 |
Printer Friendly
Printed from http://www.researchandmarkets.com/reports/3532
Canned Foods Market Assessment
|
Description: |
Changing lifestyles have had an effect on the whole food market, including canned foods. A trend towards snacking rather than formal meals and the growth of single person households have increased demand for single-serve potions. Hectic lifestyles led by many consumers have intensified the need for even more convenient foods, such as ready-meals which can be cooked in microwave ovens. At the same time, there has been increasing interest in preparing the occasional more creative meal. With greater exposure to other cultures through travel and television, there has also been growing interest in more exotic foods.
The trend towards one-stop shopping, at large out-of-town stores has made the transportation of large quantities of bulky items, such as cans, much easier. The rise of such outlets has extended the choice offered to consumers, as they are able to display a wide range of fresh, frozen and chilled foods, as well as those in cans, glass, plastic and foil pouches. Rivalry between the major supermarket chains has led to price-cutting, which has been intensified with the emergence of several chains of discount stores, and canned foods have often featured prominently. This has seen not only price cuts on certain products in the short term, but also the introduction of many economy brands, priced well below the retailers' own brands lines.
Total sales of canned food were estimated at a value of £1,810m in 1999, representing an increase of 4.2% since 1995. There has been a great divergence in the performance of the different sectors, with the strongest, canned fish, growing by 33% during this period, while sales of canned sauces fell by 29%.
Canned vegetables remain the largest sector by a wide margin. The growth in sales of canned fish has established it firmly as the second largest sector, well ahead of canned meat and canned soup. Canned pasta has also been a major growth area, and this now looks set to overtake the canned fruit sector. Both canned desserts and canned sauces have been in decline and now have very small shares of the overall market.
The market is dominated by a small number of major food producers, who tend to be represented in several canned food sectors, as well as in other food products.
While the availability of fresh and frozen foods has been extended, canned food has also been facing increasing competition from other forms of packaging, principally glass and plastic. Glass continues to represent premium quality for many consumers, while cans have a more old-fashioned, downmarket image. Technological developments have extended the use of plastic, which is seen to be more modern, lighter and more easily disposable.
Cans do have a considerable advantage over plastic containers, in that they are more easily recyclable, although this is not a major issue for many consumers.
New consumer research by Market Assessment showed that 76% of respondents thought that fresh and chilled foods were better for you than canned foods, with agreement being highest among men and the young. There were also 76% who felt that canned foods were good value for money, with the young again being very likely to agree. Only 39% said that they bought canned foods because they were filling and ideal for everyday meals, with younger respondents once more being very prominent. Only 20% said that they bought canned foods mainly for the children's meals, with agreement being, as would be expected, very strongly weighted towards those with children. Some 79% claimed to buy canned foods that were convenient, with the result once again being biased towards the young.
It is projected that the overall market for canned foods will grow by 6% in value to the year 2003. The recent major growth areas, canned fish and canned pasta, are expected to continue to be the most dynamic, with the decline in sales of canned desserts and sauces being sustained.
While the trend away from formal meals towards snacking has brought a reduction in the number of opportunities for eating desserts overall, canned desserts have also faced increasing competition from products in plastic and cartons. The value of the sector has declined by 19% since 1995 to stand at £65m in 1999.
Despite having lost some share, canned milk puddings remain the largest segment, with some two thirds of total value sales. This area has seen much competition from the growing popularity of plastic pots. Canned sponge puddings face little competition from alternative forms of packaging, but the decline in formal meals and the trend towards healthier eating have combined to produce a steady fall in sales. Canned ready-to-eat custard was a very rapidly growing segment, due to the consumer demand for greater convenience, but the increasing popularity of cartons and plastic pots has brought a reversal in fortune.
The sector is dominated by two companies. The Ambrosia brand from Bestfoods accounts for some two-thirds of sales in the milk puddings segment, and three-quarters in ready-to-eat custard. Heinz has an 80% share of the canned sponge pudding segment. Retailers' own brands are the only competition of any significance in each of these segments.
Advertising support for the sector in the main media was worth £4.6m in 1998, with 85% of this being spent on television. The Ambrosia brand was dominant, accounting for 95% of total expenditure.
As is the case in every other sector, the major grocery multiple retailers are slowly increasing their position, accounting for some 88% of all sales by value in 1999.
The increasing use of plastic pots, and to a lesser extent cartons, is expected to further erode sales of canned desserts, and the market value is projected to fall by 20% to £52m in 2003.
The trend towards healthy eating in general, with a move away from red meats and compounded by the BSE crisis, has helped boost sales of canned fish, which grew by 25% in volume between 1995 and 1999 to reach 120,000 tonnes. Market value improved by 33% over the same period to £425m.
Tuna remains the strong favourite among British consumers with a 63% share of the market by volume and 51% by value. Salmon is firmly in second place.
Consumer research found that 40% of respondents claimed to buy fresh fish rather than canned because it was more convenient, while 61% felt it was better for you.
John West, now owned by Heinz, remains the clear brand leader with a 28% share by value, followed by Princes, which accounts for 20%. Retailers' own brands take a further 34% of the market.
In 1998 a fairly low amount of £2m was spent on advertising canned fish in the main media, with the leading two brands, John West and Princes, accounting for 95% of this. Activity was concentrated on television, which took 78% of the total.
Most canned fish sold in the UK is imported. The pattern may be determined as much by availability as by domestic demand, but the volume of imports has increased by 56% between 1994 and 1998. Thailand remains the most important source for tuna, while salmon comes almost exclusively from the USA and Canada. Portugal is the major supplier of herring and sardines, and Denmark dominates the mackerel segment.
The multiple grocery retailers who account for 86% of sales dominate distribution by value.
The market for canned fish is expected to continue its steady growth, with an increase of 18% forecast to £500m by the year 2003.
Canned meat has been losing sales to fresh and frozen meat, and to the increasing number of delicatessen counters in major stores. The BSE crisis gave further impetus to this trend as, while some consumers switched to white meats, many moved to fish or vegetarian products. This has resulted in an 11% decline in sales to £275m in 1999.
Canned cold meats have been affected most by the trends and have declined to account for just 48% of the sector by value. Although corned beef has lost sales, partly due to its old-fashioned image, it continues to dominate the segment, with a 52% share. Ham has fared relatively well and has increased to 20% by value.
The continuing consumer demand for convenience has helped restrict losses in the canned hot meats segment, which is now the larger of the two. The demand for convenience has boosted sales of ready-meals, which have become the most popular form of canned hot meats, accounting for 38% of value sales.
A very high 67% of respondents said that they bought fresh meat rather than canned because it was more convenient, while 84% thought fresh meat was better for you.
Princes, helped by its strength in corned beef and ham, is the major brand in cold meats, with a share of 24% by value. Own brand penetration is relatively low at 18%. Campbell is the leading company in hot meats, with its Fray Bentos brand accounting for 11% of sales, and the Campbell's brand for a further 7%. Tyne, from the Mars subsidiary Master Foods, is the largest single brand with a 16% share. Own brand lines have grown to take 29% of sales.
Advertising expenditure in the main media on cold meat during 1998 was extremely low at £470,000.
The multiple grocery retailers have extended their dominance on the sector, and now account for 88% of sales by value.
With continuing demand for greater convenience boosting sales of ready-meals, it is expected that the canned meats market will start to recover. Overall, however, sales are predicted to show a decline of 2% to £269m in the year 2003.
Volume sales of canned vegetables have been boosted by the growth of economy brands, particularly in baked beans and tomatoes, and have increased by 3% since 1995. This has, however, not helped market value, which rose by just 4% to £520m in 1999.
Baked beans, which face no significant competition from other forms of packaging, remain the most popular canned vegetable, taking 46% by volume. Canned tomatoes, which have a completely different use compared with fresh tomatoes, are second the favourite with a 20% share. Heavy discounting has boosted volume sales of both products, and their value shares are considerably lower, at 38% and 15% respectively.
Consumer research found that 58% of respondents bought fresh vegetables because they were more convenient than canned, while a very high 86% felt that fresh vegetables were better for you.
The Heinz name continues to dominate the baked beans segment with a 48% share by value, while own brands have increased to 31%. Napolina, from Bestfoods, with 18%, has maintained a substantial lead in canned tomatoes over Princes, which accounts for 8%. To some extent this has become a commodity market and own brand lines now take 43% of sales. Hillsdown's HL Foods is the leading company in other canned vegetables with a wide variety of brand names taking a 10% share. In this segment own brands have grown to account for 55% of the total.
The only main media advertising activity specific to the sector in 1998 was for Heinz, with recorded expenditure of £4m, all of which was on television.
Imports form a major part of the UK canned vegetable market and have increased by 21% in volume between 1994 and 1998, and by 36% in value. Italy is the dominant source for canned tomatoes, while almost all canned potatoes come from the Benelux countries. France and Canada are the leading suppliers for canned sweetcorn.
The multiple grocers dominate the canned vegetables market, as they do other sectors, with a value share of 83%. Market Assessment expects steady growth to be maintained, with sales of canned vegetable increasing by 9% to £569m in 2003.
Technological developments have enabled retailers to improve their offering of fresh fruit, displaying a wide variety of quality produce all year round. This has resulted in a long term gradual decline in demand for canned fruit, and sales have fallen by 6% to £131m since 1995.
Peaches have lost some share of canned fruit sales, but remain the most popular with 21% of the total volume, just ahead of pineapple (20%) and fruit cocktail (18%). Canned peaches have been subjected to some heavy discounting in the retailers' price wars and take just 20% of value sales. Pineapple is the most important canned fruit in value terms, with a 23% share, followed by fruit cocktail with 21%.
With the market polarising between premium and economy products, Del Monte has been left alone as the clear brand leader, with 20% of the market by value. Both Princes and Gerber, compete more at the economy end of the market, but have shares of just 6% and 4% respectively. Own brand sales have grown to take 48% of the total.
Del Monte was responsible for almost all the £1.9m recorded as being spent of advertising canned fruit in the main media during 1998.
Imports play an important role in the canned fruit market. Although they were slightly higher in 1998 than they had been in 1994, there had been a sharp decline since 1996. Greece, Spain and South Africa are the leading suppliers of canned apricots, cherries and peaches. Canned citrus fruit comes mainly from Spain, Turkey and Israel. Sources of canned pineapple are more diverse, with Thailand, Kenya and China being the most important.
Multiple grocers are predominant in the canned fruit market and now take 87% of total sales by volume.
Market Assessment expects a steady decline in sales of canned fruit, with a 6% fall to £123m by 2003.
Pasta has experienced a strong growth in popularity and, although the trend has been towards fresh pasta, sales of canned pasta have risen by 22% since 1995 to reach £128m.
Pasta shapes, which have grown in popularity with children, have expanded rapidly to become the largest selling form of pasta, with 37% of the market by volume and 41% by value. The continuing consumer demand for convenience has also resulted in growth for canned pasta meals, which have a 33% volume share and 36% by value.
Helped by its strength in the pasta shapes segment, Heinz continues to dominate the total canned pasta market with a 48% share by value. Other brands have been squeezed as own brand lines have grown to take 37% of the market.
A total of £2.2m was recorded as being spent on main media advertising for canned pasta in 1998, all of which was on television. Heinz was the leading brand with 63% of the total expenditure.
As is the case in other markets, retail distribution is dominated by the grocery multiples, with 83% of value sales going through their outlets.
Although fresh and dry pasta are likely to continue to take sales from canned at the premium and economy ends of the market respectively, it is expected that the rise in demand for pasta overall will be maintained to the extent that sales of canned pasta will also grow. An increase of 9% to £139m in 2003 is predicted.
While canned soups have been taking sales from dried soups, they have been losing sales to the rapidly expanding fresh soups in cartons or pouches. The soup market as a whole remains very seasonal, with the level of demand dependent on the mildness or severity of the winter. The overall result is that sales of canned soup have fluctuated rather than showing any sustained trend during the period under review. Sales value has changed little, standing at £232m in 1999, just 1% higher than in 1995.
Consumer research shows that a relatively low 32% of respondents bought fresh rather than canned soup because they found it more convenient. Just 44% thought that fresh soup was better for you.
Heinz is the dominant brand name in the canned soup market, with a 56% share by value. Baxters and Campbell compete for second place with around 12% each. The strength of the leading names has helped restrict own brand penetration to 18%.
A relatively high £9.5m was recorded as being spent on main media advertising for canned soup in 1998, with 80% of this being spent on television. Heinz is usually the leading advertiser, but a major push by Campbell in 1998 saw that company account for 50% of the year's total.
The grocery multiples dominate this market, as they do the others, accounting for 81% of total sales by value.
The canned soup market is expected to show a slight, but steady, growth of 3% to reach £240m in 2003.
Although the cooking sauces market continues to expand rapidly, there has been a major change to using glass jars rather than cans by many producers. The result has been that sales of canned sauces have fallen by 29% since 1995 to £34m.
Indian sauces form the largest segment by a wide margin, with 47% of market value. Traditional and Italian/pasta sauces vie for second place, while Oriental and Mexican have minor shares.
Campbell's Homepride is the only major brand that has not switched most of its products into glass jars. This has consolidated its predominant position and the brand now accounts for 68% of total sales by value. The declining market is not so attractive to the major retailers, and own brands take only 15% of sales.
A total of £2.7m was recorded as being spent on main media advertising for cooking sauces in 1998, although this does cover advertising for the leading ranges of sauces, and thus includes support for a large number of sauces sold in glass jars.
Canned sauces tend to be planned, rather impulse or distress purchases, which has helped boost the share of sales taken by the grocery chains to a very high 90%.
The trend towards packaging cooking sauces in glass is expected to continue with the result that a further decline is forecast for the canned sector. Market Assessment expects sales of canned sauces to decline by 24% to £26m in 2003. |
|
Ordering: |
Order Online - visit http://www.researchandmarkets.com/reports/3532
Order by Fax - using the order form below
Order By Post - print the order form below and send to
|
|
Research and Markets,
Guinness Centre,
Taylors Lane,
Dublin 8,
Ireland.
|
|
|
 |
Page 1 of 2
Printed 09/11/2009 21:55:44 |
|
Fax Order Form
To place an order via fax simply print this form, fill in the information below and
fax the completed form to
646-607-1907 (from USA) or +353 1 6849977 (from Rest of World). If you have any questions please email help@researchandmarkets.net
Order information
Please verify that the product information is correct and select the format you require.
|
|
|
|
Product Name: |
Canned Foods Market Assessment
|
|
Web Address: |
http://www.researchandmarkets.com/reports/3532
|
|
Office Code: |
|
OC8HJLLQPMNTR
|
Report formats
Please enter the quantity of the report format you require.
|
|
Format
|
Quantity
|
Price
|
|
Hard Copy
|
|
€702.00 + EUR€ 50.00 Shipping/Handling *
|
|
Electronic
|
|
€702.00
|
* Shipping/Handling is only charged once per order.
Contact information
Please enter all the information below in BLOCK CAPITALS.
|
|
|
First Name: |
Last Name: |
|
Email Address: |
|
|
Job Title: |
|
|
Organisation: |
|
|
Address: |
|
|
City: |
|
|
Postal/Zip Code: |
|
|
Country: |
|
|
Phone Number: |
|
|
Fax Number: |
|
|
Please fax this form to:
(646) 607-1907 or (646) 964-6609 (from USA)
+353-1-481-1716 or +353-1-653-1571 (from Rest of World)
|
|
Page 2 of 2
Printed 09/11/2009 21:55:44
|
|
Payment information
Please indicate the payment method you would like to use by selecting the appropriate
box.
|
|
|
|
|
American Express
|
|
|
Diners Club
|
|
|
Master Card
|
|
|
Visa
|
|
|
|
|
|
|
Cardholder's Name: |
|
|
|
|
Cardholder's Signature: |
|
|
|
|
Expiry Date: |
/ |
|
|
|
Card Number: |
|
|
|
|
CVV Security Code: |
|
|
|
|
Issue Date: |
/ (Diners
Club only)
|
|
|
|
|
|
|
Please post the check, accompanied by this form, to:
Research and Markets,
Guinness Centre,
Taylors Lane,
Dublin 8,
Ireland.
|
|
|
|
|
|
|
Please transfer funds to:
|
|
|
Account number: |
83313083 |
|
Sort code: |
98-53-30 |
|
Swift code: |
ULSBIE2D |
|
IBAN number: |
IE78ULSB98533083313083 |
|
Bank Address: |
Ulster Bank,
27-35 Main St,
Blackrock,
Co. Dublin,
Ireland. |
|
|
|
If you have a Marketing Code please enter it below:
|
|
|
Marketing Code: |
|
|
Please note that by ordering from Research and Markets you are agreeing to our Terms and Conditions at http://www.researchandmarkets.com/info/terms.asp
|
|
Please fax this form to:
(646) 607-1907 or (646) 964-6609 (from USA)
+353-1-481-1716 or +353-1-653-1571 (from Rest of World)
|
|
|
|
|
|
