Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Volatility in the market 2011-16
- Values continue to fall in 2016
- Multiple factors to affect the market 2016-21
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- Figure 1: UK retail value sales of processed poultry and red meat, 2011-21
- Bacon sees ongoing decline, burger and processed poultry growth to slow
- Further volume declines expected for cooked sliced and canned products
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- Figure 2: Growth in UK retail value sales of processed poultry and red meat, by segment, 2011-16 and 2016-21
- Warring supermarkets cut prices, weak pound will raise them
- Economic slowdown could prompt trading down
- Health concerns affect processed meat
- Changing habits curb processed meat occasions
- Companies and brands
- Much of processed meat is dominated by own-label
- Princes retains top position in canned meat
- Birds Eye remains number one in frozen processed meat and poultry
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- Figure 3: Leading brands’ shares in the UK retail frozen processed meat, poultry and meat-free meal components market, by value, 2015/16*
- NPD looks to add value
- Advertising spend falls in 2015
- The consumer
- Processed meat remains a menu staple
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- Figure 4: Usage of processed meat, poultry and game, by type, August 2016
- Consumers’ price focus encouraged by retailer tactics
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- Figure 5: Processed meat, poultry and game buying factors, by purpose, August 2016
- Emphasis on cooking times can mine convenience demand
- Opportunities for burgers and sausages with hidden extras
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- Figure 6: Interest in new product concepts in processed meat, poultry and game, August 2016
- Transparency on production would boost trust, ethical claims can temper price focus
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- Figure 7: Attitudes towards processed meat, poultry and game, August 2016
- Weak image as versatile is a threat for sandwich meat
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- Figure 8: Perceptions of selected types of processed meat, poultry and game products, by quality, August 2016
- What we think
Issues and Insights
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- Making ethical claims more tangible could temper buyers’ price focus
- The facts
- The implications
- Transparency on production processes and sourcing would boost consumer trust
- The facts
- The implications
- International dish matching suggestions could revive interest in sausages
- The facts
- The implications
The Market – What You Need to Know
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- Volatility in the market 2011-16
- Values continue to fall in 2016
- Multiple factors to affect the market 2016-21
- Bacon sees ongoing decline, burger and processed poultry growth to slow
- Further volume declines expected for cooked sliced and canned products
- Warring supermarkets cut prices, weak pound will raise them
- Economic slowdown could prompt trading down
- Health concerns affect processed meat
- Changing habits curb processed meat occasions
Market Size and Forecast
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- Volatility in the market 2011-16
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- Figure 9: UK retail value sales of processed poultry and red meat, 2011-21
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- Figure 10: UK retail value sales of processed poultry and red meat, 2011-21
- Multiple economic and social factors to affect growth 2016-21
- The impact of the EU referendum vote
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- Figure 11: Alternative scenarios for the processed poultry and red meat market, 2016-21
- Figure 12: Alternative scenarios for the processed poultry and red meat market, at current prices, 2016-21
- Potential for economic slowdown to benefit some segments, but limited by changing lifestyles
- Health concerns and diet choices curb the appeal of processed meat
- Weakened disposable incomes could prompt trading down
- Role of inflation
- Forecast methodology
Market Segmentation
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- Values for red meat meal components fall 2014-16
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- Figure 13: Value sales of red meat meal components, by segments, 2011-16
- Multiple factors push down bacon and sausage values and volumes
- Usage occasions curbed by wider food trends
- Health concerns stoked by WHO
- Price wars keep values in check
- Americana and gourmet trends support burger sales
- Import-led inflation for bacon to push up overall values 2016-21
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- Figure 14: UK retail value sales of processed poultry and red meat, by segment, 2011-21
- NPD boosts processed poultry sales in 2016
- Volume growth to slow 2016-21
- Decline in sliced bread sales hinders cooked sliced meat and poultry
- Ongoing decline of bread to continue to push down volumes 2016-21
- Canned meat struggles under negative consumer perceptions
- Volume sales to continue to fall, but inflation to slow value decline
Market Drivers
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- Supermarket price wars push down values
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- Figure 15: Retail price index for processed pork products, by segment, and comparison with total food, 2011-16
- Brexit vote creates economic uncertainty
- Weakened pound could lead to inflation
- Economic slowdown could prompt trading down
- Health concerns affect processed meat
- Decline in carrier products hampers cooked sliced meat and poultry
- Consumers’ desire for convenience reduces cooked breakfast occasions
- Interest in world foods increases competition for mealtime options
- Summer weather pivotal for burgers and sausages
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- Figure 16: Sunshine hours in the UK, by month, 2011-16
Companies and Brands – What You Need to Know
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- Much of processed meat is dominated by own-label
- Princes retains top position in canned meat
- Birds Eye remains number one in frozen processed meat and poultry
- NPD looks to add value
- Advertising spend falls in 2015
Market Share
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- Much of processed meat is dominated by own-label
- Canned meat
- Princes retains top position
- Packaging revamps and NPD from top 5 players
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- Figure 17: UK retail sales of canned meat, by leading brands, 2013/14-2015/16
- Figure 18: UK retail sales of canned meat, by leading manufacturers, 2013/14-2015/16
- Frozen processed meat and poultry
- Birds Eye retains top position in frozen processed meat and poultry
- Bernard Matthews acquired by Boparan
- Meat-free brands and own-label gain ground
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- Figure 19: UK retail sales of frozen processed meat, poultry and meat-free meal components, by leading brands, 2013/14-2015/16
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- Figure 20: UK retail sales of frozen processed meat, poultry and meat-free meal components, by leading brands, 2013/14-2015/16
- Chilled sandwich meat and cooked sausages
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- Figure 21: UK retail sales of chilled sandwich meat^ and cooked sausages, by leading brands, 2013/14-2015/16
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- Figure 22: UK retail sales of chilled sandwich meat^ and cooked sausages, by leading manufacturers, 2013/14-2015/16
Launch Activity and Innovation
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- Morrisons expands Farmers range with Bacon for Farmers
- Kerry targets busy parents with Richmond Shake & Bake
- Wall’s reformulates and relaunches
- Brands strive to improve the image of breaded poultry
- Birds Eye moves on health with wholegrain-coated Chicken Grills
- M&S targets dieters with Skinny Beef Burgers
- Fish brands extend into breaded poultry
- Further growth in processed game products
- New deli meat brands focus on sourcing
- Brands and retailers look to capitalise on Olympics buzz with Brazil-inspired flavours
- Sainsbury’s promotes sausage snap packs as reducing food waste
Advertising and Marketing Activity
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- Advertising spend falls in 2015
- Kerry remains the largest spender in 2015
- Convenience aspects of Perfect Bake promoted as allowing for more family time
- Promoting Richmond sausages as supporting family unity with toy tracker chip
- TV dinner advert aims to create a fun image
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- Figure 23: Total above-the line, online display and direct mail advertising expenditure on processed meat and poultry, 2012-16
- Lidl puts the emphasis on quality
- Birds Eye continues with ‘the food of life’ adverts
- Morrisons leads on advertising in 2016
- Focus on in-store preparation to give image of transparency and integrity
- Appealing to the emotions through reference to social meal occasions
- Pushing sausages’ versatility through highlighting special occasion uses
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Processed meat remains a menu staple
- Consumers’ price focus encouraged by retailer tactics
- Emphasis on cooking times can mine convenience demand
- Opportunities for burgers and sausages with hidden extras
- Transparency on production and sourcing would boost consumer trust
- Making ethical claims more tangible could temper buyers’ price focus
- Weak image as versatile is a threat for sandwich meat
Usage of Processed Meat, Poultry and Game
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- Greater transparency fuels higher usage for raw products
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- Figure 24: Usage of processed meat, poultry and game, by type, August 2016
- Usage does not decline with age
- Families are key users of processed meat and poultry
- Deli meats’ lower price allows for more frequent usage
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- Figure 25: Usage frequency for processed meat/poultry/game, by purpose, August 2016
Processed Meat, Poultry and Game Buying Factors
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- Consumers’ price focus encouraged by retailer tactics
- Scope to shift the focus away from price among a significant minority
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- Figure 26: Processed meat, poultry and game buying factors, by purpose, August 2016
- Need for high-meat-content products to emphasize this more strongly
- Emphasis on cooking times should appeal to desire for convenience
- Resealable packaging particularly valued for sandwich meats
Interest in New Product Concepts in Processed Meat, Poultry and Game
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- Opportunities for burgers and sausages with hidden extras
- Hidden sauces and fillings could offer contrasting flavours
- Products with vegetables appeal especially to parents
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- Figure 27: Interest in new product concepts in processed meat, poultry and game, August 2016
- Butchers’ shops well placed to mine interest in international flavours
- Dish matching suggestions could help to revive interest in sausages
Attitudes towards Processed Meat, Poultry and Game
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- Transparency on production processes and sourcing would boost companies’ standing
- QR codes offer a viable means to satisfy consumer desire for information on farms
- Transparency on production processes could help to address negative perceptions of breaded poultry
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- Figure 28: Attitudes towards processed meat, poultry and game, August 2016
- Making ethical claims more tangible could temper buyers’ price focus
- Demonstrating good farmer relations should boost companies’ standing
- Confusion over assurance schemes suggests clarification on animal welfare policies needed
Perceptions of Selected Types of Processed Meat, Poultry and Game Products
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- Greater trust in raw products’ naturalness and healthiness
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- Figure 29: Perceptions of selected types of processed meat, poultry and game products, by quality, August 2016
- Sandwich meat less likely to be seen as versatile than raw products
- High meat content should be emphasised more to boost natural image
- Breaded poultry could take cues from foodservice to reassure consumers on production processes
- Innovation in coatings could help these to be seen as healthier
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 30: UK retail value sales of processed poultry and red meat, with annual change, 2011-21
- Figure 31: UK retail value sales of red meat meal components, 2011-21
- Figure 32: UK retail value sales of red meat meal components, with annual change, 2011-21
- Figure 33: Best- and worst-case forecasts for UK retail value sales of red meat meal components 2016-21
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- Figure 34: UK retail value sales of processed poultry, 2011-21
- Figure 35: UK retail value sales of processed poultry, with annual change, 2011-21
- Figure 36: Best- and worst-case forecasts for UK retail value sales of processed poultry 2016-21
- Figure 37: UK retail value sales of cooked sliced meat and poultry, 2011-21
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- Figure 38: UK retail value sales of cooked sliced meat and poultry, with annual change, 2011-21
- Figure 39: Best- and worst-case forecasts for UK retail value sales of cooked sliced meat and poultry 2016-21
- Figure 40: UK retail value sales of canned meat, 2011-21
- Figure 41: UK retail value sales of canned meat, with annual change, 2011-21
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- Figure 42: Best- and worst-case forecasts for UK retail value sales of canned meat 2016-21
- Forecast methodology
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Appendix – Perceptions of Selected Types of Processed Meat, Poultry and Game Products
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- Figure 43: Perceptions of selected types of processed meat, poultry and game products, by quality - Unhealthy, August 2016
- Figure 44: Perceptions of selected types of processed meat, poultry and game products, by quality -Versatile, August 2016
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- Figure 45: Perceptions of selected types of processed meat, poultry and game products, by quality – Good value for money, August 2016
- Figure 46: Perceptions of selected types of processed meat, poultry and game products, by quality – Natural, August 2016
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- Figure 47: Perceptions of selected types of processed meat, poultry and game products, by quality –, Convenient, August 2016
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