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The UK Market for Canned Foods Will Enjoy Relatively Fast Growth Over the Next 5 Years

Posted on: Thursday, 3 May 2007, 09:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c55810) has announced the addition of "Canned Foods 2006" to their offering.

In 2005, the UK market for canned foods was worth an estimated £1.91bn, or approximately 3.3% of total household expenditure on food. The market's growth rate has consistently outpaced inflation since 2001 as suppliers have successfully repositioned their products to exploit growing consumer interest in health and convenience. Eight main sectors are examined in this report: vegetables, fish, soup, meat, fruit, pasta, desserts and cooking sauces.

The industry is hammering home the message that canned produce is just as healthy as fresh produce, and many canned vegetables and fruits now carry the `Five-a-Day' logo. The canned-fish sector has benefited from widespread reports about the health advantages of eating fish. Canned soup has also benefited, owing to its versatility as a snack or a convenient base for a meal. However, some sectors are in decline. Consumers now prefer to buy cooking sauces in formats that allow them to see what they are buying (i.e. jars) and sales of canned desserts are declining in real terms because of the unhealthy image of products such as sponge pudding. Consumers have also switched to more convenient, microwaveable options.

Many of the major companies in the UK canned-food sector are subsidiaries of overseas giants such as Heinz, Del Monte and Princes (which is owned by Mitsubishi Corporation of Japan). Consolidation in the industry is continuing. In August 2005, for example, Heinz acquired HP Foods (which has a variety of food interests in the UK, including canned pasta) from Groupe Danone. In July 2006, Premier Foods bought the UK and Irish businesses of Campbell Soup Company of the US for £450m. The deal included a 2-year licence to manufacture and market Campbell's condensed soup in the UK.

Key Note expects the UK market for canned foods to enjoy relatively fast growth over the next 5 years, outpacing both inflation and growth in the food market as a whole. Continuing demand for convenient and healthy products will help to drive sales. Key Note forecasts that sectors such as soup, fish, vegetables and fruit will perform particularly well, owing to their perceived health benefits. However, sales of canned cooking sauces and canned desserts will continue to decline, largely because a growing number of consumers are opting for products in alternative forms of packaging.

Areas covered:

- 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 - Consumer Confidence

For more information visit http://www.researchandmarkets.com/reports/c55810

Source: Business Wire

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