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Sauces & Spreads

Published by: Key Note Publications Ltd

Published: Mar. 1, 2008 - 106 Pages


Table of Contents


Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Sauces

Spreads

MARKET TRENDS

Food Production Costs Rise

Supermarkets' Desire to Keep Price Increases Down

Trend Towards Healthier Sauces and Spreads Continues

Going Green

Consumption of Tomato Ketchup, and Salad Cream and Mayonnaise Continues to Rise

ECONOMIC TRENDS

Gross Domestic Product

Table 1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006

Population

Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006

Inflation

Table 3: UK Rate of Inflation (%), 2002-2006

Unemployment

Table 4: Actual Number of Unemployed Persons in the UK (million), 2002-2006

Household Disposable Income

Table 5: UK Household Disposable Income Per Capita (£), 2002-2006

MARKET POSITION

The UK

Table 6: UK Household Final Consumption Expenditure on Food, and Expenditure on Table Sauces and Spreads at Current Prices (£m at rsp), 2003-2007

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK Sauces and Spreads Market by Sector by Value at Current Prices (£m at rsp), 2003-2007

Figure 1: The Total UK Sauces and Spreads Market by Sector by Value at Current Prices (£m at rsp), 2003-2007

BY MARKET SECTOR

Sauces

Table 8: The UK Sauces Sector by Value at Current Prices (£m at rsp and %), 2003-2007

Table 9: The UK Sauces Sector by Subsector by Value at Current Prices (£m at rsp), 2003-2007

Figure 2: The UK Sauces Sector by Subsector by Value at Current Prices (%), 2007

Table Sauces

Mayonnaise and Salad Dressings

Pickles, Chutneys and Relishes

Condiment Sauces

Vinegar

Mustard

Spreads

Table 10: The UK Spreads Sector by Value at Current Prices (£m at rsp and %), 2003-2007

Table 11: The UK Spreads Sector by Subsector by Value at Current Prices (£m at rsp), 2003-2007

Figure 3: The UK Spreads Sector by Subsector by Value at Current Prices (%), 2007

Jams and Fruit Spreads

Honey

Marmalade

Other Sweet Spreads

Savoury Spreads and Pastes

Peanut Butter

OVERSEAS TRADE

Table 12: Imports and Exports of Sauces and Spreads (£000), 2006 and 2007

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 13: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Condiments and Seasonings, and the Processing and Preserving of Fruit and Vegetables by Turnover Sizeband (number and %), 2007

EMPLOYMENT

Table 14: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Condiments and Seasonings, and the Processing and Preserving of Fruit and Vegetables by Employment Sizeband (number and %), 2007

REGIONAL VARIATIONS IN THE MARKETPLACE

Table 15: Number of UK VAT-Based Local Units Engaged in the Manufacture of Condiments and Seasonings, and the Processing and Preserving of Fruit and Vegetables by Government Regional Office (number and %), 2007

DISTRIBUTION

HOW ROBUST IS THE MARKET?

Table 16: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Condiments and Seasonings, and the Processing and Preserving of Fruit and Vegetables by Age of Business (number and %), 2007

LEGISLATION

KEY TRADE ASSOCIATIONS

Food and Drink Federation

Food Processors Association

Margarine & Spreads Association

Organisation of European Industries Transforming Fruit and Vegetables

The Seasoning and Spice Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

RH Amar & Co Ltd

Company Structure

Current and Future Developments

Financial Results

G Costa and Company Ltd

Company Structure

Current and Future Developments

Financial Results

HJ Heinz Company Ltd

Company Structure

Current and Future Developments

Financial Results

Kraft Foods UK Ltd

Company Structure

Current and Future Developments

Financial Results

Premier Foods PLC

Company Structure

Current and Future Developments

Financial Results

Rowse Honey Ltd

Company Structure

Current and Future Developments

Financial Results

Streamline Foods Ltd

Company Structure

Current and Future Developments

Financial Results

Unilever Bestfoods UK Ltd

Company Structure

Current and Future Developments

Financial Results

Wilkin & Sons Ltd

Company Structure

Current and Future Developments

Financial Results

Other Companies

Andros UK Ltd

Baxters Food Group Ltd

Discovery Foods Ltd

Duchy Originals Ltd

F Duerr & Sons Ltd

Ferrero UK Ltd

Greencore Group PLC

Kikkoman Trading (UK) Ltd

Patak's Foods Ltd

Princes Foods Ltd

Stute Foods Ltd

Tate & Lyle PLC

Traidcraft PLC

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 17: Main Media Advertising Expenditure on Sauces, Condiments, and Jams and Spreads (£000), Years Ending September 2006 and 2007

Figure 4: Main Media Advertising Expenditure on Sauces, Condiments, and Jams and Spreads (£000), Years Ending September 2006 and 2007

Exhibitions

5. Brand Strategy

INTRODUCTION

COMPANIES' BRANDS

G Costa and Company Ltd

Ferrero UK Ltd

HJ Heinz Company Ltd

Kikkoman Trading (UK) Ltd

Premier Foods PLC

Streamline Foods Ltd

Tate & Lyle PLC

Unilever Bestfoods UK Ltd

BRAND MARKETING ACTIVITY

Table 18: Main Media Advertising Expenditure on Sauces, Condiments, and Jams and Spreads by Brand (£000), Years Ending September 2006 and 2007

6. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

7. Buying Behaviour

CONSUMER PENETRATION

Table 19: Consumption of Table Sauces and Accompaniments in the Last 12 Months (% of adults), 2004, 2006 and 2007

Consumption by Sex

Table 20: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Sex (% of adults), 2007

Consumption by Age

Table 21: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Age (% of adults), 2007

Consumption by Social Grade

Table 22: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Social Grade (% of adults), 2007

Consumption by Family Income

Table 23: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Family Income (% of adults), 2007

Consumption by Region

Table 24: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Region (% of adults), 2007

Consumption by Number of People in Household

Table 25: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Number of People in Household (% of adults), 2007

Consumption by Presence of Children in Household

Table 26: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Presence of Children in Household (% of adults), 2007

FREQUENCY OF CONSUMPTION

Table 27: Consumption of Table Sauces and Accompaniments in the Last 12 Months by Frequency (% of adults), 2007

8. Current Issues

POLITICS

Competition Commission's Inquiry into the UK Grocery Industry

The Sustainable Communities Act 2007

HEALTH

Sudan 1 Review Panel

Requirements of Suppliers

Continuing Trend Towards Healthy Eating

Introduction of More Healthy Products

RAW MATERIAL COSTS

CORPORATE ACTIVITY

Associated British Foods PLC

Premier Foods PLC

THE ENVIRONMENT

9. The Global Market

GLOBAL MARKET TRENDS

GLOBAL COMPANIES

HJ Heinz Company

Kraft Foods Inc

Unilever PLC

THE US

EUROPE

Table 28: Leading Producers of Jams, Jellies, Marmalades and Chestnut Purées Among Selected OEITFL Member Countries (net tons), 2002-1006

OTHER MARKETS

10. Forecasts

INTRODUCTION

The Economy

Gross Domestic Product

Table 29: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011

Inflation

Table 30: Forecast UK Rate of Inflation (%), 2007-2011

Unemployment

Table 31: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011

Population

Table 32: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011

FORECASTS 2008 TO 2012

Table 33: The Forecast Total UK Sauces and Spreads Market by Sector by Value at Current Prices (£m at rsp), 2008-2012

Figure 5: The Forecast Total UK Sauces and Spreads Market by Sector by Value at Current Prices (£m at rsp), 2008-2012

MARKET GROWTH

Figure 6: Growth in the Total UK Sauces and Spreads Market by Sector by Value at Current Prices (£m at rsp), 2003-2012

FUTURE TRENDS

Premier Foods Expects 2008 to be Highly Competitive

Marks & Spencer to Increase Food Range

Market for Fairtrade Sauces and Spreads

11. Company Profiles

Hj heinz Company Ltd

Kraft Foods Uk Ltd

Premier Foods PLC

Unilever Bestfoods Uk Ltd

12. Company Financials

13. Further Sources

Associations

General Sources

Government Publications

Bisnode Sources

Abstract

Key Note estimates that, in 2007, the total UK market for sauces and spreads was worth £853m at retail selling prices (rsp), a rise of 2.8% on 2006. Between 2003 and 2007, the market grew by an estimated 11.9%, compared with an increase in household final consumption expenditure on food of 17.1%. This would suggest that, over the 5-year period, retail sales of sauces and spreads have lagged behind retail sales of food in general.

Table sauces and spreads comprise a range of products that are used as accompaniments to other foods. Sauces include tomato sauce, brown sauce, pickles, chutneys and relishes, and salad accompaniments. Spreads cover sweet options such as jam, marmalade and honey, as well as savoury products such as peanut butter, Marmite and sandwich pastes. Sauces is the largest sector, although the spreads sector demonstrated a slightly higher level of growth over the review period.

UK food manufacturers, including those producing sauces and spreads, are currently facing significant increases in costs due to rising raw material prices and growing production, packaging and transportation charges. Some of the leading suppliers are responding to these challenges by introducing pricing- and cost-saving measures, which can include plant closures. Despite this, the market is likely to remain highly competitive in 2008, with input cost inflation continuing to be a factor.

New product development (NPD) continues to be one of the main drivers of sales in the sauces and spreads market, with much of the innovation being influenced by the trend towards healthier eating and towards foods that contain lower levels of sugar, salt, fat and carbohydrate. Another developing trend is for organic sauces and spreads, which are proving to be popular, together with those that contain added nutrients. The use of more conveniently packaged containers for sauces and spreads, such as the squeezy bottle and `top down' containers, is also helping to boost sales of products that adopt this type of packaging.

The market for table sauces and spreads is forecast to show continued growth between 2008 and 2012, although Key Note anticipates that this growth will be fairly limited and likely to be driven by price rather than volume rises. NPD will remain a key determinant of growth in the market, with consumer demand for healthier ranges of sauces and spreads again being at the forefront of the trend.

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