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Between
2000 and 2005, the herbs, spices and seasonings market experienced
strong growth of 30% at current prices. According to market research,
an earlier boom fuelled by high pepper prices and surging interest in
fresh herbs has now steadied to around 3% annual growth since 2002.
Much of the growth has been prompted by growing consumer confidence
in cooking new recipes and the growing popularity of TV and other
cooks in the use of herbs and spices..
With value in
the seasoning market driven at the premium end, the introduction of
premium products by supermarkets has helped to increase their share
of sales. Growth is particularly strong in herbs, spices and
seasonings as well as pepper where premium launches have been numerous.
Respondents
claiming that they stick almost entirely to traditional cuisine have
fallen slightly from 32% in 2000 to 28% in 2005.
Salt and
pepper are the most popular seasonings in the UK, with table salt
recording the highest purchase level at 55% penetration over the last
6 months and pepper at 47%
Driving The Market
Schwartz, the
market leader in dry culinary compliments - herbs and spices - is
driving growth in the sector with a category management approach.
The brand,
owned by US company McCormick, has introduced new merchandising units
in Sainsbury's stores which make the category easier to shop.
Acccording to
Schwartz, consumers buy four herb or spice units a year but this
could be increased to five by inspiring people to shop the fixture.
The new units
have been tested in 10 Sainsbury's stores and are now being rolled to
the rest of the chain. They incorporate branded and own label lines,
clearly segmented into herb and spice blocks with A-Z merchandising
for easy navigation. The units also incorporate a hot spot area to
feature seasonal recipes incorporating herbs and spices, which will
change every two months. Schwartz's range of peppers and seasonings,
for easy meal solutions, are displayed on the top of the unit.
Initial
reports suggest the units have driven a 3% increase in sales and the
company is now in discussion with other multiple retailers for
possible roll out.
The brand,
which has a 44% share of the £109.6m dry culinary compliments
market, is benefiting from the revived trend to cook from scratch
with sales ahead by 4% in the last year. At the same time, the
company has invested in seasonings and sauces, which provide more
convenient meal solutions.
Salt Sales
Down
Today, salt
sales are slowly grinding to a halt under pressure from the health
lobby, while the pepper market is seriously hotting up and fresh
herbs sales are booming. Over the past few years, the salt sector has
really been feeling the pinch, with sales falling from £23
million in 2000 to an estimated £20 million this year - a
decline of some 13%. Meanwhile, during this time sales of fresh herbs
look set to more than double (124%) and pepper sales are expected to
increase by as much as 55%.
Dropping
volume sales are mainly to blame, at an estimated 12% decline between
2003 and 2005, in light of healthy eating guidelines proposed by the
government(FSA (Food Standards Agency). Table and cooking salt have
been the main casualties, losing 15% and 17% of volume sales
respectively over this two year period. Meanwhile, sea/rock salt and
low sodium alternatives have increased, but between them they account
for just 20% of the total salt market and so their success has done
only little to halt the decline.
Although the
salt sector is clearly suffering, the over-65s still show a marked
preference for table salt over any other form of seasoning. Indeed,
more than three in five (61%) have bought table salt in the 6 months
to May 2005 compared to an average of 55%.
Interestingly,
the Scots have also been slow to shake the habit, with almost seven
in ten (66%) having bought salt in the past 6 months.
Pepper
Unlike the
shrinking salt market, the Future of pepper is looking anything but
black. Over the past few years the pepper sector has seen a healthy
5% year on year growth following a particularly buoyant year in 2001
(30% growth) due to high commodity prices. Indeed, in 2005 the market
was worth in the region of £31 million, a third more than
sluggish salt sales. What is more, volume is said to be increasing
even faster, with market growth mainly being driven by sales of
premium products, such as coarse and whole peppercorns.
Herbs
A fresh look
at the seasonings market shows that it is fresh herbs that have seen
the most impressive growth in recent years. Back in 2000 sales of
fresh herbs were worth just £17 million accounting for the
fourth largest share of the UK seasonings market. At this time dried
herbs, seasonings and spices accounted for the largest market share,
with salt in second place and pepper in third.
Although dried
herbs, seasonings and spices still account for the greatest portion
of the market (41%), fresh herbs now make up the second largest
share, with nearly a quarter (22%) of market value in 2005. Indeed,
between 2000 and 2005 sales of fresh herbs shot up by a tasty 124% to
reach some £38 million. Pepper now stands in third place with
just under a fifth (18%) of the market, while salt sales have
plummeted to fourth place with just 13% and the remaining 7% of the
market is made up of curry powder.
In recent
years, several factors have brought food quality issues to the fore.
Food scares over processed foods, including the Sudan 1 dye, which
has directly affected the seasonings market, have prompted consumers
to become more aware of the food they eat. The potentially dangerous
Sudan 1 food dye which was found in a contaminated batch of chilli
powder, caused the recall of many food products, containing chilli
powder, in the UK. In many cases, these foods bore no relation to
chilli flavouring, and consumers realised that they were completely
unaware of how their food was flavoured. To some extent, the
seasonings market has benefited from this as consumers now realise
that they can have more control over what they eat by adding their
own herbs and spices, which are perceived as more natural than those
in processed foods.
The Future
Sales of herbs
and spices in UK are set for continued growth as the make up of the
market changes. The public's knowledge of the vast variety of
products available and, more importantly, their uses and
applications, continues to grow fuelled by TV chefs and cookery books
plus more than a little influence from the healthy eating lobby.
The barriers
between cuisines are breaking down such that the public are prepared
to consider the uses of fresh herbs and spices normally not
considered to be part of traditional dishes. This sees the occasional
addition of Chilli or coriander to spaghetti bolognaise and
horseradish leaves or fenugreek to roast beef.
Improved
sources of information on the qualities and uses of herbs and spices
will continue to grow demand across the broad range of cuisines. |
