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United Kingdom dried processed food market: £1.4 billion industry in 2012

Press Release   •   Feb 19, 2013 17:24 GMT

The United Kingdom dried processed food market is led by Bachelors brand, which has a 26% expected value share of the rice category. This share has, however, been falling over the review period as private label has started to make significant inroads into the rice category. For example, Tesco is placed fourth overall in dried processed food, with Sainsbury's, Asda and Morrisons in seventh, eighth and ninth positions. All are expected to expand their value share in 2012, with Morrisons the fastest grower, aided by substantial store expansion on the part of the company. Private label retailers have benefited from a wide range of different kinds of rice, and are able to compete on price favourably against the leading brands.

The dried processed food sector has been surprisingly volatile in recent years with unexpected years of high growth coinciding with the aforementioned food crisis when the cost of rice tripled. Judged in this perspective, the growth rate in 2012 will be relatively slow, but still dynamic when compared with the majority of the processed food industry. This can be misleading, however, as the dried processed food sector is very narrow, consisting of very few categories of which rice constitutes about 38% of sales.

The dried processed food sector is forecast to remain flat in the forecast period with both value terms and volume sales increasing by 5% value and 2% volume CAGR on average per annum. Forecasts are heavily dependent on price fluctuations in the global rice market as rice is such a dominant part of this sector. As has been seen, prices have soared out of seemingly nowhere due to adverse weather conditions. However, assuming a roughly average year, it is assumed that growth will increase in dried processed food due to the continuing expansion of private label into the rice category.

Key Headlines

- Dried processed food grows by 8% in value terms to reach £1,428 million in 2012
- Prices have continued to rise as a result of poor grain harvests in 2011
- Instant Noodles is the fastest-growing category in 2012 at a rate of 15%
- The average unit price increases to £3.60 per kilogram in 2012
- Bachelors brand is the market leader with a 11% value share
- Dried processed food is forecast to register value growth of 5% in the forecast period

For more information on the United Kingdom dried processed food market, please click here: United Kingdom dried processed food market

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