Table of Contents
Issues in the Market
Market in Brief
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- Economy
- Impact of the major grocers
- The influence of the health trend
- Consumers are buying more premium
- So, what next
The Economy
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- Figure 1: PDI and consumer expenditure, 2001-06
- Growing number of AB consumers
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- Figure 2: Changes in socio-economic status, by gender, 2001-06
- Future economic prospects
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- Figure 3: Trends in PDI and consumer expenditure, 2001-11
- Greater affluence…for some
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- Figure 4: Trends in the adult population by socio-economic group, 2001-11
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Multiple Retailers
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- Major grocers dominate the sector
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- Figure 5: Sales by food retailers, 2001-06
- Structure of the grocery market
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- Figure 6: Trends in market share by retailer type, 2001-06
- Growth of private label
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- Figure 7: Retailer brand coverage
- Own label premium is the first step…
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- Figure 8: Importance of own label ranges to shoppers, May 2006
- What does the future hold for the major grocers
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- Figure 9: Food retailers’ sales, 2001-11
- Farmers markets vs the grocers
- Future for own label
- Premium brands
- COD – cheapest on display
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- Figure 10: Tesco Value lines, 1993-2006
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- Figure 11: UK retail sales of cheapest on display own-label food and drink, 2001-06
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- Figure 12: Number of cheapest on display own-label lines by retailer, July 2006
- Breakdown of OL foods
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- Figure 13: UK retail sales of the own-label food and drink ranges, 2001-06
- Performance by category
- Chilled foods
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- Figure 14: Estimated own label penetration by selected chilled packaged foods by value, 2002-06
- Figure 15: Structure of selected chilled packaged foods markets, 2006
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- Figure 16: Sales value growth in selected markets, 2005 v 2006
- Ambient foods
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- Figure 17: Estimated own label penetration by selected ambient packaged grocery markets, by value, 2002-06
- Figure 18: Structure of selected ambient packaged foods markets, 2006
- Bread sales driven by premiumisation
- Biscuits
- Soups and cooking sauces
- Frozen foods
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- Figure 19: Estimated own label penetration by selected frozen foods markets, by value, 2002-06
- Figure 20: Structure of selected frozen foods markets, 2006
- The exception to the trend
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- Figure 21: Premium/economy sales of ice cream
- Renaissance in frozen foods?
- Others are jumping on the bandwagon
New Product Development
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- High profile for premium products
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- Figure 22: Number of new products by positioning claims, 2001-06
- Rate of progress slowing
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- Figure 23: Number of new products with premium and indulgent claims, 2001-06
- Economy products
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- Figure 24: Number of economy new products, 2001-06
- Restricted focus for new premium products
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- Figure 25: Number of new products with premium and indulgent claims by category, 2001-06
- Figure 26: New product claims by category, 2006
- Latest regulatory investigation
- Below cost selling
- Price flexing
- Future pricing developments
- Pricing strategies
- EDLP (everyday low pricing)
- Below cost selling
- Flexible pricing strategy
Healthy Eating
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- Figure 27: Agreement with lifestyle statements about diet and health, 2002-06
- More sophisticated approach to healthy eating
- Greater affluence
- Salt reduction
- Food labelling
- Changing attitudes towards food types
- Biscuits
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- Figure 28: Percentage change in sales figures, 2005-06
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Functional Foods
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- Figure 29: UK retail value sales of 'healthy' yogurt, by type, 2002-06
- Functional foods for breakfast
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- Figure 30: Examples of other leading brands, functional ingredients and basic health claims, 2006
- Discrepancies in pricing
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- Figure 31: Typical price differentials on functional foods v standard brands and own label
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Environmental/Ethical
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- Organic growth
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- Figure 32: UK retail sales of organic food, by type and value, 2002-06
- Figure 33: Agreement with the statement “It’s worth paying more for organic food”, 2001-05
- The future
- Food miles
- Farmers markets on the up
- Grocers jump on the bandwagon
- Supply is difficult, but it can be done
- Fairtrade
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- Figure 34: UK value sales of Fairtrade certified products*, 2002-06
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- Figure 35: Agreement with the statement ‘I buy Fairtrade products when available’, 2003-07
- Grocers are leading the way to a Fairtrade future
- But manufacturers are not far behind
- What does the future hold?
The Rise of the ‘Foodie’
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- Increased media coverage
- Celebrity chefs
- Eating out
- Increased appreciation of foreign foods
Consumer – Purchasing Behaviour
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- Figure 36: Products purchased in different food categories
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- Figure 37: Propensity to buy premium foods compared to two years ago, June 2007
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- Figure 38: Propensity to buy economy food items in past two years, June 2007
- Consumer – purchasing frequency
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- Figure 39: Frequency of purchase specific food types, June 2007
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- Figure 40: Attitudes towards buying food, June 2007
- So, who thinks what?
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Consumer Typologies
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- Consumer groups
- Posh Noshers (21% of Internet users)
- Who are they?
- Premium foods galore….
- So, what next?
- Econophobes (44% of Internet users)
- Who are they?
- So, what next
- Rangers (13% of Internet users)
- Who are they?
- Downmarkets (21% of Internet users)
- Who are they?
Appendix
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- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Consumer attitudes
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- Figure 41: Agreement with selected lifestyle statements, by demographic sub-group, 2007
- Health
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- Figure 42: Health types
- Figure 43: Health types by demographic profile
- Propensity to buy premium/economy foods
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- Figure 44: Propensity to buy premium/economy foods
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- Figure 45: Propensity to buy premium/economy foods, by demographic sub-group, 2007
- Consumer groups
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- Figure 46: Cluster groups, by demographic sub-group, 2007
- Figure 47: Cluster groups by grpcers
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- Figure 48: Cluster groups by proportion of spend in premium/standard/economy
- Figure 49: Cluster groups by propensity to buy premium/economy/standard food more or less than two years ago
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- Figure 50: Index of premium/economy/standard food usage
- Figure 51: Type of products purchased by demographic profile – crisps and snacks
- Figure 52: Type of products purchased – breakfast cereals
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- Figure 53: Type of products purchased by demographic profile – breakfast cereals
- Figure 54: Type of products purchased – chocolate
- Figure 55: Type of products purchased by demographic profile- chocolate
- Figure 56: Type of products purchased – meat
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- Figure 57: Type of products purchased by demographic profile – meat
- Figure 58: Type of products purchased – ready meals
- Figure 59: Type of products purchased by demographic profile – ready meals
- Figure 60: Type of products purchased – desserts
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- Figure 61: Type of products purchased by demographic profile – desserts
- Figure 62: Type of products purchased by demographic profile – vegetables
- Figure 63: Type of products purchased by demographic profile – vegetables
- Figure 64: Type of products purchased – yogurts
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- Figure 65: Type of products purchased by demographic profile- yogurts
- Figure 66: Type of products purchased – bread
- Figure 67: Type of products purchased by demographic profile – bread
- Figure 68: Type of products purchased – pizza
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- Figure 69: Type of products purchased by demographic profile – pizza
- Figure 70: Type of products purchased – pasta
- Figure 71: Type of products purchased by demographic profile- pasta
- Figure 72: Propensity to buy premium foods compared to two years ago
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- Figure 73: Propensity to buy premium foods compared to two years ago by demographic profile
- Figure 74: Propensity to buy economy food items compared to two years ago
- Figure 75: Propensity to buy economy food items compared to two years ago by demographic profile
- Figure 76: Frequency of purchase Fairtrade products
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- Figure 77: Frequency of purchase Fairtrade products by demographic profile
- Figure 78: Frequency of purchase organic products
- Figure 79: Frequency of purchase organic products by demographic profile
- Figure 80: Frequency of purchase locally sourced products
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- Figure 81: Frequency of purchase locally sourced products by demographic profile
- Figure 82: Frequency of purchase functional foods
- Figure 83: Frequency of purchase functional foods by demographic profile
- Figure 84: Frequency of purchase food from independent retailers (butchers, bakers, fishmongers)
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- Figure 85: Frequency of purchase food from independent retailers by demographic profile
- Figure 86: Frequency of purchase food from supermarket meat, fish or bakery counters
- Figure 87: Frequency of purchase food from supermarket meat, fish or bakery counters by demographic profile
- Figure 88: Attitudes towards buying food
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- Figure 89: Attitudes towards buying food by demographic profile
- Figure 90: Attitudes towards confidence in food safety in the UK
- Figure 91: Attitudes towards confidence in food safety in the UK by demographic profile
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