United Kingdom canned food market: £3 billion industry in 2012

Press Release   •   Feb 19, 2013 17:19 GMT

Heinz Co Ltd HJ will be the largest company in the United Kingdom canned food market with a 27% value share. Heinz has managed to remain innovative and relevant to UK consumers by updating its packaging formats, advertising and design. It has also been proactive in launching new healthier products such as the reduced salt and sugar line of its iconic baked beans brand. Having said this, Heinz recorded almost no growth in value share between 2011 and 2012, bringing to an end a long run of extending the company's dominance. This is predominantly due to continued price competition which limits the potential for value growth.

As a consequence of the rising costs of production, and therefore rising prices, the sector has not recorded the kind of value growth that might have been expected in this period of economic stagnation. The canned/preserved sector is traditionally cheaper and it would therefore be expected that consumers would turn to canned and preserved food in a period where take-home incomes are falling. Whilst there is some evidence of this, the sector's growth is nowhere near as strong as predicted.

Canned food is forecast to see stable CAGRs in volume and value terms over the forecast period. The sector is subject to a number of simultaneous competing trends which will restrict growth potential. Canned/preserved food is already struggling to compete with other foods on health grounds, which are becoming ever more important in the minds of consumers. Other formats, such as chilled processed food and ready meals, are already playing up their health benefits and are able to compete on price, where canned/processed food is also vulnerable.

Key Headlines

- Canned/preserved food grows by 2% in value terms to reach £2.8 billion in 2012
- Canned/preserved food's volume growth has been restricted by inflating commodity prices
- Canned/preserved vegetables performs strongly in 2012 with value sales growth of 3%
- The average unit price of canned/preserved food increases to £1.91 per kg in 2012
- HJ Heinz Co Ltd ranks number one in canned/preserved food in 2012, with a 27% value share.
- Canned/preserved food is expected to be stable over the forecast period in terms of value sales.

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