Released on = April 16, 2007, 8:59 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Executive Summary

This Market Review focuses on the five main sectors of the UK food market: meat and
meat products; fish and fish products; fruit and vegetables; dairy products, eggs,
oils and fats; and bread, cakes, biscuits and cereals


Press Release Body = The Food Industry Market Review 2006

Executive Summary

This Market Review focuses on the five main sectors of the UK food market: meat and
meat products; fish and fish products; fruit and vegetables; dairy products, eggs,
oils and fats; and bread, cakes, biscuits and cereals. A sixth sector, other foods,
comprises a variety of food items that are not covered elsewhere in the Review. Both
fresh and processed products are included, but sugar and sweet products, alcoholic
drinks, and hot and cold beverages (including fruit juices, tea and coffee) are
excluded. The emphasis is on the retail market, rather than on the wholesale or
catering markets.
Between 2001 and 2005, UK consumer expenditure on the food items covered by this
Review increased by 11.7% at current prices, to £51.55bn. Fruit and vegetables, and
fish and fish products, saw the strongest growth, but all the core sectors of the
market increased in value over the period. Sales of meat and meat products have
recovered since 2001, as consumers have regained their confidence in a product that
was beset by problems over the previous 10 years. However, the recent outbreak of
avian flu (confirmed as having reached Britain in April 2006) could once more plunge
the sector into crisis.
The British today are far more preoccupied with food and diet than previous
generations. This development reflects the increasing affluence enjoyed by the great
majority of the population. However, while the British now have a much more varied
diet than earlier generations, many eat far less healthily and obesity has become a
serious problem, particularly among children. The issue has received a great deal of
publicity and many people are now trying to improve their diets, but demand for
convenience products is also rising. Indeed, the two key trends in the food market
appear to be contradictory: growing demand for healthy food is being counterbalanced
by equally strong growth in sales of convenience products, such as ready meals, many
of which have high levels of salt and sugar and are of doubtful nutritional value.
Manufacturers are undoubtedly seeking to exploit the public\'s growing interest in
healthy eating. A number of firms have taken steps to highlight the `healthy\'
qualities of their brands, and many have reduced the sugar and salt content of their
products. `Functional foods\', which promise some sort of health benefit to
consumers, are also flourishing in nearly every sector.
It is forecasted that the UK retail food market will grow slightly above the general
rate of inflation over the next 5 years, driven by spending on premium-priced goods,
as consumers trade up to products that they believe are healthier or more
flavoursome or that offer greater convenience. Fierce competition between the
grocery multiples will place pressure on suppliers and will almost certainly spur
further consolidation in the industry.

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