Condiments and Dressings - UK - January 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Modest value growth masks underlying declines over 2012-17
Figure 1: UK retail value sales and forecast of table sauces, pickles, chutneys and relishes, 2012-22
Volume decline continues in table sauces in 2017
Figure 2: Share of UK retail value sales of table sauces, by segment, 2016 and 2017
Volume sales pick up in pickles, chutneys and relishes category
Meat reduction and love of world foods stand to curb table sauce usage
Inflation fuels price rises; consumer incomes squeezed
Companies and brands
Sales of Heinz Tomato Ketchup flat, Hellmann’s mayonnaise falls
Figure 3: Leading brands’ shares in the UK retail table sauces market, by value, 2016/17*
Own-label grows presence in table sauces and pickles, chutneys and relishes
Table sauces lead 2017 launches
Flavour innovation in mayonnaise and ketchup launches
Heinz launches [Seriously] Good Sauces; Hellmann’s unveils ketchup range
Unilever is the highest-spending advertiser
The consumer
Usage of condiments and dressings is almost universal
Figure 4: Usage of different types of condiments and dressings, October 2017
Younger age groups eat hot/spicy sauces; over-55s drive dish-specific sauce usage
Two thirds use condiments/dressings in a variety of ways
Figure 5: Behaviours related to condiments and dressings, October 2017
Sizeable interest in fermented condiments
Wider availability of free-from condiments appeals to four in 10
Figure 6: Attitudes towards condiments and dressings, October 2017
Major brands are the most closely associated with positive attributes
Pairing suggestions outside traditional dishes spark interest
Figure 7: Behaviours related to dish-specific table sauces, October 2017
What we think
ISSUES AND INSIGHTS
Dish-specific sauces need new usage occasions as traditional dishes lose favour
The facts
The implications
Ethical credentials can provide a point of difference for condiments and dressings
The facts
The implications
Fermented condiments could provide much-needed boost for pickles segment
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Modest value growth masks underlying declines over 2012-17
Volume decline continues in table sauces in 2017
Volume sales pick up in pickles, chutneys and relishes category
Meat reduction and love of world foods stand to curb table sauce usage
Inflation fuels price rises; consumer incomes squeezed
MARKET SIZE AND FORECAST
Marginal growth for the condiments and dressings market
Figure 8: UK retail value sales of table sauces, pickles, chutneys and relishes, 2012-22
Value growth forecast for the market
Figure 9: UK retail value sales and forecast of table sauces, pickles, chutneys and relishes, 2012-22
Forecast methodology
MARKET SEGMENTATION
Value sales return to growth in 2017
Figure 10: UK retail value and volume sales of table sauces, 2012-22
Figure 11: UK retail value sales and forecast of the table sauces market, 2012-22
Value sales growth for half of segments
Figure 12: UK retail sales of tables sauces, by segment, by value and volume, 2016 and 2017
Closure of Colman’s Norwich factory suggests uncertain future for mustard
Flat value and declining volume sales for tomato ketchup
Figure 13: UK retail sales of thick sauces, by type, by value and volume, 2016 and 2017
Second year of sales growth for mayonnaise
Figure 14: UK retail sales of salad accompaniments, by type, by value and volume, 2016 and 2017
Downward trajectory continues for sales of dish-specific sauces
Figure 15: UK retail sales of dish-specific sauces, by type, by value and volume, 2016 and 2017
Modest growth from soy sauce bolsters performance of thin sauces
Figure 16: UK retail sales of thin sauces, by type, by value and volume, 2016 and 2017
Volume sales of pickles, chutneys and relishes pick up
Figure 17: UK retail value and volume sales of pickles, chutneys and relishes, by value and volume, 2012-22
Figure 18: UK retail value sales and forecast of the pickles, chutneys and relishes market, 2012-22
MARKET DRIVERS
Healthy eating is widespread
Meat reduction could curb table sauce usage…
…as could high salt levels in key carrier foods
2017 salt reduction targets also affect table sauces
Interest in emerging cuisines presents opportunity for table sauces…
…but is pushing traditional British dishes off the menu
Foodservice can provide inspiration for condiments and dressings
Summer months impact the sales of condiments and dressings
Figure 19: UK average rainfall (mm), by season, 2013-17
Inflation fuels price rises; consumer incomes squeezed
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Sales of Heinz Tomato Ketchup flat, while Hellmann’s mayonnaise falls
Own-label grows presence in table sauces and pickles, chutneys and relishes
Table sauces lead 2017 launches
Flavour innovation in mayonnaise and ketchup launches
Heinz launches [Seriously] Good Sauces; Hellmann’s unveils ketchup range
Unilever is the highest-spending advertiser
MARKET SHARE
Sales of Heinz Tomato Ketchup flat, Hellmann’s mayonnaise falls
Figure 20: Leading brands’ sales and shares in the UK retail table sauces market, by value, 2015/16 and 2016/17
Own-label makes gains in table sauces
Kraft Heinz retains market lead
Figure 21: Leading manufacturers’ sales and shares in the UK retail table sauces market, by value, 2015/16 and 2016/17
Own-label grows shares in pickles, chutneys and relishes
Figure 22: Leading brands’ sales and shares in the UK retail pickles, chutneys and relishes market, by value and volume, 2015/16 and 2016/17
Manufacturers lose share to own-label
LAUNCH ACTIVITY AND INNOVATION
Table sauces lead 2017 launches
Figure 23: New product launches in the UK condiments and dressings market, by sub-category, 2013-17
Brands dominate launch activity
Figure 24: New product launches in the UK condiments and dressings market, by brand and own-label, 2013-17
Flavour innovation in mayonnaise and ketchup launches
Tapping into the hot and spicy trend
Encona launches hottest ever sauce
Premium flavours also inspire mayonnaise launches
[Seriously] Good Sauces from Heinz
L/N/R sugar launches remain niche
Innovative thick table sauces hit the market
Hellmann’s unveils honey-sweetened and red & green ketchups
Unusual flavours from ethical brand Rubies in the Rubble
Brand extensions from restaurant chains and brands
Restaurant chain Harvester puts its signature sauces on the market
Saclà and Rubies in the Rubble unveil new vegan mayonnaises
Mary Berry brand reveals first condiments range
Tiny Tigg’s squeezy sauce sachets cater to convenience
Uptick in launches of unfiltered vinegars
ADVERTISING AND MARKETING ACTIVITY
High spend in advertising continues
Figure 25: Total above-the-line, online display and direct mail advertising expenditure on condiments and dressings, 2014-17
Figure 26: Recorded above-the-line, online display and direct mail total advertising expenditure on condiments and dressings, by category, 2014-17
Unilever is the highest-spending advertiser
Figure 27: Recorded above-the-line, online display and direct mail total advertising expenditure on condiments and dressings, by highest-spending advertisers, 2014-17
Hellmann’s promotes its values
Hellmann’s forges partnership with delivery start-up
Blockbuster-inspired adverts for Colman’s mint sauce
Kraft Heinz 50% less sugar tomato ketchup joins other variants in television debut
Figure 28: Recorded above-the-line, online display and direct mail total advertising expenditure on condiments and dressings, by 10 highest-spending brands, 2014-17
“Please the Cheese” campaign from Branston Pickle
Branston’s unconventional partnerships aim to entice younger audiences
Sarson’s enlists Jimmy Doherty to help promote its vinegar
Figure 29: Recorded above-the-line, online display and direct mail advertising expenditure on condiments and dressings, by media type, 2014-17
Tabasco launches annual Hot Chef Competition
Encona encourages consumers to cook from scratch
Nielsen Ad Intel coverage
BRAND RESEARCH
What you need to know
Brand map
Figure 30: Attitudes towards and usage of selected brands, December 2017
Key brand metrics
Figure 31: Key metrics for selected brands, December 2017
Brand attitudes: Heinz is seen as the most innovative brand
Figure 32: Attitudes, by brand, December 2017
Brand personality: Branston is widely seen as accessible, with a strong fun image
Figure 33: Brand personality – Macro image, December 2017
Hellmann’s has the most indulgent image
Figure 34: Brand personality – Micro image, December 2017
Brand analysis
Heinz is the most positively viewed brand
Figure 35: User profile of Heinz, December 2017
Hellmann’s is seen as the most indulgent brand
Figure 36: User profile of Hellmann’s, December 2017
Branston is highly recommended with a strong fun image
Figure 37: User profile of Branston, December 2017
Men are key users of HP, with high levels of commitment
Figure 38: User profile of HP, December 2017
Colman’s is the most authentic brand with a strong traditional image
Figure 39: User profile of Colman’s, December 2017
Kikkoman has the lowest awareness but enjoys frequent usage
Figure 40: User profile of Kikkoman, December 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Usage of condiments and dressings is almost universal
Younger age groups eat hot/spicy sauces; over-55s drive dish-specific sauce usage
Two thirds use condiments/dressings in a variety of ways
Sizeable interest in fermented condiments
Wider availability of free-from condiments appeals to four in 10
Major brands are the most closely associated with positive attributes
Pairing suggestions outside traditional dishes spark interest
USAGE OF CONDIMENTS AND DRESSINGS
Usage of condiments and dressings is almost universal
Thick table sauces lead
Women are key users of salad condiments and dressings
Figure 41: Usage of condiments and dressings, by type, October 2017
Younger age groups eat hot/spicy sauces
Over-55s drive usage of dish-specific sauces
Families have the widest repertoires of condiments/dressings
Figure 42: Repertoire of condiments and dressings eaten/used in the last 3 months, October 2017
BEHAVIOURS RELATED TO CONDIMENTS AND DRESSINGS
Two thirds use condiments/dressings in a variety of ways
Figure 43: Behaviours related to condiments and dressings, October 2017
Lack of familiarity is a key challenge for unusual table sauces
Premium condiments are commonly used with everyday meals
Sizeable interest in fermented condiments
ATTITUDES TOWARDS CONDIMENTS AND DRESSINGS
Many users forget how long condiments have been open for
Figure 44: Condiments and dressings – CHAID – Tree output, October 2017
Methodology
Figure 45: Attitudes towards condiments and dressings, October 2017
Wider availability of free-from condiments appeals to four in 10
Figure 46: Share of new products in the UK condiments and dressings market carrying an L/N/R allergen claim, 2014-17
Products with ethical credentials appeal to over a third
Figure 47: New product launches in the UK condiments and dressings market, by ethical claim, 2014-17
QUALITIES ASSOCIATED WITH BRANDED AND OWN-LABEL CONDIMENTS AND DRESSINGS
Major brands are the most closely associated with positive attributes
Figure 48: Correspondence analysis, qualities associated with standard and premium own-label and brands in condiments and dressings, October 2017
Methodology
Premium labels lag behind mainstream brands in most areas
Few associate any condiments/dressings with being artificial or unhealthy
Figure 49: Qualities associated with standard and premium own-label and brands in condiments and dressings, October 2017
Highlighting positive attributes is needed to boost image of standard own-label
BEHAVIOURS RELATED TO DISH-SPECIFIC TABLE SAUCES
Pairing suggestions outside of traditional dishes spark interest
Figure 50: Behaviours related to dish-specific table sauces, October 2017
Half of users would be encouraged to up usage by healthier versions
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 51: UK retail volume sales and forecast of the table sauces market, 2012-22
Figure 52: UK retail volume sales and forecast of the pickles, chutneys and relishes market, 2012-22
APPENDIX – MARKET DRIVERS
Figure 53: Cooking methods used for beef, pork, lamb and chicken, by type of meat, August 2017
Figure 54: UK mean temperature (°C), by season, 2013-17
APPENDIX – MARKET SHARE
Figure 55: Leading brands sales and shares in the UK retail table sauces market, by volume, 2015/16 and 2016/17
Figure 56: Leading manufacturers’ sales and shares in the UK retail table sauces market, by volume, 2015/16 and 2016/17
Figure 57: Leading manufacturers’ sales and shares in the UK retail pickles, chutneys and relishes market, by value and volume, 2015/16 and 2016/17
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 58: New product launches in the UK condiments and dressings market, by company, 2013-17
Figure 59: New product launches in the UK condiments and dressings market, by top 10 claims, 2014-17
Figure 60: Share of new product launches in the UK condiments and dressings market carrying an L/N/R sugar or sodium claim, 2013-17
Figure 61: New product launches in the UK condiments and dressings market carrying an L/N/R allergen, L/N/R lactose or dairy-free claim, 2014-17
APPENDIX – ADVERTISING AND MARKETING ACTIVITY
Figure 62: Share of recorded above-the-line, online display and direct mail advertising expenditure on condiments and dressings, by 10 highest-spending brands, 2014-17
Figure 63: Share of total above-the-line, online display and direct mail advertising expenditure on condiments and dressings, by highest-spending advertisers, 2014-17
Figure 64: Share of recorded above-the-line, online display and direct mail total advertising expenditure on condiments and dressings, by category, 2014-17
APPENDIX – THE CONSUMER
Figure 65: Usage of thick table sauces, by age, October 2017
Figure 66: Usage of ethnic table sauces, by age, October 2017
Figure 67: Usage of salad condiments, by age, October 2017
Figure 68: Usage of different types of condiments and dressings, by age, October 2017
Figure 69: Condiments and dressings – CHAID – Table output, October 2017