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Butter and Spreads - Ireland - January 2018

OVERVIEW
What you need to know
Issues covered in the Report
EXECUTIVE SUMMARY
The market
Figure 1: Estimated total value of the butter and spreads market, NI and RoI, 2013-18
Forecast
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
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
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
Figure 5: Butter and spread brands bought by consumers in the last three months, NI, October 2017
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
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
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
Butter and spreads market to grow in 2018
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
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
Figure 10: Estimated total value of the butter segment, IoI, NI and RoI, 2013-23
Sales of sweet spreads to increase in 2018
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
Figure 12: Estimated total value of the butter-like spread segment, IoI, NI and RoI, 2013-23
MARKET DRIVERS
Rising milk prices a threat to Irish butter
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
Figure 15: Butter prices per 100kg, UK (including NI) and RoI, January 2016-October 2017
Consumers see price of butter increase
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
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
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
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?
Butter and spreads NPD returns to growth in 2017
Figure 20: Butter, margarine and other blend and sweet spread launches, UK and Ireland, 2012-17
2017 sees increased sweet spreads NPD
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
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
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
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
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
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
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
Butter the most popular type of spread
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
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
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
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
Jam is the spread of choice among Irish consumers
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
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
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
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
Golden Cow the most popular butter brand in NI
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
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
Figure 39: Butter and spread brands bought by consumers in the last three months, RoI, October 2017
Dromona holds strong appeal to RoI Millennials
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
Consumers claiming they can taste the difference between butter brands
Figure 41: Agreement with statements relating to butter and spreads, NI and RoI, October 2017
Young Millennials can taste the difference between butter brands
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
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
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
Data sources
Market size rationale
Generational cohort definitions
Abbreviations

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