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.
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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