Table Sauces and Seasonings - UK - December 2013

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
The future
Figure 1: Forecast of UK retail sales of table sauces and seasonings, by value, 2008-18
Market factors
Growth in key cohorts will support the market
Operators look to add value to the market
Companies, brands and innovation
Heinz holds the lead in table sauces
Figure 2: Leading brands’ shares in the UK retail table sauces* market, by value, 2012-13**
NPD looks to premium ingredients and hotter flavours
Unilever and Heinz dominate adspend
The consumer
Purchasing of table sauces is near universal at 94%
Figure 3: Table sauces and condiments bought, by type, September 2013
Special offers are a driver for almost half
Figure 4: Factors influencing choice of table sauces, September 2013
Customisation of table sauces appeals to 72%
Figure 5: Attitudes towards table sauces, September 2013
More than nine in 10 use seasonings
Figure 6: Seasonings bought, by type, September 2013
Majority see seasonings as an easy way to add flavour
Figure 7: Attitudes towards seasonings, September 2013
What we think
ISSUES IN THE MARKET
Can investment in premium varieties tap into growing consumer confidence?
How can the market encourage consumers to expand their repertoire?
Should operators be adopting a two-pronged approach to flavour?
How will changes in the age profile of the UK population affect the market?
TREND APPLICATION
Guiding Choice
Influentials
East Meets West
MARKET DRIVERS
Key points
Confidence improves but consumer spending remains under pressure
Figure 8: GfK NOP Consumer Confidence Index, monthly, January 2008-October 2013
Experimentation with cooking continues
Figure 9: Selected cooking and eating habits, March 2012-August 2013
Condiments and seasonings well placed to ‘make it mine’
Seasonings dub themselves cooking solutions
More than a third enjoy spicy food
Demographic changes
Growth in core cohorts set to create opportunities for the market
Figure 10: Trends in the age structure of the UK population, 2008-13 and 2013-18
Growth of over-55s to support table sauces
Ethnic sauces to benefit from rise in 25-34s
Households with children are expected to see a decline
Figure 11: Forecast adult population trends, by lifestage, 2008-13 and 2013-18
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Table sauces and seasonings’ share of NPD in the total food market increases in 2013
Figure 12: Table sauces and seasonings’ share of new product launches in the UK food market, 2009-13
New variety/range extensions lead NPD, with completely new product launches accounting for a third
Figure 13: New product launches in the UK table sauces and seasonings market, by launch type, 2009-13
Private label steps up NPD
Schwartz stands out in seasonings
Heinz moves into dish-specific sauces
Packaging remains a focus for NPD
Seasonings favour shelf-stable formats
Figure 14: New product launches in the UK seasonings market, by storage type, 2011/12 and 2012/13
Frozen seasonings prove a flash in the pan
Gourmet NPD looks to add value
Figure 15: Share of ‘premium’ claims of new product launches in the UK table sauces and seasonings market, 2009-13
Knorr and Tesco look to premium segment
Tesco mines chilled formats for quality associations
Premium ingredients improve quality credentials
Brands look to premium ingredients in international markets
While tomato dominates NPD, table sauces are getting hotter
Figure 16: New product launches in the UK table sauces market, by flavour component, 2011-13
Even milder sauces look to spices
Operators look beyond chilli for heat
International players look to broaden usage
Milder variants cater to less adventurous consumers
MARKET SIZE AND FORECAST
Key points
Table sauces and seasonings
Figure 17: UK retail value and volume sales of table sauces and seasonings, 2008-18
Forecast
Figure 18: Retail sales and forecast of table sauces and seasonings, UK, by value, 2008-18
Figure 19: Retail sales and forecast of table sauces and seasonings, UK, by volume, 2008-18
Pickles, chutney and relish
Figure 20: UK retail sales of pickles, chutneys and relishes, by volume and value, 2010-13
Methodology
SEGMENT PERFORMANCE – TABLE SAUCES
Key points
Salad accompaniments lead by value, while thick sauces dominate by volume
Figure 21: UK retail sales of table sauces, by segment, by value and volume, 2011-13
Salad dressing drives growth in salad accompaniments
Figure 22: UK retail sales of salad accompaniments, by type, by value and volume, 2011-13
Tomato ketchup dominates thick sauces with an almost 70% share
Figure 23: UK retail sales of thick sauces, by type, by value and volume, 2011-13
Thin sauces prosper from the trend towards foreign cuisines and hotter flavours
Figure 24: UK retail sales of thin sauces, by type, by value, 2011-13
Dish-specific sauces see value growth but static volumes
Figure 25: UK retail sales of dish-specific sauces, by type, by value and volume, 2011-13
Speciality vinegar drives value growth, while overall volumes fall
Figure 26: UK retail sales of vinegar, by type, by value and volume, 2011-13
American mustard sees continued growth
Figure 27: UK retail sales of mustard, by type, by value and volume, 2011-13
SEGMENT PERFORMANCE – SEASONINGS
Key points
Growth in herbs and spices drive sales
Figure 28: UK retail sales of herbs, spices and seasonings, salt and pepper, by value and volume, 2011-13
Sea salt sees continuing popularity, at the expense of table, low-sodium and cooking salt
Figure 29: UK retail sales of salt, by type, by value and volume, 2011-13
MARKET SHARE – TABLE SAUCES
Key points
Heinz holds the lead
Figure 30: Leading brands’ sales and shares in the UK retail table sauces* market, by value and volume, 2011/12 and 2012/13
Own-label leads pickles, chutney and relish
Figure 31: Leading brands’ sales and shares in the UK retail pickles, chutneys and relishes market, by value and volume, 2011/12 and 2012/13
MARKET SHARE – SEASONINGS
Key points
Own-label dominates the market while Schwartz is the leading brand
Figure 32: Leading brands’ sales and shares in the UK retail seasonings market, by value and volume, 2011/12 and 2012/13
Schwartz holds a fifth of the market
Limited competition from other brands
COMPANIES AND PRODUCTS
Figure 33: Selected companies and brands in the UK table sauces and seasonings market, 2013
 HEINZ
Product range
Product innovation
Recent marketing
‘Man rules’ dominate HP activity
Summer campaigns look to drive seasonal usage
Heinz brings back its invisible bottle ad
Emphasising naturalness
Alternative campaigns look to social media, limited edition and roadshows
 MIZKAN
Product range and innovation
Recent marketing
 PREMIER FOODS
Product range
Product innovation
Recent marketing
 UNILEVER
Product range
Product innovation
Recent marketing
 RH AMAR & CO
Product range
Product innovation
 AB FOODS
Product range and innovation
Recent marketing
 MCCORMICK (SCHWARTZ)
Product range and innovation
Recent marketing
 BART INGREDIENTS COMPANY
Product range and innovation
Recent marketing
 OTHER
English Provender Company
Product range
Recent activity
Grace Foods
Product range
Recent activity
Kikkoman
Product range
Recent activity
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend falls in 2012, after reaching a three-year high in 2011
Figure 34: Main monitored media advertising expenditure on tables sauces and seasonings, 2009-13
Figure 35: Main monitored media advertising expenditure on table sauces and seasonings, by category, 2009-13
Unilever dominates but cuts back in 2012, while Heinz increases spend
Figure 36: Main monitored media advertising expenditure on table sauces and seasonings, by top 10 advertisers, 2009-13
Unilever supports Hellmann’s
Heinz and Premier step up spend
McCormick offers little support to brands in 2013
Mizkan to launch TV campaign
Hellmann’s mayonnaise leads spend by brand
Figure 37: Main monitored media advertising expenditure on table sauces and seasonings, by top 10 brands (sorted by total), 2009-13
TV takes the lion’s share
Figure 38: Main monitored media advertising expenditure on table sauces and seasonings, by media type, 2009-13
THE CONSUMER – PURCHASING AND USAGE OF TABLE SAUCES
Key points
Purchasing of table sauces is near universal at 94%
Figure 39: Table sauces and condiments bought, by type, September 2013
Figure 40: Table sauces and condiments bought, by type, by gender, age and presence of children in household, September 2013
Figure 41: Table sauces and condiments bought, by type, by gender, age and presence of children in household, September 2013 (continued)
Almost a third use traditional table sauces at least once a week
Figure 42: Frequency of eating/using table sauces, September 2013
More than a fifth buy just one or two types
Figure 43: Repertoire of table sauces and condiments bought, September 2013
THE CONSUMER – FACTORS INFLUENCING CHOICE OF TABLE SAUCES
Key points
Special offers are a driver for almost half
Figure 44: Factors influencing choice of table sauces, September 2013
Convenient packaging offers a tangible point of difference
Health claims are important for a sizeable minority
Figure 45: Those for whom ‘reduced salt/sugar’ and ‘low/reduced fat (eg light)’ are important attributes when choosing to buy one table sauce over another, by age, September 2013
Hotter, unusual and limited edition flavours appeal to 25-34s
Figure 46: Those for whom ‘hotter flavour’, ‘an unusual flavour’ and ‘limited edition flavour’ are important attributes when choosing to buy one table sauce over another, by age, September 2013
THE CONSUMER – ATTITUDES TOWARDS TABLE SAUCES
Key points
Customisation of meals with table sauces appeals to 72%
Figure 47: Attitudes towards table sauces, September 2013
One in four buyers are overwhelmed by choice
Milder variants can cater for the family market
Figure 48: Agreement with the statement ‘Milder variants of table sauce are suitable for the whole household’, by presence of children, September 2013
Ethnic, stronger and hotter flavours appeal to two fifths, especially 25-34s
Figure 49: Agreement with statements on flavour of table sauces, by age, September 2013
Lighter versions allow the sizeable minority to continue buying into the market
Figure 50: Agreement with the statement ‘Lighter variants of table sauces (eg low calorie) mean I don’t have to cut back on how much I use’, by gender and age, September 2013
THE CONSUMER – PURCHASING OF SEASONINGS
Key points
More than nine in 10 adults buy seasonings
Figure 51: Seasonings bought, by type, October 2012 and September 2013
Figure 52: Seasonings bought, by AB socio-economic group and gross annual household income of £50,000+, September 2013
Sea and rock salt see a rise in usage
Figure 53: Types of salt bought, by age, September 2013
Three in 10 buy just one or two types of seasonings
Figure 54: Repertoire of seasonings bought, September 2013
THE CONSUMER – ATTITUDES TOWARDS SEASONINGS
Key points
Majority see seasonings as an easy way to add flavour
Figure 55: Attitudes towards seasonings, September 2013
Three in 10 believe that fresh herbs/spices are worth the extra cost
Figure 56: Agreement with the statement ‘Fresh herbs/spices are worth the extra cost’, by age, socio-economic group and household income, September 2013
Almost three in 10 are cutting back on salt, rising to almost half of over-65s
Figure 57: Agreement with the statement ‘I am reducing the amount of salt I use for health reasons’, by age, September 2013
APPENDIX – MARKET DRIVERS
Figure 58: GDP, PDI, consumer expenditure and savings, at constant 2013 prices, 2008-18
Figure 59: Cooking and eating habits, by age, August 2013
Figure 60: Forecast adult population trends, by socio-economic group, 2008-18
Figure 61: Forecast adult population trends, by lifestage, 2008-18
APPENDIX – WHO’S INNOVATING?
Figure 62: New product launches in the UK table sauces and seasonings market, by format type, 2009-13
Figure 63: New product launches in the UK table sauces and seasonings market, by own-label and branded, 2009-13
Figure 64: New product launches in the UK table sauces and seasonings market, by product category, 2009-13
Figure 12: New product launches in the UK table sauces and seasonings market, top 10 companies, 2009-13
Figure 65: New product launches in the UK table sauces market, by flavour component, 2009-13
Figure 66: New product launches in the UK table sauces and seasonings market, by top 10 claims, 2009-13
APPENDIX – MARKET SIZE AND FORECAST
Figure 67: Best- and worst-case forecasts for retail sales of table sauces and seasonings, by value, 2013-18
Figure 68: Best- and worst-case forecasts for retail sales of table sauces and seasonings, by volume, 2013-18
Table sauces
Figure 69: Best- and worst-case forecasts for retail sales of table sauces, by value, 2013-18
Figure 70: Forecast of UK retail sales of table sauces, by value, 2008-18
Figure 71: Best- and worst-case forecasts for retail sales of table sauces, by volume, 2013-18
Figure 72: Forecast of UK retail sales of table sauces, by volume, 2008-18
Seasonings
Figure 73: Best- and worst-case forecasts for retail sales of seasonings, by value, 2013-18
Figure 74: Forecast of UK retail sales of seasonings, by value, 2008-18
Figure 75: Best- and worst-case forecasts for retail sales of seasonings, by volume, 2013-18
Figure 76: Forecast of UK retail sales of seasonings, by volume, 2008-18
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 77: Main monitored media advertising expenditure on table sauces and seasonings, by category, 2009-13
APPENDIX – THE CONSUMER – PURCHASING AND USAGE OF TABLE SAUCES
Figure 78: Most popular table sauces and condiments bought, by type, by demographics, September 2013
Figure 79: Next most popular table sauces and condiments bought, by type, by demographics, September 2013
Figure 80: Other table sauces and condiments bought, by type, by demographics, September 2013
Figure 81: Frequency of eating/using table sauces – Traditional table sauces, by demographics, September 2013
Figure 82: Frequency of eating/using table sauces – Traditional table sauces, by demographics, September 2013 (continued)
Figure 83: Frequency of eating/using table sauces – Vinegar, by demographics, September 2013
Figure 84: Frequency of eating/using table sauces – Vinegar, by demographics, September 2013 (continued)
Figure 85: Frequency of eating/using table sauces – Dish-specific table sauces, by demographics, September 2013
Figure 86: Frequency of eating/using table sauces – Dish-specific table sauces, by demographics, September 2013 (continued)
Figure 87: Frequency of eating/using table sauces – Mayonnaise, by demographics, September 2013
Figure 88: Frequency of eating/using table sauces – Mayonnaise, by demographics, September 2013 (continued)
Figure 89: Frequency of eating/using table sauces – Salad cream/dressing, by demographics, September 2013
Figure 90: Frequency of eating/using table sauces – Salad cream/dressing, by demographics, September 2013 (continued)
Figure 91: Frequency of eating/using table sauces – Ethnic table sauces, by demographics, September 2013
Figure 92: Frequency of eating/using table sauces – Ethnic table sauces, by demographics, September 2013 (continued)
Figure 93: Frequency of eating/using table sauces – Pickle/piccalilli, by demographics, September 2013
Figure 94: Frequency of eating/using table sauces – Pickle/piccalilli, by demographics, September 2013 (continued)
Figure 95: Frequency of eating/using table sauces – Relish, by demographics, September 2013
Figure 96: Frequency of eating/using table sauces – Relish, by demographics, September 2013 (continued)
Figure 97: Frequency of eating/using table sauces – Chutney, by demographics, September 2013
Figure 98: Frequency of eating/using table sauces – Chutney, by demographics, September 2013 (continued)
Figure 99: Frequency of eating/using table sauces – Any other table sauce or condiment, by demographics, September 2013
Figure 100: Frequency of eating/using table sauces – Any other table sauce or condiment, by demographics, September 2013 (continued)
Figure 101: Frequency of eating/using table sauces – Pickled vegetables or eggs, by demographics, September 2013
Figure 102: Frequency of eating/using table sauces – Pickled vegetables or eggs, by demographics, September 2013 (continued)
Figure 103: Repertoire of table sauces and condiments bought, by type, by demographics, September 2013
APPENDIX – THE CONSUMER – FACTORS INFLUENCING CHOICE OF TABLE SAUCES
Figure 104: Most popular factors influencing choice of table sauces, by demographics, September 2013
Figure 105: Next most popular factors influencing choice of table sauces, by demographics, September 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS TABLE SAUCES
Figure 106: Attitudes towards table sauces, September 2013
Figure 107: Agreement with the statement ‘Table sauces are a good way to customise a dish’, by demographics, September 2013
Figure 108: Agreement with the statement ‘Milder variants of table sauce are suitable for the whole household’, by demographics, September 2013
Figure 109: Agreement with the statement ‘A mixture of flavours in table sauces appeals to me’, by demographics, September 2013
Figure 110: Agreement with the statement ‘It is fun to recreate flavours at home that I have tried elsewhere’, by demographics, September 2013
Figure 111: Agreement with the statement ‘I would be interested in more ethnic varieties of table sauces’, by demographics, September 2013
Figure 112: Agreement with the statement ‘I prefer stronger flavours of table sauces’, by demographics, September 2013
Figure 113: Agreement with the statement ‘Branded varieties offer better quality than supermarket own-label table sauces’, by demographics, September 2013
Figure 114: Agreement with the statement ‘I prefer hotter/spicier table sauces’, by demographics, September 2013
Figure 115: Agreement with the statement ‘Lighter variants of table sauces mean I don’t have to cut back on how much I use’, by demographics, September 2013
Figure 116: Agreement with the statement ‘I find the amount of choice of table sauce overwhelming’, by demographics, September 2013
APPENDIX – THE CONSUMER – PURCHASING OF SEASONINGS
Figure 117: Most popular seasonings bought, by type, by demographics, September 2013
Figure 118: Next most popular seasonings bought, by type, by demographics, September 2013
Figure 119: Other seasonings bought, by type, by demographics, September 2013
Figure 120: Repertoire of seasonings bought, by type, by demographics, September 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS SEASONINGS
Figure 121: Most popular attitudes towards seasonings, by demographics, September 2013
Figure 122: Next most popular attitudes towards seasonings, by demographics, September 2013