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Healthy Eating, Sustainability And Convenience Are Impacting The Global Packaging Market
Consumer focus on wellness, environmental impact and macroeconomic factors such as the growth of the middle class creating more disposable income are shaping the global packaging market, said Charles D. Yuska, president and CEO, PMMI, The Association for Packaging and Processing Technologies, at interpack.
These trends, highlighted in the 2017 Global Packaging Trends report, produced by Euromonitor and sponsored by leading packaging associations PMMI, Australian Packaging and Processing Machinery Association, Italian Manufacturers of Automatic Packing and Packaging Machinery, and the Processing & Packaging Machinery Trade Association, are impacting the types of machinery sourced by consumer packaged goods companies. Yuska cited global consumer demand for healthier foods as the impetus towards fresher food, clean labeling and organic products becoming center stage.
In particular, clean labels are becoming critical, according to PMMI’s recently released Trends in Food Processing Operations report.
“Thirty seven percent of U.S. consumers find it important to understand ingredients on food labels while 91 percent believe that products with recognizable ingredients are healthier,” Yuska said. “And, the rise in demand for organic food has fueled a more than 10 percent growth in this sector.”
In order to meet evolving customer wants, many food manufacturers are looking to new technology, such as High Pressure Processing (HPP) to extend shelf life while delivering fresher, safer food to the consumer. To help advance this technology, the Cold Pressure Council, convened by PMMI, is focused on the progression of HPP as a critical technology in the food and beverage industry.
The next trend emphasized by Yuska is the continued move to more sustainable packaging. PMMI’s 2016 Global Trends Impacting the Market for Packaging Machinery Market Research report highlighted sustainability as a key factor influencing all major regions. Customers are demanding minimal and less packaging waste while increases in the price of virgin materials are also driving demand for recycled materials.
Flexible packaging is also growing due to recyclability, affordability, lightweight and growth in packaged foods overall. This increase is especially evident in regions such as Asia Pacific, Western Europe, the Middle East and Africa. “The increased focus on sustainability drives the growing demand for more energy-efficient machines,” said Yuska. “With the growth of flexible packaging, we are seeing additional demand for filling and closing machines able to handle this type of packaging material.”
Lastly, one of the major macroeconomic trends that is impacting our industry is the growth of the middle class and a rise in disposable income. In developed regions, increased travel, busy lifestyles and growing health consciousness have increased demand for indulgent yet healthy foods, convenience foods, different portion sizes, different packaging designs and completely new foods.
“Consumer purchasing preferences are also changing. Online food sales are growing rapidly, a trend reinforced by the growing use of mobile phones and shopping applications,” adds Yuska.
Consumers welcome additional choices and are willing to pay more for products that are locally sourced, produced with quality ingredients and resonate as authentic. This trend toward more customization and increased premiumization, has fueled the need for increasingly flexible equipment that can handle shorter runs and more frequent changeovers.
Britain’s Sweet Tooth Helps Grocery Sales Rise At Fastest Rate Since 2013
The latest grocery market share figures from Kantar Worldpanel for the 12 weeks ending 23 April 2017, reveal the overall market has grown by 3.7% – the fastest rate since September 2013 and worth almost £1 billion in additional sales to the grocery sector.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, comments: “All 10 major retailers are in growth for the first time in three-and-a-half years, when we last saw like-for-like grocery inflation as high as it is now. While prices do look set to rise further, the current inflation rate of 2.6% is still below the average level experienced by shoppers between 2010 and 2014.
“A strong Easter also contributed to the market’s growth this period. In the past 12 weeks British shoppers splashed out £325 million on Easter eggs with almost three quarters of the population buying at least one. Consumers plumped for more premium confectionery lines this year – the average price paid for an Easter egg rising by 8.6% to £1.65 – while 20 million packs of hot cross buns were bought in the Easter week alone.”
Fraser McKevitt continues: “Premium own label lines are continuing to see huge growth and Morrisons has been making the most of their popularity among consumers. Its ‘The Best’ line is performing well following last year’s launch and has attracted more affluent shoppers through its doors, helping Morrisons become the fastest growing big four retailer. However, this growth is behind the overall market and Morrisons’ total market share has slipped 0.2 percentage points to 10.4%.
“Asda has increased year-on-year sales for the first time since October 2014 thanks to a quarter of a million additional shoppers and a strong performance online, though its overall share fell by 0.4 percentage points to 15.6%.
“Sainsbury’s sales rise of 1.7% is the greatest it has seen since June 2014, with growth coming from all three channels – its Local convenience stores, larger supermarkets and online. At a category level, Sainsbury’s is performing well in the fresh and chilled aisles – fruit, vegetables and salads are up by 2.6%, suggesting its ‘Food Dancing’ campaign is resonating with consumers eager to try more scratch cooking. The retailer is now concentrating on bringing Argos counters into many of its stores and looking to exploit the increased footfall, although stronger growth among its rivals meant market share fell to 16.1% in the past 12 weeks.”
Tesco returned to growth with sales up 1.9% after sales were hit last period by a late Easter. Its own label sales increased by 6%, growing across all price tiers – cheapest, standard and premium – while share fell by 0.5 percentage points to 27.5%.
Fraser McKevitt comments: “Ocado has doubled its share since late 2014 and now accounts for 1.3% of supermarket sales. The retailer is growing at 10.8% – second only to Aldi and Lidl and considerably ahead of the overall online grocery market, which currently has a growth rate of 7.8%. While fewer than 3% of British households have shopped with Ocado in the past 12 weeks these consumers are considerably more affluent than average, meaning the retailer performs well in high-value categories such as fresh fish, chilled drinks and breakfast cereals.”
Iceland, Aldi and Lidl, where sales rose by 9.3%, 18.3% and 17.8% respectively, all grew ahead of the market. Aldi and Lidl achieved new record high market shares of 6.9% and 5.0%, while Waitrose’s share was stable at 5.2% despite a 3.1% increase in sales helped by strong growth in its ‘Waitrose 1’ range. At Co-op, sales rose by 2.6% while market share fell by 0.1 percentage points to 6.1%.
According to a poll, conducted by Lancashire baker Holland's Pies, it's suppers and not slippers that will please pops this Father's Day. Proving that food really is the way to a man's heart, almost a third (28%) of UK dads said they'd prefer their favourite pie over a fancy gift this June with a further 30% opting for a chippy tea as their treat of choice.
Surprisingly, a relaxing massage only tempted 14% of dads but 27% did opt for a pint down their local pub to celebrate the occasion.
Leanne Holcroft, Brand Manager at Holland's Pies said: “This research really does show that it's the thought that counts, rather than an expensive or extravagant gift this Father's Day! It's great to see that something as simple as their favourite pie is the way to Dad's heart, and will be especially welcome news to those who are a little strapped for cash.”
Available in selected Tesco stores nationwide at just RRP £1.50, the new Holland's Micro Pie is the perfect tasty treat for dads. Individually boxed, the pie comes in two hearty flavours and can be microwaved in a matter of minutes making it as convenient as it is delicious. The Chicken, Leek & Bacon Micro Pie variety includes tasty British and Irish chicken, sliced leeks and smoked bacon, seasoned with pepper, parsley and thyme, in a creamy sauce. Meanwhile, the Steak & Ale Micro Pie includes slow-cooked tender prime steak in a light ale gravy.
Combining the tastes of a perfect pint with a golden shortcrust pastry recipe that has been passed down from generation to generation, the Holland's Guinness® range is sure to go down well with fathers across the UK. From the much-loved Steak & Guinness® pies, to the individual Steak & Guinness® puddings, these delicious and rich, gravy-filled pies and puds are available from selected supermarkets with a RSP of £2.50.
When getting the whole family around a table together is a priority, the Holland's frozen multipack makes a great choice. Offering four pies from just £3.00, this great value buy will appeal to any family looking for a classic, hearty filled meal. Available in selected supermarkets, the range includes Potato & Meat, Steak & Kidney, Cheese and Onion and more.