Canned Foods

2009 UK -Market Report Plus

Publication Date	July 2009
Publisher	Key Note
Product Type	Report
Pages	130
ISBN Number	not applicable
Product Code	KEY00065

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Summary

This Key Note Market Report Plus examines the UK canned foods market. Following relatively strong sales growth in 2004 and 2005 - spurred by a wave of innovation and new product development (NPD) - growth in the market slowed in 2006 and 2007. In 2008, sales jumped strongly in value terms, fuelled by steep food price inflation and increases in the price of tins.

The canned foods market is divided into eight main sectors: vegetables, fish, soup, meat, fruit, pasta, desserts and cooking sauces. Canned vegetables was the largest sector in 2008 with retail sales of £629m, representing a 29.1% share of the total market. With the exception of fruit and cooking sauces, most sectors experienced growth in value terms between 2004 and 2008, whereas, in volume terms, sales declined in every sector (although volume sales of baked beans, a category within the canned vegetables sector, increased over this period). Some suppliers have claimed that the recession has had a very positive effect on the canned foods market as it has prompted consumers to stock up on less expensive goods. However, in fact, the recession has simply slowed the overall decline in volume sales rather than spurred an increase.

The UK canned foods market is dominated by multinational companies with strong brands and immense buying power; therefore, it is very difficult for new companies to enter the market. Major companies in the UK include Heinz, Princes (part of Japan-based Mitsubishi) and Del Monte. Unlike other areas of the food industry, few specialist niche players have been attracted to the canned foods market. This may be because the barriers to entry are so high, or simply because the market is perceived to be in long-term decline.

In May 2009, Key Note commissioned a NEMS Market Research survey to assess consumer attitudes towards canned foods. The survey produced some surprising findings, notably that the recession may not have had as big an impact on the market as some suppliers are claiming, as only 7.4% of respondents cited good value as the main reason for purchasing canned foods. However, the survey did confirm the importance of convenience to canned food purchasers, with nearly six out of ten adults buying the products for this reason.

Key Note forecasts that the canned foods market will experience relatively rapid growth in value terms over the 5 years to 2013, and will increase by 49.7% between 2004 and 2013. In 2009, growth is likely to be propelled by the recession as the volume decline slows, and high unemployment will continue to support volume sales in 2010. Thereafter, buoyant commodity prices are likely to be the main factor behind the value growth of the market. However, some areas of the market, such as canned fruit and cooking sauces, are likely to see declines towards the end of the forecast period, as consumers trade up to alternatively packaged products.

Content

Executive Summary
1. Market Definition
- REPORT COVERAGE
- MARKET SECTORS
- MARKET TRENDS
- The Recession
- The Environment
- Convenience and Snack Foods
- Health Concerns
- ECONOMIC TRENDS
- Population
- Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
- Gross Domestic Product
- Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
- Inflation
- Table 1.3: UK Rate of Inflation (%), 2004-2008
- Unemployment
- Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008
- Household Disposable Income
- Table 1.5: UK Household Disposable Income Per Capita (£), 2004-2008
- MARKET POSITION
- The UK
- Table 1.6: Total Household Expenditure on Food and Household Expenditure
- on Canned Foods (£m at rsp and %), 2004-2008
- Overseas
2. Market Size
- THE TOTAL MARKET
- Table 2.1: The Total UK Canned Foods Market by Sector by Value at Current Prices (£m at rsp), 2004-2008
- Figure 2.1: The Total UK Canned Foods Market by Sector by Value at Current Prices (%), 2008
- BY MARKET SECTOR
- Vegetables
- Table 2.2: The UK Canned Vegetables Sector by Value at Current Prices (£m at rsp and %), 2004-2008
- Figure 2.2: The UK Canned Vegetables Sector by Value at Current Prices (£m at rsp), 2004-2008
- Table 2.3: The UK Canned Vegetables Sector by Type of Product by Value at Current Prices (£m at rsp and %), 2008
- Fish
- Table 2.4: The UK Canned Fish Sector by Value at Current Prices (??m at rsp and %), 2004-2008
- Figure 2.3: The UK Canned Fish Sector by Value at Current Prices (??m at rsp), 2004-2008
- Table 2.5: The UK Canned Fish Sector by Type of Product by Value at Current Prices (??m at rsp and %), 2008
- Soup
- Table 2.6: The UK Canned Soup Sector by Value at Current Prices (??m at rsp and %), 2004-2008
- Figure 2.4: The UK Canned Soup Sector by Value at Current Prices (??m at rsp), 2004-2008
- Table 2.7: The UK Canned Soup Sector by Type of Product by Value at Current Prices (??m at rsp and %), 2008
- Meat
- Table 2.8: The UK Canned Meat Sector by Value at Current Prices (??m at rsp and %), 2004-2008
- Figure 2.5: The UK Canned Meat Sector by Value at Current Prices (??m at rsp), 2004-2008
- Table 2.9: The UK Canned Meat Sector by Type of Product by Value at Current Prices (??m at rsp and %), 2008
- Fruit
- Table 2.10: The UK Canned Fruit Sector by Value at Current Prices (£m at rsp and %), 2004-2008
- Figure 2.6: The UK Canned Fruit Sector by Value at Current Prices (£m at rsp), 2004-2008
- Table 2.11: The UK Canned Fruit Sector by Type of Product by Value at Current Prices (£m at rsp and %), 2008
- Pasta
- Table 2.12: The UK Canned Pasta Sector by Value at Current Prices (£m at rsp and %), 2004-2008
- Figure 2.7: The UK Canned Pasta Sector by Value at Current Prices (£m at rsp), 2004-2008
- Table 2.13: The UK Canned Pasta Sector by Type of Product by Value at Current Prices (£m at rsp and %), 2008
- Desserts
- Table 2.14: The UK Canned Desserts Sector by Value at Current Prices (£m at rsp and %), 2004-2008
- Figure 2.8: The UK Canned Desserts Sector by Value at Current Prices (£m at rsp), 2004-2008
- Table 2.15: The UK Canned Desserts Sector by Type of Product by Value at Current Prices (£m at rsp and %), 2008
- Cooking Sauces
- Table 2.16: The UK Canned Cooking Sauces Sector by Value at Current Prices (£m at rsp and %), 2004-2008
- Figure 2.9: The UK Canned Cooking Sauces Sector by Value at Current Prices (£m at rsp), 2004-2008
- Table 2.17: The UK Canned Cooking Sauces Sector by Type of Product by Value at Current Prices (£m at rsp and %), 2008
- OVERSEAS TRADE
3. Industry Background
- RECENT HISTORY
- NUMBER OF COMPANIES
- REGIONAL VARIATIONS IN THE MARKETPLACE
- DISTRIBUTION
- Table 3.1: The UK Market for Canned Foods by Retailer Share by Value (%), 2008
- Figure 3.1: The UK Market for Canned Foods by Retailer Share by Value (%), 2008
- HOW ROBUST IS THE MARKET?
- LEGISLATION
- Food Safety Act 1990
- Food Labelling Regulations 1996
- Food Standards Act 1999
- KEY TRADE ASSOCIATIONS
- Canned Food UK
- The Food Processors Association
4. Competitor Analysis
- THE MARKETPLACE
- Table 4.1: Selected Leading Manufacturers of UK Canned
- Food Products by Turnover and Pre-Tax Profit (£000), Latest Financial Year End
- MARKET LEADERS
- Baxters Food Group Ltd
- Del Monte (UK) Ltd
- Glenryck Foods Ltd
- HJ Heinz Company Ltd
- John West Foods Ltd
- Petty, Wood & Co Ltd
- Premier Foods PLC
- Princes Ltd
- Tulip Ltd
- OTHER COMPANIES
- Simpsons Ready Foods Ltd
- Westler Foods
- OUTSIDE SUPPLIERS
- MARKETING ACTIVITY
- Main Media Advertising
- Table 4.2: Main Media Advertising Expenditure on Leading Canned Food Brands by Sector (£000), Years Ending March 2008 and 2009
- Exhibitions and Trade Shows
5. Brand Strategy
- INTRODUCTION
- RESEARCH FINDINGS
- Convenience
- Table 5.1: Buying of Canned Foods in the Past 12 Months Owing to Convenience by Sex, Age, Social Grade and Region (% of respondents), 2009
- Value
- Table 5.2: Buying of Canned Foods in the Past 12 Months Owing to Good Value by Sex, Age, Social Grade and Region (% of respondents), 2009
- Flavour
- Table 5.3: Buying of Canned Foods in the Past 12 Months Owing to Flavour by Sex, Age, Social Grade and Region (% of respondents), 2009
- Health
- Table 5.4: Buying of Canned Foods in the Past 12 Months Owing to Health Benefits by Sex, Age, Social Grade and Region (% of respondents), 2009
- COMPANIES' BRANDS
- Vegetables
- Fish
- Soup
- Meat
- Fruit
- Pasta
- Desserts
- Cooking Sauces
6. Strengths, Weaknesses, Opportunities and Threats
- STRENGTHS
- WEAKNESSES
- OPPORTUNITIES
- THREATS
7. Buying Behaviour
- CONSUMER PENETRATION
- Baked Beans
- Table 7.2: Penetration of Baked Beans by Sex, Age, Social Grade and Region (% of adults), 2008
- Soup
- Table 7.1: Penetration of Soup
8. Current Issues
- GLOBAL ECONOMY
- Tin Prices Increase Costs for Canned Food Manufacturers
- ENVIRONMENTAL ISSUES
- Tuna May Disappear from the Mediterranean
- HEALTH ISSUES
- Health Benefits of Omega 3 in Dispute
- UK Children Reluctant to Eat Tinned Mackerel
9. The Global Market
- TOTAL MARKET SIZE
- EUROPE
- THE US
- THE PEOPLE'S REPUBLIC OF CHINA
10. Forecasts
- INTRODUCTION
- THE ECONOMY
- Table 10.1: Forecasts for the UK Economy (000, % and million), 2009-2013
- Demographics
- Table 10.2: Projected UK Population by Age (000), 2006, 2011, 2016, 2021, 2026 and 2031
- FORECASTS 2009 TO 2013
- Table 10.3: The Forecast Total UK Canned Foods Market by Sector by Value at Current Prices (£m at rsp), 2009-2013
- Figure 10.1: The Forecast Total UK Canned Foods Market by Sector by Value at Current Prices (£m at rsp), 2009-2013
- MARKET GROWTH
- Figure 10.2: Growth in the Total UK Canned Foods Market by Value at Current Prices (£m at rsp), 2004-2013
- FUTURE TRENDS
- New Product Development
11. Company Profiles
- BAXTERS FOOD GROUP LTD
- DEL MONTE (UK) LTD
- GLENRYCK FOODS LTD
- HJ HEINZ COMPANY LTD
- JOHN WEST FOODS LTD
- PETTY, WOOD & CO LTD
- PREMIER FOODS PLC
- PRINCES LTD
- TULIP LTD
12. Company Financials
13. Further Sources
- Associations
- Publications
- General Sources
- Government Sources
- Other Sources
- Key Note Sources
- Understanding TGI Data
- Number, Profile, Penetration
- Social Grade
- Standard Region
- Key Note Research
- The Key Note Range of Reports