Canadeanhttp://www.canadean.com2015-03-20T14:04:26umbracoLatest information from Canadean.enDiscounters need to invest in online grocery shoppinghttp://www.canadean.com/news/discounters-need-to-invest-in-online-grocery-shopping/Fri, 20 Mar 2015 00:00:00 GMThttp://www.canadean.com/news/discounters-need-to-invest-in-online-grocery-shopping/Online shopping is now at the point where it is a cost-effective way for discounters to target convenience-driven shoppers. However, low-cost online shopping will also be their greatest threat, as Amazon will make its presence felt in the groceries market over the next five years, finds Canadean.

A new Canadean survey shows that 65% of UK consumers shop at discounters for groceries either regularly or occasionally. Moreover, shopping at such outlets is not restricted to consumers in lower-income brackets but is common across all social class groups. This is a reflection of how consumers no longer associate shopping at discounters with a decline in financial wellbeing but a savvy way to make their money go further. At the height of the recession in 2008 and 2009, many shoppers trading down to discounters thought that this would be a temporary arrangement – yet Canadean research shows that 84% of consumers who visited a discounter over 2008-2013 came back after their first visit. Ronan Stafford, senior analyst at Canadean, says: “Pleasantly surprised by the quality on offer, shoppers felt less embarrassed about going to discounters, and were instead proud of knowing where to pick up a bargain.”

Convenience through technology will drive future growth

Online shopping, either as a home delivery service, or as click and collect, has now evolved to the point where it is a viable opportunity for discounters while still minimising costs. The shopper experience of online shopping has improved rapidly over the past ten years, and these services are no longer a drag on profits for the traditional supermarkets that pioneered its use.

A survey conducted by Canadean in January 2015 found that 40% of consumers say they shop online for groceries, with another 14% stating that they would be willing to do so. Discounters miss this large audience currently, and as consumers feel increasingly busy and time-pressed, they will respond strongly to a retailer that is able to provide the best value in their hectic schedules. Stafford says, “Shoppers have responded strongly to the value positioning of discounters, but if they want to continue to grow their market share, discounters will also need to offer convenience. Online technology will be the way to provide convenience while remaining cost-effective.”

Amazon will emerge as biggest threat to discounters 

Amazon has launched subscription-based services in the UK such as Amazon Family and Amazon Subscribe & Save, and their activities in the US show a strong desire to rapidly gain share in the groceries market. Consumers will increasingly look to online technology to help them save on both time and money – and Amazon will want to become the leader in developing profitable online grocery shopping. “Value will remain the most important factor for shoppers, but discounters can’t afford to be left behind in a time when consumers increasingly turn to online shopping,” adds Stafford.

Online Rocery Shopping

Online grocery shopping is a good way for consumers to combine value and convenience.

 

NOTES

All numbers used in this text are based on a Canadean survey of 2,000 UK adults, conducted in January 2015. 

Please get in contact if you have any questions to this or other Canadean surveys. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

 

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2015 beverage outlook cautiously optimistic for Western Europehttp://www.canadean.com/news/2015-beverage-outlook-cautiously-optimistic-for-western-europe/Wed, 18 Mar 2015 00:00:00 GMThttp://www.canadean.com/news/2015-beverage-outlook-cautiously-optimistic-for-western-europe/Canadean estimates beverage consumption in Western Europe to increase by 0.2% in 2015, as lower inflation in key markets will lead to consumers spending more of their disposal income on refreshment.

According to Canadean’s latest Quarterly Beverage Tracker, the final quarter of 2014 brought some welcome news to the West European beverage industry, with full year consumption only declining by a marginal 0.3% due to mild winter weather. Beer saw the first uplift for some years with an increase of nearly 1%, while the rate of decline for soft drinks was less than half a percent. Canadean predicts that overall beverage consumption in West Europe will rise by 0.2% in 2015 -- the best performance since 2011.

Antonella Reda, analyst at Canadean, says: “This could be an indication that low inflation is encouraging consumer to spend more on non-essential purchases. While the uncertain political situation in Russia could have an impact on Western European consumption, and we cannot rule out the risk of deflation, the 2015 outlook for the beverage industry appears to be more optimistic.”

Beverages Performance Chart

West Europe: Commercial Beverage Performance, 2015F vs 2014P (% Change).

 

Packaged water, iced/rtd coffee drinks among winners 

Canadean predicts energy drinks and iced and ready-to-drink (RTD) coffee drinks to again take on the lead in growth terms, up by around 5% each. New iced/rtd coffee entrants and innovation in the ‘natural energy’ segment, such as Scheckters Organic Energy Drink, are expected to help drive this growth. Packaged water will also grow by an additional 600-700 million litres in 2015, supported by the increasing consumer awareness of health and hydration.

Beer to sustain recovery; cider’s star continues to rise

In the alcoholic drinks market, Canadean forecasts that beer will sustain its 2014 recovery, recording a small 0.3% growth this year. The Spanish on-trade market will notably contribute to this increase, as the lowering of prices to pre-crisis (2008) levels and special offers are successfully boosting demand for beer. Cider’s star will continue to rise in 2015 with growth of around 1%, driven by distribution expansion, line extensions and strong investment in branding by both brewers and traditional cider producers.

Outlook for carbonates, juice and dairy less rosy

The outlook for carbonates is less optimistic, as the category is adapting to a ‘new normal’ of contraction, while juice is now also falling victim to the sugar debate, with 2015 sales expected to drop by around 165 million litres. Similarly, dairy drinks are likely to forfeit around 150 million litres despite falling prices. 

Reda adds: “Value rather than volume growth is increasingly how producers and retailers measure the market dynamic. Investment in niche categories which are in tune with lifestyle trends and offer attractive profit margins, such as functional waters and premium pressed juices, will play an important role in the development of the beverage industry in the coming years.”

 

Shopping For Beverages

Canadean expects consumers to spend more on beverages in 2015. 

 

NOTES

All numbers used in this text are based on Canadean's report 'Quarterly beverage tracker Q4-2014,' published in February 2015.

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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India’s economic rise: Larger share of growing middle class travels overseashttp://www.canadean.com/news/india’s-economic-rise-larger-share-of-growing-middle-class-travels-overseas/Mon, 16 Mar 2015 00:00:00 GMThttp://www.canadean.com/news/india’s-economic-rise-larger-share-of-growing-middle-class-travels-overseas/A new report by Canadean finds that a growing proportion of the middle class in India travels overseas, with Thailand remaining the preferred hot spot for leisure tourism, while the US is rising in popularity as more Indians come to the States to visit family.

According to Canadean, Indians made over 18 million outbound trips in 2014, which is 2 million trips more than in 2013. At the moment, barely 2% of India’s population travel abroad, as most Indians still cannot afford overseas flight prices. However, the country’s middle class has increased by more than 10% over the past five years and is set to grow from around 300 million at present to approximately 600 million by 2030. Gillian Kennedy, analyst at Canadean says: “The rapid growth of the Indian middle class is turning this demographic into a major source market, with tourism boards vying to tap into this potential tourist goldmine.”

Thailand remains hot spot for Indian leisure tourism

Indian travellers characteristically have been avid business travellers, with 40% of all 2014 departures accounting for business trips. As a comparison, China only recorded a share of 21% for business travel. However, Canadean expects that the changing trends in India’s economy will spur a rise in leisure travel. One of the key destinations for Indian leisure tourism is Thailand, with over one million travelling there in 2014, an increase of 8.3% on the previous year. Kennedy says: “This growth can be attributed to cheap tourism packages and limited visa entry requirements. Geographical proximity and low currency conversion rates also contributed. Moreover, the excessive heat in most parts of India during the summer means that Thailand appeals as a cheap yet close destination.”

More Indians travel to the US to visit friends and family

Canadean’s report also finds that the US is one of the fastest-growing outbound destinations, increasing to over 960,000 visitors from India in 2014 – a number that will reach the one million mark for the first time in 2015. “A quarter of all outbound trips from India to the US are for the purpose of visiting friends and relatives and the rising disposable income among the middle class means that more Indians will be able to do so in the future,” says Kennedy. A traveller from India spends between US$500 and US$1,500 more than the average international traveller while in the US. “This means that Indians are a lucrative source of income for the US service industry, as their prime interests include sightseeing, nightlife, entertainment, theme parks, beaches, water sports and shopping,” adds Kennedy.

 

If you would like to download the full report, please visit Skift.com and sign up for your free copy.

 

Indian Girl On Beach

Indian girl on the beach.

 

India Income 2

Total household income before tax in India (%).

 

NOTES

All numbers used in this text are based on Canadean Travel and Tourism IC's report 'Market Insights; India: Source Market Report.'

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Stressed consumers look for ‘feel-good’ productshttp://www.canadean.com/news/stressed-consumers-look-for-‘feel-good’-products/Fri, 13 Mar 2015 00:00:00 GMThttp://www.canadean.com/news/stressed-consumers-look-for-‘feel-good’-products/An increasing number of UK consumers are suffering from stress, sleep deprivation and a lack of energy. In 2015, Britons are vowing to improve their work/life balance, reduce feelings of stress and spend more time with family and friends. According to Canadean, food and drink manufacturers that help them achieve this goal will do well this year.

Even though the UK economy is on the path to recovery, many consumers still worry about issues such as rising living costs and their ability to deal with everyday bills and expenses. Canadean research finds that 28% of UK consumers are not confident about the state of the economy, while 24% indicate that they will confine grocery spending to essential needs this year as they do not have the money to spend on treats. The survey also finds that 46% of consumers have suffered from disrupted sleeping patterns in the last six months.

More than half of UK consumers want to reduce stress 

As a result, consumers are looking to step back from the pressures of everyday life and are re-evaluating what is important to them. According to the survey, 51% of UK consumers are going to make active attempts to reduce their stress levels this year, while 41% say they are going to spend more time socialising with their family and friends. Michael Hughes, lead analyst at Canadean, says: “The turbulent nature of modern life is taking its toll on consumers and this is why many of them are trying to make active changes to their lifestyles. Achieving feelings of happiness will be very important to consumers and this presents a good opportunity for grocery manufacturers that offer products that help facilitate this feeling.”

Consumers want products that help them relax

According to Canadean, consumers will increasingly seek out products that lead to feelings of relaxation and escapism. They will also seek out products that are positioned around sharing with friends and family, as consumers feel favourable towards products that encourage them to visit and spend time with others. Hughes adds: “Consumers have a myriad of different needs when purchasing their groceries, so the desire for feelings of happiness and escapism will not revolutionise every product category or consumption occasion. However, this area definitely offers valuable pockets of growth and manufacturers should look to develop products that more clearly help people enjoy ‘feel-good’ moments of consumption that in turn  help them to take a break from daily stresses.”

 

Relaxing At Work

Consumers want products that give them a moment of "me-time" in their busy and stressful lives.

 

NOTES

All numbers used in this text are based on a Canadean survey of 2,000 UK-based adults, conducted in January 2015.

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Canadean rates potential of 60 major tourism marketshttp://www.canadean.com/news/canadean-rates-potential-of-60-major-tourism-markets/Mon, 09 Mar 2015 00:00:00 GMThttp://www.canadean.com/news/canadean-rates-potential-of-60-major-tourism-markets/According to Canadean’s Tourism Potential Index, Singapore is the only country that holds a five star rating, Iceland will see the fastest growth in terms of international arrivals and Brazil’s tourism industry will grow steadily despite low tourism potential.

Canadean’s Tourism Potential Index ranks the potential of the 60 major tourism markets around the world. The model is divided into two parts: the first part provides a ranking of the average annual growth in international arrivals from 2013 up to 2018. The second part, a star rating, provides an analysis of current conditions and a risk-adjusted assessment of growth potential. Factors such as a competitive currency, lenient visa policies and political stability are in favour of a country’s tourism potential.

Tourism Potential Index

Singapore the only country that scores five star rating

The Index shows that Singapore is the only country that holds a five star rating, with a score of 60 points*. The second highest rated country is the United States (55.2), followed by Iceland (52.2) and the United Arab Emirates (50.6). Arnie van Groesen, analyst at Canadean says: “The Singapore government and Tourism Board continue to be effective with promotional initiatives, positioning the country as one of the world’s key business centers. On top of that, Singapore has world-class transport infrastructure, with Changi airport topping a number of recent polls for the quality of its services.”

Iceland to witness fastest growth in arrivals

According to the Canadean Index, Iceland not only holds a 4 star rating, but is also expected to witness the fastest growth in terms of international arrivals, with a CAGR of 11.6% up until 2018. Van Groesen says: “The eruption of the Eyjafjallajökull volcano in 2010 sparked increased interest in Iceland as a tourism destination. The country scores well in terms of attractiveness and is considered to be the friendliest nation in the world to foreign visitors, according to the World Economic Forum. Its location in the middle of the Atlantic Ocean is also beneficial, with Keflavik International Airport offering scheduled flights to and from 31 cities across Europe and 14 locations in North America.”

Brazil tourism has lowest tourism potential of top ten

Brazil’s tourism industry will continue to grow strongly at an average annual growth of 8% in terms of international arrivals. However, the countries tourism potential is the lowest ranking country in the top ten, only scoring 2 stars with 33.2 points. “Although the 2016 Olympic Games in Rio de Janeiro will attract a large number of foreign visitors to the country, Brazil has a weak currency and strong inflation, while high hotel prices remain a problem. In June and July 2014, hotel prices soared up to 300% from normal levels in all cities hosting games for the World Cup,” adds Van Groesen.

*Score of 60+ (five stars) means very high potential, 50-60 (four stars) is high potential, 40-50 (three stars) moderate potential and 30-40 (two stars) equals low potential.

 

Iceland

The famous blue lagoon near Reykjavik, Iceland.

 

NOTES

All information used in this text is based on Canadean's Travel & Tourism Intelligence Center. 

Please get in contact if you have any questions to this or other Canadean insights. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Africa to become fastest growing beer market in the world by 2017http://www.canadean.com/news/africa-to-become-fastest-growing-beer-market-in-the-world-by-2017/Wed, 04 Mar 2015 00:00:00 GMThttp://www.canadean.com/news/africa-to-become-fastest-growing-beer-market-in-the-world-by-2017/A new report by Canadean expects more Africans to enter the beer market from the home brew sector, while commercial beer and premium brands forge ahead in the exploding African beer market. 

According to the report, the African beer market is the fastest growing global beer market with an annual average growth rate of 5% between 2013 and 2017. This means the African beer market will outstrip growth in the Asian and Latin American markets, which are projected to witness a growth rate of 4% and 3%, respectively. South Africa is by far the biggest market in Africa, with an expected total volume of 30,921th hl in 2014, followed by Nigeria with 15,200th hl and Angola with 12,790th hl. Kevin Baker, Account Director at Canadean, says: “Africa has seen inflation fall, foreign debt shrink and GDP rise in the last few years. Moreover, population growth – once feared as a major contributor to poverty – is now perceived as an asset, with the working age population set to outgrow that of China and India.”

Beer Growth Rates

Table: Regional beer CAGR 2013-2017

 

Commercial beers oust dangerous ‘home brews’ 

Canadean finds that more African consumers will change their home brewed drinks for commercially brewed ones over the coming years. “At the moment homemade alcohol products still dominate the African market, but they pose a significant health risk. This is an incentive for consumers to move away from ‘home brews’ and instead turn to commercial beer,” says Baker. Major international brewers have been working to create products that can compete with the unregulated alcohol market. Kenya Breweries’ Senator Keg, a beer brewed from sorghum but with the look and taste of malt beer, was the first brand specifically created to target this market.

Major players challenged by premium brands

African markets are highly consolidated and four brewers – SABMiller, Heineken, Castel and Diageo – account for 90% of the market. However, their monopoly is being challenged by new, emerging brands. For example, Solibra, a licence partner of Carslberg, was effectively controlling the market in Ivory Coast until 2013, when the new competitor ‘Les Brasseries Ivoriennes’ entered the beer market and managed to claim 12% of the market share in its first year.

The market's dynamic is further changed by premium brands, which witnessed an average annual growth rate of almost 12% between 2008 and 2013, compared to 6% for mainstream beer and 6% for African beer overall. “The growth of premium beers is a result of the growing middle class In Africa, who drink premium beer as a display of social status,” adds Baker.

 

Home Brewed Beer Africa

African woman making home brewed alcohol.

 

NOTES

All numbers used in this text are based on Canadean's report 'Beer Markets Insights 2014 Africa.'

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com. 

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Malt beverage on the rise in MENA and Africa; slowing sales in Latin Americahttp://www.canadean.com/news/malt-beverage-on-the-rise-in-mena-and-africa-slowing-sales-in-latin-america/Wed, 18 Feb 2015 00:00:00 GMThttp://www.canadean.com/news/malt-beverage-on-the-rise-in-mena-and-africa-slowing-sales-in-latin-america/According to a new Canadean report, the global malt beverage industry expanded by 42% over the past five years, with the Middle East and Africa recording particularly strong growth. While clear malt is the drink of choice in the MENA region and Africa, dark malt is preferred in Latin America where sales have been slowing. 

Malt Beverages Volumes By Region

 

Fastest growth in Middle East and North Africa (MENA)

The MENA region -- where only unfermented, clear malt is sold -- is the fastest growing market for clear malt beverages, with a growth rate of 76% and volumes almost doubling over the last 5 years. Canadean predicts that the market for malt beverages will remain robust, as alcoholic products are banned in the majority of MENA countries. Michael Ramsell, beverage analyst at Canadean, says: “In markets as restricted as the MENA markets, manufacturers need to innovate to keep consumers interested. Malt brands will stay innovative by offering clear malt in a diverse range of flavours such as peach, pomegranate and raspberry. Such flavours are already offered by Fayrouz and Moussy, regional malt brands owned by Heineken and Carlsberg.”

Clear malt is becoming more popular in Africa

According to Canadean, malt also recorded strong growth in Africa, with an increase of 62% in the last five years. Nigeria is the world’s largest malt market, and responsible for 74% of malt sales in Africa. As opposed to MENA countries, Africa is dominated by dark malt – a product brewed using roasted barley, giving the drink a much darker colour. Ramsell says: “Dark malt drinks dominate the region and are marketed at children and working class consumers who prefer sweet tasting beverages. However, clear malts have become more popular, after being introduced as an adult beverage in an attempt to attract a more affluent and wider audience."

Slowing LATAM markets in need of innovation boost

The report further shows that Latin American markets are still 100% dominated by dark malts. However, markets in Latin America only grew by 4% since 2009, as growth in the malt market is dependent on the region's two largest consumers, Venezuela and Colombia, which currently hold 33% and 36% of the market share. Ramsell adds: "The poor economic performance of both countries has slowed the malt drinks market in Latin America, meaning manufacturers need to innovate and branch out to different markets."

Clear And Dark Malt Columes For 2014

 

NOTES

All numbers used in this text are based on Canadean's report '2015 Canadean Global Market for Malt Beverages.'

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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India’s growing taste for gums and jellieshttp://www.canadean.com/news/india’s-growing-taste-for-gums-and-jellies/Wed, 11 Feb 2015 00:00:00 GMThttp://www.canadean.com/news/india’s-growing-taste-for-gums-and-jellies/Canadean expects the confectionery market in India to grow by 71% in the next four years, as the growing Indian middle-class consumes more gums and jellies and chocolate continues to be high in demand among children.

The Indian middle-class sees gum as a luxury item

The Indian confectionery market was worth close to US$1.3 billion in 2013 and is expected to grow by 71% to reach US$2.2 billion in 2018. Economic growth and development has resulted in rising disposable incomes in India, especially among the middle-class. According to Canadean, this class accounts for 45% of overall confectionery consumption in the country, and more than half of the consumed confectionery is gum. Safwan Kotwal, analyst at Canadean, says: “In India, gum is seen as a luxury item, with branded products predominantly available in urban areas. This is especially true for gum that provides fresh and minty breath, as it portrays a professional and well-groomed image that is becoming more vital to success in the Indian workplace."

Hot climate means Indians prefer gums and jellies to chocolate

Due to the soaring temperatures in India, consumers prefer gums and jellies over chocolate, especially in the summer months. Canadean finds that sugar confectionery and gum will outsell chocolate in volume terms: Gum is expected to see an increase of 64% in volume consumption by 2018, compared to a growth of only 41% in chocolate consumption. Kotwal says: “Weather plays a vital role for sugar confectionery and gum sales. However, when translated into value terms, the chocolate market still dominates and is expected to surpass the US$1 billion mark in 2018.”

Chocolate continues to be firm favourite with children

Although the report shows that gum is becoming more popular among adults in India, sweets and toffees will stay firm favourites with children and continue to be high in demand. Kids 9 years and younger accounted for almost a quarter of sugar confectionery and chocolate consumption in 2013. Kotwal adds: “Consumers in this age group, like in any other country, have a preference for sweet tasting products, which will be further enhanced as they develop their tastes and preferences for certain brands and products.”

 

Gum Chewing

Gum that provides fresh and minty breath is seen as a luxury item in India.

 

NOTES

All numbers used in this text are based on data from the Canadean Intelligence Center.

Please get in contact if you have any questions to this or other Canadean insights. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Trust is key in growing US meat markethttp://www.canadean.com/news/trust-is-key-in-growing-us-meat-market/Wed, 04 Feb 2015 00:00:00 GMThttp://www.canadean.com/news/trust-is-key-in-growing-us-meat-market/The huge meat market in the US is projected to grow steadily over the next years, driven by the increasing popularity of private label and frozen meat products. However, new brands must establish themselves as being trustworthy and reliable, finds new report by Canadean.

According to Canadean, the US meat market was valued at approximately US$68 billion in 2013 and is forecast to grow at a CAGR of 1.7% to reach close to US$84 billion by 2018. Fresh meat continues to lead the meat market in the US, accounting for over a quarter of the market volume in 2013. This can be attributed to a rising preference for fresh produce, especially among older consumers. However, products such as frozen meat that can be bought in bulk and preserved for long periods of time also appeal to a large number of consumers. In 2013, the US frozen food market was valued at US$18 billion and is forecast to grow to reach US$22 billion by 2018, making up more than half of the value of the global frozen food market, expected to lie at US$43 billion in 2018.

Safwan Kotwal, analyst at Canadean says: “Consumers are showing less brand and product loyalty, switching to alternatives they see as providing better value for money. Although fresh meat continues to sell well, processed foods have been growing in popularity over the past decade due to their affordability and convenience. Fresh meat manufacturers must ensure that they keep the price of their meat competitive in order to continue to appeal to value-conscious consumers.” 

Consumers have trust issues with private label meat 

Private label meat products have proved fruitful for retailers’ own brands and further undermine the fresh meat market. Non-branded meat is generally priced lower than branded products, thus appealing to consumers on a budget. Having said this, manufacturers need to address consumers’ concerns with regard to trust and ethics.

Kotwal adds: “Global meat scandals have tightened the screw on this market, leaving consumers angry and somewhat confused, leading to demand for greater transparency.” Consumers associate meat from free-roaming animals with better taste and organic certification with products free from 'bad' ingredients. Displaying credible food certifications on the package will enhance the perception of the product as being of higher quality. 

 

Meat Aisle US

The US meat marekt is forecast to value US$84 billion by 2018.

 

NOTES

All numbers used in this text are based on Canadean's report 'Consumer and Market Insights: Meat Market in the US,' expected to be published in mid-February.

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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New ingredients shape future of ready meals markethttp://www.canadean.com/news/new-ingredients-shape-future-of-ready-meals-market/Thu, 29 Jan 2015 00:00:00 GMThttp://www.canadean.com/news/new-ingredients-shape-future-of-ready-meals-market/More consumers are feeling time-scarce and view cooking as a chore, turning to convenient ready meals to free up more time for themselves. But to survive in an increasingly health-conscious society, ready meal manufacturers must innovate with new ingredients and premium products.

Busy urbanites look for convenient products

According to a new Canadean report, consumers seek products that suit their hectic lifestyles, influencing US$314 billion of food and beverages consumption in 2013. Parents, those with busy jobs and young urbanites without traditional cooking skills are most likely to look for fast and convenient food preparation. Urban males between the age of 16 and 35 alone are responsible for 16.7% of food and beverage consumption by volume in 2013. Kirsty Nolan, analyst at Canadean, says: “People want to free up some time on their busy schedules and are actively looking for convenient products to reduce the time they spend on food preparation.”

New challenges ahead for microwavable food 

The report shows that the search for convenience is one of the key factors why microwavable food continues to be a huge trend – despite consumers growing increasingly aware of healthy eating. Nolan says: “Since its initial launch in the late 60s, the countertop microwave oven has become an essential in modern kitchens globally. The challenge for ready meal manufacturers in the coming years will be to come up with new, innovative products that are positioned around premium quality.” 

Ingredients manufacturers such as Budenheim will help to bring microwavable innovations to the market. Budenheim launched Budal MW500 – a new ingredient that keeps microwavable snacks, such as baked goods, crispy on the outside. This allows food manufacturers to further expand their microwavable cuisine range to include croissants and pastries, which previously have not fared well during microwave preparation. Nolan adds: “Such innovations are making traditional cooking skills obsolete, providing busy consumers with the opportunity to spend time on other activities.”

 

Microwave Ready Meal

Busy consumers view cooking as a chore, turning to convenient ready meals to free up more time for themselves.

 

NOTES

All numbers used in this text are based on Canadean's report 'Identifying the next new & novel ingredients to shape new product development in the Food & Soft Drinks industries,' published in January 2015.

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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