Abstract
Since Mintel last examined the Christmas foods market in February 2006, sales growth has slowed, rising by 4% to £875 million as many categories struggled due to lack of innovation and shifting trends in favour of smaller households and healthier lifestyles.
Like trends seen in the food category, premiumisation was a core element of the Christmas food market. Luxury lines and natural ingredients with named provenance boosted value sales for many categories, including seasonal biscuits and packaged cakes, while lack of NPD, advertising support, appeal to younger consumers and smaller households eroded the performance of other categories such as ham joints.
Key themes of the report:
- Health-conscious consumers will make healthier choices over the festive period and avoid overindulgence on food deemed unhealthy.
- Premiumisation has stemmed a sales decline in many categories, with improved value sales but diminished volume sales as consumers cut back but trade up.
- Families are losing out to the third age and smaller households, creating greater demand for reduced portions and convenience foods.
- Food and drink make a popular gift, with over half of consumers, particularly women and those in their third age, opting for edible presents over the festive season.
- With greater interest in home baking year-round, more consumers take the time to cook from scratch, particularly over the busy festive season.
- While traditional festive foods such as turkey and Christmas puddings remain popular, consumers are migrating to alternatives such as red meat and other poultry such as goose and duck.
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