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It is Forecast That the UK Retail Food Market Will Grow Slightly Above the General Rate of Inflation Over the Next 5 Years - the Food Industry Market Review 2006

Posted on: Friday, 7 July 2006, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c39206) has announced the addition of The Food Industry Market Review 2006 to their offering.

This Market Review focuses on the five main sectors of the UK food market: meat and meat products; fish and fish products; fruit and vegetables; dairy products, eggs, oils and fats; and bread, cakes, biscuits and cereals. A sixth sector, other foods, comprises a variety of food items that are not covered elsewhere in the Review. Both fresh and processed products are included, but sugar and sweet products, alcoholic drinks, and hot and cold beverages (including fruit juices, tea and coffee) are excluded. The emphasis is on the retail market, rather than on the wholesale or catering markets.

Between 2001 and 2005, UK consumer expenditure on the food items covered by this Review increased by 11.7% at current prices, to GBP 51.55bn. Fruit and vegetables, and fish and fish products, saw the strongest growth, but all the core sectors of the market increased in value over the period. Sales of meat and meat products have recovered since 2001, as consumers have regained their confidence in a product that was beset by problems over the previous 10 years. However, the recent outbreak of avian flu (confirmed as having reached Britain in April 2006) could once more plunge the sector into crisis.

The British today are far more preoccupied with food and diet than previous generations. This development reflects the increasing affluence enjoyed by the great majority of the population. However, while the British now have a much more varied diet than earlier generations, many eat far less healthily and obesity has become a serious problem, particularly among children. The issue has received a great deal of publicity and many people are now trying to improve their diets, but demand for convenience products is also rising. Indeed, the two key trends in the food market appear to be contradictory: growing demand for healthy food is being counterbalanced by equally strong growth in sales of convenience products, such as ready meals, many of which have high levels of salt and sugar and are of doubtful nutritional value.

Manufacturers are undoubtedly seeking to exploit the public's growing interest in healthy eating. A number of firms have taken steps to highlight the `healthy' qualities of their brands, and many have reduced the sugar and salt content of their products. `Functional foods', which promise some sort of health benefit to consumers, are also flourishing in nearly every sector.

It is forecast that the UK retail food market will grow slightly above the general rate of inflation over the next 5 years, driven by spending on premium-priced goods, as consumers' trade up to products that they believe are healthier or more flavoursome or that offer greater convenience. Fierce competition between the grocery multiples will place pressure on suppliers and will almost certainly spur further consolidation in the industry.

Companies Mentioned:-

-- Allied Bakeries

-- British Bakeries Ltd

-- Fine Lady Bakeries Ltd

-- Fletchers Bakeries Ltd

-- Frank Roberts & Sons Ltd

-- Warburtons Ltd

-- Cakes and Biscuits

-- Burton's Foods Ltd

-- RHM PLC

-- Nestle UK Ltd

-- Northern Foods PLC

-- United Biscuits (UK) Ltd

-- Breakfast Cereals

-- Cereal Partners UK

-- Dailycer Ltd

-- Kellogg Company of Great Britain Ltd

-- Quaker Oats Ltd

-- Weetabix Ltd

For more information visit http://www.researchandmarkets.com/reports/c39206

Source: Business Wire

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