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SWEET & NUT SPREADS - UK - AUGUST 2019

Published By :

Mintel

Published Date : Aug 2019

Category :

Food

No. of Pages : N/A

Further innovation in no added and reduced-sugar products is essential in view of government reformulation targets and widespread consumer concerns over sugar. Where a lower sugar content results in a less sweet taste and more sophisticated flavour profile, this could also help companies retain users in the category for longer.

Table of Contents

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Sweet spreads volume sales remain resilient over 2014-19
Rising value sales and falling volumes projected for 2019-24
Figure 1: UK retail value sales of sweet and nut spreads, 2014-24
Peanut butter leads on value sales but jam/conserve leads on volumes
War on sugar continues
Companies and brands
Own-label continues to lead the market but sales fall in 2019
Figure 2: Leading brands’ shares in the UK sweet and nut spreads market, by value, 2018/19*
Rise in no added sugar, high protein and vegan claims in 2018
More crossover brands enter the sweet spreads market
Advertising spend falls in 2018
Hartley’s leads on value and Rowse on ethical perceptions
The consumer
Over eight in ten adults eat sweet or nut spreads
Figure 3: Usage of sweet and nut spreads, by type, May 2019
On bread/toast is the leading usage occasion for sweet spreads
Figure 4: Usage occasions for selected types of sweet and nut spreads, May 2019
Dessert-inspired flavours and superfood ingredients attract interest
Figure 5: Interest in innovation in sweet and nut spreads, May 2019
All-natural ingredients are most widely seen as worth paying more for
Figure 6: Attributes seen as worth paying more for in sweet and nut spreads, May 2019
Sugar concerns surround the category
Figure 7: Behaviours relating to sweet and nut spreads, May 2019
Palm oil is a deterrent to many
Figure 8: Attitudes towards sweet and nut spreads, May 2019
What we think
ISSUES AND INSIGHTS
Companies must continue to promote usage occasions beyond bread
The facts
The implications
Further NPD needed in reduced- and no added sugar products
The facts
The implications
Ethical attributes are an underexplored opportunity
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Sweet spreads volume sales remain resilient over 2014-19
Rising value sales and falling volumes projected for 2019-24
Peanut butter leads on value sales but jam/conserve leads on volumes
War on sugar continues
MARKET SIZE AND FORECAST
Sweet spreads volume sales remain resilient over 2014-19 despite demonisation of sugar
…but sugar concerns and changing eating habits limit growth
Figure 9: UK retail value and volume sales of sweet and nut spreads, 2014-24
Volume and value sales fall in 2019
Rising value sales and falling volume sales projected for 2019-24
Retailer price competition to curb the effects of inflation
Ageing population to hinder volume sales
Figure 10: UK retail value sales of sweet and nut spreads, 2014-24
Figure 11: UK retail value and volume sales of sweet and nut spreads, 2014-24
Forecast methodology
MARKET SEGMENTATION
Honey leads on value sales but jam/conserve leads on volumes
Figure 12: Value and volume sales of sweet and nut spreads, by segment, 2017-19
Sweet spreads see falling or flat volume sales over 2018-19 due to decline in carrier products
Honey’s sales slip after years of growth
Nut butter trend runs out of steam
MARKET DRIVERS
War on sugar continues
Sweet spreads sector makes progress on sugar reduction…
…but no added sugar and low/reduced sugar claims remain niche
Natural sugar of fruit drives up sugar levels
Grey area around whether no added sugar claims can be made on products with sweeteners
Various factors affect sweet spreads prices
Sweet spreads’ high import reliance makes future trade relations crucial
Seasonal workers are important for fruit harvests
Weather extremes of 2018 and 2019 affect fruit production
Volatility in cocoa prices affects chocolate products
Demographic changes in the UK to hinder the category
Ageing population offers little support for sweet spreads…
…with the exception of marmalade
Slowing growth in the child population to limit sales growth
Weakness of carrier products impedes the category
Ongoing decline of pre-packed bread pushes down sweet spreads volume sales
…as does the fall in home baking
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Own-label continues to lead the market but sales fall in 2019
Rise in no added sugar, high protein and vegan claims in 2018
More crossover brands enter the sweet spreads market
Advertising spend falls in 2018
Hartley’s leads on value and Rowse on ethical perceptions
MARKET SHARE
Own-label loses out to overall decline in the market
Figure 13: Leading brands’ sales and shares in the UK sweet and nut spreads market, by value and volume, 2016-17-2018/19
Figure 14: Leading brand owners’ sales and shares in the UK sweet and nut spreads market, by value and volume, 2016-17-2018/19
Nutella shifts away from promotions on larger formats
LAUNCH ACTIVITY AND INNOVATION
Aldi, Sainsbury’s and Tesco take the top spots on launch activity
Figure 15: New product launches in the UK sweet and nut spreads market, by top 10 companies, 2015-19 (sorted by 2018)
Tesco draws on its history with new tertiary brand
Lidl looks to rival Lotus with new biscuit spreads
M&S experiments with botanical and seasonal flavours
Figure 16: Examples of own-label sweet spreads launches, 2018
Confiture and fruit spreads lead on launch activity in 2018
Honey shows strongest rate of growth in launches over 2015-18
Figure 17: New product launches in the UK sweet and nut spreads market, by segment
No added sugar claims grow but remain niche
Brands and retailers take various approaches to cut sugar in their products
Figure 18: Examples of no added sugar and low/reduced sugar sweet spreads launches with sweeteners, 2018-19
Figure 19: Examples of no added sugar and low/reduced sweet spreads launches referencing ‘naturally occurring fruit sugars only’ or increased fruit content, 2018-19
High/added protein claims grow, although from a low base
Nut butter launches supplement high protein claims with additional health claims for all-round healthy positioning
Figure 20: Examples of nut butter launches with high/added protein claims, 2018
Grenade enters the category with high-protein chocolate spreads
Figure 21: Example of Grenade high protein chocolate spread range, 2018
Sprouted wheat product is promoted as a healthier alternative to chocolate spread
Leading and niche brands experiment with fortified products
Rowse claims UK first with Vitamin C fortified honey
Figure 22: Rowse launches Vitamin C fortified honey, 2018
Cereal brand launches high-fibre syrup with digestive health claims
Figure 23: High-fibre syrup launch from Troo, 2018
Smaller brands launch vegan honey alternatives
Figure 24: Examples of vegan honey alternatives, 2018-19
Ethical claims are rare in sweet spreads
Organic brands highlight their sustainable practices
Figure 25: Examples of organic sweet spreads launches referencing sustainable farming methods, 2019
New honey brand puts the focus on bee welfare
Figure 26: Honey brand emphasises its high animal welfare, 2019
No/sustainable palm oil claims rise in 2018
Organic brands lead on no/sustainable palm oil claims in 2018/19
Figure 27: Examples of organic chocolate spread launches with ’palm oil free’ labels, 2018
Nut butters supplement no/sustainable palm oil claims with health claims
Figure 28: Examples of nut butter launches combining no/sustainable palm oil claims with health claims, 2018
More crossover brands enter the sweet spreads category
Gü and Lindt bring a premium element to the chocolate spreads category
Figure 29: Chocolate spread products from Lindt and Gü, 2018
Philadelphia with Milka offers potential chilled rival to chocolate spread
Figure 30: Philadelphia with Milka offers a potential chilled rival to chocolate spread
Free-from brands explore chocolate and caramel spreads…
…including breadstick/biscuit-dip products
Figure 31: Examples of chocolate/caramel spread products from free-from brands, 2018-19
Marmite extends into sweet spreads with peanut butter
Figure 32: Marmite extends into sweet spreads with peanut butter
Pinkster launches jam made with leftover raspberries from its gin-making process
Figure 33: Craft gin brand uses leftover raspberries to make jam, 2018
Brands and retailers innovate with flavours
Cocktail-inspired flavours appeal especially to under-35s
Figure 34: Examples of sweet spreads launches with alcohol-infused/cocktail-inspired flavours, 2018
Duerr’s launches new flavours and links up with artists
Niche brands experiment with trendy ingredients
Figure 35: Examples of sweet spreads launches with on-trend ingredients, 2018-19
Whole Earth draws inspiration from the coffee category
Figure 36: Whole Earth draws inspiration from the coffee category, 2019
ADVERTISING AND MARKETING ACTIVITY
Advertising spend falls in 2018
Figure 37: Total above-the line, online display and direct mail advertising expenditure on sweet and nut spreads, 2015-19 (sorted by 2018)
Rowse praises honey as a natural wonder…
…and urges people to help save the bees
Ferrero promotes Nutella’s suitability for various seasonal occasions
Pancake Day campaign repeated over 2017-19
Back-to-school campaign portrays Nutella as taking the stress out of school mornings
Christmas social media campaign positions Nutella as central to family life
Meridian gives out free cookies in experiential campaign
Palm oil controversy reignites
Iceland Christmas advert portrays palm oil as destroying the rainforest
Figure 38: Index of Google searches in the UK with ‘palm oil’ as the subject, August 2018-July 2019
Ferrero defends its palm oil sourcing via YouTube
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 39: Attitudes towards and usage of selected brands, July 2019
Key brand metrics
Figure 40: Key metrics for selected brands, July 2019
Brand attitudes: Hartley’s is most widely seen as good value
Figure 41: Attitudes, by brand, July 2019
Brand personality: Nutella scores highest on the fun factor
Figure 42: Brand personality – Macro image, July 2019
Hartley’s has a traditional and family image
Figure 43: Brand personality – Micro image, July 2019
Brand analysis
Nutella is the most recommended brand
Figure 44: User profile of Nutella, July 2019
Bonne Maman Conserves is seen as high quality and (somewhat) special
Figure 45: User profile of Bonne Maman Conserves, July 2019
Rowse is most widely seen as natural and ethical
Figure 46: User profile of Rowse, July 2019
Hartley’s Jam has a traditional and family image
Figure 47: User profile of Hartley’s Jam, July 2019
Under-25s have the most favourable views of Sun-Pat’s healthiness
Figure 48: User profile of Sun-Pat, July 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
Over eight in ten adults eat sweet or nut spreads
On bread/toast is the leading usage occasion for sweet spreads
Dessert-inspired flavours and superfood ingredients attract interest
All-natural ingredients are most widely seen as worth paying more for
Sugar concerns surround the category
Palm oil is a deterrent to many
USAGE OF SWEET AND NUT SPREADS
Over eight in ten adults eat sweet or nut spreads
Jam/conserve has the highest usage
Figure 49: Usage of sweet and nut spreads, by type, May 2019
Under-35s and parents are the core users of sweet and nut spreads
Figure 50: Usage frequency for sweet and nut spreads, May 2019
Youth and family bias is especially pronounced for some sweet spreads
Marmalade usage peaks among over-55s
45% of adults use only one or two types of sweet spreads
Figure 51: Repertoire of sweet and nut spreads eaten/used, May 2019
Parents and under-35s have the most varied repertoires
USAGE OCCASIONS FOR SELECTED TYPES OF SWEET AND NUT SPREADS
On bread/toast is the leading usage occasion for sweet spreads
Figure 52: Usage occasions for selected types of sweet and nut spreads, May 2019
Jam/conserve brands look to encourage usage beyond bread
Figure 53: Examples of jam/conserves with on-pack serving suggestions, 2019
Honey benefits from the growth in hot cereals
Honey also leads on usage in drinks
Link-ups with supermarkets can help encourage use in cooking/baking
INTEREST IN INNOVATION IN SWEET AND NUT SPREADS
Dessert-inspired flavours appeal especially to under-25s and parents…
Figure 54: Interest in innovation in sweet and nut spreads, May 2019
Niche brands explore dessert flavours
Figure 55: Selection of curds by The Cherry Tree*, 2019
Figure 56: International example of a sweet spread with a dessert-inspired flavour
Dessert brand Gü enters the sweet spreads category
…as does chocolate spread with additions
Figure 57: examples of chocolate spreads with additions, 2018-19
Opportunities for link-ups with biscuit brands
Figure 58: International examples of chocolate spreads with biscuit pieces, 2018
Seasonal flavours are an underexplored opportunity
Sweet spreads with superfood ingredients appeal to one in five
High-fruit spreads are well-placed to tap into interest in superfoods
Figure 59: Niche brands launch fruit spreads with chia seeds, 2018-19
European brands experiment with turmeric and matcha tea
Figure 60: International examples of sweet spreads with superfood ingredients, 2018-19
Companies must consider consumers’ divided opinions on superfoods
ATTRIBUTES SEEN AS WORTH PAYING MORE FOR IN SWEET AND NUT SPREADS
Multiple options for companies to encourage trading up
Figure 61: Attributes seen as worth paying more for in sweet and nut spreads, May 2019
All natural ingredients are the top attribute people would pay more for
Ethical ingredients appeal to a quarter
Farmers’ pay guarantees should appeal…
…as should jams and marmalades made from surplus fruit
European honey brands emphasise their care for bees
Figure 62: International examples of honey launches highlighting their care for bee welfare and preserving the bee population, 2018-19
Lemon curds made with free-range eggs could make this aspect more tangible
High fruit/nut/cocoa content appeals to one in five
Explain the purpose of other ingredients in sweet spreads
BEHAVIOURS RELATING TO SWEET AND NUT SPREADS
Opportunities for sweet spreads brands to extend into sweet snacks
Extending into snacks could help sweet spreads appeal during on-the-go occasions
Figure 63: Behaviours relating to sweet and nut spreads, May 2019
Snacks could also help marmalade attract younger users
Brand extensions from sweet spreads brands are rare
Figure 64: Examples of sweet snack launches from sweet spreads brands, 2017-18
Sugar concerns surround the category
Higher concerns over sugar among over-65s helps to explain less frequent usage of sweet spreads
Taste trumps healthiness for many people
Need for companies making sugar reductions to reassure consumers on taste
Allow consumers a say in the reformulation process
Figure 65: German supermarket invites shoppers to vote on sugar reduction, 2018
ATTITUDES TOWARDS SWEET AND NUT SPREADS
Anti-plastic movement could see some brands losing sales
Figure 66: Attitudes towards sweet and nut spreads, May 2019
Environmentally-friendly packaging claims are widespread in sweet spreads, but little real innovation
Figure 67: Examples of sweet spreads launches promoting their sustainable packaging, 2018
Manufacturers need to strike the right balance on convenience and the environment
Palm oil is a deterrent for many
Use of palm oil is widespread, but no/sustainable palm oil claims rise in 2018
Tangible details of support for the environment should boost the appeal of spreads without palm oil…
…and of those using sustainable palm oil
Figure 68: International examples of chocolate spreads giving specific details on sustainable palm oil sourcing, 2018-19
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 69: Forecast of UK sales of sweet and nut spreads, by value, best- and worst-case, 2019-24
Figure 70: Forecast of UK sales of sweet and nut spreads, by volume, best- and worst-case, 2019-24
Forecast methodology
APPENDIX – MARKET SEGMENTATION
Figure 71: Value and volume sales of sweet and nut spreads, by segment, 2014-19
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 72: New product launches in the UK sweet and nut spreads market, by top 20 claims, 2015-19 (sorted by 2018)
APPENDIX – USAGE OCCASIONS FOR SELECTED TYPES OF SWEET AND NUT SPREADS
Figure 73: Repertoire of usage occasions for selected types of sweet and nut spreads, May 2019

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