Driving Growth through Canned Foods a UK Grocery Perspective
Industry News,

Driving Growth through Canned Foods a UK Grocery Perspective

Ambrosia

Walk along the grocery aisle of any leading retailer and the traditional canned goods aisle is rapidly becoming more vibrant, a home for innovation, brighter branding and wider product selection as modern consumers realise the value, quality and convenience the category offers.

Traditional canned fish lines expanded to deliver an exciting assortment of on trend flavours, an expansion of pulses and legumes as diets evolve and demand for healthier alternatives increases amongst globally recognised soup brands, tin meats, fruits or vegetables. With its long shelf life, ease of distribution and reputation for quality, investment by retailers has seen a significant resurgence. The comparison of fresh vs frozen for value now has combination from the ambient category.

The UK market estimated at ~£4.8bn has a CAGR of 3% and a strong outlook, reinforced by changing shopping habits during times of economic uncertainty. At a macro level the category has strong recognition across both branded and Private Label ranges. A snapshot of the category highlighting those lines that were traditionally cheap food sources have risen with increased input costs and inflation. The UK is a significant importer of canned foods to meet the rising demand.

Tesco

Why is this market winning?

  • Unit value driven appealing with the cost-conscious consumers, as multiple formats and pack sizes to suit immediate needs – 200g of sweetcorn vs a 1kg frozen back as an example, or 400g tinned soup vs 540g chilled
  • High volume lines such as traditional Baked Beans, Tuna and Tomatoes have demonstrated price resilience
  • Private Label expansion offering customers choice and value, reinforcing the value proposition
  • Accessibility to affordable protein with convenience from tuna to canned meats
  • Reduction in food waste through longer life and ease of storage
  • Branding and on trend flavour innovation

Tesco Finest

Trend highlights driving customer engagement and loyalty

  • Cost of living and price perception
  • Sustainability and ease of recycling
  • Innovative access to on trend flavours, new varieties and species
  • Marketing and retail strategies from promotional activities, price matching and multibuys
  • Product Innovation and benefits of global sourcing
  • Packaging innovation such as ease of opening cans

Investor outlook

The sector has a high capital cost of entry, compared to other sectors of the food industry and high minimum processing requirements. The category could be classed as defensive and with a positive outlook.

Managing efficiencies and risk in this area through a balance of branded supply and Private Label business with well-established supply chain capabilities from raw material sourcing through to finished goods distribution.

With the macroeconomic volatility predicted to continue, the demand outlook for canned foods is highly likely to continue.

Prof. Consulting Group’s team of experts has helped the best in the business turn produce into profit.

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