Table of Contents
Executive Summary
-
- The market
- Declining volumes but growing value sales in butter and spreads
-
- Figure 1: Best- and worst-case forecast of UK retail value sales of butter and spreads, 2014-24
- Oil sales boosted by extra virgin olive and rapeseed oil
-
- Figure 2: Best- and worst-case forecast of UK retail value sales of edible oils, 2014-24
- Declining bread sales spell bad news for butter and spreads
- Scratch cooking and home baking important drivers of sales
- Population growth is a key growth driver for yellow fats and oils
- Companies and brands
- Lurpak retains formidable lead
-
- Figure 3: Leading brands’ shares in the UK retail yellow fats market (including butter, margarine and spreads, and cooking fats), by value, 2018/19*
- Dip in value sales for most brands in cooking oils
-
- Figure 4: Leading brands’ shares in the UK retail cooking oils market, by value, 2018/19*
- Filippo Berio extends lead in olive oil segment
-
- Figure 5: Leading brands’ shares in the UK retail olive oil market, by value, 2018/19*
- More plant-based butter alternatives
- New recipes in spreads put focus on naturalness and less fat
- New infusions add to variety in edible oils
- Extra virgin and cold-pressed oils emphasise quality and purity
- The consumer
- Nine in 10 people buy butter or spreads
-
- Figure 6: Types of butter and spreads bought in the last 3 months, July 2019
- Eight in 10 people buy edible oils
-
- Figure 7: Types of edible liquid oils and solid oils/fats bought in the last 3 months, July 2019
- Toast, bread and sandwiches are top uses for spreads
-
- Figure 8: How different types of yellow fats and edible oils were used in the last 3 months, July 2019
- Low saturated fat top healthy factor for spreads
-
- Figure 9: Factors judged to make a spread healthy, July 2019
- Big focus on price presents challenge to oils
-
- Figure 10: Factors considered important when buying oil, by purpose, July 2019
- Need to communicate sustainability in spreads and oils
- Brands should tap into interest in more flavours for cooking
-
- Figure 11: Behaviours and attitudes towards yellow fats and oils, July 2019
- What we think
Issues and Insights
-
- Offering a healthy, tasty and natural combination remains the big challenge for brands in spreads
- The facts
- The implications
- Wealth of attributes can be highlighted to tap into interest in sustainability in yellow fats and oils
- The facts
- The implications
- Flavoured oils and butters for cooking different recipes offer scope to add value to the market
- The facts
- The implications
The Market – What You Need to Know
-
- Declining volumes but growth in value sales in butter and spreads
- Strong value performance of butter driven by higher prices
- Growth in sales of edible oils seen in 2018
- Sales boosted by extra virgin olive and rapeseed oil in 2018
- Declining bread sales spell bad news for butter and spreads
- Scratch cooking and home baking important drivers of sales
- Commodity butter and oil prices impact on retail prices
- Population growth is a key driver for yellow fats and oils
- Brexit uncertainties make price trends difficult to predict
Market Size and Forecast
-
- Rise in butter prices drives growth in total sales
-
- Figure 12: UK retail value sales of yellow fats and edible oils, 2014-24*
-
- Figure 13: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2014-24*
- Butter boosts value of butter and spreads market
-
- Figure 14: UK retail value and volume sales of butter and spreads, 2014-24*
-
- Figure 15: Best- and worst-case forecast of UK retail value sales of butter and spreads, 2014-24*
- Value sales of edible oils boosted by olive and rapeseed oil
-
- Figure 16: UK retail value and volume sales of edible oils, 2014-24
- Figure 17: Best- and worst-case forecast of UK retail value sales of edible oils, 2014-24
- Forecast methodology
Market Segmentation
-
- Strong value performance of butter driven by higher prices
-
- Figure 18: UK retail value and volume sales of yellow fats, by segment, 2017-19
- Extra virgin and rapeseed boost 2018 sales of edible oils
-
- Figure 19: UK retail value and volume sales of edible oils, by type, 2017-19
Market Drivers
-
- Declining bread sales bad news for butter and spreads
- Changing breakfast and lunch patterns impacting on demand
- Scratch cooking and home baking important drivers of sales
- Commodity butter and oil prices impact on retail prices
- Total population growth is important for yellow fats and oils which the vast majority buy
-
- Figure 20: Trends in the age structure of the UK population, 2014-24
- Brexit uncertainties make price trends difficult to predict
Companies and Brands – What You Need to Know
-
- Lurpak retains its formidable lead
- Clover and Utterly Butterly benefit from rising butter prices
- Dip in value sales for most brands in cooking oils
- Filippo Berio extends lead in olive oil segment
- More plant-based butter alternatives
- New recipes in spreads put focus on naturalness and less fat
- Arla launches ‘Softest’ versions for Lurpak and Anchor
- New infusions add to variety in edible oils
- Extra virgin and cold-pressed oils emphasise quality and purity
- Lurpak the most trusted brand
Market Share
-
- Buttery spreads make biggest gains in yellow fats market
- Lurpak retains its formidable lead
- KKR and Saputo move into the market
- Clover and Utterly Butterly benefit from rising butter prices
-
- Figure 21: Leading brands’ sales and shares in the UK retail yellow fats market (including butter, margarine and spreads, and cooking fats), by value and volume, 2017/18 and 2018/19
- Dip in value sales for most brands in cooking oils
-
- Figure 22: Leading brands’ sales and shares in the UK retail cooking oils market, by value and volume, 2017/18 and 2018/19
- Filippo Berio extends lead in olive oil segment
-
- Figure 23: Leading brands’ sales and shares in the UK retail olive oil market, by value and volume, 2017/18 and 2018/19
- No dominant brands in fragmented speciality oils segment
-
- Figure 24: Leading brands’ sales and shares in the UK retail speciality oils market, by value and volume, 2017/18 and 2018/19
Launch Activity and Innovation
-
- Oils account for nearly two thirds of new launches
-
- Figure 25: New product launches in the UK butter, spreads and edible oils market, by category, 2014-19
- More plant-based butter alternatives
- Recent launches explore unusual ingredients
-
- Figure 26: Examples of new launches of plant-based and dairy-free butter alternatives in butter and spreads, 2018/19
- New recipes in spreads put focus on naturalness and less fat
- Upfield updates Flora
- Clover Light introduces new recipe
-
- Figure 27: Examples of new launches in spreads, 2018/19
- Arla launches ‘Softest’ versions for Lurpak and Anchor
- New launches in ghee and ghee alternatives
-
- Figure 28: Examples of new ghee and ghee alternative launches in butter and spreads, 2018/19
- New infusions add to variety in edible oils
-
- Figure 29: Examples of new launches of infused oils, 2018/19
- Blends of two different oils add differentiation
-
- Figure 30: Examples of different blend combinations in new launches of oils, 2018/19
- Extra virgin and cold-pressed oils emphasise quality and purity
-
- Figure 31: Examples of cold-pressed and extra virgin new launches in oils, 2018/19
- Launches of more niche seed oils
-
- Figure 32: Examples of new launches in seed oils, 2018/19
- Rare examples of task-specific oils
-
- Figure 33: Examples of new launches in task-specific oils and sprays, 2018/19
Advertising and Marketing Activity
-
- Decline in spending on main media advertising continues
-
- Figure 34: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and oils, 2015-19
- Figure 35: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and oils, by category, 2015-19
- Arla Foods biggest spender in 2018
-
- Figure 36: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and oils, by advertiser, 2015-19
- Anchor plays up infinite uses of product
- Lurpak focuses on great-tasting food message
- Flora pushes plant-based nutrition message
- Return to TV advertising for Bertolli
- Country Life launches digital campaign
- Crisp ‘n Dry biggest advertiser in oils
- Nielsen Ad Intel coverage
Brand Research
-
- Brand map
-
- Figure 37: Attitudes towards and usage of selected brands, September 2019
- Key brand metrics
-
- Figure 38: Key metrics for selected brands, September 2019
- Brand attitudes: Lurpak most worth paying more for
-
- Figure 39: Attitudes, by brand, September 2019
- Brand personality: All brands seen as accessible by most people
-
- Figure 40: Brand personality – macro image, September 2019
- Lurpak is seen as the most delicious and indulgent brand
-
- Figure 41: Brand personality – micro image, September 2019
- Brand analysis
- Lurpak stands for consistently high quality
-
- Figure 42: User profile of Lurpak, September 2019
- Anchor is seen as the most traditional brand
-
- Figure 43: User profile of Anchor, September 2019
- Traditional and natural associations are key strengths for Country Life
-
- Figure 44: User profile of Country Life, September 2019
- Flora seen the most widely as healthy
-
- Figure 45: User profile of Flora, September 2019
- Clover seen most widely as a family brand
-
- Figure 46: User profile of Clover, September 2019
The Consumer – What You Need to Know
-
- Nine in 10 people buy butter or spreads
- Eight in 10 people buy edible oils
- Toast, bread and sandwiches are top uses for spreads
- Olive oils used most for frying, roasting and on cold food
- Low saturated fat top healthy factor for spreads
- All-natural ingredients are associated with health by a third
- Big focus on price when buying oils
- Health considerations also matter in choice of oils
- Need to communicate sustainability in spreads and oils
- Brands should tap into interest in more flavours for cooking
Buying of Yellow Fats
-
- Nine in 10 people buy butter or spreads
-
- Figure 47: Types of butter and spreads bought in the last 3 months, July 2019
- Nearly two in five rely on an all-round yellow fat
-
- Figure 48: Number of different types of butter and spreads bought in the last 3 months, July 2019
- Younger people more likely to buy butter
Buying of Edible Oils
-
- Eight in 10 buy edible oils
-
- Figure 49: Types of edible liquid oils and solid oils/fats bought in the last 3 months, July 2019
- Half of people buy more than one type of oil
-
- Figure 50: Number of different types of edible oils bought in last 3 months, July 2019
- Higher-income households more likely to buy most oils
How Yellow Fats and Edible Oils Are Used
-
- Toast, bread and sandwiches are top uses for spreads
-
- Figure 51: How different types of yellow fats and edible oils were used in the last 3 months, July 2019
- Olive oil should focus on versatility and health messages
- Cooked food and home baking offer opportunities for butter and spread brands
Factors Making a Spread ‘Healthy’
-
- Low saturated fat top healthy factor for spreads
- Half of buyers limit saturated fat in their diet on medical advice
-
- Figure 52: Factors judged to make a spread healthy, July 2019
- All-natural ingredients are associated with health by a third on health grounds
- Functional health benefits also worth highlighting
Factors Considered Important When Buying Oil
-
- Big focus on price when buying oils
-
- Figure 53: Factors considered important when buying oil, by purpose, July 2019
- Health considerations matter in choice of oils
- Low saturated fat is top health consideration in oils
- Minority interest in the nutrients of oils
- Reference to production methods and origins adds differentiation among a minority
Consumer Behaviours and Attitudes
-
- Need to communicate sustainability in spreads and oils
-
- Figure 54: Behaviours and attitudes towards yellow fats and oils, July 2019
- Organic seen as better for the environment by three in five
- Interest in butter with milk from grass-fed cows
- Brands should tap into interest in more flavours for cooking
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Forecast methodology
-
- Figure 55: UK retail value and volume sales of butter, 2014-19
- Figure 56: UK retail value and volume sales of spreads, 2014-19
- Figure 57: Best- and worst-case forecast of total UK retail value sales of butter and spreads, 2019-24
- Figure 58: Best- and worst-case forecast of UK retail volume sales of butter and spreads, 2014-24
-
- Figure 59: Best- and worst-case forecast of total UK retail volume sales of butter and spreads, 2019-24
- Figure 60: Best- and worst-case forecast of total UK retail value sales of edible oils, 2019-24
- Figure 61: Best- and worst-case forecast of UK retail volume sales of edible oils, 2014-24
- Figure 62: Best- and worst-case forecast of total UK retail volume sales of edible oils, 2019-24
Appendix – Market Share
-
-
- Figure 63: Leading manufacturers’ sales and shares in the UK retail yellow fats market (including butter, margarine and spreads, and cooking fats), by value and volume, 2017/18 and 2018/19
- Figure 64: Leading manufacturers’ sales and shares in the UK retail cooking oil market, by value and volume, 2017/18 and 2018/19
-
- Figure 65: Leading manufacturers’ sales and shares in the UK retail olive oil market, by value and volume, 2017/18 and 2018/19
- Figure 66: Leading manufacturers’ sales and shares in the UK retail speciality oils market, by value and volume, 2017/18 and 2018/19
-
- Figure 67: Leading brands’ sales and shares in the UK retail butter market, by value and volume, 2017/18 and 2018/19
- Figure 68: Leading manufacturers’ sales and shares in the UK retail butter market, by value and volume, 2017/18 and 2018/19
-
- Figure 69: Leading brands’ sales and shares in the UK retail margarine and spreads market, by value and volume, 2017/18 and 2018/19
- Figure 70: Leading manufacturers’ sales and shares in the UK retail margarine and spreads market, by value and volume, 2017/18 and 2018/19
-
- Figure 71: Leading brands’ sales and shares in the UK retail cooking fats market, by value and volume, 2017/18 and 2018/19
- Figure 72: Leading manufacturers’ sales and shares in the UK retail cooking fats market, by value and volume, 2017/18 and 2018/19
-
Appendix – Launch Activity and Innovation
-
-
- Figure 73: New product launches in the UK butter, margarine and spreads market, by claim (sorted by 2018), 2014-19
- Figure 74: New product launches in the UK edible oils market, by claim (sorted by 2018), 2014-19
- Figure 75: New product launches in the UK butter market, by claim (sorted by 2018), 2014-19
- Figure 76: New product launches in the UK margarine and spreads market, by claim (sorted by 2018), 2014-19
-
- Figure 77: New product launches in the UK butter market, by launch type, 2014-19
- Figure 78: New product launches in the UK margarine and spreads market, by launch type, 2014-19
- Figure 79: New product launches in the UK oils market, by launch type, 2014-19
-
Back to top