Table of Contents
Executive Summary
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- The market
- Return to value sales growth in 2017
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- Figure 1: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2012-22
- Declining bread sales affecting butter and spreads
- Prices of olive oil and butter rise
- Ageing population more worried about saturated fat
- Companies and brands
- Own-label makes gains in yellow fats
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- Figure 2: Leading brands’ shares in the UK retail yellow fats market, by value, 2016/17*
- Filippo Berio sees dip in olive oil sales
- Focus on natural and dairy-free products in yellow fats NPD
- Spray oil launches tap into health and convenience trends
- Coconut oils being joined by avocado oils
- The consumer
- More than nine in 10 buy butter and spreads
- Being spreadable and favourite taste most important factors
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- Figure 3: Factors influencing choice of butter/spread for spreading, July 2017
- Strong demand for versatility in edible oils
- Three in 10 would pay more to support British farmers
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- Figure 4: Product attributes worth paying more for, July 2017
- Details of regional origin can increase appeal
- ‘Healthy’ and ‘pure’ key strengths for olive oil
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- Figure 5: Correspondence analysis: perceptions of different types of edible oils, July 2017
- What we think
Issues and Insights
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- Range of health angles for brands to tap into in yellow fats and oils
- The facts
- The implications
- Scope for tackling declining usage with new promotions
- The facts
- The implications
- Opportunities for adding consumer value in butter, spreads and oils
- The facts
- The implications
The Market – What You Need to Know
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- Slowdown in downward trend in sales
- 2017 butter sales getting boost from higher prices
- Sales of spreads continue to decline
- Edible oils see a return to growth
- Declining bread sales affecting butter and spreads
- Rise in commodity prices for olive oil
- Wholesale butter prices have also been increasing
- Interest in cooking and baking important to market
- Ageing population more worried about saturated fat
Market Size and Forecast
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- Slowdown in downward trend in sales
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- Figure 6: UK retail value sales of yellow fats and edible oils, 2012-22*
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- Figure 7: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2012-22*
- Butter value sales getting boost from higher prices, but volumes hit
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- Figure 8: UK retail value and volume sales of butter, 2012-22
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- Figure 9: Best- and worst-case forecast of UK retail value sales of butter, 2012-22
- Sales of spreads continue to decline
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- Figure 10: UK retail value and volume sales of spreads, 2012-22
- Figure 11: Best- and worst-case forecast of UK retail value sales of spreads, 2012-22
- Edible oils see a return to growth
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- Figure 12: UK retail value and volume sales of edible oils, 2012-22
- Figure 13: Best- and worst-case forecast of UK retail value sales of edible oils, 2012-22
- Forecast methodology
Market Segmentation
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- Butter sales boosted in 2017 by higher prices
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- Figure 14: UK retail value and volume sales of yellow fats, by segment, 2015-17
- Speciality oils taking a larger share of sales
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- Figure 15: UK retail value and volume sales of edible oils, by type, 2015-17
Market Drivers
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- Declining bread sales are affecting butter and spreads
- Rise in commodity prices for olive oil
- Wholesale butter prices have also been increasing
- Interest in cooking and baking important to market
- Ageing population more worried about saturated fat
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- Figure 16: Trends in age structure of the UK population, 2012-22
Companies and Brands – What You Need to Know
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- Own-label makes gains in yellow fats
- Cooking oils dominated by own-label
- Filippo Berio sees dip in olive oil sales
- Oils account for the majority of new launches
- Bigger focus on natural products
- Spray oils tapping into health and convenience trends
- Coconut oils being joined by avocado oils
- Fall in 2016 advertising
- Lurpak has strongest reputation for quality
- Flora seen as most healthy brand
Market Share
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- Own-label makes gains in yellow fats
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- Figure 17: Leading brands’ sales and shares in the UK retail yellow fats market, by value and volume, 2015/16-2016/17
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- Figure 18: Leading manufacturers’ sales and shares in the UK retail yellow fats market, by value and volume, 2015/16-2016/17
- Cooking oils dominated by own-label
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- Figure 19: Leading brands’ sales and shares in the UK retail cooking oils market, by value and volume, 2015/16-2016/17
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- Figure 20: Leading manufacturers’ sales and shares in the UK retail cooking oil market, by value and volume, 2015/16-2016/17
- Filippo Berio sees dip in olive oil sales
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- Figure 21: Leading brands’ sales and shares in the UK retail olive oil market, by value and volume, 2015/16-2016/17
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- Figure 22: Leading manufacturers’ sales and shares in the UK retail olive oil market, by value and volume, 2015/16-2016/17
- Own-label sales of speciality oils grow
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- Figure 23: Leading brands’ sales and shares in the UK retail speciality oils market, by value and volume, 2015/16-2016/17
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- Figure 24: Leading manufacturers’ sales and shares in the UK retail speciality oils market, by value and volume, 2015/16-2016/17
Launch Activity and Innovation
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- Oils account for the majority of new launches
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- Figure 25: New product launches in the UK butter, spreads and edible oils market, 2012-17
- Bigger focus on natural and environmentally-friendly products
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- Figure 26: New product launches in the UK butter and spreads market, by top 20 claims (sorted by 2016), 2012-17
- Bertolli puts focus on butters for cooking
- Regional butters tap into interest in provenance
- Morrison’s extends ‘For Farmers’ range into butter
- Unilever extends Flora ProActive with Expert range with added vitamins
- Choice of dairy-free spreads increases
- First spreadable goats butter launched
- Premium and all-natural push in oils in 2017
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- Figure 27: New product launches in the UK edible oils market, by top 20 claims (sorted by 2016), 2012-17
- Spray oils tapping into health and convenience trends
- Coconut oils getting more retail listings
- Avocado oil the latest big thing in speciality oils
- Focus on quality and flavour in olive oil
- Rapeseed oil also seeing premium launches
Advertising and Marketing Activity
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- Fall in 2016 advertising spending
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- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and edible oils, 2012-17
- Figure 29: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and edible oils, by category, 2013-17
- Arla and Unilever the biggest advertisers
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- Figure 30: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and edible oils*, by advertiser, 2013-17
- Flora is the most heavily-promoted brand
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- Figure 31: Above-the-line, online display and direct mail advertising expenditure on yellow fats and oils, by advertiser and brand, 2016
- Anchor’s new ‘British’ look to be supported by a £4.5 million campaign
- Lurpak advocates ‘naturalness’
- Lurpak continues to challenge new consumers with ‘Game On, Cooks’ campaign
- Flora focuses on ‘Powered by Plants’ message
- Flora ProActiv unveils Expert Range
- Bertolli recipe videos promote authentic Italian cooking
- Stork announces charity tie up
- Frylight announces launch of £5 million multi-channel campaign
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 32: Attitudes towards and usage of selected brands, July 2017
- Key brand metrics
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- Figure 33: Key metrics for selected brands, July 2017
- Brand attitudes: Lurpak stands for consistently high quality
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- Figure 34: Attitudes, by brand, July 2017
- Brand personality: Lurpak engaging strongly with consumers
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- Figure 35: Brand personality – Macro image, July 2017
- Flora seen as most healthy brand
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- Figure 36: Brand personality – Micro image, July 2017
- Brand analysis
- Lurpak has the strongest reputation for quality
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- Figure 37: User profile of Lurpak, July 2017
- Anchor stands for consistent quality but seen as less innovative
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- Figure 38: User profile of Anchor, July 2017
- Flora has strong association with health and wellbeing
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- Figure 39: User profile of Flora, July 2017
- Bertolli has scope to increase usage through focus on health
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- Figure 40: User profile of Bertolli, July 2017
- Clover lacks standout in yellow fats market
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- Figure 41: User profile of Clover, July 2017
The Consumer – What You Need to Know
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- More than nine in 10 buy butter and spreads
- Nearly eight in 10 buy edible oils
- Being spreadable and favourite taste most important
- Less frying and buying of bread hitting sales
- Meeting demand for versatility in edible oils
- Three in 10 would pay more to support British farmers
- Details of regional origin can increase appeal
- Being seen as healthy and pure the key strengths for olive oil
- Lack of awareness of attributes of rapeseed and avocado oils
Buying of Yellow Fats
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- More than nine in 10 buy butter or spreads
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- Figure 42: Types of butter and spreads bought in the last 3 months, July 2017
- A quarter have bought at least three types of spreads in the last three months
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- Figure 43: Number of different types of butter and spreads bought in last 3 months, July 2017
- Younger appeal of spreadable butter
- “Buttery taste” an important purchase driver
Buying of Edible Oils
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- Nearly eight in 10 buy edible oils
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- Figure 44: Types of edible liquid oils and solid oils/fats bought in the last 3 months, July 2017
- Nearly half of people buy more than one type
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- Figure 45: Number of different types of edible oils bought in last 3 months, July 2017
- Vegetable, olive and sunflower oils dominate
Factors Influencing Choice of Butter/Spread
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- Being spreadable from fridge and favourite taste most important
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- Figure 46: Factors influencing choice of butter/spread for spreading, July 2017
- Being lower in fat also an important consideration
- No artificial ingredients another selling point
Usage and Buying Behaviour
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- Less frying and buying of bread bad for market
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- Figure 47: Usage and buying behaviour in relation to yellow fats and edible oils, July 2017
- Has the home baking bubble burst?
- Meeting demand for versatility and quality in edible oils
Product Attributes Most Likely to Add Value
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- Three in 10 would pay more to support British farmers
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- Figure 48: Product attributes worth paying more for, July 2017
- Higher animal welfare standards can also add value
- Health benefits justify a price premium for a fifth of buyers
Attitudes towards Butter, Spreads and Edible Oils
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- Details of regional origin can increase appeal
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- Figure 49: Attitudes towards butter/spreads and edible oils, July 2017
- Small bottles or packs can encourage experimentation
Perceptions of Different Types of Edible Oils
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- Olive oil seen as the most healthy edible oil
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- Figure 50: Correspondence analysis: perceptions of different types of edible oils, July 2017
- Figure 51: Perceptions of different edible oils, July 2017
- Being seen as healthy and pure the key strengths of olive oil
- Versatility biggest strength for sunflower oil
- Lack of awareness of attributes of rapeseed and avocado oils
- Coconut oil seen as a ‘trendy’ choice
- Methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 52: Best- and worst-case forecast of total UK retail value sales of yellow fats and edible oils, 2012-22
- Figure 53: Best- and worst-case forecast of UK retail volume sales of butter, 2012-22
- Figure 54: Best- and worst-case forecast of total UK retail value sales of butter, 2012-22
- Figure 55: Best- and worst-case forecast of total UK retail volume sales of butter, 2012-22
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- Figure 56: Best- and worst-case forecast of UK retail volume sales of spreads, 2012-22
- Figure 57: Best- and worst-case forecast of total UK retail value sales of spreads, 2012-22
- Figure 58: Best- and worst-case forecast of total UK retail volume sales of spreads, 2012-22
- Figure 59: Best- and worst-case forecast of UK retail volume sales of edible oils, 2012-22
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- Figure 60: Best- and worst-case forecast of total UK retail value sales of edible oils, 2012-22
- Figure 61: Best- and worst-case forecast of total UK retail volume sales of edible oils, 2012-22
Appendix – Market Share
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- Figure 62: Leading brands’ sales and shares in the UK retail butter market, by value and volume, 2015/16-2016/17
- Figure 63: Leading manufacturers’ sales and shares in the UK retail butter market, by value and volume, 2015/16-2016/17
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- Figure 64: Leading brands’ sales and shares in the UK retail margarine and spreads market, by value and volume, 2015/16-2016/17
- Figure 65: Leading manufacturers’ sales and shares in the UK retail margarine and spreads market, by value and volume, 2015/16-2016/17
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- Figure 66: Leading brands’ sales and shares in the UK retail cooking fats market, by value and volume, 2015/16-2016/17
- Figure 67: Leading manufacturers’ sales and shares in the UK retail cooking fats market, by value and volume, 2015/16-2016/17
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