| KN15232 |
| KEY NOTE FRUIT AND VEGETABLES : April 2002 |
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This report covers: fresh fruit, fresh vegetables, green vegetables, potatoes, bananas, apples, other citrus fruit, grapes, soft fruit, oranges, speciality fruit, stone fruit, root vegetables, specialities, tomatoes, mushrooms, pears, quinces, mandarins, apricots, cherries, peaches, plums, sloes, melons, papya, pears, grapefruit, lemons, limes, avocados, guavas, mangoes, mangosteens, pineapples, berries, dates, figs, onions, shallots, lettuce, chicory, cabbage, brassicas, cucumbers, gherkins, carrots, turnips, beetroot, salsify, celeriac, radish, truffles, garlic, leeks, alliaceous vegetables, leguminous vegetables, peas, cooking apples, brussel sprouts,
Companies covered include: Del Monte Fresh Produce,Fisher Foods,Fyffes Group,Geest,Greenvale AP,MBM Produce,Chiquita,Dole Food Company,Capesan International,G's Marketing,Tedbridge,Hazlewood Foods,Poupart,
EXECUTIVE SUMMARY
This report examines the UK fresh fruit and vegetable market, which generated household spending of £7.49bn in 2001. Value sales increased by just 1.1 percent at current prices in 2001, due mainly to limited growth in the fresh vegetables sector. In volume consumption terms, the fresh vegetables sector has witnessed a period of long-term decline, but consumption of fresh fruit has increased recently.
Fresh vegetables formed the largest market sector in 2001, but the sector which has shown the strongest growth over the past 5 years has been fresh fruit. While processed foods are becoming more popular, fresh produce still accounts for over 60 percent of the value of all fruit and vegetable sales. Value sales growth at current prices in both the fresh fruit and vegetables sectors was modest in 2001.
Fresh fruit is increasingly positioning itself as a healthy snack or light meal alternative. Fresh fruit sales increased by 1.7 percent in 2001, with preprepared, peeled and sliced mixes and fruit-based snack products boosting sales. Bananas and apples are still the most popular fruits.
The fresh vegetables sector divides into three main subsectors: fresh potatoes, fresh green vegetables and other fresh vegetables. The fresh green vegetables sector is the most bouyant subsector with increasing sales value by 1.6 percent in 2001. New product developments (NPD), led by more prepacked and prewashed salad varieties, have helped sales to grow. The fresh potato market is in decline as it faces growing competition from processed potatoes and alternative foods, such as rice and pasta. In 2001, value sales of fresh potatoes fell by 1.1 percent. The other fresh vegetables sector, which includes core products such as carrots, recorded growth of 1.3 percent in 2001 at current prices, again led by prepacked ready-to-cook and stir-fry varieties.
UK growers supply over 70 percent of the UK's fresh vegetables demand (excluding potatoes) and 90 percent of the fresh potato supplies to the home market. However, the number of vegetable growers is falling, due partly to industry consolidation and partly to a reduction in the land given over to vegetables. The overwhelming majority of UK fruit supplies (an estimated 90 percent) come from imports, and most of the leading fruit companies are global concerns sourcing supplies from numerous countries.
The market trends of the past few years are likely to continue over the next few years. The overwhelming consumer demand is for convenience, and processed foods will be the main beneficiaries of this demand.
TABLE OF CONTENTS
| Executive Summary | 1 |
| 1. Market Definition | 2 |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| Fresh Fruit | 2 |
| Fresh Green Vegetables | 2 |
| Fresh Potatoes | 2 |
| Other Fresh Vegetables | 3 |
| MARKET TRENDS | 3 |
| Fresh Vegetable Consumption Falls While Fresh Fruit Thrives | 3 |
| Table 1: Per Capita Consumption of Fresh Fruit and Vegetables (grams per person per week), 1960-2000 | 3 |
| Prepacked and Prepared Fresh Produce Leading Market Growth | 4 |
| Healthy Eating Concerns Increase Sales of Fresh Fruit | 4 |
| Snacking | 4 |
| All-Year-Round Availability | 4 |
| Organics | 5 |
| Environmental Uncertainties | 5 |
| MARKET POSITION | 5 |
| The UK | 5 |
| Table 2: Household Expenditure on Food, and Fruit and Vegetables by Value at Current Prices (£m at rsp), 1997-2001 | 6 |
| Overseas | 6 |
| 2. Market Size | 7 |
| THE TOTAL MARKET | 7 |
| By Value | 7 |
| Table 3: The UK Retail Fresh Fruit and Vegetables Market by Value at Current Prices (£m at rsp), 1997-2001 | 7 |
| Retail Prices | 7 |
| Table 4: Retail Price Increases for Fruit, Vegetables and All Food in 2001 ( percent), January 2001-December 2001 | 8 |
| Table 5: Retail Price Index for Fresh Fruit and Vegetables (13th January 1987=100), November 1998-November 2001 | 9 |
| By Volume | 9 |
| Table 6: The UK Retail Fresh Fruit and Vegetables Market by Volume (000 tonnes), 1997-2001 | 9 |
| BY MARKET SECTOR | 9 |
| Fresh Fruit | 9 |
| Table 7: The UK Retail Fresh Fruit Market by Value at Current Prices (£m at rsp and percent), 1997-2001 | 10 |
| Table 8: The UK Retail Fresh Fruit Market by Sector by Value at Current Prices (£m at rsp and percent), 2001 | 11 |
| Fresh Green Vegetables | 11 |
| Table 9: The UK Retail Fresh Green Vegetables Market by Value at Current Prices (£m at rsp and percent), 1997-2001 | 12 |
| Fresh Potatoes | 12 |
| Table 10: The UK Retail Fresh Potatoes Market by Value at Current Prices (£m at rsp and percent), 1997-2001 | 13 |
| Other Fresh Vegetables | 13 |
| Table 11: The UK Retail Other Fresh Vegetables Market by Value at Current Prices (£m at rsp and percent), 1997-2001 | 14 |
| Table 12: The UK Other Fresh Vegetables Market by Sector by Value at Current Prices (£m at rsp and percent), 2001 | 14 |
| OVERSEAS TRADE | 15 |
| UK | 15 |
| Table 13: Production of Total New Supply for Use in the UK ( percent of total), 1996-2000 | 15 |
| Fresh Potatoes | 15 |
| Fresh Vegetables | 15 |
| Table 14: Imports of Selected Fresh or Chilled Vegetables by Volume and Value (000 tonnes and £m), 2000 | 16 |
| Fresh Fruit | 16 |
| Table 15: Imports of Selected Fresh Fruit by Volume and Value (000 tonnes and £m), 2000 | 17 |
| Table 16: Key Sources of UK Banana Imports by Volume ( percent of imports), 2000 and 2001 | 18 |
| Exports | 18 |
| Table 17: Exports of Fresh Fruit and Vegetables by Value and Volume (£m and 000 tonnes), 1999 and 2000 | 19 |
| 3. Industry Background | 20 |
| RECENT HISTORY | 20 |
| Table 18: Production of Major Horticultural Crops in the UK by Volume (000 tonnes), 1996/19972000/2001 | 20 |
| EMPLOYMENT | 22 |
| NUMBER OF COMPANIES | 22 |
| Table 19: Number of VAT-Based Enterprises Engaged in Growing of Fresh Fruits and Vegetables by Turnover Sizeband (£000), 2001 | 22 |
| REGIONAL VARIATIONS IN THE MARKETPLACE | 23 |
| Table 20: Land Area for Vegetables and Small Fruit Grown in England and Wales by Government Office Region (hectares), 1999 | 24 |
| DISTRIBUTION | 24 |
| Wholesaling | 24 |
| Table 21: Number of VAT-Based Enterprises Engaged in the Wholesale of Fresh Fruit and Vegetables by Turnover Sizeband (£000), 2001 | 25 |
| Retailing | 25 |
| Table 22: Distribution of Fresh Fruit and Vegetables by Type of Outlet by Value ( percent), 1998-2001 | 26 |
| Table 23: Number of VAT-Based Specialised Retailers of Fresh Fruit and Vegetables by Turnover Sizeband(£000), 2001 | 26 |
| HOW ROBUST IS THE MARKET? | 27 |
| LEGISLATION | 27 |
| Novel Foods and Novel Foods Ingredients Regulations 1997 | 27 |
| Organic Products Regulations 1992 | 28 |
| KEY TRADE | |
| ASSOCIATIONS | 28 |
| British Potato Council | 28 |
| British Tomato Growers Association | 28 |
| Fresh Fruit & Vegetable Information Bureau | 28 |
| Fresh Produce Consortium | 28 |
| ASSURED PRODUCE SCHEME | 28 |
| 4. Competitor Analysis | 29 |
| THE MARKETPLACE | 29 |
| MARKET LEADERS | 29 |
| Fyffes Group Ltd | 29 |
| Table 24: percentage Breakdown of Fyffes Group Ltds Turnover by Product Type, 2001 | 30 |
| Fisher Foods Ltd | 31 |
| Table 25: percentage Breakdown of Fisher Foods Ltd Chilled Products Division Sales by Product by Type, 2001 | 31 |
| Geest PLC | 32 |
| Table 26: Geest UK | |
| Business Units Operating in the Fresh Produce and Fresh Prepared Produce Sectors, 2001 | 33 |
| MBM Produce Ltd | 34 |
| Greenvale AP PLC | 34 |
| Chiquita Brands International Incorporated | 35 |
| Dole Food Company Incorporated | 35 |
| Capespan International Holdings Ltd | 36 |
| Del Monte Fresh Produce (UK) Ltd | 36 |
| Gs Marketing Ltd | 37 |
| Redbridge Holdings Ltd | 38 |
| OTHER COMPANIES | 38 |
| Hazlewood Foods Ltd | 38 |
| Poupart Ltd | 38 |
| OUTSIDE SUPPLIERS | 39 |
| ADVERTISING AND PROMOTION | 39 |
| Table 27: Main Media Advertising Expenditure on Fresh Fruit (£000), Years Ending December 2000 and 2001 | 39 |
| Table 28: Main Media Advertising Expenditure on Fresh Vegetables (£000), Years Ending December 2000 and 2001 | 40 |
| EXHIBITIONS AND CONFERENCES | 40 |
| 5. Strengths, Weaknesses, Opportunities and Threats | 41 |
| TOTAL MARKET | 41 |
| FRESH FRUIT | 42 |
| FRESH VEGETABLES | 43 |
| 6. Buying Behaviour | 45 |
| CONSUMPTION | 45 |
| Table 29: Per Capita Consumption of Fresh Fruit and Vegetables (grams per person per week), 1996-2001, | 46 |
| Table 30: Per Capita Consumption of Fresh Fruit and Vegetables by Type (grams per person per week), 2001 | 46 |
| By Region | 47 |
| Table 31: Per Capita Consumption of Fresh Fruit and Vegetables by Government Office Region (grams per person per week), 2000 | 48 |
| By Socio-Economic Group | 48 |
| Table 32: Per Capita Consumption of Fresh Fruit and Vegetables by Socio-Economic Group (grams per person per week), 2000 | 49 |
| EXPENDITURE | 49 |
| Table 33: Penetration of Fresh Fruit and Vegetables by Sex, Age, Social Grade and Region ( percent of adults), 2001 | 50 |
| Table 34: Expenditure on Fresh Fruit and Vegetables ( percent of housewives), 2001 | 51 |
| KEY NOTE RESEARCH | 51 |
| Table 35: Penetration of Adults Who Eat Fresh Fruit During a Typical Day ( percent of adults), 2000 and 2001 | 52 |
| 7. Current Issues | 54 |
| HEALTH ISSUES | 54 |
| CORPORATE ACTIVITY | 55 |
| Frederick Hiam | 55 |
| Selby Salads | 55 |
| The Ethical Exchange Management Company PLC (Teemco) | 55 |
| PRODUCT DEVELOPMENT AND PROMOTIONS | 55 |
| Costa Rican Bananas | 55 |
| Oke Brand | 56 |
| Waitrose and Winnie the Pooh | 56 |
| UKAS ACCREDITATION FOR APS | 56 |
| 8. The Global Market | 57 |
| WORLD PRODUCTION SHIFTS | 57 |
| Table 36: Volume Share of EU Production of Fresh Produce Taken by Major Countries ( percent of total EU output), 2000 | 57 |
| UK LAGS BEHIND MOST OTHER EU MARKETS IN PER CAPITA CONSUMPTION | 58 |
| ORGANIC FARMING STILL ONLY 2.8 percent OF FARMING AREA IN EUROPE | 58 |
| Table 37: Organic Farming Area in the European Union (hectares and percent of total farming land),2001 | 58 |
| US PRODUCTION OF FRUIT AND NUTS REACHES $13BN | 59 |
| 9. Forecasts | 60 |
| INTRODUCTION | 60 |
| FUTURE TRENDS | 60 |
| Fresh Produce Consumption | 60 |
| Demographics | 60 |
| Table 38: Population Projections by Age (000), 2000-2011 | 61 |
| Eating Trends | 61 |
| Global Supplies | 61 |
| FORECASTS 2002 TO 2006 | 62 |
| Table 39: The Forecast UK Fresh Fruit and Vegetables Market by Value at Current Prices (£m at rsp), 2002-2006 | 62 |
| Table 40: The Forecast of the UK Fresh Fruit and Vegetables Market by Volume (000 tonnes), 2002-2006 | 62 |
| 10. Company Profiles | 63 |
| Del Monte Fresh Produce (UK) Ltd | 64 |
| Fisher Foods Ltd | 66 |
| Fyffes Group Ltd | 68 |
| Geest PLC | 70 |
| Greenvale AP PLC | 72 |
| MBM Produce Ltd | 74 |
| 11. Further Sources | 76 |
| Associations | 76 |
| Publications | 79 |
| Directories | 80 |
| General Sources | 80 |
| Bonnier Information Sources | 81 |
| Government Publications | 82 |
| Other Sources | 83 |
| Understanding TGI Data | 85 |
| Number, Profile, Penetration | 85 |
| Social Grade | 86 |
| Standard Region | 86 |
| Key Note Research | 87 |
| The Key Note Range of Reports | 88 |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004