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Comprehensive Report on Canned Foods Market Out Now

Posted on: Thursday, 26 June 2008, 06:02 CDT

Research and Markets (http://www.researchandmarkets.com/research/2fcec6/canned_foods_marke) has announced the addition of the "Canned Foods Market Report Plus 2008" report to their offering.

Sales growth in the canned foods market slowed significantly between 2006 and 2007, as the wave of innovation and new product development (NPD) that boosted the market in the preceding years came to an end. Indeed, but for an unprecedented period of food inflation in 2007, sales would have fallen in value terms. The market for canned foods in the UK amounted to nearly GBP 1.99bn in 2007, up by 1.8% from the GBP 1.96bn recorded in 2006. The eight sectors of the canned foods market, as analysed in this Market Report Plus, are: vegetables; fish; soup; meat; fruit; pasta; desserts; and cooking sauces.

The canned foods market, which has been active in the UK grocery sector for around a century, has shown continuous growth, despite mounting competition from the popular chilled foods sector over the past 2 decades, in particular. Since 2003, the trend towards packaging food products in cartons, jars and pouches rather than cans has gathered pace and, in some sectors such as cooking sauces, canned products are becoming increasingly rare. We believe that this trend will continue and strengthen over the next 5 years (2008 to 2012), especially as the cost of steel rises. Sainsbury's has already chosen to phase out canned own-brand goods, and we anticipate that other retailers and suppliers will also opt to do this.

Canned vegetables represent the largest sector of the UK canned foods market, with retail sales of GBP 528m equating to a 26.5% share of the market in 2007. The canned vegetables sector is one of the few to have shown strong growth over the past 2 years, largely attributable to the buoyancy of two products: baked beans and tinned tomatoes. Branston's arrival in the baked beans sector in November 2005 had a significant impact and spurred activity from Heinz, which traditionally dominates the sector. Premier Foods launched Branston baked beans claiming that, in comparison with Heinz, they contain 20% more tomatoes and were rated more highly in blind taste tests.

Large and well-known international companies govern the UK canned foods market, and most have diverse business interests around the world. Indeed, most of the major companies in the UK are subsidiaries of overseas giants such as Heinz, Campbell's and Princes, which is owned by Mitsubishi. Many of the companies are venturing into using other forms of packaging and, in general, canned foods account for a relatively small proportion of their turnover. There has been some consolidation activity since 2003; for example, Premier Foods acquired the Campbell's Soup brand.

We believe that the market for canned foods will show low growth in nominal terms and a considerable fall in real terms over the next 5 years, as suppliers switch to cartons, pouches and jars. A number of factors will drive this trend, but cost is likely to be the main determinant. Steel prices are expected to continue to soar, given apparently insatiable demand from rapidly growing emerging economies such as the People's Republic of China (PRC). The option of packaging food products in cartons is predicted to pose the most significant threat to the market, as they are much cheaper to produce, take up less shelf space, have environmental advantages and, as they are lighter and easier to carry, are more convenient for the consumer.

Key Topics Covered: Executive Summary -Market Definition -Market Size -Industry Background -Competitor Analysis -Brand Strategy -Strengths, Weaknesses, Opportunities and Threats -Buying Behaviour -Current Issues -The Global Market -Forecasts -Company Profiles -Company Financials -Further Sources Companies Mentioned: -Baxters Food Group Ltd -Del Monte Europe Ltd -Glenryck Foods Ltd -Hj heinz Company Ltd -John West Foods Ltd -Petty, Wood & Co Ltd -Premier Foods Plc -Princes Ltd -Tulip Ltd

For more information visit http://www.researchandmarkets.com/research/2fcec6/canned_foods_marke

Source: Business Wire

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