Worldwide Business Information and Market Reports
Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk

In 1993, retail sales of perishable fast-moving
consumer goods (FMCGs), as defined in this report, were estimated at
£23.16bn, representing 51 percent of total retail sales of food. The main
sectors of the market are fresh meat, fresh fruit and vegetables, dairy
products, bread and cakes, fresh fish, and selected chilled products. Total
expenditure on perishable FMCGs grew by only 0.9 percent in 1993, but this increase
hides considerable variations in growth between sectors. Markets experiencing
healthy sales increases were yoghurt and chilled desserts, cheese, fresh fruit,
cakes and chilled ready meals. Markets where value sales fell in 1993 were
carcass meats, fresh fish, liquid whole milk and eggs.
Factors
affecting sales in the sector include the trend towards low-fat products, such
as skimmed milk and low-fat spreads, and the general trend towards convenience
foods which has affected sales of basic foodstuffs such as potatoes, fresh
meats and eggs. Certain sectors of the market have been trying to develop more
value-added products and premium lines have been launched in the cheese, bread,
milk, and meat sectors and these products include speciality cheeses, premium
white bread, flavoured milks, and meats such as ready-stuffed joints, turkey
rashers and marinaded bacon.
Industry supply is becoming increasingly
concentrated and the major producers are the large national food groups such as
Hillsdown Holdings, Northern Foods, Unigate and Associated British Foods (ABF).
UK farmers and producers supply a considerable amount of fresh produce for UK
households, but there is still a considerable trade deficit in many markets
where imports play an important role. These markets include fresh fruit, meat,
fish and dairy products.
Retail sales of perishable FMCGs are dominated
by the national supermarket chains which have increased their range of
perishable foods in recent years and improved the stock control of these
products. They have also developed specialist units such as in-store bakeries,
delicatessens and fresh fish counters. Retailers' own-label products are
important in this area. Home deliveries are significant in the milk market, but
even here the low price of milk in supermarkets is eroding the share of sales
taken by home deliveries. In the mid-1980s, 80 percent of households were supplied
with home deliveries but this percentage has now fallen to less than 60 percent.
In recent months, intense competition in the retail trade has forced down
prices of many perishable foods, such as bread and milk. There are worries that
these low prices will become permanent, putting pressure on suppliers' margins.
Text © 1997 Key Note
Ariadne - working together with our customers to enhance productivity and increase knowledge
© 1999 www.the-list.co.uk Ariadne
Last updated by Duncan Nottage 5th March 1999