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Mintel - Yellow Fats and Edible Oils - UK - September 2017
Mintel - Yellow Fats and Edible Oils - UK - September 2017
Mintel - Yellow Fats and Edible Oils - UK - September 2017
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 3
Contents
OVERVIEW............................................................................................................................................................................................ 8
EXECUTIVE SUMMARY..................................................................................................................................................................10
The market...................................................................................................................................................................11
Figure 1: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2012-22........................................................ 11
Companies and brands............................................................................................................................................... 12
Figure 2: Leading brands’ shares in the UK retail yellow fats market, by value, 2016/17*............................................................................... 12
The consumer ............................................................................................................................................................ 12
Figure 3: Factors influencing choice of butter/spread for spreading, July 2017............................................................................................... 13
Figure 4: Product attributes worth paying more for, July 2017......................................................................................................................... 13
Figure 5: Correspondence analysis: perceptions of different types of edible oils, July 2017............................................................................ 14
What we think.............................................................................................................................................................. 14
Range of health angles for brands to tap into in yellow fats and oils.......................................................................... 16
Scope for tackling declining usage with new promotions ........................................................................................... 17
Opportunities for adding consumer value in butter, spreads and oils.......................................................................... 17
THE MARKET......................................................................................................................................................................................19
What You Need to Know.............................................................................................................................. 20
Slowdown in downward trend in sales ....................................................................................................................... 20
2017 butter sales getting boost from higher prices .................................................................................................... 20
Sales of spreads continue to decline .......................................................................................................................... 20
Edible oils see a return to growth ............................................................................................................................... 20
Declining bread sales affecting butter and spreads ................................................................................................... 20
Rise in commodity prices for olive oil ......................................................................................................................... 20
Wholesale butter prices have also been increasing ................................................................................................... 21
Interest in cooking and baking important to market .................................................................................................... 21
Ageing population more worried about saturated fat................................................................................................... 21
Market Size and Forecast............................................................................................................................ 22
Slowdown in downward trend in sales........................................................................................................................ 22
Figure 6: UK retail value sales of yellow fats and edible oils, 2012-22*........................................................................................................... 22
Figure 7: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2012-22*....................................................... 22
Butter value sales getting boost from higher prices, but volumes hit.......................................................................... 23
Figure 8: UK retail value and volume sales of butter, 2012-22 ........................................................................................................................ 23
Figure 9: Best- and worst-case forecast of UK retail value sales of butter, 2012-22........................................................................................ 23
Sales of spreads continue to decline........................................................................................................................... 24
Figure 10: UK retail value and volume sales of spreads, 2012-22................................................................................................................... 24
Figure 11: Best- and worst-case forecast of UK retail value sales of spreads, 2012-22................................................................................... 24
Edible oils see a return to growth................................................................................................................................ 25
Figure 12: UK retail value and volume sales of edible oils, 2012-22................................................................................................................ 25
Figure 13: Best- and worst-case forecast of UK retail value sales of edible oils, 2012-22............................................................................... 25
Forecast methodology................................................................................................................................................. 25
Market Segmentation................................................................................................................................... 26
Butter sales boosted in 2017 by higher prices............................................................................................................ 26
Figure 14: UK retail value and volume sales of yellow fats, by segment, 2015-17........................................................................................... 26
Speciality oils taking a larger share of sales............................................................................................................... 27
Figure 15: UK retail value and volume sales of edible oils, by type, 2015-17.................................................................................................. 27
Market Drivers............................................................................................................................................... 28
Declining bread sales are affecting butter and spreads ............................................................................................. 28
Rise in commodity prices for olive oil.......................................................................................................................... 28
Wholesale butter prices have also been increasing.................................................................................................... 28
Interest in cooking and baking important to market..................................................................................................... 28
Ageing population more worried about saturated fat................................................................................................... 28
Figure 16: Trends in age structure of the UK population, 2012-22................................................................................................................... 29
THE CONSUMER...............................................................................................................................................................................55
What You Need to Know.............................................................................................................................. 56
More than nine in 10 buy butter and spreads.............................................................................................................. 56
Nearly eight in 10 buy edible oils................................................................................................................................. 56
Being spreadable and favourite taste most important................................................................................................. 56
Less frying and buying of bread hitting sales.............................................................................................................. 56
Meeting demand for versatility in edible oils................................................................................................................ 56
Three in 10 would pay more to support British farmers............................................................................................... 56
Details of regional origin can increase appeal............................................................................................................. 56
Being seen as healthy and pure the key strengths for olive oil................................................................................... 57
Lack of awareness of attributes of rapeseed and avocado oils................................................................................... 57
Buying of Yellow Fats................................................................................................................................... 58
More than nine in 10 buy butter or spreads................................................................................................................. 58
Figure 42: Types of butter and spreads bought in the last 3 months, July 2017............................................................................................... 58
A quarter have bought at least three types of spreads in the last three months......................................................... 58
Figure 43: Number of different types of butter and spreads bought in last 3 months, July 2017...................................................................... 59
Younger appeal of spreadable butter ......................................................................................................................... 59
“Buttery taste” an important purchase driver .............................................................................................................. 59
Buying of Edible Oils................................................................................................................................... 60
Nearly eight in 10 buy edible oils................................................................................................................................. 60
Figure 44: Types of edible liquid oils and solid oils/fats bought in the last 3 months, July 2017....................................................................... 60
Nearly half of people buy more than one type............................................................................................................. 60
Figure 45: Number of different types of edible oils bought in last 3 months, July 2017.................................................................................... 60
Vegetable, olive and sunflower oils dominate............................................................................................................. 61
APPENDIX...........................................................................................................................................................................................70
Data Sources, Abbreviations and Supporting Information...................................................................... 71
Abbreviations............................................................................................................................................................... 71
Consumer research methodology............................................................................................................................... 71
Market Size and Forecast............................................................................................................................ 72
Forecast methodology................................................................................................................................................. 72
Figure 52: Best- and worst-case forecast of total UK retail value sales of yellow fats and edible oils, 2012-22.............................................. 72
Figure 53: Best- and worst-case forecast of UK retail volume sales of butter, 2012-22................................................................................... 73
Figure 54: Best- and worst-case forecast of total UK retail value sales of butter, 2012-22.............................................................................. 73
Figure 55: Best- and worst-case forecast of total UK retail volume sales of butter, 2012-22........................................................................... 73
Figure 56: Best- and worst-case forecast of UK retail volume sales of spreads, 2012-22............................................................................... 74
Figure 57: Best- and worst-case forecast of total UK retail value sales of spreads, 2012-22.......................................................................... 74
Figure 58: Best- and worst-case forecast of total UK retail volume sales of spreads, 2012-22....................................................................... 74
Figure 59: Best- and worst-case forecast of UK retail volume sales of edible oils, 2012-22............................................................................ 75
Figure 60: Best- and worst-case forecast of total UK retail value sales of edible oils, 2012-22....................................................................... 75
Figure 61: Best- and worst-case forecast of total UK retail volume sales of edible oils, 2012-22.................................................................... 75
Market Share................................................................................................................................................. 76
Figure 62: Leading brands’ sales and shares in the UK retail butter market, by value and volume, 2015/16-2016/17.................................... 76
Figure 63: Leading manufacturers’ sales and shares in the UK retail butter market, by value and volume, 2015/16-2016/17........................ 77
Figure 64: Leading brands’ sales and shares in the UK retail margarine and spreads market, by value and
volume, 2015/16-2016/17................................................................................................................................................................................. 78
Figure 65: Leading manufacturers’ sales and shares in the UK retail margarine and spreads market, by value and
volume, 2015/16-2016/17................................................................................................................................................................................. 79
Figure 66: Leading brands’ sales and shares in the UK retail cooking fats market, by value and volume, 2015/16-2016/17.......................... 80
Figure 67: Leading manufacturers’ sales and shares in the UK retail cooking fats market, by value and volume, 2015/16-2016/17.............. 80
RESEARCH METHODOLOGY.......................................................................................................................................................81
UK Research Methodology.......................................................................................................................... 82
Sampling and weighting.............................................................................................................................................. 82
Face to Face Surveys ................................................................................................................................................ 82
Brand & Social Media Research................................................................................................................................. 84
Trade research............................................................................................................................................................ 84
Desk research............................................................................................................................................................. 84
Statistical Forecasting................................................................................................................................................. 84
The Mintel fan chart..................................................................................................................................................... 85
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 9
The market for yellow fats and edible oils is estimated to be worth This Report covers the UK retail market for yellow fats and edible
just over £1.53 billion in 2017, down 10% on its value back in oils.
2012. Falling sales of spreads is the main reason for the decline
in total sales. While increases in the price of butter and olive oil Yellow fats include butter, margarine and spreads, including
have provided a recent boost to the market value, driving new cooking fats intended for cooking or baking.
uses for products will be important for future growth.
For the purposes of this Report, spreadable butter (including
Sales of butter and spreads have suffered from a decline in the variants with vegetable oil) and ‘light’ butter are included as butter
eating of host foods, particularly bread that is being eaten on in the market segmentation.
fewer occasions. Butter though has benefitted from a desire for
more natural and less processed products. This has led brands in Edible oils include vegetable oil (which is usually rapeseed)
spreads to promote benefits such as being dairy-free, free from and single-seed oils such as sunflower and corn, plus olive
artificial ingredients and having added vitamins in order to try and oil (including extra virgin), along with cold-pressed rapeseed,
fight back. coconut, groundnut, walnut, sesame and other varieties of
speciality oil, for use in domestic food preparation. Spray oils are
In edible oils, speciality oils have been seeing an increase in also included.
sales, including coconut and cold-pressed rapeseed oils, while
avocado oil is also being seen in more oils and spreads. Cooking
oil sprays are tapping into health and convenience trends, but can
also be more cost effective in cooking. Such formats, as well as
more premium and infused oils, offer scope for increasing sales.
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 11
CHANGING EATING HABITS, PARTICULARLY BREAD BEING EATEN ON FEWER OCCASIONS, HAS HAD AN IMPACT ON
SALES OF BUTTER AND SPREADS. BUTTER HAS BENEFITTED FROM INTEREST IN NATURAL AND LESS PROCESSED
PRODUCTS AND RECEIVED A RECENT BOOST FROM HIGHER RETAIL PRICES, BUT ENCOURAGING NEW USES WILL
BE IMPORTANT IN DRIVING FUTURE GROWTH.
The market FIGURE 1: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
OF YELLOW FATS AND EDIBLE OILS, 2012-22
Return to value sales growth in
2017
Companies and brands FIGURE 2: LEADING BRANDS’ SHARES IN THE UK RETAIL YELLOW FATS
MARKET, BY VALUE, 2016/17*
Own-label makes gains in yellow
fats
around four in 10 people, while a third of FIGURE 3: FACTORS INFLUENCING CHOICE OF BUTTER/SPREAD FOR
people buy sunflower oil. These products SPREADING, JULY 2017
clearly dominate the edible oils market.
“Which factors are most important in influencing what butter/spread you buy for
Being spreadable and favourite spreading on toast, sandwiches etc? Please select up to 5.”
taste most important factors
Provenance in terms of coming from a “Which of the following do you associate with each type of oil?”
particular region increases a product’s
appeal for 44% of people and offers
scope for adding a point of differentiation
that goes beyond just promoting butter
as British that is more common. As with
British ingredients and support for British
farmers, this has the most appeal to over-
65s who are increasing in numbers.
Being light, imparting no flavour and ongoing need to build links with usage promoting product benefits that most add
having a high smoke point are key occasions not reliant on this carrier. value for consumers is important. Butter
strengths of sunflower oil and this helps Looking to a wider range of uses will also is currently benefitting from interest in
to drive consumer perceptions that it is a be important in edible oils in response to natural and less processed products,
versatile oil for cooking. the long-term trend away from frying food. but the big increase in butter prices in
2017 could signal an opportunity for
What stands out about rapeseed oil New product development in yellow fats spreads to fight back given the squeeze
and avocado oil is a lack of awareness. and oils will be important in encouraging a on incomes.
Recently more cold-pressed rapeseed oils wider range of uses, such as offering more
have become available that should help specialist butter or oils. Smaller packs or In edible oils, the increase in the retail
build awareness, but there is clearly scope bottles can help reduce the barrier to trial price of olive oil driven by supply
for retailers to shout about the credentials here. For the core products, marketing shortages could potentially encourage
of rapeseed oil more strongly to support should look to emphasise versatility. In some switching to other oils, although
this increased presence. both cases, featuring recipe or meal ideas extra virgin olive oil’s flavour profile
looks to be needed to continue building a makes it not easy to substitute for salad
What we think wider range of associations. dressings. More information about the
benefits of less long-established oils
Given the decline in the eating of bread Within both butter and spreads and could help to increase their uptake, while
over the last three years, brands and edible oils a number of different products sprays could benefit from a focus on cost
retailers in butter and spreads face an are competing against one another, so effectiveness.
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 16
• More than a fifth of buyers (22%) attach a high importance to butter or spreads
not containing artificial ingredients, while the same proportion would pay more for
products making health claims.
• Olive oil is perceived as the most ‘healthy’ and ‘pure’ oil, but only 19% of people
currently associate it with being low in saturated fat. Rapeseed oil and avocado oil
are both suffering from a lack of awareness in terms of people associating them with
particular attributes.
The implications
Lower fat content is clearly a major selling point over butter for various spreads on the
market and has been for a long time, but has not been enough for spreads to halt a long-
term decline in sales and a shift towards butter. This is clearly because other factors such
as taste and perceived naturalness are important in influencing choice and because in
butter more ‘lighter’ and spreadable products are now available with reduced fat blends.
The importance attached to products not containing artificial ingredients also shows how
promoting this attribute on packaging and in marketing can appeal to those looking for
more natural and less processed products. Apart from its buttery taste, part of the appeal
of butter is that it is a natural product with very few ingredients. Brands in spreads such
as Flora and Clover are now putting a bigger emphasise on naturalness and this will be
an important element in reviving sales of spreads.
A large proportion of consumers are clearly concerned about what ingredients are
contained in spreads and whether they are healthy. Emphasising products having no
artificial ingredients links to the Mintel Trend, Bannedwagon, that discusses how people
are focusing on labels, ingredients and production methods. Interest in natural and less
processed foods has benefitted sales of butter, so brands in spreads need to strongly
communicate ‘naturalness’ to entice consumers away from butter.
Health claims include products promoting the lowering of cholesterol in diets and the
inclusion of particular vitamins or omega oils to benefit health. This links to Mintel Trend,
Help Me Help Myself, which talks about how consumers are learning new ways to nudge
themselves towards better habits. Specific health claims in spreads are being seen with
Flora ProActiv Expert (eg vitamin B1 to help heart functions), which gives the brand
another angle for reversing declining sales.
Further scope exists for promoting the benefits of olive oil and olive spreads to diet,
especially given that only a fifth of people currently associate it with being low in
saturated fat. There is clearly scope for retailers to shout about the health credentials
of cold-pressed rapeseed oil and avocado oil more strongly to support their increased
presence on supermarket shelves, and their inclusion in spreads.
• Compared to a few years ago, 42% of buyers are baking less at home, which is
also reflected in declining sales of baking ingredients such as cake coverings and
decorating products, dried fruits, sugar and flour.
• 46% of buyers of edible oils look for versatility when buying these products. Sunflower
and olive oil are currently seen as the most versatile oils.
The implications
Most buyers frying less food than a few years ago is a continuation of a long-term trend,
including having fewer fried breakfasts. It means brands and retailers need to promote
other uses for edible oils away from frying. Driving awareness of oils with health benefits
such as those with omega oils or essential vitamins (eg vitamin E in avocado oil) will
be important. This includes more appealing infused healthy oils to encourage usage
for drizzling on meat, fish, vegetables, pizzas and pasta, or as an ingredient for salad
dressings.
Butter and spreads are mainly used on bread products, so declining bread sales have
a big impact on their sales. Brands in spreads have scope to encourage interest in
sandwiches through promoting more exciting fillings that appeal to those looking for more
or new ideas for what to put in their packed lunch. The income squeeze in 2017 could
also help encourage a return to people making up packed lunches to take to work in
order to save money.
The income squeeze could also potentially provide a boost to home baking, not because
home baking actually saves a lot of money, but more because it provides a cheap form
of entertainment when people are cutting back on going out. Featuring home baking as
a fun and cheap activity therefore provides brands in yellow fats with another angle for
promoting product usage.
Edible oils already have information about what different types can be used for on
packaging, but the attractiveness of particular oils in terms of versatility could be
increased though the use of in-store promotional materials to cater for this demand.
Marketing could put a bigger focus on demonstrating different uses for oils, tapping into
the Mintel Trend, Prove It, that discusses how consumers are looking for proof before
purchase.
• 15% of buyers put being made from British ingredients among the most important
factors influencing their choice of butter or spread for spreading. The regional origin of
a product though appeals more widely, cited by 44% of people.
• Just under a fifth of buyers of butter, spreads, oil or fat (19%) would pay more for an
organic product and the same proportion more for a product that guaranteed higher
animal welfare. There is only a little overlap between those willing to pay more for
each of these though.
• Smaller bottles of oils with flavour infusions and smaller packs of butter/spreads with
added flavours appeal to 41% and 36% of people respectively. But only 13% of buyers
would pay more for oils with flavour infusions.
The implications
Supporting British farmers is clearly more emotive than just British provenance and
telling a story of farmers in particular regions and spelling out the brand or retailer’s
support for them, as done recently by Morrison’s scope to increase product appeal.
Provenance in terms of coming from a particular region also offers more scope for
adding differentiation than just promoting British butter, and is done widely by brands and
retailers in butter.
In olive oils, regional origin could also be promoted more. Many oils just say they use
olives of EU (European Union) origin or list a number of countries where the olive oil
is sourced. There is also scope to adopt this approach outside olive oils. Stressing
regionality is one way to lift these oils out of the commodity category, and to support
premium pricing, though this would put additional demands on tracking batches of
ingredients during processing. Cold-pressed rapeseed oils have seen growing sales and
promoting their region of origin or specific farms helps justify their premium positioning.
Organic products, which still account for a relatively small share of sales in butter but are
growing, could benefit from talking about animal welfare specifics such as free-range
cows. For oils, referencing rapeseed crops or olives grown without pesticides to promote
wildlife would tap into the same.
Smaller packs of butter/spreads with added flavours or smaller bottles of oils with flavour
infusions are a good way of encouraging experimentation as they reduce the risk for
people of committing to a product they might find they do not like. They can also look to
add more variety to meals and snacks eaten at home. They also have the potential to
command a price premium for some people.
Ideas for using oils with different flavour infusions would help to encourage sales.
Flavoured butters or spreads in small packs that go beyond garlic butter also offer scope
for increasing usage both on breads to heat in the oven or on toast, as well as to add
flavour to main meals, including on meat, fish and vegetable dishes.
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 20
A steep decline in sales of spreads was the main reason for the Total sales of edible oils were up by 2.2% in 2016. A decline in
decline seen in total retail value sales of yellow fats and edible value sales of cooking oils was more than made up for by an
oils in 2016. Stronger performances for butter and edible oils were increase in sales of olive oils and speciality oils. Value growth
not enough to make up for a 10% decline in spread sales. in olive oil was driven by higher retail prices due to dwindling
production in Europe and soaring global demand. The weakening
In 2017, value sales are expected to see a return to growth due of the Pound since the Brexit vote has also put upward pressure
to increases in the retail price of butter and olive oil. Overall on retail prices.
though, sales at £1.53 billion are still estimated to be down 10%
compared with 2012 (see Market Size and Forecast). In 2017, value sales are estimated to grow by around 2% to
£383 million but volumes decline, due to rising prices in all
2017 butter sales getting boost from higher prices three segments but particularly in olive oil (see Market Size and
Forecast).
Value sales of butter increased by 0.8% in 2016, marking a
significant turnaround for the segment compared with 2015. While Declining bread sales affecting butter and spreads
falling prices helped volume sales in 2015 and early 2016, the
category also benefitted from the desire for more natural and less Sales of bread have been declining. 2016 was the third
processed products. consecutive year of sales losses, and the rate of decline had
increased sharply. People cutting back on bread means they are
In 2017, a reversal in value and volume performance is expected not using butter or spreads for spreading as much as they used
due to a decline in promotions as a sharp rise in the wholesale to.
cost of butter is feeding through to retail prices. This is expected
to take the value of the butter market to £789 million (see Market Spreading on toast or on bread to make a sandwich are by far
Size and Forecast). the biggest two uses for block butter and spreads. As such, fewer
meal or snack occasions, including sandwiches or toast, has by
Sales of spreads continue to decline far the biggest impact on sales of yellow fats. Falling real wages,
however, could rekindle interest in packed lunches, which should
By contrast to growth in butter sales, sales of margarine and boost sales of bread (see Market Drivers).
spreads declined by 10% by value and 7.5% by volume in 2016.
Spreads are continuing to struggle in the face of trends towards Rise in commodity prices for olive oil
more natural and less processed products, where butter enjoys a
stronger image. Raw material prices for olive oil increased sharply over the last
few years as a result of poor harvests in Italy, Greece and Spain.
The struggles of carrier products like bread are adding to the The depreciation of the Pound against the euro, particularly
spread segment’s woes and sales are expected to decline further following the Brexit vote, has also driven up the cost of olive oil
in 2017 to £362 million (see Market Size and Forecast). imports.
Wholesale butter prices have also been increasing Ageing population more worried about saturated fat
Following deflation in the butter market throughout 2015 and early The UK population is ageing, with the number of over-55s
2016, wholesale butter prices have been increasing. Prices got projected to increase by 2 million (10%) between 2017 and 2022.
so low in 2016 due to oversupply in the milk market that many Older people are more likely to be concerned about saturated fat
farmers decided to cut back on their dairy cow numbers. in food and drink than younger people.
Rising wholesale costs have now fed through to higher retail However, when buying butter and spreads for spreading they
butter prices, with the price of butter across major retailers attach the most importance to being spreadable and taste. They
increasing significantly in 2016/17 (see Market Drivers). are less likely to buy spreadable butter than younger age groups,
but overall though are only slightly below average purchasers of
Interest in cooking and baking important to market butter (see Market Drivers).
Despite the popularity of TV’s The Great British Bake Off, sales
of many home baking ingredients declined in 2016/17. Cake
coverings and decorating products, dried fruits, sugar and flour
are among the baking items seeing a decline in sales.
* yellow fats segment includes only butter and margarine/spreads, and does not include cooking fats
Source: based on IRI/Mintel
Butter value sales getting boost FIGURE 9: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
from higher prices, but volumes hit OF BUTTER, 2012-22
Sales of spreads continue to FIGURE 11: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
decline OF SPREADS, 2012-22
FIGURE 12: UK RETAIL VALUE AND VOLUME SALES OF EDIBLE OILS, 2012-22
Edible oils see a return to growth FIGURE 13: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
OF EDIBLE OILS, 2012-22
Total sales of edible oils were up by 2.2%
in 2016. A decline in value sales of cooking
oils was more than made up for by an
increase in sales of olive oils and speciality
oils. However, the former two trends were
fuelled purely by price fluctuations, while
the segments’ volumes remained static.
Forecast methodology
Market Segmentation
Butter sales boosted in 2017 by products, butter enjoying a stronger image of butter showed stronger growth than
higher prices here. The same ‘clean eating’ trend has value sales due to deflation, the boost to
had a negative impact on sales of spreads value sales in 2017 is coming from higher
Total sales of yellow fats were dragged and cooking fats such as Stork. This retail prices. These look to be, in turn,
down in 2016 by a decline in sales of comes despite leading brand Flora, for dampening volume sales.
margarine and spreads and cooking fats, example, focusing its 2016 repositioning
an increase in the sales of butter failing around its plant-based credentials in an However, the market is not simply seeing
to offset this. Butter’s share of the market apparent bid to drive associations with switching between the segments, as
increased from 61% of value sales in 2015 naturalness. overall volumes fell by an estimated 7%
to 63% in 2016. over 2015-17, reflecting healthy eating
In 2017, a similar trend is being seen trends, struggles of carrier products like
Volume sales of both block butter and in terms of growing sales of butter and bread and, most recently, the rising price
spreadable butter have benefitted from the declining sales of spreads and cooking of butter (see Market Size and Forecast).
desire for more natural and less processed fats. However, while in 2016 volume sales
FIGURE 14: UK RETAIL VALUE AND VOLUME SALES OF YELLOW FATS, BY SEGMENT, 2015-17
Speciality oils taking a larger share referendum. A reduction in promotions has which accounts for over 90% of vegetable
of sales played a part in the rise in price paid by oil sales sold in the UK. With the price
customers. So far, these price increases getting higher than that of sunflower oil,
In edible oils, olive oil accounts for the have not hit volume sales, with extra virgin some consumers have moved away from
largest share of value sales, but cooking olive oil still performing strongly. the former to the latter.
oil by far the largest share of volume sales.
This reflects the much higher average price Cooking oil, including sunflower and Speciality oils continue to see strong
of olive oil, especially extra virgin olive oil, vegetable oil, saw flat value sales in growth driven by growth in penetration and
compared with sunflower and vegetable oil. 2016. Stronger sales of cooking oil sprays retail space allocation of products such as
failed to offset the decline in other areas. coconut oil and cold-pressed rapeseed oil.
The increase in value sales of olive oil Cooking oil sprays’ proposition of using Cold-pressed rapeseed oil is benefitting
has been driven by higher retail prices, less oil taps into health trends, while their from those switching from olive oil due
resulting from a combination of dwindling convenience may also appeal. to price increases for olive oil, and also
European production and the weakening appeals for health benefits and British
in the value of the Pound against the Vegetable oil has suffered due to provenance.
euro, particularly following the Brexit commodity price inflation for rapeseed oil,
FIGURE 15: UK RETAIL VALUE AND VOLUME SALES OF EDIBLE OILS, BY TYPE, 2015-17
Market Drivers
Declining bread sales are affecting in a big reduction in olive oil production seeing their incomes being squeezed by
butter and spreads across the EU. inflation exceeding wage rises.
Sales of bread have been declining. The depreciation of the Pound against Interest in cooking and baking
2016 was the third consecutive year of the euro, particularly following the Brexit important to market
sales losses, and the rate of decline had vote, has also driven up the cost of olive
increased sharply. Pre-packed bread oil imports. The combined effect of raw Despite the popularity of TV’s The Great
and rolls saw a particularly steep decline material inflation and the weakening in British Bake Off, sales of many home
in value sales in 2016, down 10% and the value of Sterling, particularly given baking ingredients declined in 2016/17.
13% respectively (see Mintel’s Bread and that all olive oil in the UK is imported, Cake coverings and decorating products,
Baked Goods – UK, October 2016 Report). has been that retailers have had to dried fruits, sugar and flour are among the
increase prices. The number and value baking items seeing a decline in sales,
Some people are cutting back on bread for of promotions have also fallen, in another and 42% of buyers of butter, spreads and
diet-related reasons, while others simply attempt to manage the impact of rising oils say they are baking less at home
have a preference for other breakfast and ingredient costs. compared to a few years ago (see Usage
lunch items. Regardless of the reason, and Buying Behaviour).
though, it means they are not using butter Estimates from the International Olive
or spreads for spreading as much as they Council predict a 466,800 tonne supply Yellow fats and oils are other important
used to. deficit by 2017/18 and Brexit-related baking ingredients, so a waning in interest
uncertainties mean Sterling is unlikely to in home baking will also be affecting sales
Spreading on toast or on bread to make bounce back in the foreseeable future. of these products. The income squeeze,
a sandwich are by far the biggest two This means olive oil prices are likely to though, could provide a boost to home
uses for block butter and spreads (see remain high for some time to come. baking, not necessarily because baking
Mintel’s Yellow Fats and Edible Oils – cakes is cheaper than buying them at the
UK, September 2016 Report). As such, Wholesale butter prices have also supermarket, but because home baking is
fewer meal or snack occasions, including been increasing a cheap form of entertainment compared
sandwiches or toast, has by far the biggest with going out.
impact on sales of yellow fats. Following deflation in the butter market
throughout 2015 and early 2016, The amount of cooking that people do at
Falling real wages could rekindle interest wholesale butter prices have been home is important for sales of yellow fats
in packed lunches, which should boost increasing. Prices got so low in 2016 and edible oils, and 50% of people who
sales of bread. Concerns about sugar in due to oversupply in the milk market that cook from scratch or partly from scratch
cereals also offer scope for a return to many farmers decided to cut back on their say they do so because they enjoy cooking
bread or toast for breakfast. 58% of people dairy cow numbers, leading to a decline in (see Mintel’s Attitudes towards Cooking
typically eat cereal for breakfast at home supply and higher prices. in the Home – UK, May 2016 Report).
and 48% eat toast (see Mintel’s Breakfast Tapping into this enjoyment of cooking
Eating Habits – UK, July 2016 Report). Rising wholesale costs have now fed through promoting recipe and meal ideas
through to higher retail butter prices, with will be important to the market.
Rise in commodity prices for olive the price of butter across major retailers
oil increasing significantly in 2016/17. Given Ageing population more worried
that butter is a staple food item in most about saturated fat
Raw material prices for olive oil increased households, this is providing a boost to
sharply over the last few years as a result value sales. The UK population is ageing, with the
of poor harvests in Italy, Greece and number of over-55s projected to increase
Spain. This has been down to unusually If commodity butter prices continue rising by 2 million (10%) between 2017 and
warm summers affecting flowering, but though, this could provide an opportunity 2022. Older people are more likely to be
also crops being savaged by disease such for spreads as switching to spreads concerned about saturated fat in food and
as Mediterranean fruit flies and the Xylella offers a way for shoppers to save money, drink than younger people (see Mintel’s
fastidiosa bacteria. All this has resulted especially during a time when they are Attitudes towards Sugar and Sweeteners
– UK, January 2017 Report), favouring butter. Having no artificial ingredients is With sugar now being the number one
spreads over butter. also more likely to be important to over- health demon and the focus moving
55s than younger people, which links to away from fat being bad for you, butter
However, when buying butter and spreads growing interest in products that are more could benefit from being seen as OK in
for spreading, they attach the most natural. moderation as part of a balanced diet.
importance to being spreadable and Over-55s are most likely to try to eat a
taste (see Factors Influencing Choice Interest in more natural and less balanced diet consisting of all food groups
of Butter/Spread). They are less likely processed products favours butter, (see Mintel’s Attitudes towards Healthy
to buy spreadable butter than younger although more spreads are tapping into Eating – UK, February 2017 Report).
age groups, but overall though are only the desire for natural products through
slightly below average purchasers of promoting ‘no artificial ingredients’.
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 31
The biggest growth in the declining yellow fats market between Oils account for over half of total launches, which contrasts to
2015/16 and 2016/17 came from own-label. Rising prices of butter their estimated 25% share of value sales in 2017, and signifies
appear to have supported demand for own-label as the more more innovation than in butter and spreads.
affordable option, to see it gain share of value and volume sales.
In the last two years, though, margarine and other blends (ie
Among brands, Lurpak performed strongly and maintains a big spreads) have increased their share of total launch activity,
lead in the yellow fats market. It captures a 26% share of value showing how brands and retailers in this category are pushing
sales thanks to its 40% share of the butter market. Kerrygold hard to try and reverse the decline seen in sales (see Launch
was another strong performer, growing sales on the back of the Activity and Innovation).
success of its spreadable butter, while the majority of spreads
brands saw sales fall (see Market Share). Bigger focus on natural products
Coconut oils being joined by avocado oils Lurpak has strongest reputation for quality
Supermarket sales of coconut oil have surged and continuing Lurpak has more differentiation than any of the other brands, with
launch activity in this area is taking coconut oils into the more than four in 10 people who have heard of it seeing it as
mainstream. 2016 saw own-label enter the category, but brands standing out or a unique brand. It is by far the most trusted brand
have been responding to this competition. and the one most seen as having a good reputation and offering
consistently high quality.
A more recent trend in speciality oils though is avocado oil. It
is high in monounsaturated fat and packed with vitamins, both Anchor is the brand with the second highest association with
of which appeal to people looking for a healthier option. Fresh offering consistently high quality, although some distance behind
avocado sales have seen massive growth in recent years and Lurpak (see Brand Research).
brands and retailers are now innovating with avocado oils (see
Launch Activity and Innovation). Flora seen as most healthy brand
Fall in 2016 advertising Flora stands out as the brand most strongly associated with
caring about health and wellbeing, which is likely to link to its
Total main media advertising expenditure on yellow fats and focus on products that lower cholesterol and its Flora ProActiv
edible oils decreased by 15% in 2016 to £23 million. This was range that offers additional health benefits.
mainly due to a 30% reduction in advertising spending for
margarine and spreads to £9.8 million, as Unilever scaled back It is also seen as the most innovative brand, the most socially and
support for its Bertolli, Flora and Stork brands. environmentally responsible, and offering the best value. Offering
good value and promoting health benefits in an engaging way are
By contrast, advertising expenditure on butter increased by 7% key strengths for the brand (see Brand Research).
in 2016 to £12.3 million, driven primarily by increased support for
Lurpak by Arla Foods. Advertising support for edible oils, which is
a category dominated by own-label, was limited to less than £1
million in 2016, but was boosted by an increase in advertising for
Fry Light in 2017 (see Advertising and Marketing Activity).
Market Share
Own-label makes gains in yellow FIGURE 17: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL
fats YELLOW FATS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
Three manufacturers (Arla, Unilever and FIGURE 18: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
Dairy Crest) account for two thirds of RETAIL YELLOW FATS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
value sales in the yellow fats market, but
only Arla Foods increased its sales in
2016/17 due to the strong performance of % change 2015/16-
Value 2015/16* % 2016/17** %
its Lurpak brand in butter. With own-label 2016/17
accounting for a further quarter of sales, £m £m
other manufacturers capture a relatively
small share of the market. Arla Foods UK 402 34 405 34 +0.8
Unilever 262 22 226 19 -13.7
For detailed market shares for butter, Dairy Crest Ltd 161 14 156 13 -3.1
margarine and spreads, and cooking fats Ornua Foods UK 23 2 25 2 +8.7
see Appendix – Market Share. Raisio 17 1 16 1 -5.8
Lactalis Nestlé 11 1 12 1 +9.1
Yeo Valley Family Farm 7 1 7 1 -
Kerry Group plc 8 1 7 1 -12.5
Graham’s 4 <0.5 4 <0.5 -
Fayrefield Foods 3 <0.5 3 <0.5 -
Other 21 2 21 2 -
Own-label 258 22 292 25 +13.2
% change 2015/16-
Volume 2015/16* % 2016/17** %
2016/17
m kg m kg
Cooking oils dominated by own- FIGURE 19: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL
label COOKING OILS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
Princes leads the cooking oils market FIGURE 20: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
through its Crisp ‘n’ Dry brand and its RETAIL COOKING OIL MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
manufacture of the Flora and Pura Organic
Oils brands. Growing sales of Pura could
not quite make up for the fall in sales seen % change 2015/16-
Value 2015/16* % 2016/17** %
for Crisp ‘n’ Dry and Flora in 2016/17. 2016/17
£m £m
KTC Edibles and Dairy Crest are the
other two significant branded product Princes Ltd 40 26 39 26 -2.5
manufacturers, with the latter present KTC Edibles Ltd 10 6 12 8 +20.0
through the Fry Light cooking oil sprays Dairy Crest Ltd 11 7 11 7 -
brand that launched its largest-ever Golden Fields 2 1 2 1 -
marketing investment in 2017. Other 1 1 1 1 -
Own-label 90 58 87 57 -3.3
% change 2015/16-
Volume 2015/16* % 2016/17** %
2016/17
m litres m litres
Princes Ltd 27 23 27 23 -
KTC Edibles Ltd 11 9 13 11 +18.2
Dairy Crest Ltd 1 1 1 1 -
Golden Fields 1 1 2 2 +100.0
Other <0.5 <0.5 1 1 na
Own-label 78 66 77 64 -1.3
Filippo Berio sees dip in olive oil FIGURE 21: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL OLIVE
sales OIL MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
Having Olivio as well as the Napolina FIGURE 22: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
brand gives Princes market leadership in RETAIL OLIVE OIL MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
the olive oil market. The top two branded
manufacturers account for just over a third
of total sales, but lost share in 2016/17 to % change 2015/16-
Value 2015/16* % 2016/17** %
own-label. 2016/17
£m £m
% change 2015/16-
Volume 2015/16* % 2016/17** %
2016/17
m litres m litres
Princes Ltd 8 21 8 21 -
Filippo Berio 6 15 5 13 -16.7
Dairy Crest Ltd 1 3 1 3 -
KTC Edibles Ltd 2 5 2 5 -
Farchioni <0.5 <0.5 <0.5 <0.5 -
Other 1 3 1 3 -
Own-label 21 54 22 58 +4.8
Own-label sales of speciality oils FIGURE 23: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL
grow SPECIALITY OILS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
Among manufacturers, The Groovy Food FIGURE 24: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
Company, Lucy Bee and All Market Inc. RETAIL SPECIALITY OILS MARKET, BY VALUE AND VOLUME, 2015/16-
have all seen sales fall in 2016/17 due 2016/17
to competition in coconut oils from own-
label. Dairy Crest saw a boost from the
expansion of its range of Fry Light cooking % change
Value 2015/16* % 2016/17** %
oils sprays. 2015/16-2016/17
£m £m
% change
Volume 2015/16* % 2016/17** %
2015/16-2016/17
m litres m litres
Bigger focus on natural and No additive/preservative claims have Similarly, there has been an increase in
environmentally-friendly products become particularly prevalent in margarine the proportion of products making dairy-
and spreads, tapping into the ‘clean-eating’ free claims, with Flora and Vitalite among
Between 2012 and 2017, the most trend of recent years. Launches of vegan brands in spreads making this a focus for
significant changes in terms of product spreads and those that claim to contain no their products and M&S (Marks & Spencer)
claims have been the increases in the animal ingredients have also increased. launching a Made Without Dairy range of
proportion of new launches making Flora’s ‘Powered by Plants’ campaign is spreads.
“no additives/preservatives” and one of the higher-profile examples of this
“environmentally-friendly” product claims. trend.
FIGURE 26: NEW PRODUCT LAUNCHES IN THE UK BUTTER AND SPREADS MARKET, BY TOP 20 CLAIMS (SORTED BY
2016), 2012-17
Vegetarian 67 75 75 74 80 68 +1
No additives/preservatives 9 15 12 32 28 30 +21
Ethical – Environmentally friendly product 3 3 14 20 23 27 +24
Low/no/reduced fat 22 25 23 20 22 16 -6
Low/no/reduced saturated fat 17 33 25 18 20 14 -3
Ethical – Environmentally friendly package 7 25 18 26 20 27 +20
Low/no/reduced transfat 12 20 11 17 17 11 -1
Low/no/reduced allergen 3 3 2 8 14 19 +16
Vegan 3 5 - 5 14 22 +19
Slimming 10 13 14 9 13 8 -2
Cardiovascular (functional) 10 13 7 11 13 11 +1
Ease of use 2 8 11 18 13 8 +6
No animal ingredients 3 5 - 5 13 22 +19
Seasonal 2 5 7 9 12 3 +1
Dairy free 3 3 - 6 12 16 +13
Stanols/Sterols 3 8 4 9 9 8 +5
Social media 2 8 7 17 7 11 +9
Gluten-free 3 - - 5 7 11 +8
Organic 5 5 5 5 6 11 +6
Premium 3 8 5 8 6 3 -
Source: Mintel GNPD
Spreads with avocado and coconut oils first half of 2017, reflecting the launch of The proportion of new launches making
have also been a feature of own-label extra virgin olive oils and cold-pressed all-natural claims has also increased in the
NPD activity in 2017, including M&S rapeseed oils under premium own-labels oils segment, mainly driven by cooking oil
Made Without Dairy Avocado Oil Spread, during the period. sprays and coconut oils.
Waitrose Avocado Oil Spread and Tesco
Coconut Spread. M&S also emphasises
‘Made Without Dairy’ for its Sunflower
Spread.
FIGURE 27: NEW PRODUCT LAUNCHES IN THE UK EDIBLE OILS MARKET, BY TOP 20 CLAIMS (SORTED BY 2016),
2012-17
Vegetarian 20 23 34 51 39 47 +27
Ethical – Environmentally friendly package 30 28 32 41 38 29 -1
Organic 15 5 9 20 21 18 +3
No animal ingredients 5 7 16 22 16 18 +13
Vegan 5 7 16 22 14 18 +13
Premium 8 12 14 8 9 18 +10
Kosher 8 11 4 8 8 16 +8
Ethical – Environmentally friendly product - 4 4 6 8 2 +2
Low/no/reduced allergen 5 5 5 15 7 11 +6
Gluten-free 5 5 2 15 7 11 +6
Low/no/reduced transfat 2 5 2 6 5 - -2
Economy 7 4 1 2 5 2 -5
Low/no/reduced saturated fat 3 4 4 13 4 7 +4
All natural product - 4 3 6 4 11 +11
Ethical – Human 3 - 2 1 4 7 +4
Antioxidant - 2 2 3 4 - -
No additives/preservatives 8 4 5 5 3 9 +1
Cardiovascular (functional) 2 2 - 1 3 - -2
Cobranded - - - - 3 - -
Social media 2 2 2 9 1 11 +9
Source: Mintel GNPD
March 2017 saw the Frylight range of Competing against olive oil are cold-
oil sprays extended with the launch of pressed rapeseed oils, which are also
Frylight with avocado oil, which as well as benefitting from interest in healthier oils. A
purporting to have health benefits is stable surge in olive oil prices has made these a
at high temperatures for cooking. Asda also more competitive alternative to extra virgin
launched a blend of olive oil and avocado oil olive oil.
Coconut oils getting more retail in 2017, described as perfect for drizzling, for
listings dips or as part of a salad dressing. A number of these products have a
premium positioning. For example, April
Supermarket sales of coconut oil have Focus on quality and flavour in 2017 saw the launch of Borderfields
surged and continuing launch activity in olive oil Gold, a range of oils made from specially
this area is taking coconut oils into the selected seeds in small batches in a sleek
mainstream as retailers dedicate more Product launches in olive oil have been clear bottle to highlight its golden hues.
shelf space to these products. 2016 dominated by extra virgin olive oil, which
saw own-label enter the category, which puts a heavy emphasis on quality. Luxury Other recent examples of launches are
triggered sharp deflation on branded extra virgin olive oils include those with Ocado Cold Pressed Rapeseed Oil (June
product coconut oils, but brands have added flavours, such as Luxury Extra 2017), Mr Hugh’s White Truffle Infused
been responding to this competition. Virgin Olive Oil with Truffle & Garlic from Rapeseed Oil (March 2017), Crush Extra
The Garlic Farm, which launched in Virgin Rapeseed Oil (May 2017) and Mr
Princes-owned Pura, for example, summer 2017. Organic Organic Extra Virgin Rapeseed
launched a range of coconut oil blends, Oil (December 2016).
including in a spray format, which are At the top end of the market, the
lower in saturated fats than traditional Ca’Rainene extra virgin olive oil range is
coconut oils. They are also flavour free and packaged in a box suitable for gifting, and
have the same smoke point as vegetable features a trio of oils sourced from Paolo
oil, offering two other key benefits. Bonomelli, Italy’s most awarded EVOO
(extra virgin olive oil) producer.
Vita Coco launched a mini 50ml pot for
people who want to try cooking with Flavoured olive oils are present across a
coconut oil before committing themselves wide range of retailers and at a number of
to buying a bigger tub. It can also be used different price points, ranging from White
for beauty use on skin, hand, lips and hair. Truffle Flavoured Extra Virgin Oil, which
Fall in 2016 advertising spending FIGURE 28: TOTAL ABOVE-THE-LINE, ONLINE DISPLAY AND DIRECT MAIL
ADVERTISING EXPENDITURE ON YELLOW FATS AND EDIBLE OILS, 2012-17
Total main media advertising expenditure
on yellow fats and edible oils decreased
by 15% in 2016 to £23 million. This
was mainly due to a 30% reduction in
advertising spending for margarine and
spreads to £9.8 million, as Unilever scaled
back support for its Bertolli, Flora and
Stork brands.
Arla and Unilever the biggest FIGURE 30: TOTAL ABOVE-THE-LINE, ONLINE DISPLAY AND DIRECT MAIL
advertisers ADVERTISING EXPENDITURE ON YELLOW FATS AND EDIBLE OILS*, BY
ADVERTISER, 2013-17
Main media advertising expenditure on
yellow fats and edible oils is dominated
by Arla Foods and Unilever, who between 2013 2014 2015 2016 Jan-June 2017
them accounted for £19.3 million worth £m £m £m £m £m
of advertising in 2016 and 84% of total
spending. Arla Foods 9.1 5.1 5.4 10.0 5.5
Unilever UK 12.9 16.4 16.9 9.3 1.0
This spending is in support of Arla Foods’ Adams Foods 1.2 - 0.5 1.6 -
Anchor and Lurpak brands and Unilever’s
Dairy Crest** 2.5 2.5 2.9 1.1 2.2
Bertolli, Flora, I Can’t Believe and Stork
Grahams Family Dairy - - 0.1 0.3 -
brands. In 2016, Arla overtook Unilever as
RH Amar & Co Ltd 0.7 0.6 - 0.2 0.1
the biggest advertiser in yellow fats and
Iceland Frozen Foods Plc - - - 0.1 0.2
edible oils.
Benecol Ltd 0.2 0.2 0.1 0.1 -
Princes Ltd 0.4 - - 0.1 -
Adams Foods trebled its 2016 advertising
in support of Kerrygold, while Dairy Crest Other 0.6 1.5 1.3 0.3 0.1
spent less as a result of a reduction in
support for its Clover brand in spreads. Total 27.6 26.3 27.2 23.0 9.1
* includes butter, margarine and spreads, lard/cooking fat and oils
Flora is the most heavily-promoted ** includes MH Foods
brand Source: Nielsen Ad Intel/Mintel
food media than cooking, demonstrating Expert spreads, alongside a £1.2 million Frylight announces launch of £5
that consuming food culture is not a marketing campaign promoting healthy million multi-channel campaign
substitute for cooking. Along with TV bones and heart function. No adverts have
ads, the campaign is also supported been released yet. Frylight announced in February 2017
by ‘cook along’ recipe videos on social that it would be launching a £5million
media and Lurpak’s website, which offers Bertolli recipe videos promote multi-channel marketing campaign. The
consumers a way to interact and share authentic Italian cooking campaign marks the brand’s largest
their experience of the product. marketing investment to date and is aimed
Unilever uses recipe videos as a way of at mainstream consumers, lifting the brand
Flora focuses on ‘Powered by promoting many of its brands’ products. out of ‘diet’.
Plants’ message It continues to strengthen associations
between its brand Bertolli and authentic The new TV advert features three different
For its spreads range, Flora focused its Italian cooking with new recipe videos with families, cooking together at home to
2016 advertising on the Powered by Plants celebrity chef Gennaro Cantaldo. Bertolli showcase Frylight’s versatility, simplicity
message, emphasising how its products Butter, a blend of butter and olive oil, also and how you can cook with 95% less fat
are made from plants, and how they are received major advertising support in with it. The relaunched Frylight website
also free from artificial colours and flavours 2016. features tips and advice on cooking more
and 70% lower in saturated fat than butter. healthily, with a number of video recipes
Its Lunch Box Ideas advert also promoted Stork has also followed the recipe video being shown.
Flora naturally containing omega 3 and 6, trend by releasing another set of fast-
which are needed for children’s growth and forward baking videos themed around Nielsen Ad Intel coverage
development. Easter in April 2017. Stork with Butter also
featured in a 2016 TV advert showing NAI (Nielsen Ad Intel) tracks advertising
Also part of Flora’s ‘Powered by Plants’ viewers how the product can be used to via the following channels: television,
campaign focused on plant-based make light and fluffy cakes and buttery and radio, press, internet display advertising,
ingredients, was a TV advert in support of creamy icing. outdoor, radio, cinema, direct mail and
its new Flora Freedom Dairy Free Spread, door drops. Spend on sponsorship, search
launched in response to increasing Stork announces charity tie up and social are not currently measured
demand for ‘free-from’ products and by NAI. For most channels covered, NAI
ending with a ‘No Moo, all mm’ message. In May 2017, Stork announced that it does not measure expenditure directly,
Summer 2017 also saw a TV advert for would be holding a fundraiser entitled but estimates it by monitoring usage
Flora Buttery with a ‘Delicious Taste Made ‘Bake it Better’ for Great Ormond Street and applying average measures of
with Plants’ message. Hospital over 22-28 May 2017. Stork expenditure.
invited people to hold a bake sale to raise
Flora ProActiv unveils Expert money to aid the lives of ill children at the
Range hospital. Stork supplied participants with
a free fundraising kit after they signed up,
In April 2017, Flora ProActiv announced with materials needed for a successful
that it would be revealing a new range of bake sale.
Brand Research
This section looks at selected key brands Brand map
operating in the UK yellow fats market.
Respondents were asked about their FIGURE 32: ATTITUDES TOWARDS AND USAGE OF SELECTED BRANDS, JULY
perceptions and usage of the brands as a 2017
whole rather than in the context of specific
products or categories.
Base: internet users aged 16+ who have heard of the brand
Bubble size represents usage (% ever eaten)
Source: Lightspeed/Mintel
Base: internet users aged 16+ who have heard of the brand
This chart shows the level of association of each brand surveyed with a set of key performance attributes core to food brands overall. The more significant an attribute is as
part of a brand’s image relative to other attributes, the nearer it will be to that attribute. If a brand is between a number of attributes, it is reasonably closely associated with
each of these.
Source: Lightspeed/Mintel
Base: internet users aged 16+ who have heard of the brand
This chart shows all brands in relation to a set of broad image attributes applicable to all categories.
Source: Lightspeed/Mintel
Base: internet users aged 16+ who have heard of the brand
This chart complements the wider brand image display, using a set of image traits specific to the food sector.
Source: Lightspeed/Mintel
Anchor stands for consistent FIGURE 38: USER PROFILE OF ANCHOR, JULY 2017
quality but seen as less innovative
Bertolli has scope to increase FIGURE 40: USER PROFILE OF BERTOLLI, JULY 2017
usage through focus on health
However, Bertolli is the least trusted brand, it could focus on to increase usage. It of the brand though, 25-34-year-olds,
suggesting low usage is resulting in lack is seen as the least natural or family- ABs and parents are most committed to
of awareness of its products in yellow fats. focussed brand, two areas it could look it.
This is also shown by it scoring relatively to address through its marketing in butter
low for having a good reputation and and spreads in order to maximise its 25-34-year-olds and parents are most
offering consistently high quality. It is the association with being healthy due to likely to see it as offering good value but
brand least associated with offering good containing olive oil. also worth paying more for, suggesting for
value. this group perceived value is not just about
Key demographic groups – Usage of price. The brand’s marketing focused
It does though have a relatively strong Bertolli peaks among over-65s, who on recipes and Italian cooking no doubt
association with caring for health and are perhaps attracted by the purported appeals to them. It is older people though
wellbeing (second after Flora). This benefits of its products’ olive oil content (over-45s) who are most likely to associate
suggests being healthy is a strength to health. Among those who have heard Bertolli with being healthy.
Clover lacks standout in yellow FIGURE 41: USER PROFILE OF CLOVER, JULY 2017
fats market
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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 56
More than nine in 10 people buy butter or spreads, making these When it comes to edible oils, nearly half of buyers of butter,
products staple items in the vast majority of households. A large spreads and oils (46%) are looking for versatility from a product.
proportion of people are buying both types of product and there Edible oils should, therefore, make information about what
is also considerable overlap in the buying of different types of different edible oils can be used for prominent on packaging to
products within the two categories. maximise their appeal.
This shows how most people are buying a repertoire of butter or Nutritional information and the list of ingredients are each checked
spreads to cater for different uses or occasions, as well as the by nearly half of buyers of spreads (47%). This suggests a large
different taste preferences or dietary requirements of household proportion of consumers are concerned about what ingredients
members (see Buying of Yellow Fats). are contained in spreads and are seeking reassurance from
brands (see Usage and Buying Behaviour).
Nearly eight in 10 buy edible oils
Three in 10 would pay more to support British
High purchasing (78% buying) of oils reflects the wide range of farmers
different uses for edible oils and fats. Overlap in the purchasing
of edible oils or solid oil/fat is demonstrated by repertoire analysis Nearly three in 10 buyers of butter, spreads and oils (28%) would
showing 46% of people buy more than one type of product. pay more for products supporting British farmers. Just under
a fifth of buyers of butter, spreads, oil or fat (19%) would pay
In edible oils, vegetable/rapeseed oils and olive oils are each more for an organic product and the same proportion more for a
bought by around four in 10 people, while a third of people buy product that guaranteed higher animal welfare.
sunflower oil. These products clearly dominate the edible oils
market (see Buying of Edible Oils). Just over a fifth of buyers of butter, spreads, oils and fats (22%)
would pay more for products making health claims. Such claims
Being spreadable and favourite taste most important include products promoting the lowering of cholesterol in diets
and the inclusion of particular vitamins or omega oils to benefit
The convenience of being able to spread straight after you health (see Product Attributes Most Likely to Add Value).
have taken it out of the fridge is the joint most important factor,
influencing 45% of purchasers choosing butter or spread for Details of regional origin can increase appeal
spreading on toast, sandwiches, etc. Being a favourite taste is
similarly important (43%), while price stands close behind in Provenance in terms of coming from a particular region increases
swaying choice in this fragmented market. a product’s appeal for 44% of people and offers scope for adding
a point of differentiation that goes beyond just promoting butter
Overall, either being low fat or low in saturated fat is an important as British. As with British ingredients and support for British
consideration for 38% of buyers of butter or spreads. Lower fat farmers, this has the most appeal to over-65s who are increasing
content is, therefore, clearly a major selling point over butter for in numbers.
various spreads on the market (see Factors Influencing Choice of
Butter/Spread). Oils with flavour infusions in small bottles and smaller packs
of butter/spreads with added flavours appeal to 41% and
Less frying and buying of bread hitting sales 36% of people respectively. Such products are a good way of
encouraging, but also can look to add more variety to meals and
The fact that six in 10 buyers (62%) say that they fry less food snacks (see Attitudes towards Butter, Spreads and Edible Oils).
than a few years ago will be having a negative impact on the
edible oils and cooking fats sectors of the market. This is a
continuation of a long-term trend away from meals that involve
frying food.
Butter and spreads are mainly used on bread products, but four in
10 buyers are buying less bread than a few years ago. This has
been reflected in declining bread sales, which in turn impacts on
sales of butter and spreads (see Usage and Buying Behaviour).
Being seen as healthy and pure the key strengths for Lack of awareness of attributes of rapeseed and
olive oil avocado oils
The qualities most closely associated with olive oil are “healthy” What stands out about rapeseed oil and avocado oil is a lack of
and “pure”, and it is also seen as more flavoursome and worth awareness about these types of oils, with more than four in 10
paying more for than other oils. These positive consumer and a third of people respectively not associating them with any of
perceptions of olive oil are important in driving sales given the listed attributes.
consumer interest in eating healthily.
Recently more cold-pressed rapeseed oils have become available
Being light, imparting no flavour and having a high smoke point that should help build awareness, but there is clearly scope for
are key strengths of sunflower oil and this helps to drive consumer retailers to shout about the credentials of rapeseed oil more
perceptions that it is a versatile oil for cooking (see Perceptions of strongly to support this increased presence (see Perceptions of
Different Types of Edible Oils). Different Types of Edible Oils).
More than nine in 10 people buy butter “Which of the following butters and spreads have you bought in the last 3
or spreads, making these products staple months? Please select all that apply.”
items in the vast majority of households.
Three quarters of people buy butter and
two thirds spreads.
Trend, Let’s Make a Deal, that discusses FIGURE 43: NUMBER OF DIFFERENT TYPES OF BUTTER AND SPREADS
the importance to consumers of getting a BOUGHT IN LAST 3 MONTHS, JULY 2017
good deal.
Vegetable, olive and sunflower oils olive oil good for dressings or drizzling. Sales of coconut fat/oil have been growing
dominate In olive oils, virgin/extra virgin olive oil is strongly on the back of the popularity
purchased most widely. It is a lot more of coconut as an ingredient, but are still
In edible oils, vegetable/rapeseed oils popular than standard olive oil, despite its only bought by 7% of people. While it still
and olive oils are each bought by around higher price. has strong potential for further growth in
four in 10 people, while a third of people sales given the increase in recent product
buy sunflower oil. These products clearly Solid oils/fats are used by less than a listings, recent media coverage about the
dominate the edible oils market, with other fifth of people, which reflects their long- saturated fat content of coconut oil could
oils and solid oils/fats bought by much term decline and perceptions of them undermine its image as a healthy choice.
smaller percentages of people. Some of being unhealthy in terms of saturated fat
these oils that dominate will be better for content. Spray cooking oils are bought by
some uses than others though. just 11% of people and have room to grow
sales through a focus on promoting being
Vegetable oil (including rapeseed oil), for a healthier and more economical way of
example, is good for frying/roasting and frying food through using less oil.
Being spreadable from fridge and FIGURE 46: FACTORS INFLUENCING CHOICE OF BUTTER/SPREAD FOR
favourite taste most important SPREADING, JULY 2017
The convenience of being able to spread “Which factors are most important in influencing what butter/spread you buy for
from the fridge is the joint most important spreading on toast, sandwiches etc? Please select up to 5.”
factor, influencing 45% of purchases of
butter or spread for spreading on toast,
sandwiches, etc. The butter being hard
is clearly a major frustration. This is
confirmed by the popularity of spreadable
over block butter. Spreadable versions are
therefore a must have for brands in butter
and spreads, linking to the Mintel Trend,
FSTR HYPR, that talks about saving time
and highlighting the time it takes to use
products.
FIGURE 47: USAGE AND BUYING BEHAVIOUR IN RELATION TO YELLOW FATS AND EDIBLE OILS, JULY 2017
Base: 1,890 internet users aged 16+ who have bought butter, spread, oil or fat in the last 3 months
^ shown to 1,344 internet users aged 16+ who have bought spread in the last 3 months
^^ shown to 1,550 internet users aged 16+ who have bought edible oils in the last 3 months
Source: Lightspeed/Mintel
Has the home baking bubble burst? annual boost to home baking sales and its Given the trend away from frying food,
move to commercial television on Channel encouraging usage for dressings or
Yellow fats also look to be suffering 4 provides marketing opportunities for drizzling offers significant scope for
from an end to the home baking boom. brands with an interest in home baking. increasing sales. This can help sales of
More than four in 10 people say they are premium products, including small bottles
baking less at home compared to a few Meeting demand for versatility of oils with flavour infusions that appeal to
years ago. Sales of various baking items, and quality in edible oils 41% of people.
such as cake coverings and decorating
products, dried fruits, sugar and flour, have When it comes to edible oils, nearly half Nutritional information and the list of
been in decline and yellow fats are a main of buyers of butter, spreads and oils are ingredients are each checked by nearly
baking ingredient. looking for versatility from a product. half of buyers of spreads. This suggests
Edible oils should therefore make a large proportion of consumers are
The income squeeze could potentially information about what different edible oils concerned about what ingredients are
provide a boost to home baking though, can be used for prominent on packaging contained in spreads and are seeking
not because home baking actually saves a or in in-store promotional materials to reassurance from brands. Those checking
lot of money, but more because it provides maximise their appeal. Marketing could put ingredients and nutritional information
a cheap form of entertainment when a bigger focus on demonstrating different are mostly the same people, with 84% of
people are cutting back on going out. uses for oils, tapping into the Mintel Trend, those who check the former also checking
Prove It, that discusses how consumers nutritional information on packaging (see
Featuring home baking as a fun and are looking for proof before purchase. Databook).
cheap activity therefore provides brands
in yellow fats with another angle for There is also room, though, to put an
promoting product usage. The popularity emphasis on quality if edible oils are for
of The Great British Bake Off provides an salad dressings or drizzling on foods.
Health benefits justify a price talks about how consumers are learning claims that are seen on products such as
premium for a fifth of buyers new ways to nudge themselves towards Flora ProActiv can therefore help provide a
better habits. boost to value sales of spreads.
Just over a fifth of buyers of butter,
spreads, oils and fats (22%) would pay Those buying cholesterol-lowering Edible oils need to encourage increased
more for products making health claims. spreads are the most likely to pay more usage away from frying, so oils with health
Such claims include products promoting for products making health claims (44%), benefits such as providing omega oils or
the lowering of cholesterol in diets and the while those buying olive and sunflower essential vitamins could help encourage
inclusion of particular vitamins or omega spreads and spreads made from other more usage of oils as dressings, and for
oils to benefit health. This links to the oils are also more willing to pay more drizzling on meat, fish, vegetables, pizzas
Mintel Trend, Help Me Help Myself, which for products making health claims. Such and pasta.
Provenance in terms of coming from a “Do you agree or disagree with the following?”
particular region increases a product’s
appeal for 44% of people and offers scope
for adding a point of differentiation that
goes beyond just promoting butter as
British. This links to the Mintel Trend, The
Real Thing, that discusses how consumers
are craving products that come with a
stamp of authenticity. As with British
ingredients and support for British farmers,
this has the most appeal to over-65s who
are increasing in numbers.
Correspondence analysis is a way of “Which of the following do you associate with each type of oil?”
identifying the attributes most closely
associated with a particular product or
brand. For this report, Mintel put the
following question to respondents, and
then presented them with a list of possible
attributes. The chart below shows how
closely each oil is associated with these
attributes. A close association does not
necessarily mean that the oil in question
was the most highly ranked on that
score across all the listed oils. Instead,
it illustrates the qualities that most stand
out for that particular oil (avocado oil, for
example, achieved relatively low response
rates across all the listed qualities, but
those people who did have an opinion on
the oil were particularly likely to describe it
as “trendy” or “expensive”).
Olive oil Sunflower oil Rapeseed oil Coconut oil Avocado oil
% % % % %
Healthy 47 25 25 26 19
Flavoursome 20 8 10 15 11
Bland 3 12 6 4 3
Versatile 26 28 17 10 5
Pure 32 15 16 17 10
Expensive 25 4 12 25 25
Worth paying more for 17 4 6 7 5
Trendy 12 5 15 33 24
Old-fashioned 7 11 3 2 1
Low in saturated fat 19 20 16 10 7
None of these 12 22 34 27 42
Base: 2,000 internet users aged 16+
Source: Lightspeed/Mintel
Being seen as healthy and pure the lower in saturated fat than olive oil) are to coconut being an on-trend ingredient.
key strengths of olive oil other relatively strong associations, which This is reflected by a third of people
both increase among buyers. It is more perceiving coconut oil to be a ‘trendy’
The qualities most closely associated with likely to be seen as old-fashioned though, ingredient, the strongest association for
olive oil are “healthy” and “pure”, and it suggesting it might be in need of being this type of oil.
is also seen as more flavoursome and promoted more as a versatile and healthy
worth paying more for than other oils. option both in oils and as a main ingredient It also has a relatively strong association
These associations increase significantly in spreads. with being healthy, rising to 58% of
among buyers of olive oil. For example, buyers of coconut fat/oil and 33% of 16-
62% of buyers of virgin/extra virgin olive Lack of awareness of attributes of 34s, despite being high in saturated fat
oil associate it with being healthy and 41% rapeseed and avocado oils compared to other types of oil. Buyers are
pure. also more likely to see it as pure, indicating
What stands out about rapeseed oil and that being healthy, trendy and pure are
These positive consumer perceptions of avocado oil is a lack of awareness about the biggest drivers of purchasing. Along
olive oil, which has long been known for these types of oils, with more than four in with olive oil and avocado oil, a quarter of
its many health benefits and is seen as an 10 and a third of people respectively not people perceive it to be expensive.
essential part of the healthy Mediterranean associating them with any of the listed
diet, are important in driving sales given attributes. This is unsurprising for avocado Methodology
consumer interest in eating healthily. oil, which is a more niche oil, but rapeseed
Further scope exists, though, for promoting oil has been a main part of the oils market Correspondence analysis is a statistical
the benefits of olive oil and olive spreads for a long time, although until more visualisation method for picturing the
to diet, especially given that only 19% of recently under the guise of vegetable oil. associations between rows (image,
people currently associate it with being low attitudes) and columns (brands, products,
in saturated fat. Recently, more cold-pressed rapeseed oils segments, etc) of a two-way contingency
have become available that should help table. It is generally used to display
Versatility biggest strength for build awareness, but there is clearly scope information in a complex crosstab (eg
sunflower oil for retailers to shout about the credentials attitudes related to a certain product
of rapeseed oil more strongly to support or images consumers associate with
Being light, imparting no flavour and this increased presence on supermarket a brand) in a joint space that is easy
having a high smoke point are key shelves. Currently, it is seen as healthy to understand by simply interpreting
strengths of sunflower oil and this helps by a quarter of people, rising to 53% of proximities. The significance of the
to drive consumer perceptions that it is a rapeseed oil buyers and 31% of over-55s, relationship between a brand or product
versatile oil for cooking. It is the oil least but little else stands out. for instance and its associated image
likely to be seen as flavoursome, but this is is measured using the Chi-square test.
a positive if people are looking for oil that Coconut oil seen as a ‘trendy’ If two objects have similar response
does not leave a flavour on the food being choice patterns regarding their perceived
cooked. images/attitudes, they are assigned
The number of new product launches in similar scores on underlying dimensions
After being versatile, being healthy and oils and spreads featuring coconut has and will then be displayed close to each
low in saturated fat (it is in fact slightly increased significantly since 2014 due other in the perceptual map.
PREVIOUS NEXT
YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 71
Value figures throughout this report are at RSP (retail selling Consumer research methodology
prices) and include VAT (value added tax) unless stated
otherwise. Market sizes at constant 2017 prices are devised using Mintel commissioned consumer research for this report to assess
Mintel’s food deflator. buying and usage of yellow fats and edible oils. Research was
carried out by Lightspeed among 2,000 internet users aged
Crown copyright material is reproduced with the permission of 16+ in July 2017 2015. Detailed demographics are given in the
the Controller of Her Majesty’s Stationery Office and the Queen’s Databook.
Printer for Scotland.
Abbreviations
EU European Union
EVOO Extra Virgin Olive Oil
Global New Products Database. For further details,
GNPD
please contact Mintel on 020 7606 4533
IRI Information Resources, Inc.
NAI Nielsen Ad Intel
NPD New product development
PDO Protected Designation of Origin
PGI Protected Geographical Indication
RSP Retail selling prices
VAT Value Added Tax
FIGURE 52: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF YELLOW FATS AND EDIBLE
OILS, 2012-22
2017 (est) 1,534 100 +2.2 1,534 100 +2.2 1,534 100 +2.2
2018 (fore) 1,327 86 -13.5 1,526 100 -0.5 1,726 113 +12.5
2019 (fore) 1,331 87 +0.3 1,559 102 +2.2 1,788 117 +3.6
2020 (fore) 1,347 88 +1.2 1,597 104 +2.4 1,847 120 +3.3
2021 (fore) 1,383 90 +2.7 1,644 107 +3.0 1,919 125 +3.9
2022 (fore) 1,410 92 +1.9 1,673 109 +1.8 1,967 128 +2.5
Source: based on IRI/Mintel
FIGURE 53: BEST- AND WORST-CASE FORECAST OF UK RETAIL VOLUME SALES OF BUTTER, 2012-22
FIGURE 54: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF BUTTER, 2012-22
2017 (est) 789 100 +7.1 789 100 +7.1 789 100 +7.1
2018 (fore) 747 95 -5.3 805 102 +2.0 862 109 +9.2
2019 (fore) 769 97 +2.8 845 107 +5.0 922 117 +7.0
2020 (fore) 781 99 +1.7 877 111 +3.8 973 123 +5.6
2021 (fore) 794 101 +1.6 908 115 +3.5 1,021 129 +4.9
2022 (fore) 802 102 +1.0 928 118 +2.2 1,054 134 +3.2
Source: based on IRI/Mintel
FIGURE 55: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VOLUME SALES OF BUTTER, 2012-22
2017 (est) 154 100 -1.9 154 100 -1.9 154 100 -1.9
2018 (fore) 146 95 -5.1 158 102 +2.3 169 110 +9.8
2019 (fore) 146 95 -0.1 159 103 +0.9 171 111 +0.9
2020 (fore) 148 96 +1.1 161 104 +1.0 174 113 +1.6
2021 (fore) 149 96 +0.7 162 105 +0.9 176 114 +1.2
2022 (fore) 150 97 +0.9 164 106 +1.2 178 115 +1.3
Source: based on IRI/Mintel
FIGURE 56: BEST- AND WORST-CASE FORECAST OF UK RETAIL VOLUME SALES OF SPREADS, 2012-22
FIGURE 57: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF SPREADS, 2012-22
2017 (est) 362 100 -6.7 362 100 -6.7 362 100 -6.7
2018 (fore) 213 59 -41.0 333 92 -8.1 452 125 +24.8
2019 (fore) 199 55 -6.8 322 89 -3.3 444 123 -1.6
2020 (fore) 208 57 +4.3 328 91 +2.1 449 124 +1.1
2021 (fore) 224 62 +8.1 335 93 +2.0 459 127 +2.2
2022 (fore) 245 68 +9.0 343 95 +2.4 472 130 +2.7
Source: based on IRI/Mintel
FIGURE 58: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VOLUME SALES OF SPREADS, 2012-22
2017 (est) 139 100 -6.1 139 100 -6.1 139 100 -6.1
2018 (fore) 117 84 -15.8 132 95 -5.3 146 105 +5.2
2019 (fore) 109 79 -6.7 124 89 -5.9 138 100 -5.3
2020 (fore) 108 78 -1.3 122 88 -1.1 137 99 -1.0
2021 (fore) 107 77 -0.7 122 87 -0.7 136 98 -0.6
2022 (fore) 106 76 -0.9 121 87 -0.8 135 97 -0.7
Source: based on IRI/Mintel
FIGURE 59: BEST- AND WORST-CASE FORECAST OF UK RETAIL VOLUME SALES OF EDIBLE OILS, 2012-22
FIGURE 60: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF EDIBLE OILS, 2012-22
2017 (est) 383 100 +1.9 383 100 +1.9 383 100 +1.9
2018 (fore) 366 96 -4.5 389 102 +1.7 413 108 +7.9
2019 (fore) 363 95 -0.7 393 103 +0.8 422 110 +2.2
2020 (fore) 358 94 -1.4 391 102 -0.4 424 111 +0.5
2021 (fore) 365 95 +1.9 402 105 +2.6 438 114 +3.3
2022 (fore) 363 95 -0.5 402 105 +0.2 441 115 +0.7
Source: based on IRI/Mintel
FIGURE 61: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VOLUME SALES OF EDIBLE OILS, 2012-22
2017 (est) 165 100 -1.2 165 100 -1.2 165 100 -1.2
2018 (fore) 157 95 -4.7 163 99 -1.0 170 103 +2.8
2019 (fore) 156 94 -1.0 162 98 -1.0 168 102 -0.9
2020 (fore) 154 93 -1.2 160 97 -1.1 166 101 -1.1
2021 (fore) 152 92 -1.0 159 96 -0.9 165 100 -0.9
2022 (fore) 151 91 -1.1 157 95 -1.1 163 99 -1.0
Source: based on IRI/Mintel
Market Share
FIGURE 62: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL BUTTER MARKET, BY VALUE AND VOLUME,
2015/16-2016/17
FIGURE 63: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK RETAIL BUTTER MARKET, BY VALUE AND
VOLUME, 2015/16-2016/17
FIGURE 64: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL MARGARINE AND SPREADS MARKET, BY
VALUE AND VOLUME, 2015/16-2016/17
FIGURE 65: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK RETAIL MARGARINE AND SPREADS
MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
Unilever 81 52 70 48 -13.6
Dairy Crest Ltd 39 25 39 27 -
Raisio 3 2 3 2 -
Kerry Group plc 3 2 2 1 -33.3
Central Supplies 3 2 2 1 -33.3
Arla Foods UK <0.5 <0.5 <0.5 <0.5 -
Other <0.5 <0.5 <0.5 <0.5 -
Own-label 28 18 28 19 -
FIGURE 66: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL COOKING FATS MARKET, BY VALUE AND
VOLUME, 2015/16-2016/17
FIGURE 67: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK RETAIL COOKING FATS MARKET, BY VALUE
AND VOLUME, 2015/16-2016/17
Unilever 35 81 31 79 -11.4
Other 1 2 <0.5 <0.5 -
Own-label 7 16 7 18 -
Unilever 15 79 13 76 -13.3
Other <0.5 <0.5 <0.5 <0.5 -
Own-label 4 21 4 24 -
PREVIOUS NEXT
UK RESEARCH METHODOLOGY 82
UK Research Methodology
Mintel is an independent market analysis Sampling and weighting for, job actually done, job title/rank/grade,
company that prides itself on supplying and whether the chief income earner is
objective information on a whole range of Face to Face Surveys self-employed. Additionally, questions are
markets and marketing issues. asked about the number of people working
Ipsos Mori at the place of employment and whether
There are six main sources of research the chief income earner is responsible
that are used in the compilation of Mintel Ipsos MORI Capibus uses a two-stage for anyone, together with confirmation
reports: random location sample design which of qualifications. Once the interviewer is
generates a very high quality sample satisfied that sufficient information has
• Consumer research representative of the Great Britain adult been gathered in order to determine social
population. Interviews are conducted grade, their estimate is recorded and
• Brand & social media research via c170-180 sampling points, randomly this is later double checked for accuracy
selected every week, and CACI ACORN by experts in social grading coding at
• Desk research is employed to set interlocking quota Ipsos MORI when it can be amended if
controls specific to each interviewer necessary.
• Trade research location. This ensures consistent accurate
representation of the locations interviewed Online Surveys
• Statistical forecasting every week. By using this proven sample
design, all sub-sectors of the population Lightspeed
• Mintel’s exclusive archive of over are represented – at a national and
40 years of analysis and expertise. regional level. Founded in 1999, Lightspeed’s double
opt-in online consumer panel has reach
Mintel reports are written and managed by All information collected on Capibus is to approximately 450,000 consumers in
analysts with experience in the relevant then weighted to reflect the known profile the UK. Lightspeed delivers uniquely
markets. of the adult population in Great Britain. identified online respondents via extensive
Capibus uses a rim weighting system use of fraud detection and location-
Consumer research which weights to mid-2010 census and verification technology at multiple points in
NRS defined profiles for age, social grade, the research cycle, from initial registration
Exclusive and original quantitative region, ethnicity and working status - within through survey fielding and incentive
consumer research is commissioned gender. Additional profiles used include redemption. Lightspeed panellists are
for almost all Mintel reports. In addition, tenure and car in household, for example. profiled on a wide variety of attri¬butes
qualitative research is also undertaken for to deliver the specific hard-to-reach
a large proportion of reports in the form of Because the sampling process is repeated demographics.
online discussion groups. Mintel invests a every week, the Capibus sample is
considerable sum each year in consumer matched wave on wave, making it ideal for To ensure our surveys are nationally
research, and the purchaser of a Mintel taking successive measurements on the representative of internet users, Mintel
report benefits, as the price of an individual same issue. sets quotas for each age group, split by
report is less than the cost of the original gender. Specific quotas for a sample of
research alone. The research brings an Calculation of socio-economic grade in 2,000 adults aged 16+ are shown below:
up-to-date and unique insight into topical Ipsos MORI Capibus surveys
issues of importance. Note:- Lightspeed GMI was re-branded as
Socio-economic grade is classified Lightspeed in September 2016
Consumer research is conducted among a according to the occupation of the chief
nationally representative sample of either income earner in the household. A
adults or internet users and is generally number of questions are asked by the
carried out by Lightspeed (online), Ipsos interviewer in order to assign social grade
Mori (face to face), while other suppliers accurately. The interviewer probes the
are used on an ad hoc basis as required. respondent for information about the
The results are only available in Mintel occupation of the chief income earner,
reports. the type of organisation he or she works
target variable. It is commonly used to Trade research Department of Trade and Industry. Other
understand and visualise the relationship information is also gathered from store and
between a variable of interest such as Informal exhibition visits across Europe, as well as
“interest in trying a new product” and other using other databases within the Mintel
characteristics of the sample, such as Trade research is undertaken for Group, such as the Global New Product
demographic composition. all reports. This involves contacting Database (GNPD), which monitors FMCG
relevant players in the trade, not only to sales promotions.
Key Driver Analysis gain information concerning their own
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Key driver analysis can be a useful tool and views of the strategic issues pertinent Size and Macroeconomic Databases –
in helping to prioritise focus between to the market being researched. a database containing many areas of
different factors which may impact key consumer spending and retail sales as
performance indicators (eg satisfaction, Formal well as macroeconomic and demographic
likelihood to switch providers, likelihood factors which impinge on consumer
to recommend a brand, etc). Using Internally, Mintel’s analysts undertake spending patterns, going back some 20
correlations analysis or regression analysis extensive trade interviews with selected years.
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positive performance on key performance place in order to ensure that any research weighted historical correlations of market
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identify which factors or attributes are produce future spending scenarios.
relatively more critical in a market category In addition, using experienced external
compared to others and ensures that researchers, trade research is undertaken Statistical Forecasting
often limited resources can be allocated to for some reports. This takes the form of
focusing on the main market drivers. full trade interview questionnaires and Statistical modelling
direct quotes are included in the report and
Brand & Social Media Research analysed by experts in the field. This gives For the majority of reports, Mintel produces
a valuable insight into a range of trade five-year forecasts based on an advanced
Mintel’s brand research includes more views of topical issues. statistical technique known as ‘multivariate
in-depth knowledge about brands covered time series auto-regression’ using the
in relevant markets. Brands are evaluated Desk research statistical software package SPSS.
on a number of areas including usage,
commitment, dynamism, differentiation, Mintel has an internal team of market Historical market size data feeding into
satisfaction, image, recommendation and analysts who monitor: government each forecast are collated in Mintel’s own
attitudes. When evaluating attitudes, up to statistics, consumer and trade association market size database and supplemented
ten brand attitude statements are selected statistics, manufacturer sponsored reports, by macro- and socio-economic data
and tested, depending on the actual annual company reports and accounts, sourced from organisations such as the
consumer market. directories, press articles from around the Office for National Statistics, HM Treasury,
world and online databases. The latter are the Bank of England and the Economist
To complement its exclusive consumer extracted from hundreds of publications Intelligence Unit.
research, Mintel tracks social media data and websites, both British and overseas.
for inclusion in selected reports. Using All information is cross-referenced for Within the forecasting process, the
Infegy’s Atlas software, Mintel analyses immediate access. model searches for, and analyses
online conversations across a range relationships between, actual market
of social platforms including Twitter, Data from other published sources are the sizes and a selection of key economic and
consumer forums and the wider web. latest available at the time of writing the demographic determinants (independent
report. variables) in order to identify those
Atlas provides rich consumer insight via predictors having the most influence on the
the analysis of commentary posted publicly This information is supplemented by market.
on the internet. The system performs an extensive library of Mintel’s reports
comprehensive and broad collection of produced since 1972 and added to each Factors used in a forecast are stated in
data from millions of internet sources, year by the 500+ reports which are the relevant report section alongside an
working to ensure a faithful and extensive produced annually. interpretation of their role in explaining the
sampling of feedback from the widest development in demand for the product or
range of individuals. The dataset contains In addition to in-house sources, market in question.
commentary posted in real time, as well as researchers also occasionally use outside
a substantial archive dating back to 2007. libraries such as the British Library or the
Qualitative insight
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