Table of Contents
Overview
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- What you need to know
- Products covered in this report
- Definition
Executive Summary
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- The market
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- Figure 1: UK retail value sales of yellow fats and edible oils, 2010-20
- Yellow fats
- Speciality oil is in growth but cooking and olive oils decline
- Companies, Brands and Innovation
- Lurpak posts volume growth in a declining market
- Unilever has been hit the hardest by spreads’ woes
- Competition from own-label heats up
- Kerrygold pushes pasture grazing
- The consumer
- Block butter is the most widely bought yellow fat
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- Figure 2: Yellow fats bought, by type, July 2013, May 2014 and July 2015
- Spray cooking oils now bought by one in six
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- Figure 3: Edible oils bought, by type, July 2013, May 2014 and July 2015
- Easy-to-use is the most important factor for consumers when buying yellow fats
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- Figure 4: Factors influencing choice of butter/spread, July 2013 and July 2015
- More than two thirds see taste as important when buying block butter
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- Figure 5: Attitudes towards yellow fats and edible oils, July 2015
- What we think
Issues and Insights
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- Spreads segment continues its sharp decline
- The facts
- The implications
- Sales of cooking and olive oil are struggling
- The facts
- The implications
- Butter brands must do more to drive home their flavour credentials
- The facts
- The implications
The Market – What You Need to Know
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- Yellow fats and edible oils decline continues in 2015
- Butter sees strong volume growth
- Spreads continue their sharp decline
- Cooking and Baking spreads segment in poor shape
- Speciality oil is in growth but cooking and olive oils decline
- UK wholesale butter and bulk cream prices continue to fall
- Adverse weather hits EU olive oil production, causing prices to rise
- Changing bread eating habits impact purchases of spreads
Market Size and Forecast
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- Volume decline continues in 2015
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- Figure 6: UK retail value sales of yellow fats and edible oils, 2010-20
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- Figure 7: UK retail value sales of yellow fats and edible oils, 2010-20
Segment performance
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- Butter volumes are in healthy growth
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- Figure 8: UK retail value and volume sales of butter, 2010-20
- Figure 9: UK retail value sales of butter, 2010-20
- Spreadable butter benefits from spreads’ woes
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- Figure 10: UK retail value sales of butter, by type, 2010-14
- Spreads see value and volume decline continue
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- Figure 11: UK retail value and volume sales of spreads, 2010-20
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- Figure 12: UK retail value sales of spreads, 2010-20
- Figure 13: UK retail value and volume sales of spreads, by type, 2012-14
- Cooking and baking spreads suffer from butter’s resurgence
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- Figure 14: UK retail value and volume sales of cooking and baking spreads, 2010-20
- Figure 15: UK retail value sales of cooking and baking spreads, 2010-20
- Edible oils’ decline is expected to continue
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- Figure 16: UK retail value and volume sales of edible oils, 2010-20
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- Figure 17: UK retail value sales of edible oils, 2010-20
- Figure 18: UK retail value and volume sales of edible oils, by type, 2012-14
Market Drivers
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- Butter gains positive coverage in the mainstream UK media
- UK wholesale cream and butter prices continue to fall
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- Figure 19: UK wholesale prices of unsalted butter and bulk cream, January 2010-July 2015
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- Figure 20: Consumer Price Index of butter, January 2010-July 2015
- Adverse weather hits EU olive oil production, causing prices to rise
- Changing bread eating habits hamper purchases of spreads
- Bright future for extra virgin olive oil?
Key Players – What You Need to Know
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- Dairy Crest reformulates Clover spread and adds spray oils
- Lurpak discontinues its four-strong Cook’s Range
- Kerrygold pushes pasture grazing
- Lurpak posts volume growth in a declining market
- Müller Group set to be a major yellow fats player
- Unilever is hit hardest by downturn in spreads’ fortunes
- Frylight posts market-beating value growth
- Napolina is the only brand to buck the trend in olive oil and post growth
Brand Research – Yellow Fats and Edible Oils
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- What you need to know
- Brand map
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- Figure 21: Attitudes towards and usage of selected brands, June 2015
- Key brand metrics
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- Figure 22: Key metrics for selected brands, June 2015
- Brand attitudes: Lurpak’s foodie focus is seen as worth paying more for
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- Figure 23: Attitudes, by brand, June 2015
- Brand personality: ICBINB must address its tired and unappealing personality
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- Figure 24: Brand personality – macro image, June 2015
- Flora excels in propagating a healthy image
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- Figure 25: Brand personality – micro image, June 2015
- Brand analysis
- Lurpak
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- Figure 26: User profile of Lurpak, June 2015
- Flora
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- Figure 27: User profile of Flora, June 2015
- Kerrygold
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- Figure 28: User profile of Kerrygold, June 2015
- Clover
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- Figure 29: User profile of Clover, June 2015
- I Can’t Believe It’s Not Butter
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- Figure 30: User profile of I Can’t Believe It’s Not Butter, June 2015
Market Share
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- Brands drag down total market value and volume
- Lurpak posts volume growth in a declining market
- Unilever has been hit the hardest by spreads’ woes
- Müller poised to become a major player in yellow fats
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- Figure 31: Leading brands’ sales and shares in the UK retail yellow fats market, by value and volume, 2013/14 and 2014/15
- Figure 32: Leading manufacturers’ sales and shares in the UK retail yellow fats market, by value and volume, 2013/14 and 2014/15
- Frylight posts market-beating value growth
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- Figure 33: Leading brands’ sales and shares in the UK retail cooking oils market, by value and volume, 2013/14 and 2014/15
- Figure 34: Leading manufacturers’ sales and shares in the UK retail cooking oils market, by value and volume, 2013/14 and 2014/15
- Brands suffer the most in olive oil
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- Figure 35: Leading brands’ sales and shares in the UK retail olive oils market, by value and volume, 2013/14 and 2014/15
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- Figure 36: Leading manufacturers’ sales and shares in the UK retail olive oils market, by value and volume, 2013/14 and 2014/15
Brand Communication and Promotion
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- Margarine and spreads accounts for three fifths of adspend in the market
- Butter ad spend falls
- Stork returns to TV after 20-year hiatus
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- Figure 37: Recorded above-the-line online, display and direct mail total advertising expenditure in the yellow fats and edible oils market, 2011-15
- Boost in lard/cooking fat adspend support is short-lived
- Adspend on oils halves in 2014
- Kerrygold pushes associations between its butter and ‘lush green grass’
- Unilever agrees display ad deal for Flora and Stork
- Lurpak launches Freestyle food month
- Clover teams up with McCain Jackets for a sampling campaign
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- Figure 38: Top recorded above-the-line online, display and direct mail total advertising expenditure on the yellow fats and edible oils market, by top ten brands by adspend, 2011-15
Launch Activity and Innovation
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- Oil accounts for three fifths of new launches in 2014
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- Figure 39: NPD in the UK yellow fats and edible oils market, 2011-15
- Flavoured oils help boost Tesco and Lidl’s share of new launches
- Operators continue to move into speciality oils
- Lurpak Cook’s Range boosts Arla’s share of launches
- Manufacturers and retailers flag up ‘real butter’ content
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- Figure 40: NPD in the UK yellow fats and edible oils market, by top 10 ultimate company, 2011-15
- Operators add value to oil through spray and pourable formats
- Spray
- Ease of use – pouring
- New wave of nut oils
The Consumer – What You Need to Know
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- Block butter is the most widely bought yellow fat
- Majority of Brits buy same amount of spreads as a year ago
- Sunflower, vegetable and virgin/extra virgin olive oil are the most widely bought oil types
- One in six consumers buy cold-pressed rapeseed oil
- Spray cooking oils now bought by one in six
- Easy-to-use is the most important factor for consumers
- Olive oil ranks highest for healthiness of selected oils
- Scope for nuts to leap from dairy alternative drinks to dairy-free spreads
Purchasing Habits – Yellow Fats
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- Younger consumers are more likely to buy butter
- Cholesterol-lowering spreads more popular with the young
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- Figure 41: Yellow fats bought, by type, July 2013, May 2014 and July 2015
- Majority of Brits buy same amount of spreads as a year ago
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- Figure 42: Changes in purchase of spreads compared to a year ago, July 2015
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- Figure 43: Reasons for buying less spreads than a year ago, July 2015
Purchasing Habits – Edible Oils
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- Penetration of edible oils is high
- Spray cooking oils now bought by one in six
- One in 10 16-34s buy coconut oil
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- Figure 44: Edible oils bought, by type, July 2013, May 2014 and July 2015
- 16-34s are core purchasers of cold-pressed rapeseed oil
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- Figure 45: Purchase of cold-pressed rapeseed oil to use at home in the last 6 months, by age group, July 2015
- Rapeseed oil adspend is still very small but growing
Factors Influencing Choice of Butter and Spreads
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- Easy-to-use is the most important factor for consumers
- Brands playing on natural themes are well-placed
- British origin/ingredients
- Health factors matter to more than half of users/buyers
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- Figure 46: Factors influencing choice of butter/spread, July 2013 and July 2015
Qualities Associated with Edible Oils
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- Olive oil ranks highest for healthiness among selected oils
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- Figure 47: Qualities associated with selected types of edible oils, July 2015
- Less than a third see each type of oil as a store cupboard staple
- Few see each type of oil as responsibly sourced
- Just 14% see cold-pressed rapeseed oil as good for pan-frying
- Olive oil and coconut oil seen most widely as expensive
Attitudes towards Yellow Fats and Edible Oils
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- More than two thirds see taste as important when buying block butter
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- Figure 48: Attitudes towards yellow fats and edible oils, July 2015
- More required to promote coconut oil as an alternative to spreads
- Can nuts make the leap from dairy alternative drinks to dairy-free spreads?
- A place for argan oil in mainstream grocery?
- Scope for butters flavoured with condiments
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research
Appendix – Market Drivers
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- Figure 49: Trends in the age structure of the UK population, 2010-20
- Figure 50: Trends in the age structure of the UK population, 2010-2020
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Appendix – Brand Communication and Promotion
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- Figure 51: Recorded above-the-line online, display and direct mail total advertising expenditure on the yellow fats and edible oils market, by category, 2011-14
- Figure 52: Recorded above-the-line online, display and direct mail total advertising expenditure on rapeseed oil brands, 2011-15
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Appendix – Launch Activity and Innovation
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- Figure 53: NPD in the UK yellow fats and edible oils market, by product category, by brand vs own-label, 2014
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Appendix – Market Size and Forecast
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- Forecast Methodology
- Total market
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- Figure 54: Forecast retail sales of yellow fats and edible oils, by volume, 2010-20
- Figure 55: Best- and worst-case forecasts for retail sales of yellow fats and edible oils, by value, 2015-20
- Figure 56: Best- and worst-case forecasts for retail sales of yellow fats and edible oils, by volume, 2015-20
- Butter
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- Figure 57: Forecast retail sales of butter, by volume, 2010-20
- Figure 58: Best- and worst-case forecasts for retail sales of butter, by value, 2015-20
- Figure 59: Best- and worst-case forecasts for retail sales of butter, by volume, 2015-20
- Spreads
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- Figure 60: Forecast retail sales of spreads, by volume, 2010-20
- Figure 61: Best- and worst-case forecasts for retail sales of spreads, by value, 2015-20
- Figure 62: Best- and worst-case forecasts for retail sales of spreads, by volume, 2015-20
- Cooking and baking spreads
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- Figure 63: Forecast retail sales of cooking and baking spreads, by volume, 2010-20
- Figure 64: Best- and worst-case forecasts for retail sales of cooking and baking spreads, by value, 2015-20
- Figure 65: Best- and worst-case forecasts for retail sales of cooking and baking spreads, by volume, 2015-20
- Edible oils
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- Figure 66: Forecast retail sales of edible oils, by volume, 2010-20
- Figure 67: Best- and worst-case forecasts for retail sales of edible oils, by value, 2015-20
- Figure 68: Best- and worst-case forecasts for retail sales of edible oils, by volume, 2015-20
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