Table of Contents
Health and Wellness in Ireland - Industry Overview
EXECUTIVE SUMMARY
Recession slows health and wellness market development
Rising health awareness helps to sustain demand in some categories
Private label products make gains as Ireland’s recession deepens
Distribution trends change slightly as consumers shop around
Healthy eating trend will prevail despite uncertain economic outlook
KEY TRENDS AND DEVELOPMENTS
Demand for health and wellness products slows as economic crisis deepens
Health awareness continues to improve among Irish consumers
Private label products gain ground across the health and wellness market
Downturn brings changes in health and wellness distribution
Competition intensifies in line with recession and regulatory changes
MARKET DATA
Table 1 Sales of Health and Wellness by Type: Value 2005-2010
Table 2 Sales of Health and Wellness by Type: % Value Growth 2005-2010
Table 3 Sales of Health and Wellness by Category: Value 2005-2010
Table 4 Sales of Health and Wellness by Category: % Value Growth 2005-2010
Table 5 Health and Wellness GBO Company Shares 2006-2010
Table 6 Health and Wellness NBO Company Shares 2006-2010
Table 7 Health and Wellness Brand Shares 2007-2010
Table 8 Forecast Sales of Health and Wellness by Type: Value 2010-2015
Table 9 Forecast Sales of Health and Wellness by Type: % Value Growth 2010-2015
Table 10 Forecast Sales of Health and Wellness by Category: Value 2010-2015
Table 11 Forecast Sales of Health and Wellness by Category: % Value Growth 2010-2015
APPENDIX
National Legislation
Retail Distribution
EU Legislation
SOURCES
Summary 1 Research Sources
Health and Wellness in Ireland - Company Profiles
Glanbia Plc in Health and Wellness (Ireland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Glanbia Plc: Competitive Position 2010
Jacob Fruitfield Food Group in Health and Wellness (Ireland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Jacob Fruitfield Food Group: Competitive Position 2010
Kerry Group Plc in Health and Wellness (Ireland)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Kerry Group Plc: Competitive Position 2010
Better For You Beverages in Ireland - Category Analysis
HEADLINES
TRENDS
The decline in total BFY beverages current value sales in 2010 was almost double that recorded the previous year. At the same time, while many BFY beverages categories showed volume sales declines, in those categories where volume sales continued to increase, growth was invariably slower than in 2009. Ireland’s economic crisis was the main factor behind this generally poor performance. As household incomes continued to shrink due to the recession, consumers bought certain types of products less frequently or stopped buying them altogether. This restricted growth in volume sales. At the same time, as consumers traded down to cheaper private label products to save money, branded manufacturers responded with aggressive discounting, hampering current value sales growth. It is also likely that competition from other market categories such as organic beverages contributed to the slowdown in demand for certain types of BFY beverages in 2010.
COMPETITIVE LANDSCAPE
Britvic Ireland remained the overall leader in BFY beverages in 2010 with a value share of 40%. The company dominated reduced sugar non-cola carbonates, where its 7-Up Free and Diet Club Orange brands claimed a combined value share of 80%. It also held a commanding lead in reduced sugar concentrates, where it offers the Mi Wadi No Added Sugar and Robinsons No Added Sugar brands, and finished second in reduced sugar cola carbonates thanks to its Pepsi Max and Diet Pepsi brands.
PROSPECTS
BFY beverages constant value sales are expected to decline by a total of 2% over the forecast period. Many product categories are also expected to show declines in volume terms, while in those categories where volume sales continue to increase, growth rates will be lower than during the review period. This generally poor outlook is mainly due to the fact that Ireland’s prospects for economic recovery remain highly uncertain. As long as this remains the case, shoppers will continue to reduce their consumption of certain types of BFY beverages, which will restrict growth in volume sales. At the same time, constant value sales growth will be hampered as consumers trade down to cheaper private label products and branded manufacturers continue to engage in aggressive discounting in an effort to stimulate demand. The increasing maturity of some categories and growing competition from FF, NH and organic alternatives will also hinder the development of BFY beverages towards 2015.
CATEGORY DATA
Table 12 Sales of BFY Beverages by Category: Value 2005-2010
Table 13 Sales of BFY Beverages by Category: % Value Growth 2005-2010
Table 14 BFY Beverages Company Shares 2006-2010
Table 15 BFY Beverages Brand Shares 2007-2010
Table 16 Forecast Sales of BFY Beverages by Category: Value 2010-2015
Table 17 Forecast Sales of BFY Beverages by Category: % Value Growth 2010-2015
Better For You Packaged Food in Ireland - Category Analysis
HEADLINES
TRENDS
Growth in total BFY packaged food current value sales in 2010 was down substantially on 2009, and also much slower than the CAGR for the entire review period. Most product categories also experienced a slowdown in volume sales growth, while a few recorded volume sales declines. This generally sluggish performance reflected the severity of Ireland’s economic downturn, which left even higher income households with less to spend on grocery shopping. In an effort to save money, consumers bought certain types of BFY packaged food products less frequently or stopped buying them completely. Consumers also shifted to smaller pack sizes to reduce the risk of wastage. These trends had a negative impact on volume sales across all categories. The slowdown in current value growth rates meanwhile also reflected aggressive discounting by branded manufacturers and rising private label penetration.
COMPETITIVE LANDSCAPE
Irish company Glanbia maintained its commanding lead in BFY packaged food in 2010, claiming a value share of 17%. Thanks to the combined strength of its Avonmore, Premier Milk, Yoplait and Weight Watchers brands, the company was the clear leader in reduced fat dairy products. The success of its flagship Avonmore brand also allowed Glanbia to claim the top position in reduced fat oils and fats, and finish third in reduced fat soup. Avonmore is one of the most heavily advertised packaged food brands in Ireland. Most notably, Avonmore sponsors the weather bulletins on Ireland’s four main terrestrial TV channels, giving the brand massive exposure on a daily basis. These TV spots mainly promote Avonmore dairy products, particularly the milk range. They not only highlight the fact that Avonmore milk products are low in fat, but also present them as a good source of calcium and protein for children and adults alike.
PROSPECTS
The outlook for BFY packaged food remains reasonably bright. Total constant value sales are expected to grow at a CAGR of 2%, while moderate to strong volume growth rates are predicted for most categories. Increasing concern among Irish consumers about rising rates of obesity, heart disease, diabetes and other diet-related health problems will be the main driver of demand for BFY packaged food products. New launches, marketing activities and sustained price competition will also drive demand. However, with Ireland’s prospects for economic recovery remaining highly uncertain, a number of categories are expected to experience volume and constant value sales declines, while in those that continue to develop positively, growth rates will for the most part be slower than during the review period. Aside from the unfavourable economic situation, increasing maturity and competition from organic, NH and FF alternatives will also hinder the development of some BFY packaged food categories.
CATEGORY DATA
Table 18 Sales of BFY Packaged Food by Category: Value 2005-2010
Table 19 Sales of BFY Packaged Food by Category: % Value Growth 2005-2010
Table 20 Other Reduced Carb Food by Type: % Value Breakdown 2005-2010
Table 21 Other Reduced Fat Food by Type: % Value Breakdown 2005-2010
Table 22 BFY Packaged Food Company Shares 2006-2010
Table 23 BFY Packaged Food Brand Shares 2007-2010
Table 24 Forecast Sales of BFY Packaged Food by Category: Value 2010-2015
Table 25 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2010-2015
Food Intolerance in Ireland - Category Analysis
HEADLINES
TRENDS
Irish consumers are increasingly well informed about different food allergies and the kinds of packaged food products that can prevent or alleviate their symptoms. Indeed, for many consumers food intolerance products are now a necessity, as the incidence of conditions like coeliac disease, diabetes and lactose intolerance in Ireland has risen steadily in recent years. This ensured that food intolerance proved much more resistant to the economic downturn than other areas of the health and wellness market in 2010. That said, food intolerance was not completely recession-proof, as volume and current value growth rates for most product categories were down on 2009 and also slower than the respective CAGRs for the entire review period.
COMPETITIVE LANDSCAPE
Nutrition Point remained the number one food intolerance player in 2010 with a value share of 21%. Thanks to the combined strength of its Trufree, Glutafin and Dietary Specials ranges, the company was the clear leader in the gluten-free bakery products and gluten-free pasta categories. Kelkin ranked second overall, claiming a value share of 12% with a broader portfolio that covered both diabetic food and gluten-free food. It was the second leading company in diabetic chocolate confectionery, where it offers the Holex brand. It also claimed second place in gluten-free bakery products and gluten-free baby food thanks to the strength of its Kelkin and Hipp brands, respectively. Other prominent competitors within food intolerance included Gluten Free Foods Ltd, Celtic Chocolates Ltd, Nutricia Ireland Ltd, Ener-G Foods Inc and HJ Heinz Co.
PROSPECTS
Due to the rising incidence of food allergies among Irish consumers and the essential nature of the products in question, food intolerance should continue to weather the economic downturn better than most other areas of the health and wellness market over the forecast period. New launches, improvements in distribution and marketing activities by established and emerging players should also have a positive impact on the development of food intolerance as a whole. Food intolerance will not be completely recession-proof, however. As consumers become more value conscious and only buy what they are sure they will use or switch to smaller pack sizes to prevent wastage, many categories are expected to experience slower volume sales growth than they did over 2005-2010. Similarly, widespread discounting by branded manufacturers and the increasing popularity of private label products mean that constant value growth rates for many categories are also likely to fall below those recorded during the review period.
CATEGORY DATA
Table 26 Sales of Food Intolerance by Category: Value 2005-2010
Table 27 Sales of Food Intolerance by Category: % Value Growth 2005-2010
Table 28 Lactose-free Dairy Products by Type: % Value Breakdown 2006-2010
Table 29 Food Intolerance Company Shares 2006-2010
Table 30 Food Intolerance Brand Shares 2007-2010
Table 31 Forecast Sales of Food Intolerance by Category: Value 2010-2015
Table 32 Forecast Sales of Food Intolerance by Category: % Value Growth 2010-2015
Fortified/Functional Beverages in Ireland - Category Analysis
HEADLINES
TRENDS
The performance of FF beverages in 2010 was generally poor, with most categories recording volume and current value sales declines. Moreover, in those categories that continued to develop positively, volume and current value growth rates were invariably slower than in 2009. This was a direct result of the economic downturn. While FF beverages are perceived to have real health benefits, they are not considered household essentials in the same way that many types of health and wellness packaged food products are. As a result, many Irish consumers had no hesitation in cutting down on FF beverages or removing them from their grocery baskets altogether in order to save money. It is also likely that growing competition from organic alternatives contributed to falling demand for some types of FF beverages, though the impact of this trend was nowhere near as significant as that of the recession.
COMPETITIVE LANDSCAPE
GlaxoSmithKline maintained a commanding lead in FF beverages in 2010 with a value share of 55%. This was mainly due to the dominance of its Lucozade Energy brand in FF energy drinks, the largest category. The company also dominated FF concentrates and FF juice drinks thanks to the enduring popularity of its Ribena range. In addition, it maintained sizeable leads in both FF bottled water and FF sports drinks, where it offers the Lucozade Sport Hydro Active and Lucozade Sport brands respectively. All of these brands benefited from strong marketing support throughout the review period.
PROSPECTS
Taken as a whole, the outlook for FF beverages is poor. Total constant value sales are expected to decline at a CAGR of 3%, while most product categories are expected to show steady declines in volume terms. Given that they are not afforded ‘necessity’ status by most Irish consumers, falling demand for FF beverages will be largely due to unfavourable economic conditions. This is particularly the case with the dominant categories of FF energy drinks and FF sports drinks. Demand for FF energy drinks will also be restricted by increasing maturity and the growing perception among consumers that these products might actually be damaging to health due to their high content of sugar, caffeine, colourings, preservatives etc. At the same time, many FF beverages categories are likely to face growing competition from alternatives elsewhere in the health and wellness market, particularly BFY and organic beverages.
CATEGORY DATA
Table 33 Sales of Fortified/Functional Beverages by Category: Value 2005-2010
Table 34 Sales of Fortified/Functional Beverages by Category: % Value Growth 2005-2010
Table 35 Other Fortified/Functional Hot Drinks by Type: % Value Breakdown 2005-2010
Table 36 Key Functional Ingredients in Fortified/Functional Bottled Water: % Breakdown 2006-2010
Table 37 Key Functional Ingredients in Fortified/Functional 100% Juice: % Breakdown 2006-2010
Table 38 Key Functional Ingredients in Fortified/Functional Juice Drinks (up to 24% juice): % Breakdown 2006-2010
Table 39 Key Functional Ingredients in Fortified/Functional Nectars (25-99% juice): % Breakdown 2006-2010
Table 40 Fortified/Functional Beverages Company Shares 2006-2010
Table 41 Fortified/Functional Beverages Brand Shares 2007-2010
Table 42 Forecast Sales of Fortified/Functional Beverages by Category: Value 2010-2015
Table 43 Forecast Sales of Fortified/Functional Beverages by Category: % Value Growth 2010-2015
Fortified/Functional Packaged Food in Ireland - Category Analysis
HEADLINES
TRENDS
FF packaged food continued to perform reasonably well in 2010, with most categories showing robust growth in volume and current value terms. This was in spite of the fact that as the largest and most mature area of the wider health and wellness market, FF packaged food was ostensibly most exposed to the negative effects of the downturn. That demand for most product types continued to grow despite recessionary conditions is reflective of the extent to which nutritional and functional concerns have entered mainstream consumer consciousness in Ireland. Irish consumers now expect that certain types of packaged food products will be fortified with healthy ingredients or provide some kind of added value functional benefit. This is especially true in staple categories like dairy products. At the same time, in recent years better education about nutrition, diet and the risk factors associated with certain illnesses has led more and more Irish consumers to turn to FF packaged food as preventative healthcare measure. This trend was strengthened towards the end of the review period as financial pressures forced many households to cancel private health insurance subscriptions and fears over job security led people to work longer hours. Similarly, for people who lead busy lifestyles and are overly reliant on unhealthy convenience foods, FF packaged food can provide a convenient way of maintaining an adequate intake of essential vitamins, minerals and other nutrients. Together with new launches and marketing activities, these trends continued to drive the development of FF packaged food in 2010.
COMPETITIVE LANDSCAPE
Glanbia maintained its leading position in FF packaged food in 2010 with a value share of 18%. The company was the overall leader in FF dairy products thanks to the strength of its Yoplait and Avonmore ranges. Most notably, Avonmore was the top brand in FF milk, while Yoplait ranked first in other functional drinking yoghurt. Kellogg Co finished second overall with a value share of 17% thanks to its dominance in FF breakfast cereals and FF snack bars. The company’s most popular FF breakfast cereals brands included Special K, Kellogg’s Corn Flakes, Coco Pops and Rice Krispies, while its Kellogg’s Nutri-Grain and Optima Fruit 'n' Fibre Bar held leading positions in other FF snack bars and FF energy and nutrition bars respectively. Danone was the third leading FF packaged food player, claiming a value share of 11%. The company held leading positions in pro/pre biotic drinking yoghurt, where it offers Actimel, and pro/pre biotic spoonable yoghurt, where it offers the Activia brand. Danone also ranked second in other functional drinking yoghurt thanks to the combined strength of its Danacol and Danonino brands. Other leading competitors in FF packaged food included McNeil Consumer Nutritionals UK Ltd, Unilever, Wrigley, Nestlé, Dawn Dairies and Breeo Foods Ltd.
PROSPECTS
On the whole, FF packaged food looks set to maintain its positive development over the forecast period, with steady growth in volume and constant value sales predicted for most categories. Rising health awareness among Irish consumers, and in particular the perception that FF packaged food products can help to reduce the risk of certain illnesses, will continue to drive demand. This perception of FF packaged food as a preventative healthcare measure has become increasingly important in recent years, as Ireland has an ageing population and the fallout from the country’s economic crisis has forced many people to cancel private healthcare subscriptions. New launches and marketing activities will also contribute to the further development of FF packaged food as a whole. However, due to increasing maturity and the uncertain economic outlook, volume and constant value growth rates for most product categories are expected to be slower than during the review period.
CATEGORY DATA
Table 44 Sales of Fortified/Functional Packaged Food by Category: Value 2005-2010
Table 45 Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2005-2010
Table 46 Sugarised Vs Sugar-free Fortified/Functional Gum: % Breakdown 2009
Table 47 Sugarised Vs Sugar-free Fortified/Functional Sugar Confectionery: % Breakdown 2009
Table 48 Standard Fat Vs Reduced Fat Fortified/Functional Yoghurt: % Breakdown 2009
Table 49 Other Fortified/Functional Food by Type: % Value Breakdown 2005-2010
Table 50 Key Functional Ingredients in Fortified/Functional Breakfast Cereals: % Breakdown 2006-2010
Table 51 Key Functional Ingredients in Fortified/Functional Bread: % Breakdown 2006-2010
Table 52 Key Functional Ingredients in Fortified/Functional Gum: % Breakdown 2006-2010
Table 53 Key Functional Ingredients in Fortified/Functional Sugar Confectionery: % Breakdown 2006-2010
Table 54 Key Functional Ingredients in Flavoured Milk Drinks: % Breakdown 2006-2010
Table 55 Key Functional Ingredients in Fortified/Functional Milk: % Breakdown 2006-2010
Table 56 Key Functional Ingredients in Fortified/Functional Yoghurt: % Breakdown 2006-2010
Table 57 Key Functional Ingredients in Fortified/Functional Snack Bars: % Breakdown 2006-2010
Table 58 Key Functional Ingredients in Fortified/Functional Spreadable Oils and Fats: % Breakdown 2006-2010
Table 59 Fortified/Functional Packaged Food Company Shares 2006-2010
Table 60 Fortified/Functional Packaged Food Brand Shares 2007-2010
Table 61 Fortified/Functional Bread Brand Shares 2007-2010
Table 62 Forecast Sales of Fortified/Functional Packaged Food by Category: Value 2010-2015
Table 63 Forecast Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2010-2015
Naturally Healthy Beverages in Ireland - Category Analysis
HEADLINES
TRENDS
NH beverages showed a poor performance in 2010. Most product categories recorded volume and current value sales declines, and in those that continued to develop positively growth rates were invariably down on 2009. While falling demand was partly due to increasing maturity, it was primarily attributable to the economic downturn. As household grocery shopping budgets fell, Irish consumers continued to cut spending on non-essentials of all kinds, including NH beverages. The fact that many NH brands were more expensive than other types of health and wellness beverages was especially damaging in this regard. At the same time, demand was constrained by the fact that the potential benefits of NH beverages are not as immediately apparent to consumers as those of FF or BFY variants, for example.
COMPETITIVE LANDSCAPE
SHS Sales & Marketing continued to lead NH beverages in 2010, claiming a value share of 10% with the Tropicana brand. Tropicana was the number one brand in NH 100% juice, and ranked third in NH superfruit juice. Kerry Group was the second leading player overall with a value share of 9%. The company claimed fifth place in NH bottled water, where it offers the Kerry Spring range. It also ranked second in NH superfruit juice and fourth in NH 100% juice, offering the Dawn brand in both categories. Britvic was the third leading NH beverages player with a value share of just under 9%. Its Ballygowan brand held the leading position in NH bottled water. Other prominent competitors included Batchelors Ltd, Coca-Cola HBC, Danone Waters, Tesco, M & J Gleeson & Co and Innocent Drinks Co Ltd.
PROSPECTS
The outlook for NH beverages over the forecast period is not promising. Total constant value sales are expected to decline at a CAGR of 1%, while volume sales in most major product categories look set to continue declining steadily. As was the case in 2010, falling demand for NH beverages will be mainly due to unfavourable economic conditions in Ireland. Increasing maturity and competition from other types of health and wellness beverages that are cheaper or have more easily identifiable benefits will also hamper the development of some categories, most notably NH 100% juice and bottled water. However, provided there is a real improvement in the economic situation, the generally negative trend should gradually subside towards 2015, boosting volume sales in most categories.
CATEGORY DATA
Table 64 Sales of NH Beverages by Category: Value 2005-2010
Table 65 Sales of NH Beverages by Category: % Value Growth 2005-2010
Table 66 Other NH Hot Drinks by Type: % Value Breakdown 2005-2010
Table 67 NH Beverages Company Shares 2006-2010
Table 68 NH Beverages Brand Shares 2007-2010
Table 69 Forecast Sales of NH Beverages by Category: Value 2010-2015
Table 70 Forecast Sales of NH Beverages by Category: % Value Growth 2010-2015
Naturally Healthy Packaged Food in Ireland - Category Analysis
HEADLINES
TRENDS
Other than organic packaged food, in 2010 NH packaged food was the category best positioned to capitalise on rising consumer demand for products that were full of natural goodness and subject to as little processing as possible. Moreover, NH packaged food was one of the main beneficiaries of the cocooning trend, which saw Irish consumers reduce spending on eating out in favour of using high quality ingredients to prepare nutritious and tasty meals at home more often. Aside from these general trends, new launches, improvements in distribution, increased price competition and marketing activities by leading manufacturers also helped to sustain the positive development of NH packaged food.
COMPETITIVE LANDSCAPE
Private label products accounted for 15% of total NH packaged food current value sales in 2010, a significantly higher share than that held by the top branded manufacturer. Penetration was especially strong in staple categories like NH high fibre bread, pasta and rice, though private labels also featured prominently in categories as diverse as NH olive oil spreadable oils and fats, NH fruit snacks, NH snack bars, other NH ready meals and other NH meat substitutes. In all of these categories, competitive prices and a growing reputation for quality were the main factors behind the popularity of private label products. NH products now feature prominently in the private label lines of most major grocery retailers chains in Ireland.
PROSPECTS
The outlook for NH packaged food remains positive, with most categories expected to show steady growth in volume and constant value terms over the forecast period. Among the main factors driving demand will be rising consumers awareness of how a high fibre diet can aid weight control and reduce the risk of certain illnesses, as well as the cocooning trend. New launches, marketing activities, sustained price competition and improvements in distribution will also contribute to the further development of NH packaged food as a whole. Due to increasing maturity and the uncertain economic outlook, however, volume and constant value growth rates for most product categories are expected to fall below those recorded during the review period.
CATEGORY DATA
Table 71 Sales of NH Packaged Food by Category: Value 2005-2010
Table 72 Sales of NH Packaged Food by Category: % Value Growth 2005-2010
Table 73 NH Packaged Food Company Shares 2006-2010
Table 74 NH Packaged Food Brand Shares 2007-2010
Table 75 Forecast Sales of NH Packaged Food by Category: Value 2010-2015
Table 76 Forecast Sales of NH Packaged Food by Category: % Value Growth 2010-2015
Organic Beverages in Ireland - Category Analysis
HEADLINES
TRENDS
Organic beverages proved more resistant to Ireland’s economic crisis than many areas of the health and wellness market in 2010, with most product categories maintaining healthy growth in volume and current value terms. While this was partly due to the fact that it was still emerging from a low base, various other factors helped to maintain demand. Chief among these were rising consumer appreciation for the perceived health benefits and ethical positioning of organic products in general. In recent years, Irish consumers have become increasingly concerned about the potentially negative health effects of the many different types of pesticides, additives, preservatives and other chemical ingredients commonly used by food and beverage manufacturers. At the same time, consumers have become more aware of how food and beverage manufacturing practices can damage the environment or exploit low income workers and farmers, particularly in developing nations. Aside from these general trends, other factors that helped to sustain demand for organic beverages in 2010 included widespread discounting, improvements in distribution, growing consumer confidence in regulatory standards and labelling systems, new launches and marketing activities.
COMPETITIVE LANDSCAPE
National Organic Products was the leading organic beverages company in 2010 with a value share of 24%. This was due to the commanding lead held by its The Organic Company brand in organic 100% juice, by far the largest category. Kelkin ranked second overall with a value share of 18%. The company’s Kelkin brand dominated the organic nectars category, and finished second in organic 100% juice. Bunalun Organic Ltd was the third leading organic beverages player with a value share of 6%. Its Bunalun brand claimed third place in organic 100% juice. Clipper Teas Ltd was the fourth leading player overall with a value share of 5%. Offering a wide assortment of product types and flavour variants under its Clipper brand, the company dominated organic fruit/herbal tea and ranked second in the organic black tea and organic green tea categories. Other prominent competitors in organic beverages included Robert Roberts Ltd, Barry’s Tea, Cafédirect, First Choice Cakes and Food Brands Group Ltd.
PROSPECTS
The outlook for organic beverages in Ireland remains positive, with robust growth in volume and constant value sales predicted for most categories. While volume and constant value growth rates will be bolstered by the fact that sales are still emerging from a relatively low base, a number of other factors will continue to drive demand. Most notably, Irish consumers are becoming more concerned about the potentially negative health effects of pesticides, artificial ingredients, chemicals etc that are widely used in food and beverage production. As a result, many people are now willing to pay a little extra for organic beverages. At the same time, organic beverages are becoming more popular thanks to the growing public interest in concepts like eco-friendly and ethical consumerism. In addition to these underlying trends, new launches, improvements in distribution and the adoption of more competitive pricing strategies will help to drive demand for organic beverages over the forecast period.
CATEGORY DATA
Table 77 Sales of Organic Beverages by Category: Value 2005-2010
Table 78 Sales of Organic Beverages by Category: % Value Growth 2005-2010
Table 79 Organic Beverages Company Shares 2006-2010
Table 80 Organic Beverages Brand Shares 2007-2010
Table 81 Forecast Sales of Organic Beverages by Category: Value 2010-2015
Table 82 Forecast Sales of Organic Beverages by Category: % Value Growth 2010-2015
Organic Packaged Food in Ireland - Category Analysis
HEADLINES
TRENDS
Even more so than in the case of organic beverages, growing consumer appreciation for the healthy, eco-friendly and ethical properties of organic products in general ensured that organic packaged food weathered the economic downturn better than most areas of the Irish health and wellness market in 2010. While robust volume and current value growth rates for most categories reflected the fact that sales were still emerging from a relatively low base, other factors ensured that the overall demand remained strong. For example, while Irish consumers often start buying organic packaged food products for their health and environmental benefits, many have now come to the conclusion that they also taste much better than standard alternatives or equivalent NH, FF and BFY products. Additionally, although organic packaged food retains its premium positioning, prices for many product types have come down in recent years, or at least stopped growing at the high rates seen during the Celtic Tiger era. These factors have ensured that organic packaged food has been one of the main beneficiaries of the cocooning trend, whereby consumers who have reduced spending on eating out due to the recession are instead choosing higher quality ingredients to prepare healthy and delicious meals for themselves at home.
COMPETITIVE LANDSCAPE
Private label products accounted for 20% of organic packaged food current value sales in 2010, a substantially higher share than any branded manufacturer. Penetration was especially strong in staple categories like organic butter, where private label products claimed a value share of 55%, organic milk (45%), organic yoghurt (38%) and organic rice (31%). Leading grocery retailers chains like Tesco, Aldi and Lidl all offer private label ranges in several organic packaged food categories. Towards the end of the review period, such retailers rapidly expanded their private label organic ranges to capitalise on increased price sensitivity among Irish consumers as the economic crisis unfolded. Private label products meet all the same organic certification standards as branded alternatives, but are significantly cheaper. In some cases, they also have the advantage of being more prominently positioned on retail shelves than branded competitors. In recent years, private label lines have provided a reasonably affordable entry point to organic packaged food for consumers seeking healthier and tastier alternatives to standard packaged food products. Rising private label penetration was also one of the main factors behind increased price competition in organic packaged food over 2009-2010.
PROSPECTS
Organic packaged food will continue to develop positively despite unfavourable economic conditions in Ireland, with most categories expected to show robust growth in volume and constant value terms over the forecast period. While volume and constant value growth rates will continue to be bolstered as sales emerge from a relatively low base, rising health awareness among Irish consumers will also help to maintain strong demand. Moreover, the growing perception that organic products taste better will continue to have a positive influence, as will the increasing focus on eco-friendly and ethical consumerism in Ireland. At the same time, organic packaged food as a whole will benefit from new launches, improvements in distribution, marketing activities and sustained price competition. Due to increasing maturity and the uncertain economic outlook, however, volume and constant value growth rates for most categories are likely to fall below those recorded during the review period.
CATEGORY DATA
Table 83 Sales of Organic Packaged Food by Category: Value 2005-2010
Table 84 Sales of Organic Packaged Food by Category: % Value Growth 2005-2010
Table 85 Other Organic Food by Type: % Value Breakdown 2005-2010
Table 86 Organic Packaged Food Company Shares 2006-2010
Table 87 Organic Packaged Food Brand Shares 2007-2010
Table 88 Organic Dried Baby Food Brand Shares 2007-2010
Table 89 Forecast Sales of Organic Packaged Food by Category: Value 2010-2015
Table 90 Forecast Sales of Organic Packaged Food by Category: % Value Growth 2010-2015