Red Meat - UK - October 2014

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK red meat market, value sales, 2009-19
Market factors
The retail price of red meat rises ahead of overall food inflation
Figure 2: Retail price index of red meat, poultry and all food, 2009-14
Growth in consumer spending bodes well for the red meat market
The ageing population presents a challenge
Companies, brands and innovation
Own-label has a strong presence in the processed red meat market
Figure 3: Leading brands’ shares in the UK canned meat market, by value, 2013/14*
Continental meats attract new launches
Tesco and Asda continue to stay at the top of adspend
The consumer
Nearly nine in 10 people eat red meat
Figure 4: Red meat consumption occasions, July 2014
Value for money most important consideration for buyers
Figure 5: Important factors when buying red meat, July 2014
Steak remains a treat for many
Figure 6: Red meat usage behaviour, July 2014
Three in four users concerned about origin of red meat
Figure 7: Attitudes towards red meat, July 2014
One in three interested in cheaper cuts of meat
Figure 8: Supermarket red meat product enticements, July 2014
What we think
ISSUES AND INSIGHTS
Cheaper cuts offer scope to engage cost-conscious consumers
The facts
The implications
Versatility
The facts
The implications
TREND APPLICATION
One in four interested in tracing red meat back to the exact source
Half meat, half vegetable protein products could benefit the environment and consumers
On-receipt recipes have potential to encourage consumers to see red meat as more versatile
MARKET DRIVERS
Key points
Retail price of red meat rises ahead of overall food’s
Figure 9: Retail price index of red meat, poultry and all food, 2009-14
Consumers find themselves in a better financial situation in 2014
Figure 10: Consumers’ financial health index, January 2009-July 2014
Consumers eat red meat despite negative health messages
Core red meat eaters set to decline over the next five years
Figure 11: Trends in the age structure of the UK population, 2009-14 and 2014-19
Academics warn that current red meat consumption is not sustainable
Academics warn of red meat consumption
Little interest from consumers despite government policy to reduce greenhouse gas emissions
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Continental meats attract new launches
Flavoured meats inspired by Americana trend
Unusual meats appear in the market with one in three red meat eaters interested
Convenience a driver behind new product launches
Re-inventing the roast
Microwaveable meat speeds up preparation time
MARKET SIZE AND FORECAST
Key points
Red meat market is flat in the recession
Figure 12: UK retail value sales of red meat, 2009-19
Figure 13: UK retail value sales of fresh/frozen beef, pork and lamb, 2009-19
Red meat market expected to see steady growth
Figure 14: Forecast of UK retail value sales of red meat, 2009-19
Forecast methodology
SEGMENT PERFORMANCE
Key points
Steady growth in unprocessed raw red meat
Figure 15: GB retail value sales of unprocessed raw beef, pork and lamb, 2009-14
Figure 16: UK retail value sales of offal, 2009-14
Strong growth in processed red meat in 2013
Figure 17: GB retail value sales of processed meats, 2009-14
MARKET SHARE
Key points
Own-label dominates unprocessed meat
Princes sees sales fall but remains the largest manufacturer in canned meat
Figure 18: Leading brands’ sales and shares in the UK canned meat market***, by value and volume, 2012/13 and 2013/14
Figure 19: Leading manufacturers’ sales and shares in the UK canned meat market***, by value and volume, 2012/13 and 2013/14
Own-label dominates frozen burgers and sausages
Figure 20: Leading brands’ sales and shares in the UK frozen burgers and sausages*** market, by value and volume, 2012/13 and 2013/14
Figure 21: Leading manufacturers’ sales and shares in the UK frozen burgers and sausages*** market, by value and volume, 2012/13 and 2013/14
COMPANIES AND PRODUCTS
ABP Food Group
Recent activity
Product range and innovation
Promotion
Cranswick Plc
Recent activity
Product range and innovation
Promotion
Danish Crown UK Ltd
Recent activity
Product range and innovation
Karro Food Group
Trade bodies
Agriculture and Horticulture Development Board
Welsh Lamb and Beef Producers Ltd (WLBP)
Quality Meat Scotland (QMS)
Hybu Cig Cymru – Meat Promotion Wales
BRAND COMMUNICATION AND PROMOTION
Key points
Tesco and Asda continue to stay at the top of adspend
Figure 22: Advertising expenditure by selected red meat operators, 2010-14
Kerry Foods is the biggest branded spender on advertising
Trade bodies EBLEX and BPEX launch advertising campaigns in 2014
THE CONSUMER – USAGE OF RED MEAT
Key points
Nearly nine in 10 people eat red meat
Figure 23: Red meat consumption occasions, July 2014
Ready-to-eat meat is most popular type
Figure 24: Frequency of red meat usage, by type, July 2014
Frequent usage peaks among 16-24s
Women more likely to not eat red meat
THE CONSUMER – CHOICE FACTORS
Key points
Value for money most important consideration for buyers
Figure 25: Important factors when buying red meat, July 2014
Strong interest in quality
Convenience sparks widespread interest
Animal welfare and British origin struggle to appeal
THE CONSUMER – BEHAVIOUR RELATED TO RED MEAT
Key points
Steak remains a treat for many
Figure 26: Red meat usage behaviour, July 2014
Costs lead many to limit red meat purchases
Supermarkets face competition from discounters, butchers and online
Hard discounters see strong growth in fresh meat sales
One in five users buy red meat from butchers on a regular basis
Online purchasing of red meat is low
One in five limit red meat intake for health reasons
Effects of horsemeat scandal linger – one in eight opt for higher-quality processed meat
THE CONSUMER – ATTITUDES TOWARDS RED MEAT
Key points
Three in four users concerned about origin of red meat
Figure 27: Attitudes towards red meat, July 2014
Younger consumers have less confidence in cooking red meat
Half of red meat users prefer poultry to meat, seeing it as more versatile
THE CONSUMER – RED MEAT ENTICEMENTS
Key points
One in three interested in cheaper cuts of meat
Figure 28: Supermarket red meat product enticements, July 2014
One in three interested in unusual types of meat
Beef from premium breeds of cow scores high interest with consumers
One in eight interested in half meat and half vegetable protein products