Consumer – Key Takeaways
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- Usage of processed meat products is near-universal
- Lunch is an underutilised opportunity for processed meat products
- Local sourcing and high animal welfare claims can help to add value
- Recipe suggestions should help to drive usage frequency
- Need for companies to reassure consumers on their safety and quality standards
- Mine the emotional associations around meals with processed meat products
Impact of COVID-19 on Consumer Behaviour
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- Users’ reports of unchanged habits are at odds with the sales figures
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- Figure 35: Changes in usage of processed meat products since the COVID-19 outbreak, August 2020
- Health concerns motivate cutbacks in raw products among some users…
- …but financial circumstances have little effect
- Under-35s and parents are the most likely to report increased usage
- Rise in home cooking boosts the category
- Restrictions on the hospitality sector and consumers curbing visits boost retail products
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- Figure 36: Feeling comfortable about going to restaurants/bars indoors, 25 June-1 October 2020
- Changes in shopping behaviours offer opportunities for the category
- Shoppers’ efforts to limit time spent in-store support sales of processed meat meal components
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- Figure 37: Limiting time in-store and shopping more online and from local businesses since the start of the COVID-19 outbreak, 14 May-9 November 2020
- Growth in online shopping provides opportunity for meat box delivery services
- Focus on supporting the local community should help independent butchers to build on their sales gains
- Consumers’ renewed health focus is a challenge to the category
- Environmental claims can help to drive consumer engagement
Usage of Processed Meat and Poultry Products
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- Usage of processed meat products is near-universal
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- Figure 38: Usage of raw processed meat/poultry products, by type, August 2020
- Usage of raw processed products stands at 89%
- Sausages and bacon older bias, meatballs skew younger
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- Figure 39: Usage of raw sausages and bacon, by age, August 2020
- Nine in 10 eat cooked/ready-to-eat processed meat products
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- Figure 40: Usage of cooked/ready-to-eat meat/poultry products, by type, August 2020
- Cooked sliced meats have an older bias, cooked meat pieces do better among the young
Usage Occasions for Selected Types of Processed Meat Products
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- Sausages’ varied usage occasions underpin their high usage
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- Figure 41: Usage occasions for selected types of processed meat and poultry products, August 2020
- Sausages and bacon are more likely to be chosen for weekend than weekday breakfasts
- Present at-home cooked breakfasts as a treat to better compete with foodservice
- Promote processed meat products as quick and convenient lunch options
Attributes Deemed worth Paying More for in a Processed Meat Product
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- Local sourcing appeals particularly to over-65s
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- Figure 42: Attributes deemed worth paying more for in a processed meat product, August 2020
- Interest in local sourcing offers opportunities for independent butchers…
- …and for meat box delivery services
- A third of buyers would pay more for high animal welfare
- Need for high-welfare producers to make their ethical standards more tangible
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- Figure 43: International examples of processed meat launches giving tangible details of animal welfare policies, 2020
- A third of buyers are interested in high meat content
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- Figure 44: Lidl Deluxe Outdoor Bred British Pork Sausages, 2020
Behaviours Relating to Processed Meat Products
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- Recipe suggestions have wide appeal
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- Figure 45: Behaviours relating to processed meat products, August 2020
- On-pack recipe booklets and cross-promotions with other products can help to publicise suggestions
- Take advantage of the growth in online retail
- Encourage people to share photos of dishes online
- Need for companies to reassure the public about their safety and quality standards post-Brexit
- Calling out British origins can give a reassurance of quality
- Consumers’ desire for transparency offers opportunities for independent butchers…
- ….and potential to revive the fortunes of in-store butchers’ counters
- A third of users claim to make their own processed meat products
- Mix-and-match deals could allow consumers to take advantage of this trend
Attitudes towards Processed Meat Products
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- Meals with processed meat products are widely seen as comforting
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- Figure 46: Attitudes towards processed meat products, August 2020
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- Figure 47: Twitter post by Heck promoting sausage & mash as a comforting meal option, 2020
- Pushing the emotional angle can help to sidestep health concerns
- Opportunities for premium products to succeed amid income squeeze as alternative to eating out
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Share
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- Figure 48: Leading brand owners’ sales and shares in the UK frozen meat/poultry/meat-free meal components market, 2017/18-2019/20
- Figure 49: Leading brands’ sales and shares in the UK retail chilled cooked sausages market, 2017/18-2019/20
- Figure 50: Leading brand owners’ sales and shares in the UK retail cold canned meats market, 2017/18-2019/20
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