Canned Foods May 1997

Executive Summary

This report presents an analysis of the UK canned foods market and its associated sectors. The market can be divided into the following sectors by product type: soup, vegetables, fish, meat, pasta, cooking sauces, fruit and desserts.

Canned foods represent one of the largest grocery sectors in the UK, with retail sales amounting to £1.79bn in 1996, representing a 0.5% increase in value on 1995, and accompanied by a similar increase in volume. The main factor affecting the market for canned food in recent times is the impact on the canned meat sector by the link found between bovine spongiform encephalopathy (BSE) in cattle, and the human disease Creutzfeldt-Jakob Disease (CJD). This has distorted the market, with a decrease in sales of canned meat by 10.9% by value since 1992. Particularly hard hit has been corned beef and canned mince, down by 20% and almost 30% respectively during the review period. Sales of canned fish and vegetarian meals, meanwhile, have increased by 10% in the same period.

The overall canned foods market is still in long-term decline, as fresh and frozen products increase their share of the food market. There are still some growth sectors, these being soup, fish and pasta.

The introduction of budget (or tertiary) brands has continued to distort the market, but they are here to stay, with many large multiples now having a permanent range of budget or value products. These have caused an increase in volume sales, but little, if any, increase in value. They have tended to have the greatest effect on established own-label products.

Consumers are becoming increasingly `green', with many now recycling on a regular basis. A chance exists for manufacturers to promote to the consumer the recyclability of cans when compared to other forms of less environmentally-friendly packaging. In the same vein, manufacturers need to consider how they will cope with the recent European Union (EU) regulations, which will require them to recover 25% of their packaging waste by the year 2001.

Key Note estimates that the canned foods market will grow by between 1.3% and 2% per year, and will reach £1.93bn by the year 2001. The growth will be in specific individual sectors and will be driven by product innovation, rather than a large increase in consumer demand for existing products.

Eleventh Edition 1997
Edited by Russell Langley
ISBN 1-85765-686-5


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