Butter And Spreads - Ireland - August 2020

Butter And Spreads - Ireland - August 2020

  • Mintel
  • September 2020
  • Food
  • 0 pages

Report Description

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Pre-COVID-19, the breakfast and lunch occasions were moving from in-home consumption to out-of-home due to the time pressures of modern life. As that trend has backpedalled drastically, butter and spreads are benefitting from increased usage, which is set to continue in 2020 and beyond. In addition, financial pressures and concerns about exposure to the virus are encouraging more consumers to seek out at-home leisure activities that won’t break the bank – with home cooking and baking showing a revival.

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Table of Contents

OVERVIEW

What you need to know
Key issues covered in this Report
Issues covered in this Report

EXECUTIVE SUMMARY
The market
Figure 1: Estimated total value of the butter and spreads market, IoI, NI and RoI, 2015-20
Figure 2: Market segmentation of the butter and spreads market, by segments, IoI, 2019
Market factors
Milk and butter prices stabilise
Brexit casts uncertainty on exports
Reduced sugar spreads can engage parents
Impact of COVID-19 on butter and spreads
Figure 3: Estimated indexed value of the butter and spreads market, IoI, NI and RoI, 2015-25
Figure 4: Expected impact of COVID-19 on butter and butter spreads, short, medium and long term, 14th August
Companies and innovations
The consumer
Butter continues to be a staple in Irish households
Figure 5: Types of butter and butter-like spreads used in the last three months, NI and RoI, April 2020
Jam is the top sweet spread used
Figure 6: Types of sweet and savoury spreads used in the last three months, NI and RoI, April 2020
Toast is the most common usage for butter and spreads
Figure 7: Usage of butter, butter-like spread and sweet/savoury spreads in the last three months, NI and RoI, April 2020
Low fat content associated with healthy spreads
Figure 8: Factors consumers think would make a spread 'healthy', NI and RoI, April 2020
Price and flavour prove to be most important when buying butter
Figure 9: Factors consumers noted were most important when buying butter/butter-like spreads, NI and RoI, April 2020
Health claims in butter are worth paying for
Figure 10: Agreement with statements related to butter and spreads in relation to health, NI and RoI, April 2020
Dairy industry is coming under scrutiny for its environmental impact
Figure 11: Agreement with statements related to butter and spreads, NI and RoI, April 2020
What we think

THE IMPACT OF COVID-19 ON BUTTER AND SPREADS
Short, medium and long-term impact on the industry
Figure 12: Expected impact of COVID-19 on butter and butter spreads, short, medium and long term, 14 August 2020
Opportunities and threats
More meals at home and packed lunches out of home
Baking surge offers opportunities for sweet spreads to be used more
The sustainability movement threatens the dairy category long term
Figure 13: How consumers view the environment since the COVID-19 outbreak (eg high or lower priority), IoI, May 2020
Impact on the butter and spreads market
Figure 14: Estimated indexed value of the butter and spreads market, IoI, NI and RoI, 2015-25
How the crisis will affect key consumer segments of butter and spreads
Own-label likely to see a surge in demand as incomes tighten
Figure 15: Consumers who consider ‘price’ the most important factor when choosing butter and butter-like spreads, by affluency, NI and RoI, April 2020
Figure 16: New butter and sweet spreads products launched, by percentage split of own-label vs branded, UK and Ireland, 2007-11
Own-label can thrive for baking purposes
Figure 17: Top three own-label food products bought in the last 12 months, NI and RoI, February 2012
Butter and spreads can excel with home-grown claims during the pandemic and beyond
Figure 18: Consumers who agreed with the statement ‘I am shopping more from local businesses’, IoI, April-August 2020
How a COVID-19 recession will reshape the butter and spreads sector
COVID-19: Market context

THE MARKET – WHAT YOU NEED TO KNOW
COVID-19 is set to benefit the butter and spreads category
Butter and spread market estimated to grow 4% in 2020
Milk prices stabilise
Butter shows little fluctuations in price
Brexit casts uncertainty on exports
Reduced sugar spreads move into mainstream

MARKET SIZE & FORECAST
4% growth estimated in 2020 due to lockdown
Figure 19: Estimated total value of the butter and spreads market, IoI, NI and RoI, 2015-25
Figure 20: Estimated indexed value of the butter and spreads market, IoI, NI and RoI, 2015-25
Butter market to witness 4% growth in 2020
Figure 21: Estimated total value of the butter market, IoI, NI and RoI, 2015-25
Butter-like spreads forecast for 3% growth
Figure 22: Estimated total value of the margarine and other butter-like blends market, IoI, NI and RoI, 2015-25
Figure 23: Total population, by age group, NI and RoI, 2019
Sweet spreads set for 4.3% growth in 2020
Figure 24: Estimated total value of the sweet spreads market, IoI, NI and RoI, 2015-25

MARKET DRIVERS
Milk prices stabilise across Ireland
Figure 25: Manufacturing milk prices (including VAT), price £ per litre, UK & NI, July 19-June 20
Figure 26: Manufacturing milk prices (including VAT), price € per litre, RoI, July 19-June 20
Butter prices stabilise while spreads see prices fluctuate
Figure 27: Price index for butter, margarine and other vegetable fats and jams, marmalades and honey, UK (including NI), Jun 18-Jun 20
Figure 28: Price index for butter, margarine and other vegetable fats and jams, marmalades and honey, RoI, Jun 18-Jun 20
Butter is one of Ireland’s biggest exports
Figure 29: Estimated annual value of dairy exports, RoI, 2018-19
Sugar crackdown forces spreads to innovate
Figure 30: Top five ingredients in food and drink consumers are concerned about, NI and RoI, November 2019
Figure 31: Consumers who are concerned with sugar, saturated fat and salt, by age, NI and RoI,

COMPANIES AND INNOVATIONS - WHAT YOU NEED TO KNOW
Launch activity in branded butter and margarine surpasses own label
Sweet spreads tap into sustainability trend
COVID-19 has prompted greater community engagement

WHO’S INNOVATING?
Sweet spread launches outperform butter
Figure 32: New products launched in butter, margarine and other blends and sweet spreads, UK and Ireland, 2016-20*
Ethical claims on the rise in butter
Figure 33: New butter and margarine/other butter blends product launches, by selected top five claims, UK and Ireland, 2016-20*
Branded outperforms own-label in butter
Figure 34: New product launches in butter and margarines/other blends, by branded vs own label, UK and Ireland, 2016-20*
Sweet spread launches on the rise
Figure 35: New sweet spread product launches, by category, UK and Ireland, 2016-20*
Trending claims in sweet spreads
Figure 36: New sweet spread product launches, by selected top eight claims, UK and Ireland, 2016-2020*
Sustainable palm oil sees growth in sweet spreads

COMPANIES AND BRANDS
Arla
Key facts
Product portfolio
Brand NPD
Recent developments
Avonmore (Glanbia)
Key facts
Product portfolio
Recent developments
Benecol
Key facts
Product portfolio
Recent developments
Connacht Gold
Key facts
Product portfolio
Recent developments
Dale Farm
Key facts
Product portfolio
Recent developments
Ferrero 
Key facts
Product portfolio
Brand NPD
Recent developments
Kerry Group
Key facts
Product portfolio
Recent developments
Ornua
Key facts
Product portfolio
Recent developments
Upfield
Key facts
Product portfolio
Recent developments
Valeo Foods
Key facts
Product portfolio
Figure 37: Rowse full product portfolio, by products and strength, 2020
Brand NPD
Recent developments
Sun-Pat
Key facts
Product portfolio
Brand NPD
Recent developments
Hartley’s
Key facts
Product portfolio
Figure 38: Hartley’s full product portfolio, including best jam, smooth jam and food service, 2020.
Recent developments

THE CONSUMER – WHAT YOU NEED TO KNOW
Butter and jam continue to be staples in Irish households
Toast is the most common pairing with butter and spreads
Low fat content associated with healthy spreads
Price is the most important factor when buying butter
Health claims are worth paying a premium

TYPES OF BUTTER AND BUTTER-LIKE SPREADS
Spreadable butter tops preferences but block butter is a close second
Figure 39: Types of butter and butter-like spreads used in the last three months, NI and RoI, April 2020
Parents opt for spreadable butter
Figure 40: Consumers who have used spreadable butter in the last three months, by age of child/ren, NI and RoI, April 2020
Butter eaten less by younger consumers
Figure 41: Consumers who have used butter in the last three months, by age, NI and RoI, April 2020
Figure 42: Consumers who agreed that ‘country of origin’ is most important when choosing butter or butter-like spreads, by age, NI and RoI, April 2020

TYPES OF SWEET AND SAVOURY SPREADS
Jam is the most popular spread
Figure 43: Types of sweet and savoury spreads used in the last three months, NI and RoI, April 2020
Families are strong users of jam
Figure 44: Consumers who have used jam in the last three months, by age of child/ren, NI and RoI, April 2020
Younger consumers prefer chocolate spread
Figure 45: Consumers who have used chocolate spread in the last three months, by age, NI and RoI, April 2020

BUTTER AND SPREADS USAGE
On toast is the top usage of butter and spreads
Figure 46: Usage of butter, butter-like spread and sweet/savoury spreads in the last three months, NI and RoI, April 2020
Block butter used most on bread
Figure 47: Usage of block butter in the last three months, NI and RoI, April 2020
Spreadable butter eaten most on toast
Figure 48: Usage of spreadable butter/butter-like spreads in the last three months, NI and RoI, April 2020
Sweet spreads tend to be eaten most with bread
Figure 49: Usage of sweet and savoury spreads in the last three months, NI and RoI, April 2020
Figure 50: Consumers who have used sweet/savoury spread on toast/bread in the last three months, NI and RoI, April 2020

FACTORS ASSOCIATED WITH HEALTHY SPREADS
Healthy spreads driven by fat content and natural ingredients
Figure 51: Factors consumers think would make a spread 'healthy', NI and RoI, April 2020
Low fat and heart health important to seniors
Figure 52: Consumers who associated a healthy spread with ‘low saturated fat’ and ‘helps with heart health’ claims, NI and RoI, April 2020
All-natural ingredient claims hold strong appeal for women
Figure 53: Consumers who associated a healthy spread with ‘all-natural ingredients’, NI and RoI, April 2020

MOST IMPORTANT FACTORS IN BUTTER
Half of consumers noted price as the most important factor
Figure 54: Factors consumers noted were most important when buying butter/butter-like spreads, NI and RoI, April 2020
Easy to spread holds stronger appeal among mature consumers
Figure 55: Consumer who consider ‘easy to spread’ the most important factor when choosing butter and butter-like spreads, NI and RoI, April 2020
Flavour and price go hand-in-hand
Figure 56: Consumer who consider ‘price’ and ‘flavour’ the most important factors when choosing butter and butter-like spreads, NI and RoI, April 2020
Own-label spreads could see a resurgence due to COVID-19

HEALTH IN BUTTER AND SPREADS
Additives in butter and spreads remain a concern
Figure 57: Agreement with statements related to butter and spreads in relation to health, NI and RoI, April 2020
Low sugar and salt demanded in butter and spreads
Figure 58: agreement with the statement ‘I am worried about the salt content in them’ and ‘I am worried about the sugar content in them ‘, NI and RoI, April 2020
Millennials are more likely to pay for health boosts
Figure 59: Consumers agreement with the statement ‘I think it's worth paying more for those with health claims (eg good for heart or bone health)’ by age, NI and RoI, April 2020

ATTITUDES TOWARDS BUTTER AND SPREADS
Block butter seen as more natural
Figure 60: Agreement with statements related to butter and spreads, NI and RoI, April 2020
Taste more important for mature consumers
Figure 61: Consumer agreement with the statement ‘I think taste is more important than anything else for butters/ butter-like spreads’ by age, NI and RoI, April 2020
Younger consumers more concerned about the environment
Figure 62: Consumers who agreed with the statement ‘I worry about the impact dairy production has on the environment’, by age, NI and RoI, April 2020

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Generational cohort definitions
Abbreviations

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