FDBusiness.com

Economy Food and Drink Launches Overtake Premium For First Time in the UK

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

Economy Food and Drink Launches Overtake Premium For First Time in the UK

Economy Food and Drink Launches Overtake Premium For First Time in the UK
July 23
11:32 2013

With the economic climate remaining uncertain and British consumers continuing to be cautious in their spending, economy lines and products featuring value-related claims have never been in greater demand. Indeed, highlighting just how important economy products have become in the nation’s shopping basket, new research from Mintel reveals that the number of economy food and drink products launched in the UK has outstripped the number of premium launches for the first time in 2012.

Today, new product launches featuring economy claims accounted for 9% of total new food and drink launches in 2012 in the UK, compared to 7% of launches featuring premium claims. In contrast, back in 2008, premium accounted for 9% of total food and drink launches compared to 2% for economy.

This surge in economy lines makes the UK the leading country in terms of food and drink new product launches with economy claims globally, accounting for 21% of global food and drink economy introductions in 2012. What is more, in 2012 the UK even exceeded the US, which accounted for 20% of global economy launches in 2012. Looking at other markets worldwide, Japan ranked third with a 15% share of global economy NPD activity, followed by France, Australia, Spain and Italy(4% respectively).

David Jago, director of Innovation and Insight at Mintel, says: “The UK economy has struggled to see market recovery and consumer disposable income has remained under pressure. This has given buoyancy to the trend for food and drink brands and grocers to push their value credentials to the foreground. Investment in NPD across economy lines has reflected this, increasing steadily since 2010, outstripping the number of new product launches featuring premium claims. Much of the activity in the economy segment in 2012 was fuelled by UK supermarkets improving their value-for-money ranges in response to consumer challenges dictated by the ongoing economic turmoil.”

He continues: “The largest share of products with economy claims is driven primarily by significant private label investment in essential economy product ranges. Meanwhile, branded manufacturers in the US and Europe have used bulk value positioning, increasing pack sizes to deliver lower average pricing per unit or pound, but higher overall package costs. However, this value pack strategy ignores some basic economics of poorer consumers, suggesting that alternative strategies may be successful.  As budgets grow ever tighter, consumers are recalibrating their lifestyles and making new product choices, but they carry their middle and upper-class tastes and experiences with them. Economy product innovation, packaging and marketing needs to remain mindful that downsliding consumers don’t want to be made to feel poorer.” 

Indeed, economic challenges are continuing to reshape consumer lifestyles and expectations within and outside the UK. And it seems bargain hunting has become ingrained amongst Britain’s savvy shoppers, with more than seven in ten (72%) consumers saying they like the ‘thrill’ of getting a bargain. The figure peaks among women (77%) female consumers vs 66% men) and it is also strong amongst the highest earners (75%) of those earning £50,000 or over, vs 70% of those under £9,500 and 78% £9,500-15,499). Today, promotional activity has become essential to more than half (55%) of British consumers, who only buy certain products or brands when on promotion. And some four in ten (39%) say that promotions allow them to buy foods that they would not be able to afford otherwise.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements