Sauces and spreads market grows – but consumption falls
The value of the UK sauces and spreads market grew by 4.7 per cent to just over £1 billion (€1.2bn) last year, according to a new report by market analyst Key Note.
However, the firm says that rising commodity prices are the primary reason behind the growth, as consumption has declined.
“Brands in the sauces and spreads industry are some of the most established brands in the UK, including Heinz Tomato Ketchup, HP Brown Sauce and Marmite,” says a Key Note spokesman. “But although these goods are still popular, consumers have had to cut back on their consumption due to the economic crisis. As a result, volume sales have fallen. Pressure from supermarkets’ own goods, which now offer consumers similar quality to that of brands but at a lower price, is forcing manufacturers to engage in promotional activity and driving down value sales.”
Rising commodity prices are also taking their toll on the industry, with manufacturers reluctant to pass on rising costs to consumers, to whom value for money is more important than brand loyalty.
“Still, dynamism remains in the sauces and spreads industry,” adds the spokesman. “Innovation is dominated by the introduction of the easy-squeeze format that is mess-free and more convenient than traditional bottles and jars.
“Certain foreign spreads are doing well, too, especially Ferrero’s Nutella. Honey is also gaining in popularity, due to the health benefits associated with the product.”