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Meat-free Foods - UK - December 2004

INTRODUCTION AND ABBREVIATIONS
- Reduced Fat/Reduced Calorie Foods – UK, Market Intelligence, April 2005.
Definitions
Consumer research
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Positioning is critical
Chilled meals are ripe for re-innovation
More vegetarian lines in premium ranges
Manufacturers should engage with the 5 A DAY campaign
The alternative BBQ
Growth in low-carb eating needs to be better addressed
EXECUTIVE SUMMARY
Eating habits
Sales growth slows
Leading players
Advertising activity low
Supermarket dominate
Women most likely to avoid meat
Future growth
MARKET DRIVERS
Number of vegetarians
Figure 1: Agreement with the statement “I am a vegetarian” – all adults, 1999-2004
Figure 2: Agreement with the statement “I am a vegetarian” – men, 1999-2004
Figure 3: Agreement with the statement “I am a vegetarian” – women, 1999-2004
Meat avoidance
Figure 4: Agreement with the statement “I tend to eliminate meat from my diet”, by demographic sub-group, 2004
Health concerns
Salt and fat are two big consumer issues
Heart disease and breast cancer of most concern to consumers
Figure 5: Health issues of concern to consumers, 1998-2003
Low-carb eating opens up new opportunities
Tofu and soya have strong health benefits
Chicken often usurps the ‘healthy tag’
Green issues and ethical concerns
Almost a third of consumers have animal welfare concerns
Figure 6: Issues for which feelings are strong enough to stop buying products or services, 1998-2003
PDI – The means to an end
Figure 7: Trends in PDI and consumer expenditure, at constant 1999 prices, 1999-2008
Developments in the out-of-home food offering
McDonalds’ Quorn fillets
Still a lot to be learnt from the Far East
Development of the overall food market
Demographic shifts
Figure 8: Trends and projections in total UK population, by age group, 1999-2009
MARKET SIZE AND TRENDS
Growth slows
Figure 9: UK retail sales of meat-free foods, 1999-2004
Figure 10: UK retail sales of meat-free foods (£ million), 1999-2004
 MARKET BREAKDOWN
Fresh foods growing…
Figure 11: UK retail sales of meat-free foods, by product format, 2002-04
Figure 12: Market share of meat-free foods, by fresh, frozen and ambient, 2002-04
…at the expense of frozen
Meal centres are driving growth
Figure 13: UK retail sales of meat-free foods, by meal type, 2002-04
MARKET SEGMENTATION
A tale of two sectors
Chilled vs frozen
Figure 14: UK retail sales of meat-free chilled foods, by segment, 2002-04
Figure 15: UK retail sales of meat-free frozen foods, by segement, 2002-04
Meal centres
Figure 16: UK retail sales of meat-free meal centres, by chilled and frozen categories, 2002-04
Chilled meal centres growing fastest
Frozen meal centres promotionally sensitive
Switch from analogue to vegetable burgers
Frozen pastry sector declining
Ready Meals
Figure 17: UK retail sales of meat-free ready meals and recipe dishes, by chilled and frozen categories, 2002-04
Ready meal sales declining
No brand champion to drive the market
Positioning critical
Ingredients
Figure 18: UK retail sales of meat-free ingredients, by chilled and frozen categories, 2002-04
Scratch cooking driving ingredient sales
Snacking
Figure 19: UK retail sales of other meat-free products, by chilled and frozen categories, 2002-04
On-the-go consumption driving snacking
THE SUPPLY STRUCTURE
Figure 20: Manufacturers’ branded shares in the frozen meat-free market, 2002-04
Figure 21: Manufacturers’ branded shares in the chilled meat-free market, 2002-04
 COMPANIES AND BRANDS
Marlow Foods
Heinz
Cauldron Foods
Dalepak
Unilever Ice Cream and Frozen Food
The Haldane Foods Group
Tivall
Goodlife Foods
Batchelor Foods
Other brands
NEW PRODUCT DEVELOPMENT
Chilled products dominate launch
Health concerns taking greater importance
Lack of snacking products
 NEW PRODUCT BRIEFS
December 2004
November 2004
October 2004
September 2004
August 2004
June 2004
May 2004
October 2003
October 2003
July 2003
June 2003
April 2003
April 2003
March 2003
February 2003
December 2002
ADVERTISING AND PROMOTION
Above-the-line advertising is low
Figure 22: Main monitored media advertising expenditure on meat-free foods, 1999-2003
Figure 23: Main monitored media advertising expenditure on meat-free products, 1999-2003
Marlow Foods the big spender
Figure 24: Main monitored media advertising expenditure on meat-free products, by leading spenders, 2002-03
The Internet
Below-the-line promotions
Figure 25: Promotional activity in the meat substitutes market by promotional mechanic, January 2003-August 2004 (multiple grocers only)
Quorn brand is the most heavily promoted
Figure 26: Special price store reduction in the meat substitutes market, by brand, January 2003-August 2004
Frozen sector dominates promotional activity
Figure 27: Promotions in the meat substitues sector, by storage type, January 2003-August 2004
DISTRIBUTION
Figure 28: Retail distribution of meat-free foods, 2000-04
Positioning in store is a source of conjecture
Developments in the grocery multiples
Tesco
Sainsbury's
Marks & Spencer
Safeway/Morrisons
Asda
Others
THE CONSUMER – CONSUMPTION
Figure 29: Respondents’ eating habits in relation to various animal products, 2000, 2001 and 2004
Ardent vegetarians are a small number
Women are larger target market than men
Figure 30: Respondents’ eating habits in relation to various animal products, by gender, August-September 2004
Vegetarian ‘meat’ for meat eaters
Figure 31: Meat-free/vegetarian products purchased in the preceeding three months, August 2001 and August-September 2004
Strong female bias to purchasing
Figure 32: Meat-free/vegetarian products purchased in the preceding three months, by demographic sub-group, August-September 2004
Younger children are a key discriminator
Figure 33: Meat-free/vegetarian products purchased in the preceding three months, by lifestage and presence of children, August-September 2004
Broadsheets – an ideal medium for advertising
Figure 34: Meat-free/vegetarian products purchased in the preceding three months, by Mintel’s Special Groups, media usage and TV viewing, August-September 2004
Urban prosperous – the key consumer group
Figure 35: Meat-free/vegetarian products purchased in the preceding three months, by region and ACORN category, August-September 2004
Southern retailers, Sainsbury’s and Waitrose, are the most important
Figure 36: Meat-free/vegetarian products purchased in the preceding three months, by supermarket usage, August-September 2004
THE CONSUMER – ATTITUDES AND BEHAVIOURS
Figure 37: Attitudes towards and behaviour related to meat-free/vegetarian products, August-September 2004
Consumer apathy towards food scares
Packaging on meat-free foods could be revamped
Concerns about animal welfare and food safety are small
ABC1s most concerned about food safety
Figure 38: Attitudes towards and behaviour related to meat-free/vegetarian products, by gender, age and socio-economic status, August-September 2004
Retired are sceptical about food scares
Figure 39: Attitudes towards and behaviour related to meat-free/vegetarian products, by lifestyle, presence of children and household size, August-September 2004
Retired consumers are excluded from the market
Broadsheet readers offer the greatest potential
Figure 40: Attitudes towards and behaviour related to meat-free/vegetarian products, by Mintel’s Special Groups, media usage and TV viewing, August-September 2004
Londoners most concerned about food safety
Figure 41: Attitudes towards and behaviour relating to meat-free/vegetarian products, by region and ACORN category, August-September 2004
Iceland shoppers concerned with food safety
Figure 42: Attitudes towards and behaviours relating to meat-free/vegetarian products, by supermarket usage, August-September 2004
 ASSESSING KEY TARGET MARKETS – CONSUMER TYPOLOGIES
Figure 43: Consumer cooking typologies, August-September 2004
Everyday basics (17% of respondents)
Dabblers (24% of respondents)
Budding Jamies (21% of respondents)
Kitchen avoiders (39% of respondents)
 DETAILED DEMOGRAPHICS
Figure 44: Consumer typologies by components, August-September 2004
Figure 45: Consumer typologies, by selected demographic sub-group, August-September 2004
Figure 46: Attitudes towards and behaviours relating to meat-free/vegetarian products, by further demographic sub-group, August-September 2004
 ASSESSING ATTITUDES OF CONSUMER TYPOLOGIES
Budding Jamies would buy more if the quality was better
Figure 47: Attitudes towards meat held by the cluster groups, August-September 2004
More emphasis on seasonality
Kitchen avoiders do not eat fish
Figure 48: Meat eating habits of the cluster groups, August -September 2004
Vegetarian burgers and sausages appeal to everyday basics
Figure 49: Types of meat-free food purchased, by cluster group, August-September 2004
 ESTABLISHING ENTHUSIASM – REPERTOIRE ANALYSIS
Women have bigger repertoire
Figure 50: Number of meat-free/vegetarian products purchased, by gender, age and social group, August-September 2004
Men need to be better targeted
Households with children eat meat-free
Figure 51: Number of meat-free/vegetarian products purchased, by lifestage, Mintel’s Special Groups and presence of children, August-September 2004
Children need to be better targeted
Londoners have a larger repertoire
Figure 52: Number of meat-free/vegetarian products purchased, by working and marital status and region, August-September 2004
Heavier TV viewers have a smaller repertoire
Figure 53: Number of meat-free/vegetarian products purchased, by ACORN group, media usage, Supermarket used and TV viewing habits, August-September 2004
THE FUTURE
Vegetarianism stable at best
Meat reducers
Health issues
Food scares
Product development
Snacking occasion is still undeveloped for vegetarian foods
Merchandising
From celebrity to branding
FORECAST
Market set to grow 12% by 2009
Figure 54: Forecast for the meat-free products, by sector, 2004-09
Rate of growth forecast to slow
Chilled sector will continue to drive the market
The frozen sector needs a push
Convenient products may help to drive the sector
Factors used in the forecast

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