Growth amid reports of slowdown for the food and drink market

Prior to the recession, growth in the overall market value was sustained as a result of growing consumer demand for premium and speciality foods, although more people are now seeking value for money when shopping for groceries. This latest trend has benefited the own-label sector to a large extent, whilst the major retail groups have increasingly been focusing upon value for money in their promotional and marketing efforts. The market's largest single growth sector between the years of 2004 and 2008 was rice, which increased in value by almost 14% per annum during this time. Other impressive performers include yoghurt and chocolate spreads, both of which have risen by around 10% per annum, as well as chilled soups and cooking oils. However, rising prices have been apparent in many sectors, examples of which have included bakery, dairy and cooking oils, due to the escalating cost of key ingredients. The worst performing sector between 2004 and 2008 was flavoured alcoholic beverages (FABs), which dropped by over 14% per annum during this time. The sector had already been losing drinkers prior to 2006, when excise duties were raised amongst concerns that FABs were a contributory factor in binge drinking amongst younger sections of the population. Other badly-performing sectors have included mature markets such as cooking fats and fruit curds, both of which suffer from a somewhat 'old-fashioned' image, and have struggled to attract new consumers as a result. The UK Food & Drinks Report 2009 is available from the Publications Department at Leatherhead Food Research, priced at £695 with a discounted price of £595 available to members of Leatherhead. For further information, please call them on 01372 376761 or email publications@leatherheadfood.com