Fresh Fruit and Vegetables - UK - January 2007

Table of Contents

• Issues in the Market
• Definition
• Abbreviations
• Market in Brief
• Sales value increases despite downward pressure on prices
• Healthy eating drives growth
• Ethical awareness adds value
• Consumers are spending more
• 5 A DAY catchphrase shows staying power
• Keep the momentum
• Internal Market Environment
• Key points:
• Summary of key issues
• Healthy eating
  • Figure 1: Agreement with lifestyle statements about diet and health, 2002-06
• Frightening statistics for obese kids
  • Figure 2: Prevalence of obesity in children aged 2-15, by gender, 2003 and 2010
• Going beyond a balanced diet
• Superfoods grab the headlines
• Fair trade fortunes soar
• Local loyalty or feelgood factor?
• Getting back in touch with nature
• Fruit features in healthier packed lunches for children
• Is cooking from scratch making a comeback?
• Packaging assumes higher profile
  • Figure 3: Agreement with lifestyle statements about the environment, 2002-06
• On-the-go snacking
• Broader Market Environment
• Key points:
• 5 A DAY
• Does the 5 A DAY campaign deserve all the credit?
• Healthy School Status
• The School Food Trust promotes healthier lunches
• The School Fruit and Vegetable Scheme
• Working mothers: a growing source of income
  • Figure 4: Working women, by age of own children, 1998-2006
• Demographic trends
• Rising incomes encourage premiumisation and convenience
• UK work culture promotes snacking
• Strengths and Weaknesses
• Strengths
• Weaknesses
• Competitive Context
• Fresh produce dominates
  • Figure 5: UK retail sales of fresh, frozen and canned fruit and vegetables, 2002-06
• Fruit faces strong competition in healthy snacking market
  • Figure 6: Comparison of sales of fresh fruit with examples of other snacks considered healthy, 2002-06
• Not so healthy: dressed salads outpace prepacked
  • Figure 7: UK retail sales of prepacked and dressed salads, by type and value, 2003 and 2005
• Market Value and Forecast
• Key points:
• Fruit and vegetables enjoy healthy growth
  • Figure 10: Market size and forecast of fresh fruit and vegetables, by value, 2001-11
• Forecast trends
• Fruit outperforms veg
  • Figure 11: UK retail sales of fresh fruit and vegetables (excluding potatoes), by value, 2001-06
• Organics adding value
  • Figure 12: UK retail sales of organic fruit and vegetables, by type and value, 2002-06
• Fair trade sales flourishing
• Fruit
• Vegetables
• Pre-prepared produce appears to be slowing
• Things can only get better
• Segment Performance -- Vegetables
• Key points for fruit and vegetables:
• Fresh vegetables achieve decent growth against commodity context
• Salads dominate sales
  • Figure 13: UK retail sales of fresh vegetables (excluding potatoes), by type and value, 2002-06
• Salad vegetables struggle to find value growth
• Green vegetables benefit from convenience
• Mushrooms positioned as versatile
• Root vegetables -- snacking potential
• Tops on or off?
• Onions -- red on the rise
• Other vegetables enjoying above-average growth
• Segment Performance -- Fruit
• Key points:
• Sales of fruit are sustained by premium lines
  • Figure 14: UK retail sales of fresh fruit, by type and value, 2002-06
• Bananas devalue
• Ethical sales drive growth in bananas
• Impact of new EU tariffs on supply
• Apples remain nation' s favourite
• Supply focus on home-grown varieties
• Snacking and convenience bring limited growth to citrus fruit
• Grapes are star performers
• Stone fruit experience mixed fortunes
• Soft fruits on the up -- driven by health and indulgence
• Pears enjoy modest growth
• Other fruit
• Companies and Brands
• Key points:
• The role of brands
• Examples of recent developments in own-label branding include:
• Examples of developments in independent branding include:
• Capespan
• Current strategy and performance
• Promotional activity
  • Figure 15: Capespan: main media expenditure 2002-06
• Del Monte
• Current strategy and performance
• Promotional activity
• Florette (Soléco)
• Current strategy and performance
• Promotional activity
  • Figure 16: Florette: main media expenditure, 2002-06
• M&W Mack
• Current strategy and performance
• Manor Fresh
• Current strategy and performance
• Organic Farm Foods
• Current strategy and performance
• Promotional activity
• Riverford Organic Vegetables
• Current strategy and performance
• Promotional activity
• Worldwide Fruit
• Current strategy and performance
• Promotional activity
• Brand Communication and Promotion
• Key points:
• Advertising takes a back seat
  • Figure 17: Main monitored media advertising expenditure on fresh fruit and vegetables (including potatoes), 2002-06
• Eat in colour campaign
• EU also gets involved
• Below-the-line activity dominates
• Channels to Market
• Key points:
• Multiples in the driving seat
  • Figure 18: UK retail sales of fruit and vegetables, by outlet type, 2002-06
• Organic box schemes
• Retailer initiatives
• Tesco
• Sainsbury' s
• Asda
• Waitrose
• Boxing clever
• Greengrocers benefit from overall growth
• Farmers' markets draw the crowds
• Independent box schemes doing well
• The Consumer -- Changing Habits
• Key points:
• The healthy wealthy
  • Figure 19: Agreement with the statement ' I eat a lot of vegetables' , 2006
• Expenditure on fruit and vegetables is rising
  • Figure 20: Expenditure on fresh vegetables and fresh fruit in the last week, 2002-06
• Higher spenders hold on to traditional values...
• ...but are also more adventurous...
• ...and more discerning
• Highest spenders live in the South
• Lowest spenders more likely to eat alone...
• ...and to live in the North
• Greengrocers are losing out
  • Figure 21: Where main shoppers usually buy their fresh vegetables and fresh fruit, 2002-06
• Changing habits
  • Figure 22: Changing consumption habits, October 2006
• Fruit and vegetables are at the heart of healthy eating
• The importance of 5 A DAY
• Who' s eating more?
• Every little counts with couch potatoes
• ...and who isn' t?
• Looking for the easy option
  • Figure 23: Changing consumption habits, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups and working status, October 2006
• Less is more
• A few prefer frozen
  • Figure 24: Changing consumption habits, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups and working status, October 2006
• Surplus to requirements
• The Consumer -- The Convenience Bandwagon
• Key points:
  • Figure 25: Types of fresh fruit and vegetables bought, October 2006
• Combination cooks
  • Figure 26: Netted types of fruit and vegetables purchased, October 2006
• Working mothers appreciate added value
  • Figure 27: Propensity of working mothers to purchase selected types of fruit and vegetables, 2006
• A step too far
• Bagged fruit holds youth appeal
  • Figure 28: Purchasers of ready-to-eat/bagged fruit or vegetables, by gender, age, socio-economic group, lifestage and Mintel' s Special Groups, 2006
• Ready-to-steam suits single diners
• Loose v prepacked
• Prepacked salads have clear ABC1 appeal
• Mixed selections popular with families
• Ready-to-roast appeals to less experienced cooks
• Appendix
• Introduction
• Nuts, Seeds and Dried Fruit -- UK, Market Intelligence, September 2006
  • Figure 33: Snacks eaten by 7-16-year-olds, 2001-05
  • Figure 34: Types of snacks eaten on the go most commonly, January 2006
  • Figure 35: PDI and consumer expenditure, at current and constant prices, 2001-11
  • Figure 36: Trends and projections in UK population, by age group, 2000-10
  • Figure 37: Working population, by gender, 2001-11
  • Figure 38: UK retail sales of fresh fruit and vegetables, by sector and value, 2002-06
  • Figure 39: UK retail sales of fresh vegetables (excluding potatoes), by value, 2001-06
  • Figure 40: UK retail sales of fresh fruit, by value, 2001-06
  • Figure 41: Agreement with the statement ' I eat a lot of vegetables' , 2002-06
  • Figure 42: Expenditure on fresh vegetables in the last week, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
  • Figure 43: Expenditure on fresh fruit in the last week, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
  • Figure 44: Agreement with the statement ' I eat a lot of vegetables' , by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
  • Figure 45: Agreement with selected lifestyle statements, by expenditure on fresh vegetables, 2006
  • Figure 46: Agreement with selected lifestyle statements, by expenditure on fresh fruit, 2006
  • Figure 47: Types of fresh fruit and vegetables bought, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 48: Types of fresh fruit and vegetables bought, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 49: Netted types of fruit and vegetables purchased, October 2006
  • Figure 50: Important factors when choosing fresh fruit and vegetables, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 51: Important factors when choosing fresh fruit and vegetables, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 52: Important factors when choosing fresh fruit and vegetables, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 53: Correlation of important factors when choosing fruit and vegetables, by supermarket shop, October 2006
  • Figure 54: Correlation of attitudes towards eating fruit and vegetables, by supermarket shop, October 2006
  • Figure 55: Changing consumption habits, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 56: Changing consumption habits, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 57: Attitudes towards fresh fruit and vegetables, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 58: Attitudes towards fresh fruit and vegetables, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage groups, October 2006
  • Figure 59: Nets of types of fruit and veg, by important factors when choosing fruit and veg, October 2006
  • Figure 60: Nets of types of fruit and veg, by attitudes towards fruit and veg, October 2006
  • Figure 61: Nets of types of fruit and veg, by changing consumption habits, October 2006
  • Figure 62: Nets of types of fruit and veg, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size and detailed lifestage groups, October 2006
  • Figure 63: Nets of types of fruit and veg, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size and detailed lifestage groups, October 2006
  • Figure 64: Target groups, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, region, ACORN category, technology usage, commercial TV viewing, supermarket usage, household size and detailed lifestage groups, October 2006
  • Figure 65: Identifying key target groups, October 2006
  • Figure 66: Target groups, by types of fruit and veg bought, October 2006
  • Figure 67: Target groups, by nets of types of fruit and veg bought, October 2006
  • Figure 68: Target groups, by important factors when buying fruit and veg, October 2006
  • Figure 69: Target groups, by attitudes towards fruit and veg, October 2006