Meat Free Foods - UK - December 2010

ISSUES IN THE MARKET
Key themes
Definition
Abbreviations
FUTURE OPPORTUNITIES
Locking in flavour
Extend your youth
MARKET IN BRIEF
Meat-free market to reach £553 million in 2010
Own-label dominates meat-free
Three in five eat meat-free food
Variety and health are top reasons for choosing meat-free
One in eight would like to cut back on meat
Majority see meat-free as bland
INTERNAL MARKET ENVIRONMENT
Key points
The number of vegetarians stagnates
Figure 1: Trends in vegetarianism and meat avoidance, 2006-10
Meat-free day a week promoted to curb climate change
Health concerns about red meat see cuts to intake
Nearly one in three restrict red meat intake for health
Meat-substitutes look to leverage lean credentials
Figure 2: Trends in trying to lose weight, 2006-10
Ethnic foods enjoy strong interest
Figure 3: Attitudes towards foreign food, 2005-09
Half the nation are keen cooks
Figure 4: Attitudes towards cooking and new recipes, 2006-10
Frozen food sees acceptance stall
Figure 5: Attitudes towards frozen foods, 2006-10
BROADER MARKET ENVIRONMENT
Key points
Changing age profile brings challenges and opportunities for meat-free
Figure 6: Changes in the age structure of the UK population, 2010-15
Growth of ABs is good news for the market
Figure 7: Changes in adult population, by socio-economic group, 2010-15
Cautious spending recovery expected
Figure 8: Annual percentage change in consumer expenditure, at constant 2005 prices, 2006-15
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Definition
Brands dominate NPD
Chilled stands ahead of frozen in new launches
Absence of additives is top claim
Figure 9: Top claims in new product launches in the UK meat substitutes* category, 2010**
Functional claims leveraged by a large minority
Themes in recent launches
See-through packaging gains popularity
New products expand into new segments
… as well as flavours and ingredients
Meat-free meals and meal centres gain interest
Figure 10: Share of new product launches in meals and meal centres labelled as vegetarian, 2006-2010*
MARKET SIZE AND FORECAST
Key points
Meat-eaters and new product development support underlying growth
Figure 11: UK retail sales of meat-free foods, at current and constant prices, 2005-10
Recession sees cutbacks on meat and more scratch-cooking
Forecast
Figure 12: Forecast of UK retail sales of meat-free foods, by value, 2005-15
Volume growth to rely on attracting rare users and meat-eaters
Projected demographic trends to benefit meat-free
Forecast methodology
MARKET SEGMENTATION
Key points
Chilled dominates meat-free
Frozen won ground in recession, chilled regaining in 2010
Ready meals dominate meat-free
Figure 13: Value sales of meat-free foods, by type, 2010
Figure 14: Annual percentage change in value sales of meat-free foods, by type, 2009-10
Figure 15: UK retail value sales of meat-free foods, by type, 2009-10
MARKET SHARE
Key points
Premier Foods holds a strong lead in meat-free
Hain Celestial slowly gaining ground
Smaller players look to make their mark
Own-label dominates meat-free
Figure 16: Manufacturers’ shares in meat-free foods, 2007-09
COMPANIES AND PRODUCTS
Premier Foods
Background
Recent activity
Product range
Innovation
Promotion
Hain Celestial
Background
Recent activity
Product range
Innovation
Promotion
Irish Food Processors
Background
Product range
Innovation
Promotion
Goodlife Foods
Background
Recent activity
Product range
Innovation
Promotion
Redwood Wholefood Co.
Background
Recent activity
Product range
Innovation
Promotion
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend leaps ahead in 2009
Figure 17: Topline spend in the UK meat-free foods market, 2006-10*
Brands look to engage
The Vegetarian Society
Meat-free Mondays campaign enjoys high media coverage
Figure 18: Spend in the UK meat-free foods market, by company, 2007-10*
CHANNELS TO MARKET
Key points
Multiples dominate spending on meat-free food
Figure 19: Retail distribution of meat-free foods, by outlet type, 2007-09
CONSUMER – USAGE OF VEGETARIAN/MEAT-FREE FOODS
Key points
Britons still lean towards meat and two veg
Figure 20: Frequency of eating red meat, poultry, fish and vegetarian/meat-free food, July 2010
Women, ABs and under-35s most likely to eat meat-free
Figure 21: Eating vegetarian/meat-free food (any frequency), by gender, age and socio-economic group, July 2010
Figure 22: Eating vegetarian/meat-free food at least two days a week, by gender, age and socio-economic group, July 2010
Sausages and burgers lead in meat-free
Figure 23: Purchase of Vegetarian/meat-free food, by type, July 2010
Two in five never buy meat-free
Sausages and burgers are the most popular in meat-free
One in eight eat a broad variety of meat-free or vegetarian foods
CONSUMER – REASONS FOR EATING VEGETARIAN/MEAT-FREE FOOD
Key points
Variety is top reason for choosing meat-free
Figure 24: Reasons for eating vegetarian/meat-free foods, July 2010
Meat-free must deliver on taste
Health considerations play a major role in meat-free demand
Ethical reasons rank behind money for meat-free
CONSUMER – ATTITUDES TOWARDS EATING MEAT VS. MEAT-FREE FOOD
Key points
Half of adults open to meat-free, meat strong on enjoyment and nutrition
Figure 25: Attitudes towards eating meat vs. meat-free food, July 2010
Half of adults open to meat-free food – if it delivers on excitement and taste
One in eight would like to cut back on animal-based protein, one in five have
Most see meat as enjoyable and nutritious
Meat-free is off the radar for nearly two in five
CONSUMER – ATTITUDES TOWARDS MEAT SUBSTITUTES AND VEGETARIAN FOOD
Key points
Artificial image hampers meat substitutes, blandness an issue for meat-free foods
Figure 26: Attitudes towards meat substitutes and vegetarian food, July 2010
Artificial image and taste are issues for meat substitutes
Greater variety could support sales of vegetarian foods
Cooking with vegetables preferred to meat substitutes
CONSUMER – TARGET GROUPS
Key points
One in five adults come across as veg lovers
Figure 27: Target groups for meat-free/vegetarian food, July 2010
Veg-lovers (20%)
Who are they?
Consumption of and attitudes towards meat-free/vegetarian food
Attitudes towards cooking
Gourmets (25%)
Who are they?
Consumption of and attitudes towards meat-free foods
Attitudes towards cooking
Tradionalists (23%)
Who are they?
Consumption of and attitudes towards meat-free foods
Attitudes towards cooking
Meat-lovers (32%)
Who are they?
Consumption of and attitudes towards meat-free foods
Attitudes towards cooking
APPENDIX – CONSUMER – USAGE OF VEGETARIAN/MEAT-FREE FOODS
Figure 28: Types of vegetarian foods/meat-free foods bought in the last six months, July 2010
Figure 29: Vegetarian/meat-free foods bought in the last six months, by demographics, July 2010
Figure 30: Repertoire of vegetarian foods/meat-free foods bought in the last six months, July 2010
Figure 31: Repertoire of vegetarian foods/meat-free foods bought on the last six months, by demographics, July 2010
Figure 32: Consumption of red meat/fish/poultry/meat-free foods, by frequency, July 2010
Figure 33: Consumption of red meat/fish/poultry/meat-free foods, by demographics July 2010
Figure 34: Consumption of Vegetarian/Meat-free foods, by frequency, by demographics, July 2010
APPENDIX – CONSUMER – REASONS FOR EATING VEGETARIAN/MEAT-FREE FOODS
Figure 35: Reasons for eating vegetarian/meat-free foods, July 2010
Figure 36: Reasons for eating vegetarian/meat-free foods, by demographics, July 2010
Figure 37: Reasons for eating vegetarian/meat-free foods, by demographics, July 2010 (continued)
Figure 38: Reasons for eating vegetarian/meat-free foods, by consumption of red meat/fish/poultry/meatfree foods, by frequency, July 2010
APPENDIX – CONSUMER – ATTITUDES TOWARDS EATING MEAT VS. MEAT-FREE FOOD
Figure 39: Attitudes towards eating meat vs meat-free food, July 2010
Figure 40: Agreement with the statement “a meal doesn’t need meat/fish/poultry to be filling” and “I don’t see any need to cut back on meat/fish/poultry”, by demographics, July 2010
Figure 41: Agreement with the statement “I sometimes choose vegetable-based dishes because I feel like it” and “A meal with meat/fish/poultry is more enjoyable than without”, by demographics, July 2010
Figure 42: Agreement with the statement “A meal with meat/fish/poultry is more nutritious than without” and “I would consider vegetarian/meat-free food, if it was exciting/tasty in its own right”, by demographics, July 2010
Figure 43: Agreement with the statement “I know how to cook tasty/exciting dishes without meat/fish/poultry” and “I have never thought of buying meat-free foods or meat-substitutes”, by demographics, July 2010
Figure 44: Agreement with the statement “I have tried meat-free foods/meat substitutes but wouldn’t eat them again” and “Foods with meat/fish/poultry are better value for money than meat-free/vegetable-based ones”, by demographics, July 2010
Figure 45: Agreement with the statement “I have cut back on eating meat/fish/poultry in the last 12 months” and “I would like to cut back on meat/fish/poultry”, by demographics, July 2010
Figure 46: Attitudes towards meat-free/vegetarian food, by nets of consumption of red meat/fish/poultry/meat-free foods, by frequency, July 2010
APPENDIX - CONSUMER – ATTITUDES TOWARDS MEAT SUBSTITUTES AND VEGETARIAN FOOD
Figure 47: Attitudes towards meat substitutes and vegetarian food, July 2010
Figure 48: Agreement with the statement "I prefer cooking with vegetables to using substitutes imitating meat/chicken etc" and "I'm put off by substitutes imitating meat (eg Quorn) because they are artificial/processed",  by demographics, July 2010
Figure 49: Agreement with the statement "Vegetarian foods at the grocery stores are often bland/unexciting" and "I’m put off by the taste of substitutes imitating meat", by demographics, July 2010
Figure 50: Agreement with the statement "There aren’t enough meat-free/vegetarian options in ready meals/ready to cook meals" and "I would eat vegetarian/meat-free food products more if there was more variety“, by demographics, July 2010
Figure 51: Agreement with the statement "Prepared vegetarian/meat-free foods are often unhealthy (eg made with a lot of cheese, cream etc)" and statement "I like the texture of meat/chicken substitutes (eg chicken-style Quorn)", by demographics, July 2010
Figure 52: Agreement with the statement "I prefer products like tofu to substitutes trying to imitate meat/chicken", by demographics, July 2010
Figure 53: Attitudes to meat substitutes and vegetarian food, by consumption of red meat/fish/poultry/meat-free foods, by frequency, July 2010
APPENDIX – CONSUMER – TARGET GROUPS
Figure 54: Target groups, by demographics, July 2010
Figure 55: Statements on eating habits, by target groups, July 2010
Figure 56: Statements on cooking style, by target groups, July 2010
Figure 57: Types of vegetarian foods/meat-free foods bought, by target groups, July 2010
Figure 58: Reasons for eating vegetarian/meat-free foods, by target groups, July 2010
Figure 59: Attitudes towards eating meat vs meat-free food, by target groups, July 2010
Figure 60: Attitudes towards meat-free/vegetarian food, by target groups, July 2010