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The latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 20 July, show familiar trends bringing new market and retailer records.
Grocery price inflation has fallen for the tenth successive period and now stands at 0.4%. Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation to the lowest level since October 2006 when Kantar Worldpanel began this measure. As a result, market growth has fallen to 0.9% – the lowest figure for 10 years.
Edward Garner, director at Kantar Worldpanel explains: “Aldi’s 32% growth rate has lifted its market share to 4.8%; this is a new record for the retailer and means it has nearly caught up with Waitrose on 4.9%. Similarly, Lidl sales have grown by nearly 20% and it has held onto its record share of 3.6%.
“Waitrose has continued to resist pressure from the competition, testament to its policy of maximum differentiation, and has grown sales by 3.4%. This figure is well above the market average and thereby has lifted its market share.”
Among the big four grocers, both Asda and Sainsbury’s have held onto their market shares of 17.0% and 16.6% respectively. Conversely, Tesco and Morrisons have recorded losses with sales for both outlets declining by 3.8% compared with this time last year.
Iceland has posted a small drop in sales, its first since 2005, but has retained its 2.0% share.
Grocery inflation has seen its tenth successive fall and now stands at 0.4% for the 12 week period ending 20 July 2014. This is the lowest level since we began recording GPI in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables, bread and milk.
Grocery Market Growth Bounces Back As Food Inflation Hits 0.8%
The latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 22 June 2014, show market growth bouncing back to 2.8% from last period’s historic low of 1.7%.
Compared with our measure of inflation which stands at just 0.8%, this indicates real volume growth.
Fraser McKevitt, consumer insight consultant at Kantar Worldpanel, explains: “The low grocery price inflation this period will be welcome news for household budgets. The outlook is positive as we predict continuing sub 1% levels into the near future, providing some relief for cash-strapped consumers.
“Aldi and Lidl continue their stellar growth streaks, holding their all-time record shares reached last period of 4.7% and 3.6% respectively. Both retailers have recently announced impressive expansion plans. Aldi will aim to double its store numbers to 1,000 by 2021, while Lidl is seeking to boost its presence with an eventual total of 1,500 outlets.”
Looking outside of the big four, Waitrose and Farmfoods are both continuing to perform strongly with the latter growing ahead of the market at 23.3%. Iceland held its 2.0% market share in line with last year.
Fraser continues: “There are mixed fortunes for the big four with Tesco and Morrisons registering falls in both share and sales. By contrast, both Asda and Sainsbury’s have increased share, beating the market average with growth rates of 3.6% and 3.0% respectively.”
New Opportunities For Prepared Meals Through Understanding Changing Lifestyles
The evolution of consumption habits across the world means both retailers and manufacturers need a renewed understanding of consumer's changing lifestyles and how this will affect their product choices.
There are new opportunities for prepared meals in developed and developing countries. To exploit this, the new report ‘Identifying New Opportunities In The Prepared Meals Markets And Responding To Evolving Consumer Need States’ highlights innovative new product development for effectively targeting consumers' most important needs, and offers strategic recommendations to capitalize on the evolving motivations driving consumption.
- Consumers in the global bottom 50 percentile of global wealth are more likely to turn to Ready Meals than those in the top 50 percentile - Men are more reliant on convenient offerings than women in developed countries - Eating occasions are becoming increasingly informal with people more likely to eat on their own or in combination with other activities - Consumers are looking for indulging treats that offer moments of escapism - Sales of premium Ready Meals are increasing as consumers increasingly associate processed food with inferior taste and quality.
‘Identifying new opportunities in the Prepared Meals markets and responding to evolving consumer need states’ shows how consumer behavior is evolving and this will open up new opportunities in the Prepared Meals market. This includes a more holistic understanding of health and the role drinks can play in meeting these needs the continuing influence consumers' busy lives has in changing consumption habits the ongoing key role taste will play in consumer choices.
In particular this report includes: - Identification of the key consumer demographic groups driving consumption of Prepared Meals in two regions based on economic positioning: Developed Economies (France Germany Italy Spain the UK and the US) and Emerging Economies (Brazil China and Russia). The figures show the volume of Prepared Meals consumption attributed to specific age gender wealth and location groups as well as identifying the key motivations driving consumption in each of these regions. - In addition the report identifies whether these consumers "over" consume in Prepared Meals (i.e. they account for a higher proportion of occasions than the proportion of society they represent overall) - Breakdowns are provided for infrequent consumers of Prepared Meals into age gender and leisure time - The evolution of consumer need states will create opportunities for marketers in four areas: evolving meal times managing living costs indulgence and health. The report explores the consumer behavior underpinning these trends highlights innovative product development driven by these evolving consumer needs and provides actionable insights for marketers to better position their products to meet these trends.
The report provides actionable insight into new opportunities emerging in Prepared Meals markets bybringing together consumer analysis and case studies. This is based on unique consumer data developed from extensive consumption surveys and consumer group tracking which quantifies the influence of 20 consumption motivations in three Prepared Meals categories.
Understanding these trends and how the most innovative marketers are seeking to target them will allow marketing tactics and strategy to be updated in line with the very latest consumer behaviours.