Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Issues covered in this Report
Executive Summary
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- The market
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- Figure 1: Estimated total value of the butter and spreads market, IoI, NI and RoI, 2015-20
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- Figure 2: Market segmentation of the butter and spreads market, by segments, IoI, 2019
- Market factors
- Milk and butter prices stabilise
- Brexit casts uncertainty on exports
- Reduced sugar spreads can engage parents
- Impact of COVID-19 on butter and spreads
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- Figure 3: Estimated indexed value of the butter and spreads market, IoI, NI and RoI, 2015-25
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- Figure 4: Expected impact of COVID-19 on butter and butter spreads, short, medium and long term, 14th August
- Companies and innovations
- The consumer
- Butter continues to be a staple in Irish households
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- Figure 5: Types of butter and butter-like spreads used in the last three months, NI and RoI, April 2020
- Jam is the top sweet spread used
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- Figure 6: Types of sweet and savoury spreads used in the last three months, NI and RoI, April 2020
- Toast is the most common usage for butter and spreads
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- Figure 7: Usage of butter, butter-like spread and sweet/savoury spreads in the last three months, NI and RoI, April 2020
- Low fat content associated with healthy spreads
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- Figure 8: Factors consumers think would make a spread 'healthy', NI and RoI, April 2020
- Price and flavour prove to be most important when buying butter
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- Figure 9: Factors consumers noted were most important when buying butter/butter-like spreads, NI and RoI, April 2020
- Health claims in butter are worth paying for
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- Figure 10: Agreement with statements related to butter and spreads in relation to health, NI and RoI, April 2020
- Dairy industry is coming under scrutiny for its environmental impact
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- Figure 11: Agreement with statements related to butter and spreads, NI and RoI, April 2020
- What we think
The Impact of COVID-19 on Butter and Spreads
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- Short, medium and long-term impact on the industry
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- Figure 12: Expected impact of COVID-19 on butter and butter spreads, short, medium and long term, 14 August 2020
- Opportunities and threats
- More meals at home and packed lunches out of home
- Baking surge offers opportunities for sweet spreads to be used more
- The sustainability movement threatens the dairy category long term
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- Figure 13: How consumers view the environment since the COVID-19 outbreak (eg high or lower priority), IoI, May 2020
- Impact on the butter and spreads market
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- Figure 14: Estimated indexed value of the butter and spreads market, IoI, NI and RoI, 2015-25
- How the crisis will affect key consumer segments of butter and spreads
- Own-label likely to see a surge in demand as incomes tighten
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- Figure 15: Consumers who consider ‘price’ the most important factor when choosing butter and butter-like spreads, by affluency, NI and RoI, April 2020
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- Figure 16: New butter and sweet spreads products launched, by percentage split of own-label vs branded, UK and Ireland, 2007-11
- Own-label can thrive for baking purposes
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- Figure 17: Top three own-label food products bought in the last 12 months, NI and RoI, February 2012
- Butter and spreads can excel with home-grown claims during the pandemic and beyond
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- Figure 18: Consumers who agreed with the statement ‘I am shopping more from local businesses’, IoI, April-August 2020
- How a COVID-19 recession will reshape the butter and spreads sector
- COVID-19: Market context
The Market – What You Need to Know
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- COVID-19 is set to benefit the butter and spreads category
- Butter and spread market estimated to grow 4% in 2020
- Milk prices stabilise
- Butter shows little fluctuations in price
- Brexit casts uncertainty on exports
- Reduced sugar spreads move into mainstream
Market Size & Forecast
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- 4% growth estimated in 2020 due to lockdown
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- Figure 19: Estimated total value of the butter and spreads market, IoI, NI and RoI, 2015-25
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- Figure 20: Estimated indexed value of the butter and spreads market, IoI, NI and RoI, 2015-25
- Butter market to witness 4% growth in 2020
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- Figure 21: Estimated total value of the butter market, IoI, NI and RoI, 2015-25
- Butter-like spreads forecast for 3% growth
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- Figure 22: Estimated total value of the margarine and other butter-like blends market, IoI, NI and RoI, 2015-25
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- Figure 23: Total population, by age group, NI and RoI, 2019
- Sweet spreads set for 4.3% growth in 2020
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- Figure 24: Estimated total value of the sweet spreads market, IoI, NI and RoI, 2015-25
Market Drivers
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- Milk prices stabilise across Ireland
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- Figure 25: Manufacturing milk prices (including VAT), price £ per litre, UK & NI, July 19-June 20
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- Figure 26: Manufacturing milk prices (including VAT), price € per litre, RoI, July 19-June 20
- Butter prices stabilise while spreads see prices fluctuate
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- Figure 27: Price index for butter, margarine and other vegetable fats and jams, marmalades and honey, UK (including NI), Jun 18-Jun 20
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- Figure 28: Price index for butter, margarine and other vegetable fats and jams, marmalades and honey, RoI, Jun 18-Jun 20
- Butter is one of Ireland’s biggest exports
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- Figure 29: Estimated annual value of dairy exports, RoI, 2018-19
- Sugar crackdown forces spreads to innovate
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- Figure 30: Top five ingredients in food and drink consumers are concerned about, NI and RoI, November 2019
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- Figure 31: Consumers who are concerned with sugar, saturated fat and salt, by age, NI and RoI,
Companies and Innovations - What You Need to Know
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- Launch activity in branded butter and margarine surpasses own label
- Sweet spreads tap into sustainability trend
- COVID-19 has prompted greater community engagement
Who’s Innovating?
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- Sweet spread launches outperform butter
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- Figure 32: New products launched in butter, margarine and other blends and sweet spreads, UK and Ireland, 2016-20*
- Ethical claims on the rise in butter
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- Figure 33: New butter and margarine/other butter blends product launches, by selected top five claims, UK and Ireland, 2016-20*
- Branded outperforms own-label in butter
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- Figure 34: New product launches in butter and margarines/other blends, by branded vs own label, UK and Ireland, 2016-20*
- Sweet spread launches on the rise
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- Figure 35: New sweet spread product launches, by category, UK and Ireland, 2016-20*
- Trending claims in sweet spreads
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- Figure 36: New sweet spread product launches, by selected top eight claims, UK and Ireland, 2016-2020*
- Sustainable palm oil sees growth in sweet spreads
Companies and Brands
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- Arla
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Avonmore (Glanbia)
- Key facts
- Product portfolio
- Recent developments
- Benecol
- Key facts
- Product portfolio
- Recent developments
- Connacht Gold
- Key facts
- Product portfolio
- Recent developments
- Dale Farm
- Key facts
- Product portfolio
- Recent developments
- Ferrero
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Kerry Group
- Key facts
- Product portfolio
- Recent developments
- Ornua
- Key facts
- Product portfolio
- Recent developments
- Upfield
- Key facts
- Product portfolio
- Recent developments
- Valeo Foods
- Key facts
- Product portfolio
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- Figure 37: Rowse full product portfolio, by products and strength, 2020
- Brand NPD
- Recent developments
- Sun-Pat
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Hartley’s
- Key facts
- Product portfolio
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- Figure 38: Hartley’s full product portfolio, including best jam, smooth jam and food service, 2020.
- Recent developments
The Consumer – What You Need to Know
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- Butter and jam continue to be staples in Irish households
- Toast is the most common pairing with butter and spreads
- Low fat content associated with healthy spreads
- Price is the most important factor when buying butter
- Health claims are worth paying a premium
Types of Butter and Butter-like Spreads
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- Spreadable butter tops preferences but block butter is a close second
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- Figure 39: Types of butter and butter-like spreads used in the last three months, NI and RoI, April 2020
- Parents opt for spreadable butter
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- Figure 40: Consumers who have used spreadable butter in the last three months, by age of child/ren, NI and RoI, April 2020
- Butter eaten less by younger consumers
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- Figure 41: Consumers who have used butter in the last three months, by age, NI and RoI, April 2020
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- Figure 42: Consumers who agreed that ‘country of origin’ is most important when choosing butter or butter-like spreads, by age, NI and RoI, April 2020
Types of Sweet and Savoury Spreads
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- Jam is the most popular spread
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- Figure 43: Types of sweet and savoury spreads used in the last three months, NI and RoI, April 2020
- Families are strong users of jam
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- Figure 44: Consumers who have used jam in the last three months, by age of child/ren, NI and RoI, April 2020
- Younger consumers prefer chocolate spread
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- Figure 45: Consumers who have used chocolate spread in the last three months, by age, NI and RoI, April 2020
Butter and Spreads Usage
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- On toast is the top usage of butter and spreads
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- Figure 46: Usage of butter, butter-like spread and sweet/savoury spreads in the last three months, NI and RoI, April 2020
- Block butter used most on bread
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- Figure 47: Usage of block butter in the last three months, NI and RoI, April 2020
- Spreadable butter eaten most on toast
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- Figure 48: Usage of spreadable butter/butter-like spreads in the last three months, NI and RoI, April 2020
- Sweet spreads tend to be eaten most with bread
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- Figure 49: Usage of sweet and savoury spreads in the last three months, NI and RoI, April 2020
- Figure 50: Consumers who have used sweet/savoury spread on toast/bread in the last three months, NI and RoI, April 2020
Factors Associated with Healthy Spreads
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- Healthy spreads driven by fat content and natural ingredients
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- Figure 51: Factors consumers think would make a spread 'healthy', NI and RoI, April 2020
- Low fat and heart health important to seniors
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- Figure 52: Consumers who associated a healthy spread with ‘low saturated fat’ and ‘helps with heart health’ claims, NI and RoI, April 2020
- All-natural ingredient claims hold strong appeal for women
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- Figure 53: Consumers who associated a healthy spread with ‘all-natural ingredients’, NI and RoI, April 2020
Most Important Factors in Butter
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- Half of consumers noted price as the most important factor
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- Figure 54: Factors consumers noted were most important when buying butter/butter-like spreads, NI and RoI, April 2020
- Easy to spread holds stronger appeal among mature consumers
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- Figure 55: Consumer who consider ‘easy to spread’ the most important factor when choosing butter and butter-like spreads, NI and RoI, April 2020
- Flavour and price go hand-in-hand
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- Figure 56: Consumer who consider ‘price’ and ‘flavour’ the most important factors when choosing butter and butter-like spreads, NI and RoI, April 2020
- Own-label spreads could see a resurgence due to COVID-19
Health in Butter and Spreads
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- Additives in butter and spreads remain a concern
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- Figure 57: Agreement with statements related to butter and spreads in relation to health, NI and RoI, April 2020
- Low sugar and salt demanded in butter and spreads
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- Figure 58: agreement with the statement ‘I am worried about the salt content in them’ and ‘I am worried about the sugar content in them ‘, NI and RoI, April 2020
- Millennials are more likely to pay for health boosts
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- Figure 59: Consumers agreement with the statement ‘I think it's worth paying more for those with health claims (eg good for heart or bone health)’ by age, NI and RoI, April 2020
Attitudes Towards Butter and Spreads
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- Block butter seen as more natural
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- Figure 60: Agreement with statements related to butter and spreads, NI and RoI, April 2020
- Taste more important for mature consumers
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- Figure 61: Consumer agreement with the statement ‘I think taste is more important than anything else for butters/ butter-like spreads’ by age, NI and RoI, April 2020
- Younger consumers more concerned about the environment
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- Figure 62: Consumers who agreed with the statement ‘I worry about the impact dairy production has on the environment’, by age, NI and RoI, April 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Generational cohort definitions
- Abbreviations
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