- Numerous statistical tables and charts
- Analysis of key growth sectors within the UK food and drinks market
- Discussion of key consumer drivers
- Review of new product developments in 2002 and early 2003
- Assessment of M&A activity in the food and drinks industry
- Detailed analysis of 22 different market sectors
Helping you to:
- Understand the trends and dynamics of the food and drinks market
- Identify the areas with most potential for expansion
- Target products and promotional strategies to meet consumer needs
- Monitor customer and competitor activity in the marketplace
- Track corporate developments in the industry
- Gain greater insights into different food and drinks sectors as yet unfamiliar to you
- Alcoholic Beverages
- Baby Foods
- Bakery Products
- Baking Aids and Sweeteners
- Breakfast Cereals
- Canned Foods
- Chilled Foods
- Dairy Products
- Fresh Fish and Seafood
- Fresh Produce
For each of these sectors, information is presented under three key headings:
- Market Size and Trends
- New Product Activity
- Industry Structure and Developments
A list of mergers and acquisitions in 2002 and Q1 of 2003 are given in each product section and a full list in the appendix.
- Frozen Foods
- Hot Beverages
- Ice Cream
- Jams and Sweet Spreads
- Meat and Poultry
- Oils and Fats
- Pasta, Rice and Dried Foods
- Pet Foods
- Sauces and Seasonings
- Snack Foods
- Soft Drinks
Fact and Figures
Total expenditure on food and drink in the UK was valued at just under GBP140bn in 2002, of which retail sales represented around GBP75bn and catering sales GBP65bn. Factoring out the almost GBP38bn spent on alcoholic drinks (GBP11.4bn in the off-trade and GBP26.3bn in the on-trade), retail food and non-alcoholic beverage sales were almost GBP64bn and catering sales GBP38bn.
In 2002, retail food and non-alcoholic beverage sales were up 4.1%, which was an above average year, with increases since 1998 put at nearer 3.2% per annum. If alcoholic beverage sales are included (covering both on- and off-trade sales), growth is nearer 5% in 2002 or 3.8% per annum since 1998.
Alcoholic beverages is by far the largest sector, even if on-trade sales are excluded. The total market was valued at GBP37.7bn in 2002, of which GBP11.4bn were take-home or off-trade sales. Other particularly important market sectors include soft drinks at GBP8.99bn, meat and poultry at GBP8.52bn, fresh produce at GBP6.16bn, confectionery at GBP6bn, dairy products at GBP5.63bn, and bakery products at GBP5.27bn.
The essential reference tool for anyone involved in the UK food and drinks industry containing a wealth of information on 22 different product categories featuring:
- Nearly 300 statistical tables and figures
- Analysis of market sizes, segmentation and trends
- Discussion of key market drivers influencing food and drinks choice
- Analysis of the 2,176 new product launches in 2002, with listings of key developments
- Full list of the 80 mergers and acquisitions during the year
- Summary of major companies and brands operating in the market
Key Market Drivers
While products that offer convenient meal solutions for the evening meal have long represented good growth categories within the food and drinks market, changing social trends are now leading to greater demand for food and drinks that can be eaten on the move or at the workplace, thus reducing the amount of time needed to be set aside for meals." Health: "While health remains a key issue with British consumers, attitudes are continuing to change. Back in the 1980s, fat and calorie reduction were the main focus of consumers' health concerns. Today, however, while low-fat and low-calorie lines continue to be important in many food sectors, there is a greater emphasis today on naturalness, with consumers showing increasing interest in organic and other natural foods as well as in a generally more healthy diet.
Consumer demand for 'treat' items is increasingly taking on many different faces. In the past, ice cream, frozen desserts and other sweet goods were the main indulgence items selected by consumers. Today, ice cream is a more mainstream item, with premium and super-premium products having appeared to take indulgence to a greater level, while many savoury foods are now seen as treats, with interest in speciality and premium foods as a whole increasingly steadily.
New Product Activity:
The most important product sectors in terms of numbers of launches were alcoholic beverages with 409, sauces and seasonings with 229, frozen foods with 216 and dairy products with 211.
There were 80 mergers and acquisitions in the UK food and drinks industry during 2002. The levels of corporate activity have been declining in recent years, falling from 127 deals in 1998 to 91 in 2000 and still lower by 2002. It would appear that purchasing levels are falling still further as, in the first three months of 2003, there were only 14 deals recorded. The steady decline in deals reflects the already consolidated nature of the UK food and drinks industry, with many markets dominated by only a few major concerns.