Table of Contents
Executive Summary
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- The market
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- Figure 1: Estimated total value of the butter and spreads market, NI and RoI, 2013-18
- Forecast
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- Figure 2: Indexed estimated total value of the butter and spreads market, NI and RoI, 2013-23
- Market factors
- 2017 sees milk prices rise
- Butter prices increase in UK and RoI
- Higher input costs being passed on to consumers
- Brexit impacts butter and spreads market
- Companies, brands and innovations
- The consumer
- Consumers opting for traditional butter over butter-like spreads
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- Figure 3: Types of butter and butter-like spreads consumers have bought for home use in the last three months, NI and RoI, October 2017
- Irish consumers show preference for jam
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- Figure 4: Types of non-butter spreads consumers have bought for home use in the last three months, NI and RoI, October 2017
- Branded butter popular among Irish consumers
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- Figure 5: Butter and spread brands bought by consumers in the last three months, NI, October 2017
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- Figure 6: Butter and spread brands bought by consumers in the last three months, RoI, October 2017
- Irish consumers claim they can taste the difference
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- Figure 7: Agreement with statements relating to butter and spreads, NI and RoI, October 2017
- What we think
The Market – What You Need to Know
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- Butter and spreads a growing market
- Higher costs driving up butter prices
- ‘The Paddington effect’
- Brexit a threat to RoI butter exports
Market Size and Forecast
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- Butter and spreads market to grow in 2018
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- Figure 8: Estimated total value of the butter and spreads market, IoI, NI and RoI, 2013-23
- Growth in butter and spreads market to continue through to 2023
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- Figure 9: Indexed estimated total value of the butter and spreads market, NI and RoI, 2013-23
- 2018 to see continued growth in butter sales
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- Figure 10: Estimated total value of the butter segment, IoI, NI and RoI, 2013-23
- Sales of sweet spreads to increase in 2018
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- Figure 11: Estimated total value of the sweet spread segment, IoI, NI and RoI, 2013-23
- Butter-like spreads sales to grow despite resurgence of butter
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- Figure 12: Estimated total value of the butter-like spread segment, IoI, NI and RoI, 2013-23
Market Drivers
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- Rising milk prices a threat to Irish butter
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- Figure 13: Average yearly milk prices, pence per litre, NI, 2012-17
- Figure 14: Average yearly milk prices, cents per litre, RoI, 2012-17
- Cost of butter increases significantly in the UK and RoI
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- Figure 15: Butter prices per 100kg, UK (including NI) and RoI, January 2016-October 2017
- Consumers see price of butter increase
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- Figure 16: Consumer price index vs oils and fats (including butter) and sugar, jams, syrups, chocolate and confectionery prices, UK (including NI), January 2016-November 2017
- Figure 17: Consumer price index vs butter and jams, marmalade and honey prices, RoI, January 2016-November 2017
- Ferrero increases Nutella prices
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- Figure 18: Hazelnut prices per kilogram, global, November 2016 and November 2017
- Paddington Bear sparks a mini revival in marmalade sales
- RoI a top butter exporter globally, but Brexit a concern for producers
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- Figure 19: Top 10 global butter exporters, 2016
- Ferrero changes Nutella recipe
- Brexit vote impacted butter and spreads’ availability
Companies and Brands – What You Need to Know
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- Strong growth in new butter and spread products
- Unilever putting spreads brands up for sale to refocus business
- Ornua to launch Kerrygold butter in South Korea
Who’s Innovating?
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- Butter and spreads NPD returns to growth in 2017
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- Figure 20: Butter, margarine and other blend and sweet spread launches, UK and Ireland, 2012-17
- 2017 sees increased sweet spreads NPD
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- Figure 21: New sweet spread product launches, UK and Ireland, 2012-17
- Figure 22: New sweet spread product launches, by sub-category, UK and Ireland, 2013-17
- Most sweet spreads making vegetarian claim
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- Figure 23: New sweet spread product launches, by top 10 claims, UK and Ireland, 2013-17
- High level of butter and spread NPD in the UK and Ireland
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- Figure 24: New butter, margarine and other blend product launches, UK and Ireland, 2012-17
- Figure 25: New butter, margarine and other blend product launches, UK and Ireland, by sub-category, 2012-17
- Vegetarian remains the main butter claim
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- Figure 26: New butter, margarine and other blend product launches, UK and Ireland, by top 10 claims, 2013-17
- Salt the main ingredient driving butter NPD
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- Figure 27: New butter, margarine and other blend product launches, UK and Ireland, by top 10 ingredients, 2012-17
- Increasing number of non-animal ingredient spreads launched, most due to growth in free-from food
Competitive Strategies – Key Players
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- Arla
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Avonmore
- Key facts
- Product portfolio
- Recent developments
- Benecol
- Key facts
- Product portfolio
- Brand NPD
- Connacht Gold (Aurivo)
- Key facts
- Product portfolio
- Recent developments
- Dale Farm
- Key facts
- Product portfolio
- Recent developments
- Ferrero (UK and Ireland)
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Kerry Group
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Ornua
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
- Unilever
- Key facts
- Product portfolio
- Brand NPD
- Recent developments
The Consumer – What You Need to Know
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- Butter remains the spread of choice
- Irish consumers show strong interest in jam
- Branded butter leads the NI and RoI markets
- Consumers noticing rising butter prices, particularly in NI
Butter and Butter-like Spreads Usage
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- Butter the most popular type of spread
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- Figure 28: Types of butter and butter-like spreads consumers have bought for home use in the last three months, NI and RoI, October 2017
- Parents prefer spreadable butter
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- Figure 29: Consumers who have bought spreadable butter for home use in the last three months, by presence of children in the household, NI and RoI, October 2017
- Buttery-taste spreads appeal to 35-44-year-olds in NI, and 25-34s in RoI
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- Figure 30: Consumers who have bought spreadable buttery-taste spread (eg Clover, Flora Buttery) for home use in the last three months, by gender and age, NI and RoI, October 2017
- Butter usage highest among under-45s
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- Figure 31: Consumers who have bought butter for home use in the last three months, by age, NI and RoI, October 2017
Other Types of Spread Usage
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- Jam is the spread of choice among Irish consumers
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- Figure 32: Types of non-butter spreads consumers have bought for home use in the last three months, NI and RoI, October 2017
- Chocolate spreads popular among younger consumers
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- Figure 33: Consumers who have bought chocolate spreads (eg Nutella) for home use in the last three months, by age and social class, NI and RoI, October 2017
- Spreadable cheese popular among younger consumers
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- Figure 34: Consumers who have bought spreadable cheese for home use in the last three months, by age, NI and RoI, October 2017
- Jam popular in affluent households
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- Figure 35: Consumers who have bought jam for home use in the last three months, by gross annual household income, NI, October 2017
- Figure 36: Consumers who have bought jam for home use in the last three months, by gross annual household income, RoI, October 2017
Butter and Butter-like Brands Used
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- Golden Cow the most popular butter brand in NI
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- Figure 37: Butter and spread brands bought by consumers in the last three months, NI, October 2017
- Men more likely to buy Golden Cow butter
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- Figure 38: Consumers who have bought Golden Cow butter in the last three months, by gender, age and social class, NI, October 2017
- Dromona leads RoI butter market
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- Figure 39: Butter and spread brands bought by consumers in the last three months, RoI, October 2017
- Dromona holds strong appeal to RoI Millennials
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- Figure 40: Consumers who have bought Dromona butter in the last three months, by gender and age, RoI, October 2017
Attitudes towards Butter and Spreads
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- Consumers claiming they can taste the difference between butter brands
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- Figure 41: Agreement with statements relating to butter and spreads, NI and RoI, October 2017
- Young Millennials can taste the difference between butter brands
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- Figure 42: Agreement with the statement ‘You can taste the difference between different brands of butter/spread’, by gender and age, NI and RoI, October 2017
- Vitamin D-fortified butter of interest to consumers from north and western regions
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- Figure 43: Agreement with the statement ‘I would be interested in buying butter with added vitamin’, by location, NI, October 2017
- Figure 44: Agreement with the statement ‘I would be interested in buying butter with added vitamin’, by location, RoI, October 2017
- Women think own-label butter just as good as branded butter
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- Figure 45: Agreement with the statement ‘Supermarket own-label butter and spread is just as good as branded’, by gender and social class, NI and RoI, October 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Market size rationale
- Generational cohort definitions
- Abbreviations
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