Table of Contents
Issues in the Market
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- Key themes
- Definitions
Future Opportunities
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- Location, Location, Location
- Celebrity culture
- Insights
- Superfood in a can?
- The next superfruit- Baobab?
- Insights
Market in Brief
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- Market buoyed by rising prices...
- ...as well as drive towards healthier eating
- Vegetables dominate although the fruit market is buoyant
- Innovation focuses on organic and healthy claims
- Good market prospects if consumer demands can be met
- Value lines expected to benefit as consumers tighten their belts
Internal Market Environment
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- Key points
- Healthy eating comes of age...
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- Figure 1: Quantity of fruit and vegetables consumed by household, 2004/05 and 2007
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- Figure 2: Agreement with lifestyle statements about diet and health, 2004-08
- ...with this supported by the FSA Eating Habits Survey
- Focus on obesity is helping promote health awareness
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- Figure 2: Current and projected levels of overweight and obese children in the UK, by age and gender, 2003 and 2010
- Interest in ‘superfoods’ is boosting demand for certain products
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- Figure 3: Examples of fruit and vegetables and their benefits, 2008
- Ethical and organic purchasing are helping to boost market value
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- Figure 4: Agreement with statements about provenance and ethical claims, 2004-08
- Going local is becoming increasingly natural
- Organic has become an established sector
- Fairtrade high on consumers agenda
- Trend towards home cooking is also benefiting the market
- Rising prices and supply shortages...
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- Figure 5: UK: Consumer Price Index: Fruit and vegetables, January 2006-November 2008
- ...have been followed by economic difficulties
- Britain’s snacking habit also suggests interest in fruit and vegetables needs time to develop
Broader Market Environment
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- Key points
- Government initiatives towards fruit and vegetable consumption...
- The five-a-day campaign
- The School Fruit and Vegetable Scheme
- National Healthy School Programme
- The School Food Trust
- ...lead to some early positive results
- Rising affluence and an ageing population are also boosting market potential
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- Figure 6: Implications of changing demographics of the UK population for the fruit and veg market, 2009
- Figure 7: PDI and consumer expenditure, 1998-2013
Strengths and Weaknesses
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- Strengths
- Weaknesses
Competitive Context
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- Key points
- Healthy snacking market presents a real challenge
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- Figure 8: Market size and growth for nuts, seeds and dried fruit and cereal bars, 2003-08
- Healthy profile of nuts and seeds attracts consumers
- Innovation has proved successful for cereal bars
Who’s Innovating?
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- Key points
- Innovation in fruit shows sign of increasing
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- Figure 9: New product launches in fruit and vegetables, by sector, 2006-08
- Bias towards frozen for veg and canned for fruit
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- Figure 10: New product launches in fruit and vegetables, by storage, 2008*
- Retailers own-label prove most innovative
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- Figure 11: New product launches in fruit and vegetables, by retailer/manufacturer*, 2006-08
- Fruit innovation focusing on health benefits
- Vegetable innovation sees strong growth in organic claims
- Microwaveability adds convenience
- Discount brands gain in popularity
- Additive-free alternatives are proving popular
- Interest in premium lines continues
- Future developments
Market Value and Forecast
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- Key points
- Healthy value growth in what is a relatively mature market
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- Figure 12: Retail value sales of fresh, frozen and canned fruit and vegetables, 2003-08
- Fresh produce dominates
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- Figure 13: UK retail value sales of fresh, frozen and canned fruit and vegetables, by sector, 2004-08
- Organic produce continues to prove popular…
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- Figure 14: UK retail value sales of organic fruit and vegetables*, by type and value, 2006-08
- …but prospects for 2009 are not so buoyant
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- Figure 15: Effects of current economic climate on purchasing organic food, July 2008
- Fairtrade becomes a mainstream choice
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- Figure 16: UK retail value sales of fairtrade fruit and vegetables, by type, 2006-08
- Fruit
- Vegetables
- Growth for pre-prepared produce appears to be slowing
- Overall sales are set to see further growth
- Forecast trends
- Forecast
- A healthy prospect for fruit and veg
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- Figure 17: Forecast of the fresh, frozen and canned fruit and vegetable market, at current prices, 2003-13
- Value lines to benefit in tougher times
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- Figure 18: Forecast of the fresh, frozen and canned fruit and vegetable market, at 2008 prices, 2003-13
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- Figure 19: Forecast of the fresh, frozen and canned fruit and vegetable market, euro terms at 2008 prices, 2003-13
Segment Performance – Vegetables
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- Key points
- Fresh vegetables
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- Figure 20: UK retail value sales of fresh vegetables (excluding potatoes), 2003-08
- Salad vegetables are most widely bought
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- Figure 21: UK retail value sales of fresh vegetables (excluding potatoes), by type, 2004-08
- Green vegetables also proving popular
- Mushrooms continue to develop
- Root vegetables benefit from improved promotion
- Onions benefit from health awareness
- Demand for other vegetables rises
- Frozen vegetables
- Benefiting from resurging demand
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- Figure 22: UK retail value sales of frozen vegetables, 2003-08
- Peas dominate the market
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- Figure 23: UK retail value sales of frozen vegetables, by type, 2004-08
- Canned vegetables
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- Figure 24: UK retail value sales of canned vegetables, 2003-08
- Canned vegetables benefit from buoyant demand for tomatoes
Segment Performance – Fruit
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- Key points
- Fresh fruit
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- Figure 25: UK retail value sales of fresh fruit, 2003-08
- Apples, bananas and citrus fruit dominate what is an ever-broadening market
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- Figure 26: UK retail value sales of fresh fruit, by type, 2004-08
- Apples continue to be the Brits’ favourite fruit
- Support for bananas ensures they remain popular choice
- Citrus fruit benefits from easy peelers
- Grape sales driven up by rising prices
- Soft fruit lifted by smoothie culture
- Stone fruit sales suffer from poor UK summers
- Pears relish their niche status
- Exotic fruits increasingly becoming commonplace
- Frozen fruit
- A niche market, but seeing strong growth
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- Figure 27: UK retail value sales of frozen fruit, 2003-08
- Canned fruit
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- Figure 28: UK retail value sales of canned fruit, 2003-08
- Sales stutter in the face of innovations from rivals
Companies and Brands
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- Capespan
- Pinguin Foods
- Birds Eye (Permira)
- Findus
- Del Monte (UK Ltd)
- Pillsbury
- Princes Foods Ltd
Brand Communication and Promotion
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- Key points
- Promotional support rising...
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- Figure 29: UK main monitored media advertising expenditure on fruit and vegetables (including potatoes), 2004-08
- ...with the fresh food sector seeing greatest expansion in support
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- Figure 30: Main monitored media advertising expenditure, by fruit and vegetable group (including potatoes), 2004-08*
- Frozen vegetables lead the way
- Fresh fruit receives growing support
- Promotion of fresh and canned vegetables appears to be waning
- Limited promotion of canned and frozen fruit
- McCain Foods dominates adspend
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- Figure 31: Main monitored media advertising spend on fruit and vegetables, 2006-08
- Below the line
Channels to Market
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- Key points
- Multiples dominate fresh sales...
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- Figure 32: UK retail value sales of fresh fruit and vegetables, by outlet type, 2004-08
- ...with an even stronger share of frozen and canned
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- Figure 33: Retail value sales of frozen and canned fruit and vegetables, by outlet type, 2004-08
- Credit crunch heightens competitor activity
The Consumer – Attitudes towards Fruit and Vegetables
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- Key points
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- Figure 34: Attitudes towards fruit and vegetables, October 2008
- Fruit and vegetables prove popular, but potential remains
- Snack packs
- Family meals
- Ethnic cuisine
The Consumer – Fruit and Vegetables Repertoires
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- Key points
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- Figure 35: Forms of fruit and vegetables eaten, October 2008
- Fresh is best
- Promoting frozen fruit via smoothies
- Tinned produce needs to improve its image
- Homemade juices and smoothies
- Repertoire analysis – vegetables
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- Figure 36: Number of forms of vegetables eaten, October 2008
- Fruit
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- Figure 37: Number of forms of fruit eaten, October 2008
The Consumer – Consumer Perception of Fruit and Vegetables
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- Key points
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- Figure 38: Consumers’ perceptions of fresh, canned and frozen fruit and vegetables, October 2008
- Quality of frozen and canned vs fresh
- Ethical shopping – local produce
- Packaging waste
- Organic will struggle to convince within the economic downturn
The Consumer – Target Groups
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- Key points
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- Figure 39: Target groups on attitudes towards fruit and vegetables, October 2008
- Enthusiasts
- Apathetic
- Reluctant Eaters
- Under Target
Appendix
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- Abbreviations
Appendix – Internal Market Environment
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- Figure 40: Agreement with selected lifestyle statements on health, by detailed demographics, 2008
- Figure 41: Agreement with selected lifestyle statements on health, by detailed demographics, 2008
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- Figure 42: Agreement with selected lifestyle statements on provenance, by detailed demographics, 2008
- Figure 43: Agreement with selected lifestyle statements on snacking, by detailed demographics, 2008
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- Figure 44: Purchasing of organic fruit and vegetables, by detailed demographics, 2008
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Appendix – Broader Market Environment
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- Figure 45: Trends and projections in UK population, by socio-economic group, 2003-13
- Figure 46: Trends and projections in UK population, by age, 2003-13
- Figure 47: Trends and projections in UK household size, 2003-13
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Appendix – The Consumer – Attitudes towards Fruit and Vegetables
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- Figure 48: Attitudes towards fruit and vegetables, by detailed demographics, October 2008
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Appendix – The Consumer – Fruit and Vegetables Repertoire
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- Figure 49: Forms of fruit and vegetables eaten, by detailed demographics, October 2008
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- Figure 50: Forms of fruit and vegetables eaten, by detailed demographics, October 2008
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- Figure 51: Number of forms of vegetables eaten, by detailed demographics, October 2008
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- Figure 52: Number of forms of fruit eaten, by detailed demographics, October 2008
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- Figure 53: Number of forms of vegetables eaten, October 2008
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- Figure 54: Number of forms of fruit eaten, October 2008
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Appendix – The Consumer – Consumer Perception of Fruit and Vegetables
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- Figure 55: Consumers’ perceptions of fresh, canned and frozen fruit and vegetables, by detailed demographics, October 2008
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- Figure 56: Consumers’ perceptions of fresh, canned and frozen fruit and vegetables, by detailed demographics, October 2008
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- Figure 57: Consumers’ perceptions of fresh, canned and frozen fruit and vegetables, by detailed demographics, October 2008
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Appendix – The Consumer – Target Groups
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- Figure 58: Target groups on attitudes towards fruit and vegetables, by detailed demographics, October 2008
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- Figure 59: Attitudes towards fruit and vegetables, by target groups, October 2008
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- Figure 60: Target groups, by forms of fruit and vegetables eaten, October 2008
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- Figure 61: Target groups, by number of forms of fruit and vegetables eaten, October 2008
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- Figure 62: Target groups, by agreement with attitudinal statements on fresh, canned and frozen fruit and vegetables, October 2008
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