The UK market for condiments and sauces — including thick and thin table sauces, salad accompaniments, pickles, chutneys and relishes, dish-specific sauces, salt, pepper, vinegars, mustards and marinades — grew by only 0.8% in terms of retail sales value in the year ending April 2008. The greatest growth was identified in the smaller segments of barbecue sauces, Worcester sauce, chutneys, relishes, vinegars and marinades, and in the large segment of mayonnaises. In contrast, there were declines in 2007/2008 in the areas of salad creams and dressings, sweet pickles, salt and mustards. There were also decreases in sales of certain dish-specific sauces.
Despite the decreases in some categories, growth in the market as a whole is supported by a number of factors. These include: the wider consumption of more authentic ethnic meals; a gradual increase in the popularity of barbecue meals (weather permitting); and a greater interest in low-fat and low-calorie products. In particular, these trends have led to increased development of and demand for hot and other thick and thin table sauces for ethnic meals and for barbecues, and for low-fat and low-calorie salad accompaniments and other sauces. Such products have been supplied by the major manufacturers through brand extensions and expansions — but there are also specialist and, in many cases, premium products from the increasing numbers of smaller manufacturers and importers. `Premiumisation’ is in itself contributing to market growth in value terms — a trend that is being driven not only by manufacturers of brands but also by the retailers’ own-label sector via sub-branded ranges.
However, the condiments and sauces market has been affected for many years by the long-standing decline in family breakfasts and other main meals, especially the traditional weekend roast. These had once been established occasions for the use of thick table sauces, pickles, dish-specific sauces, peppers and mustards. In addition, although the health issue with regard to the `obesity crisis’ has been partially addressed with the development of low-fat and low-calorie products, the Government’s campaign to reduce consumers’ salt intake has had a continual downward effect on sales of salt.
In the year to April 2008, thick and thin table sauces represented a 31.1% value share of the condiments and sauces market; salad accompaniments accounted for a 24.5% share; and pickles, chutneys and relishes held a 20.5% share. The largest part of the remaining 25% share was held by dish-specific sauces, with small shares each held by the various condiments and by marinades.Total main media advertising expenditure on condiments and sauces increased slightly in the year ending March 2008, after a significant fall in 2006/2007. In 2007/2008, a substantial fall in advertising expenditure by Unilever was more than offset by an increase in spending by Heinz.
The major manufacturers in the market continue to be: Heinz (with its share having been boosted by the acquisition of HP Foods in 2005); Unilever; Premier Foods (with an increased share as a result of its purchase of RHM in 2006); Baxters Foods; McCormick; and Kraft. Combined, these hold a near 60% market share by value through their brands — although Premier’s overall share, in particular, is increased when its significant manufacture for the own-label sector is taken into account. Greencore Group is another large producer for retailers’ own labels. In terms of retail sales value, the market is anticipated to increase at a higher rate in 2008/2009 than in 2007/2008, but thereafter year-on-year growth is expected to slow. However, it remains to be seen what effect the currently rising costs of raw materials will have on this and many other food markets.
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