Soup - UK

Published by: Mintel International Group Ltd.

Published: May. 1, 2008 - 95 Pages

Table of Contents

Issues in the Market

Key themes

Definitions

Market in Brief

Soup market looks healthy

NPD has contributed to growth

Heinz dominates sales

Adspend has fluctuated

Consumer base is contracting

Future

Internal Market Environment

Key points

Healthy eating

Figure 1: Agreement with selected lifestyle statements relating to health and diet, 2003-07

Obesity and weight control

Figure 2: Current and projected levels of obesity among UK children, by age and gender, 2003 and 2010

Figure 3: Agreement with selected lifestyle statements relating to health and diet, 2003-07

Natural attraction

Figure 4: Agreement with selected lifestyle statements relating to health and diet, 2003-07

Buying British

Figure 5: Agreement with selected lifestyle statements relating to health and diet, 2003-07

Growing demand for foreign food

Figure 6: Agreement with selected lifestyle statements relating to foreign food, 2003-07

Seasonality

Figure 7: Average summer temperature and total number of sunshine hours in the UK*, 2002-07

Broader Market Environment

Key points

The salt issue

The industry’s response

Traffic lights v GDA - the great labelling debate

Number of smaller households set to rise

Figure 8: Forecast UK Households trends, by size of household, 2003, 2008 and 2013

Convenience welcomed by working women

Figure 9: Working population, by gender, 2003-13

Competitive Context

Key points

Soup faces competition from hot eating snacks

Heinz and Princes target teenagers

New Covent Garden corners ABs

A European perspective

Figure 10: Comparison of UK soup sales with selected European markets, 2004 & 2006

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Key points

Adding value drives modest growth

Figure 16: UK retail sales of soup, 2003-08

The future

Forecast

Figure 17: Estimated value of the overall soup market, 2003-13

Simmering nicely

Manufacturers adapt to, and create, changing consumer preferences

Segment Performance

Key points

Chilled soup drives growth

Figure 18: UK retail sales of soup, by sector, 2003-07

Ambient wet soup

Segment performance

Figure 19: UK retail sales of canned and other ambient wet soup, 2001-06

Packaging

Figure 20: UK retail sales of ambient wet soup, by packaging type, 2003-07

Recipe

Figure 21: UK retail sales of canned ambient wet soup, by recipe type, 2003-07

Forecast

Figure 22: estimated uk retail value sales of canned and other ambient wet soup, 2003-13

Holding on to recent revival

Middle age support

Dried soup

Segment performance

Figure 23: UK retail sales of dried soup, 2002-07

By type

Figure 24: UK retail sales of dried soup, by type, 2003-07

Forecast

Figure 25: UK retail sales of dried soup, 2003-13

Parachutes out to stop dried freefall

Lower socio-economic focus behind stability

Chilled soup

Figure 26: UK retail sales of fresh chilled soup, 2003-08

Forecast

Figure 27: Estimated UK retail value sales of fresh chilled soup, 2003-13

Chilled - a star passing its zenith

Young affluent profile a two edged sword

Market Share

Key points

Overall soup

Figure 28: Manufacturers shares*, 2003-07

Ambient wet soup

Figure 29: Ambient wet soup manufacturers’ brand shares, 2003-07

Dried soup

Figure 30: Dried soup manufacturers’ brand shares, 2003-07

Chilled soup

Figure 31: Chilled soup manufacturers’ brand shares, 2003-07

Own-labels

Companies and Products

Figure 32: Soup brand audit, 2007

Company profiles

Heinz

Farmers’ Market

Premier Foods

Baxters

New Covent Garden Food Company

Unilever

Symington’s

Seeds of Change

Other companies

Duchy Originals

Northern Foods

Pasta Reale

The Serious Food Company

Yorkshire Provender

Brand Communication and Promotion

Key points

Adspend fluctuates

Figure 51: Main monitored media advertising expenditure on soup, 2003-07

Top three companies dominate spend

Figure 52: Main monitored media advertising expenditure on soup, by leading advertisers, 2003-07

Figure 53: Top ten brands advertised in 2006 and 2007

Television plays important role

Figure 54: Main monitored media advertising expenditure on soup, by type of media, 2003-07

Advertising spend is highly seasonal

Figure 55: Main monitored media advertising expenditure on soup, by month, 2005-07

Emphasis on healthy and wholesome

Below-the-line support is important too

Channels to Market

Key points

Multiple grocers dominate sales

Figure 56: Retail distribution of soup, by type of outlet, 2003-07

Could merchandising be improved?

The Consumer - Penetration and Frequency of Consumption

Key points

Overall soup consumption in decline

Figure 57: Trends for penetration of soup consumption in the past 12 months, 2003-07

Figure 58: Trends for frequency of soup consumption in the past 12 months, 2003-07

Chilled fresh soup

Dry packet soup

Tinned soup

Who is eating what?

Figure 59: Soup users’ profile, by type of soup, 2007

ABs favour fresh

DEs prefer packets

Tinned soup has broader appeal

The Consumer - Further Analysis

Key points

Lunchtime dominates

Figure 62: Number of meal occasions when soup is eaten/served, 2008

Figure 63: Number of meal occasions when soup is eaten/served, by age group, 2008

Figure 64: Number of meal occasions when soup is eaten/served, by occasion, 2008

For each person, a meal occasion preference

Multi-occasion users willing to pay more

Figure 65: Number of meal occasions when soup is eaten/served, by agreement with attitudinal statements on soup, 2008

Appendix

Advertising data

Abbreviations

Appendix: Broader Market Environment

Figure 66: Working women, by age of own children, 1998-2006

Appendix: The Consumer - Penetration and Frequency of Consumption

Figure 67: Soup consumption in the past 12 months, by demographics, 2007

Figure 68: Consumption of dry packet soup in the last 12 months, by demographics, 2007

Figure 69: Types of soup eaten in the past 12 months, by demographics, 2007

Figure 70: Types of soup eaten in the past 12 months, by demographics, 2007

Appendix: The Consumer - Further Analysis

Figure 77: Number of meal occasions when soup is eaten/served, by demographics, 2008

Figure 78: Meal occasions when soup is eaten/served, 2008

Abstract

When Mintel last reported on the soup market in 2006, sales appeared to be slowing. However, a renewed focus from ambient manufacturers on healthy eating, the introduction of more filling “meal” soups and the rising demand for higher value fresh soups have all combined to stimulate growth.

Sales of soup increased by 4% in 2007 to reach £462 million. Strongest growth was achieved by chilled soup - up by 7% to £111 million - although the larger ambient sector also returned a positive performance - up by just over 4% to £275 million. Sales of dried soup are in long-term decline, falling by just over 1% in 2007 to reach £76 million.

Key themes of the report:

• Healthy eating has driven NPD, leading to the introduction of recipes which are lower in salt, sugar and fat and free from artificial colours, flavours, preservatives and MSG.
• Brands are increasingly adopting a more natural and wholesome image - typified by Heinz’s 2007 launch of its Farmers’ Market brand of tinned and fresh soups.
• Several manufacturers are trying to extend consumption beyond the lunchtime/snacking occasion by positioning their brands as more filling meal options.
• The commitment of the leading manufacturers to both NPD and main media support is making a significant contribution to sales growth.

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