Food and drink

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Food &Drink 2015 Market trends & insights

The essential guide to consumer, retail and food service insight in food and drink.


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Welcome to Food & Drink Trends & Insights 2015 Welcome to the first edition of Food & Drink Trends and Insights bought to you by Scottish Enterprise. British supermarket shelves say it all. With

consumer insight, superior marketing and

an estimated nine out of ten Easter eggs sold

alternative distribution channels (only 40%

on special offer it looks like food producers

of the market is through supermarkets) has

are in for another challenging year. The

generated a sales surge of 13% in 2011

European food and drink sector, renowned

(source; New Nutrition Business). In a world

for its defensive qualities, outperformed the

in which retailers are determined to increase

market during the economic and financial

the percentage of their sales that is private

turmoil of last year. But that trend is now

label it’s a rare category indeed that holds

reversing as clouds gather over the outlook

the retail brands at bay whilst continuing to

for the industry with relentless pressure on

trade at a premium.

The number of consumers eating out in the UK has fallen by almost 1%

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Food sales rose by 4.9%, compared to sales of two years ago

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Consumer trends Patterns of consumption 2014-2015 Research by Kellogg’s predicts that in the

predicted to come from Poland,

next two decades Brits will have ditched

China, Scandinavia and the Middle East.

today’s breakfast classics and be sitting

The greatest change will be a move toward

down to dishes such as savoury crab

hot, spicy and savoury breakfast products.

porridge, seaweed flakes, and a distinctly

It’s predicted that winter mornings will see

fishier cooked breakfast including

consumers fuelling themselves with the

sardines,fish fingers and potted herring.

likes of warm crab porridge and seaweed.

It predicts that within 10-15 years, many

Middle Eastern spices such as hot chillies

consumers will view breakfast as the main

and the brightly coloured sumac will be

meal of the day with changing tastes

used to add flavour to foods, with fiery

drawn from returning long haul

breakfast cereal products appearing on

holidaymakers seeking to introduce their

shelves. An increasing focus on health

favourites into their home. Emigration

could also drive new superfood flavours

will also have a significant impact on the

with seaweed breakfast flakes predicted to

British palate with the main influences

be a big thing.

Within 10-15 years....

95%

of consumers will view breakfast as the main meal of the day.

2014 saw a significant reductions in classic British breakfast cereals in 2014

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Exports & Imports Cheese to France. Fish to Japan. Meat to Germany. Even tea to China. And that’s before we even mention whisky...

Aiming high If Scottish produce had a passport, it would

Existing food and drink exports are up from

When it comes to markets to target, it’s all

For businesses involved with food and

have some exotic stamps: from Beijing to

£3.7 billion in 2007 to £5.4 billion in 2012,

about focus.

drink, large or small, the message is clear.

Brussels, Delhi to Detroit.

and we’re aiming for £7.1 billion by 2017, There will be 15 primary target markets.

If you want to find out which global markets

The markets with the greatest opportunities

suit your business best, and how that

include:

market operates then get connected to the

it’s an ambitious goal. Since 2007, when we first began to bring together everyone concerned with food

But how do you follow whisky’s stellar

and drink in Scotland, we’ve created a

performance and generate a further £2

world-leading support network for our

billion in exports by 2017?

North America (USA & Canada)

of them - help is most definitely at hand.

businesses.

Well, it’s all about putting feet on the

France

And the business prospects are pretty

ground: we’re building a global team of

Germany

mouth-watering.

The Scotland Food and Drink partnership

food and drink experts who will operate in

Middle East (UAE, Saudi Arabia & Bahrain)

- which brings together government, our

our priority export markets.

Mainland China and Hong Kong

networks that will help you make the most

Japan

international arm Scottish Development International, and industry partners - have

These experts will be knocking on doors,

SE Asia (Singapore, Thailand)

come together to create an exciting new

building contacts with importers and

The ambitious export plans kick off in April

export plan for Scotland’s food and drink

buyers such as hotels, restaurants and

2014, with newly-recruited specialists in

industry. The idea is to turn the focus

supermarkets. They’ll support the existing

overseas markets over the summer.

beyond the 85% of sales that currently

market knowledge and contacts available

There will be workshops to share the plan

go to customers in the rest of the UK, and

through the trade associations.

in more detail as it’s rolled out.

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Existing food and drink exports are up from £3.7 billion in 2007 to £5.4 billion in 2014.

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The Big Night In The chilled ready meals sector is now worth

ÂŁ1.2 billion


Scotch Whisky exports decline in first half of 2014 Long term outlook positive but government support is needed... While Scotch Whisky exports to some key

There is still increasing demand for Scotch

markets, such as France and Taiwan,

in many markets. Exports to France grew

increased in the first six months of 2014, the

by 3% to 86 million bottles, making it the

overall trend was downwards with economic

biggest market by volume, and by 6% to

headwinds and uncertainty having an

£211m to put it in second place, behind the

impact.

USA, in terms of value. Exports to the United Arab Emirates (UAE) were up 26% to £54m,

Figures published today (22 September)

with that area acting as a distribution hub

by the Scotch Whisky Association (SWA)

for parts of Africa, Asia and India. Australia

show that exports of Scotch in the first half

was up 4% to £37m. Growth of 31% in the

of the year were £1.77 billion, down 11%

difficult Indian market is particularly welcome

from £1.99bn in the same period of 2013.

and shows the potential opportunities there.

Following a decade of fast growth, the

There was growth in several other top 20

demand for Scotch is levelling off in some

markets, notably Taiwan, Canada and Japan.

markets. However, there is confidence in the long-term future of Scotch, with many projects for new distilleries under way.

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UK Vs Global Sales Rising sales of FMCG in first quarter 2015

2.3% The National Institute of Economic and Social Research predicts that the UK economy will grow by just 0.1% in 2014, but a stronger 2.3% in 2015, although the latter will be dependent on the eurozone debt crisis.

The olive oil industry is reportedly “on its knees” with prices crashing to a ten year low. Prices have fallen due to two years of over production swelling supplies, particularly in Spain.

3.3% The IMF has downgraded its 2015 economic growth forecast for most of the world’s largest economies. It now predicts global growth of 3.3% in 2012, down from earlier The U.S. Agriculture Financing specialist, Rabobank, is forecasting wheat prices to fall by up to 15% in the

estimates of 4%.

coming year with agricultural oil costs tipped to stay strong due to their use in bio-fuels.

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