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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