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Processed Poultry and Red Meat Main Meal Components - UK - November 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Inflation drives growth in the market from 2013-18
Inflation and negligible volume sales growth expected for 2018-23
Figure 1: UK retail value sales of processed poultry and red meat, 2013-23
Hot summer of 2018 boosts red meat products
Health and environmental concerns drive consumer cutbacks
Companies and brands
NPD allows own-label to increase its lead on frozen
Figure 2: Leading brands’ sales in the UK frozen meat/poultry/meat-free meal components market, 2017/18*
Added vegetables trend continues
Further activity in poultry sausages and burgers
Advertising spend rises substantially in 2017
Birds Eye Iglo leads on advertising in 2017
The consumer
Nine in 10 eat processed meat or poultry as part of main meals
Figure 3: Usage of processed poultry and red meat main meal components, July 2018
Seven in 10 buyers are influenced by low price or promotions
Figure 4: Processed poultry and red meat buying factors, July 2018
No unnecessary antibiotics and eco-friendly concepts spark interest
Figure 5: Consumer willingness to pay more for new product concepts in processed meat, July 2018
Premium products can benefit from a ‘less but better’ mentality
Figure 6: Behaviours relating to processed poultry and red meat, July 2018
Clean label products have wide appeal
Figure 7: Attitudes towards processed poultry and red meat, July 2018
What we think
ISSUES AND INSIGHTS
Multiple avenues for companies to address health concerns
The facts
The implications
Environmentally friendly concepts spark interest
The facts
The implications
Premium products can benefit from a ‘less but better’ mentality
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Inflation drives growth in the market 2013-18
Inflation and negligible volume sales growth expected for 2018-23
Hot summer of 2018 boosts red meat products
Health and environmental concerns drive consumer cutbacks
MARKET SIZE AND FORECAST
Inflation drives growth in the market 2013-18
Inflation and negligible volume sales growth expected for 2018-23
Figure 8: UK retail value sales of processed poultry and red meat, 2013-23
Figure 9: UK retail value sales of processed poultry and red meat, 2013-23
Forecast methodology
MARKET SEGMENTATION
Hot summer of 2018 boosts red meat products
Figure 10: Value sales of red meat meal components, by segment, 2013-18
Further inflation expected for 2018-23
Meat reduction trend to continue to hinder volume sales
Environmental concerns could have a slow-burn effect
Figure 11: UK retail value sales of red meat meal components, 2013-23
Figure 12: UK retail value sales of red meat meal components, 2013-23
NPD boosts processed poultry sales in 2018
Inflation and slowing volume sales predicted for 2018-23
Consumer suspicions over heavily processed foods remain a barrier to uptake
Figure 13: UK retail value sales of processed poultry, 2013-23
Figure 14: UK retail value sales of processed poultry, 2013-23
MARKET DRIVERS
Multiple factors affect meat prices
Pound’s depreciation drives up wholesale prices
Further inflation on the cards for 2018/19
Uncertainty hangs over future household finances
Meat reduction trend continues
Four in 10 have cut back on meat for health reasons
Media reports on meat’s environmental impact prompt consumer cutbacks
Retailers up the competition from meat-free
Public focus on plastic waste underlines the need for packaging innovation
Livestock industry makes progress on antibiotics reduction
World foods trend sets British dishes a challenge to stay on the menu
Heatwave boosts sales of red meat meal components
Figure 15: Sunshine hours in the UK, by month, 2013-18
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
NPD allows own-label to increase its lead on frozen
Added vegetables trend continues
Further activity in poultry sausages and burgers
Advertising spend rises substantially in 2017
Birds Eye Iglo leads on advertising in 2017
MARKET SHARE
Own-label continues to dominate in chilled
NPD helps own-label to increase its lead in frozen
Figure 16: Leading brands’ sales and shares in the UK frozen meat/poultry/meat-free meal components market, 2015/16-2017/18
Figure 17: Leading manufacturers’ sales and shares in the UK frozen meat/poultry/meat-free meal components market, 2015/16-2017/18
Birds Eye maintains its leading position
Vegetarian brands grow
Cooked sausages post lacklustre sales performance
Morliny benefits from playing up its Polish roots
Figure 18: Leading brands’ sales and shares in the UK retail chilled cooked sausages market, 2015/16-2017/18
Figure 19: Leading manufacturers’ sales and shares in the UK retail chilled cooked sausages market, 2015/16-2017/18
LAUNCH ACTIVITY AND INNOVATION
Various brands launch reduced fat variants
Richmond unveils chicken sausages
Smaller brands and retailers launch premium products
Figure 20: Examples of L/N/R fat sausages, 2018
Picard extends its organic burgers onto the UK market
Added vegetables trend continues
Iceland looks to appeal to parents with added vegetable chicken nuggets
Figure 21: Examples of processed meat/poultry products with added vegetables, 2018
Brands and retailers launch nitrite-free bacon
Figure 22: Example of nitrite-free bacon, 2018
Further activity in poultry sausages and burgers
Aldi chicken sausages spark controversy
Waitrose adds turkey burgers
Figure 23: Examples of poultry sausages/burgers, 2018
Premium own-label burgers draw inspiration from foodservice
Retailers explore unusual toppings
Figure 24: Examples of premium own-label burgers inspired by foodservice trends, 2018
Waitrose emulates French bistros with steak haché burgers
Exploring international flavours
Figure 25: Examples of processed poultry products with international flavours, 2018
ABP links with Warner Bros on children’s range
Scope for expansion in children’s products
ADVERTISING AND MARKETING ACTIVITY
Substantial rise in advertising spend in 2017
Figure 26: Total above-the-line, online display and direct mail advertising expenditure on processed poultry and red meat meal components, 2014-18 (sorted by 2017)
Birds Eye Iglo leads on advertising in 2017
Chicken Dippers portrayed as adding excitement to family mealtimes
Kerry continues its local hero-themed adverts for Richmond
‘Nation’s favourites’ campaign celebrates ordinary people
Radio adverts put the focus on family time
Various brands use social media to make recipe suggestions
Retailers’ summer campaigns put the spotlight on premium products
Iceland links premium products with victory
M&S promotes the expertise used to create its ‘best-ever burger’…
…and raises the stakes with its traceability focus
Spar looks to harness the power of peer recommendations
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Nine in 10 eat processed meat or poultry as part of main meals
Seven in 10 buyers are influenced by low price or promotions
No unnecessary antibiotics and eco-friendly concepts spark interest
Premium products can benefit from a ‘less but better’ mentality
Clean label products have wide appeal
USAGE OF PROCESSED POULTRY AND RED MEAT MAIN MEAL COMPONENTS
Nine in 10 eat processed meat or poultry as part of main meals
Sausages and burgers cooked from raw have higher usage than pre-cooked versions
Figure 27: Usage of processed poultry and red meat main meal components, July 2018
Men and families are key users of processed meat
Families are key users of processed products
Financial situation makes no difference to usage
Under-35s are more likely to use pre-cooked products
Over six in 10 eat three or more processed meat types
Figure 28: Repertoire of processed meat/poultry meal components eaten, July 2018
PROCESSED POULTRY AND RED MEAT BUYING FACTORS
Seven in 10 buyers are influenced by low price or promotions
Various selling points can appeal, other than price
Figure 29: Processed poultry and red meat buying factors, July 2018
High meat content is valued by many
Makers of high meat content products will need to emphasise this on-pack
Opportunities for clean label high meat content products
Need for lower meat content products to reassure consumers on ingredients
A quarter of buyers are swayed by high animal welfare
Animal welfare claims are rare in processed meat
Smaller brands look to link high welfare with improved taste
Figure 30: Examples of unprocessed meat/poultry products linking high welfare with improved taste, 2018
Tangible statements on animal welfare can help companies to add value
Women and over-55s are more likely to be influenced by animal welfare
CONSUMER WILLINGNESS TO PAY MORE FOR NEW PRODUCT CONCEPTS IN PROCESSED MEAT/POULTRY
No unnecessary antibiotics guarantees appeal to a third
Figure 31: Consumer willingness to pay more for new product concepts in processed meat/poultry, July 2018
No unnecessary antibiotics guarantees appeal particularly to the health-conscious…
…and to those concerned about animal welfare
Niche brands highlight their minimal antibiotics policies
US examples can provide cues
Figure 32: International examples of processed meat/poultry products making no antibiotics and animal welfare claims, 2018
Environmentally friendly concepts appeal especially to under-35s
A third of users have cut back on processed meat for environmental reasons
Eco-friendly products should help to address consumers’ environmental concerns
International examples provide cues for UK operators
Figure 33: International examples of processed meat products with environmentally friendly packaging, 2017-18
BEHAVIOURS RELATING TO PROCESSED POULTRY AND RED MEAT MEAL COMPONENTS
Premium products can benefit from a ‘less but better’ mentality
Figure 34: Behaviours relating to processed poultry and red meat, July 2018
Various options for companies to signal premium status
Consumer expectations of innovation from premium products sets task for companies
Recipe suggestions spark widespread interest
Encouraging use in recipes would help companies to tap into the world foods trend
Cross-promotions and in-store positioning would encourage use in cooking
Four in 10 users have cut back on processed meat for health reasons
Three in 10 restrict processed meat to certain days of the week
Opportunities for products replacing red meat with poultry
Products with added vegetables attract interest but meet with mixed sales results
ATTITUDES TOWARDS PROCESSED POULTRY AND RED MEAT MEAL COMPONENTS 
Clean label products have wide appeal
Clean label products would help to improve the image of breaded/battered products
Figure 35: Attitudes towards processed poultry and red meat, July 2018
Premium burgers offer considerable competition to restaurants
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 36: Forecast of UK retail value sales of processed poultry and red meat meal components, best- and worst-case scenarios, 2018-23
Figure 37: Forecast of UK retail value sales of red meat meal components, best- and worst-case scenarios, 2018-23
Figure 38: Forecast of UK retail value sales of processed poultry, best- and worst-case scenarios, 2018-23
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 39: New product launches in the UK unprocessed/ processed meat and poultry market, by top 10 claims, 2014-18 (sorted by 2017)

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