Processed Poultry and Red Meat Main Meal Components - UK - November 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Processed meat weathering negative publicity
Flat sales forecast for next five years
Figure 1: UK retail value sales of bacon, sausages, burgers and coated poultry, 2014-24
Mixed fortunes for bacon, sausages and burgers
Meat reduction trend poses a challenge for the market
Strong demand for convenience and world cuisines
Breakfast habits changing
Companies and brands
Own-label dominates in frozen main meal components
Figure 2: Leading brands’ sales and shares in the UK frozen meat/poultry/meat-free meal components market, 2018/19*
L/N/R fat claims rare but an opportunity given fat concerns
Meatballs get the meat and veg treatment
Premium own-label launches raise the bar in burgers
Tapping popularity of fried chicken takeaways
The consumer
Eight in 10 people eat processed meat cooked from raw
Figure 3: Types of processed meat products eaten in the last three months, cooked from raw, August 2019
Figure 4: Types of cooked/ready-to-eat processed meat products used in the last three months, August 2019
Meat content, fat content and ingredients each checked by a third
Meat origins also need communicating on front of pack
Figure 5: What people check when buying processed meat products, August 2019
Number of factors hold back volume sales
Figure 6: Behaviours relating to the eating and buying of processed meat products, August 2019
Emphasis on naturalness will appeal
Added vegetables can combat health concerns and meat reduction
World cuisine flavours interest a quarter of buyers
Figure 7: Interest in buying different processed meat products with different features, August 2019
Six in 10 buyers struggle to judge the quality of processed meat
Positive sentiment towards cooked/cured meats as ingredients for meals
Figure 8: Attitudes towards processed meat products, August 2019
What we think
ISSUES AND INSIGHTS
Focus on ingredients will help to keep processed meats on the menu
The facts
The implications
Talking about provenance offers a way of adding value in processed meats
The facts
The implications
More flavours and recipe suggestions will help to boost the appeal of processed meats
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Processed meat weathering negative publicity
Mixed fortunes for bacon, sausages and burgers
Sausages slip back from 2018 increase
No barbecue-friendly heatwave for burgers in 2019
Coated poultry sales growing
Meat reduction trend poses a challenge for the market
Strong demand for convenience and world cuisines
Breakfast habits changing
Growing population will benefit market
MARKET SIZE AND FORECAST
Processed meat weathering negative publicity
2018 heatwave a boost to market
Coated poultry benefits from popularity in foodservice
Flat sales forecast for next five years
Figure 9: UK retail value sales of bacon, sausages, burgers and coated poultry, 2014-24
Figure 10: UK retail value sales of bacon, sausages, burgers and coated poultry, 2014-24
Forecast methodology
MARKET SEGMENTATION
Mixed fortunes for bacon, sausages and burgers
Bacon sales on a downward path
Sausages slip back from 2018 increase
No barbecue-friendly heatwave for burgers in 2019
Figure 11: Value sales of red meat meal components, by segment, 2014-19
Coated poultry sales growing
Figure 12: UK retail value sales of frozen and chilled coated poultry, 2014-19
MARKET DRIVERS
Rising costs of production look set to push retail prices of processed meat up
Meat reduction trend poses a challenge for the market
Many people limit meat consumption for health and environmental reasons
Growing availability of meat-free foods contributes to meat reduction trend
Conflicting health studies on red meat’s links to cancer
Changing in-home meal choices
Strong demand for speed/convenience
World cuisines gain ground on the menu
Breakfast habits changing
Growing population will benefit market
Figure 13: Trends in the age structure of the UK population, 2014-24
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Own-label dominates in frozen main meal components
L/N/R fat claims rare but an opportunity given fat concerns
Meatballs get the meat and veg treatment
Launches tap interest in animal welfare
World cuisine flavours add differentiation
Premium own-label launches raise the bar in burgers
Tapping popularity of fried chicken takeaways
Hot summer of 2018 contributes to increase in advertising
MARKET SHARE
Own-label dominates in frozen main meal components
Figure 14: Leading brands’ sales and shares in the UK frozen meat/poultry/meat-free meal components market, 2016/17-2018/19
Growth for Mattessons and Morliny in cooked sausages
Figure 15: Leading brands’ sales and shares in the UK retail chilled cooked sausages market*, 2016/17-2018/19
LAUNCH ACTIVITY AND INNOVATION
L/N/R fat claims rare but an opportunity given fat concerns
Figure 16: Examples of new launches of processed meat products making L/N/R fat claims, 2019
Meatballs get the meat and veg treatment
Tesco aims to offer one of five-a-day
Ella’s Kitchen targets family market with chicken nuggets with veggies
Figure 17: Examples of new launches of meatballs with a high added vegetable content, 2019
Products tap interest in provenance and animal welfare
The Jolly Hog puts the provenance story in focus
Figure 18: Examples of new launches in processed meat products referencing provenance and animal welfare, 2019
Emphasis on naturalness includes low/no nitrite claims
Figure 19: Examples of new launches in processed meats making low/no nitrite claims, 2019
World cuisine flavours add differentiation
Nachos and piri piri flavours in chicken
Frankfurters look to jalapeño and Gouda
Figure 20: Examples of influence of world cuisines in new launches in processed meat products, 2019
Different shapes also add more variety
Figure 21: Examples of different shapes in processed meat products, 2019
Premium own-label launches raise the bar in burgers
Figure 22: Examples of new launches with a premium positioning in processed meat products, 2019
Tapping popularity of fried chicken takeaways
Figure 23: Examples of new launches of takeaway-style products in processed poultry products, 2019
ADVERTISING AND MARKETING ACTIVITY
Hot summer of 2018 contributes to increase in advertising
Figure 24: Total above-the-line, online display and direct mail advertising expenditure on processed poultry and red meat products*, 2015-19
Birds Eye remains the biggest advertiser
Figure 25: Total above-the-line, online display and direct mail advertising expenditure on processed poultry and red meat products*, by advertiser, 2015-19
Birds Eye supports new takeaway-style Chicken Shop range
Richmond Sausages celebrates most dedicated football fans
M&S and Iceland push premium own-label burgers
Finnebrogue launches £1 million nitrite-free campaign
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Eight in 10 people eat processed meat cooked from raw
Vast majority of people eat cooked/ready-to-eat processed meats
Meat content, fat content and ingredients each checked by a third
Meat origins also need communicating on front of pack
Number of factors hold back volume sales
Emphasis on naturalness will appeal
Added vegetables can combat health concerns and meat reduction
World cuisine flavours interest a quarter of buyers
Six in 10 buyers struggle to judge the quality of processed meat
Positive sentiment towards cooked/cured meats as ingredients for meals
USAGE OF PROCESSED MEAT AND POULTRY PRODUCTS
Eight in 10 people eat processed meat cooked from raw
Figure 26: Types of processed meat products eaten in the last three months, cooked from raw, August 2019
Sausages and bacon need to stay on younger people’s menus
Vast majority of people eat cooked/ready-to-eat processed meats
Figure 27: Types of cooked/ready-to-eat processed meat products used in the last three months, August 2019
Some products suffer from an old-fashioned image
WHAT PEOPLE CHECK WHEN BUYING PROCESSED MEAT PRODUCTS
Meat content, fat content and ingredients each checked by a third
Figure 28: What people check when buying processed meat products, August 2019
Meat origins also need communicating on front of pack
Animal welfare standards matter to a large minority
Ethical claims need tangibility
BEHAVIOURS RELATING TO THE EATING AND BUYING OF PROCESSED MEAT PRODUCTS
Strong demand for recyclable packaging
Figure 29: Behaviours relating to the eating and buying of processed meat products, August 2019
Number of factors hold back volume sales
Health concerns pose a threat to consumption
Environmental concerns also impacting on processed meat
Meat reduction trend leads to more choice in meat substitutes
INTEREST IN BUYING DIFFERENT PROCESSED MEAT PRODUCTS
Emphasis on naturalness will appeal
Figure 30: Interest in buying different processed meat products with different features, August 2019
Added vegetables can combat health concerns and meat reduction
…with scope to appeal to parents
World cuisine flavours interest a quarter of buyers
ATTITUDES TOWARDS PROCESSED MEAT PRODUCTS
Six in 10 buyers struggle to judge the quality of processed meat
Figure 31: Attitudes towards processed meat products, August 2019
Focusing on provenance offers a way of adding value for large minority
Traditional origin chimes for cured hams/sausages
Positive sentiment towards cooked/cured meats as ingredients for meals
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 32: Best- and worst-case forecast of total UK retail value sales of bacon, sausages, burgers and coated poultry, 2019-24
APPENDIX – MARKET SHARE
Figure 33: Leading manufacturers’ sales and shares in the UK frozen meat/poultry/meat-free meal components market, 2016/17-2018/19
Figure 34: Leading manufacturers’ sales and shares in the UK retail chilled cooked sausages market*, 2016/17-2018/19
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 35: New product launches in the UK unprocessed/processed meat and poultry market, by claim (sorted by 2018), 2015-19