Category Growth in Forecourt Convenience Retailing

Publication Date	February 2007
Publisher	Datamonitor
Product Type	Brief
Pages	16
ISBN Number	not applicable
Product Code	DAT04620

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Summary

Introduction

Many convenience products are experiencing high growth rates but it is important that forecourt retailers understand which they should include in their limited shop space. Based on Datamonitor's consumer products database, customer research and interviews with forecourt retailers across Europe, this brief identifies the fastest growing product markets.

Scope

A quantitative analysis of the forecast growth rates for product and category markets across Europe to identify those which are expanding most quickly
An assessment of the shop products which forecourt retailers have identified as being most profitable and insight into their new product investment areas.
An understanding of the key consumer trends impacting demand for more innovative convenience products in the forecourt shop.

Highlights

European forecourt retailers believe that soft drinks and chilled snacks will be the most important to forecourt shop sales and profitability over the next two years. Most retailers are consistent in their views with BP emerging as a notable exception.

Increased on-the-move consumption supports demand for healthier meals and snacks within dairy foods, chilled foods and soft drinks markets. Meals eaten on-the-move in Europe are set to grow by 2.4% over the 2005-2010 period, whilst on-the-move dinners are set to increase by 8.2% as consumers miss meals at home.

Selected categories within the dairy food, soft drinks and chilled food product markets are forecast to grow at rates in excess of 4% to 2010. The growth prospects for these categories reflect consumers demands for healthier and convenient food and drinks.

Reasons to Purchase

Quantify new customer demand for different products in the forecourt shop and inform corporate sales targets for specific categories.
Uncover the products that are most profitable to European forecourt retailers and discover the main product investment areas of major oil companies.
Understand the key convenience trends fostering consumer demand for new products and ensure shop marketing and promotions is aligned with them.

Content

Catalyst
Summary
Methodology
Analysis
- Selected categories within the dairy food, soft drinks and chilled food product markets are forecast to grow at rates in excess of 4%
- European forecourt retailers already have a large share of the markets for soft drinks, confectionary, and savoury snacks
- at the market level, sales of soft drinks, dairy food and chilled food in Europe are growing year-on-year by over 3%
- within the dairy market, milk, yogurt and chilled desserts categories are experiencing the highest rates of growth
- Sales of functional drinks, RTD tea & coffee, and bottled water in Europe are growing at an annual rate of over 4%
- Fresh pasta, ready meals and pizza are experiencing exceptional growth rates within the chilled food market
- Demand for other savoury snacks, popcorn and cereal bars is growing at rates of 4.4% to 7.3%
- Increased on-the-move consumption supports demand for healthier meals and snacks within dairy foods, chilled foods and soft drinks markets
- The number of meals eaten on-the-move represents 3.2% of total meal occasions across Europe and 7% of total breakfast occasions
- Meals eaten on-the-move in Europe are set to grow by 2.4% over the 2005-2010 period, whilst on-the-move dinners are to increase by 8.2%
- The total number of out-of-home snacking occasions in Europe is forecast to increase at a CAGR of 1.6% between 2005 and 2010
- There is massive unsatisfied consumer demand for healthy-indulgent food which can be eaten on-the-move
- European forecourt retailers believe that soft drinks and chilled snacks will be the most important to forecourt sales and profitability over the next two years
- Soft drinks, chilled snacks and tobacco are most important to the profitability of forecourt shops across Europe
- Retailers expect soft drinks, chilled snacks and hot drinks to account for a larger proportion of their product portfolio
- Companies' strategies differ with regard to their shop product ranges, with BP being most aligned with traditional grocery retailers
Appendix
- Sources
- Interactive Consumer Database (ICD)
- New Consumer Insight (NCI)
- Datamonitor Forecourt Retailing Convenience Study 2006
- Definitions
- Further Reading
- Datamonitor Consultancy
- Ask the Analyst
List of Figures
- Figure 1: Forecourt retailers' share of major product markets
- Figure 2: These five product markets have particularly high growth rates
- Figure 3: Milk is the strongest growing dairy category
- Figure 4: Functional drinks are forecast to experience the strongest growth within the soft drinks market
- Figure 5: Fresh pasta is predicted to undergo the strongest growth within the chilled food market
- Figure 6: Cereal bars are experiencing particularly strong growth
- Figure 7: European breakdown of overall meal occasions, by location
- Figure 8: European breakdown of total OTM meal occasions, by mealtime
- Figure 9: European breakdown of in-home versus out-of-home snacking occasions
- Figure 10: European breakdown of total eating occasions, by type
- Figure 11: Importance of products to forecourt shop profitability
- Figure 12: Comparison of importance of profitability and increased proportion of stock likelihood
- Figure 13: Comparison of oil company opinion