UK cooking fats market dominated by Lurpak with a 25% value share

The UK cooking fats market saw sales grow by 5% in current value terms through 2012, to reach an industry value of £1,613 million.

As the UK enters a double-dip recession consumers continue to refrain from eating out, which contributes to rising interest in cooking and baking.

Health concerns are a key factor which impacts on the oils and fats category. Spreadable oils and fats, typically made from unsaturated fats, unlike margarine or cooking fats, saw 5% value growth in 2012, although volume sales fell marginally.

The slow down in volume sales over the past few years can in part be attributed to consumers using slightly less as they aim to limit spend on some higher value products.

Arla Foods UK Plc was the leading company in the United Kingdom oils market during 2012 with a 25% value share. The company's success is largely due to leading butter brand Lurpak, available in block, spreadable and lighter spreadable variants.

Ranked second is Unilever Foods UK Plc, with the leading spreadable oils and fats brands Flora and I Can't Believe It's Not Butter!; Unilever Foods UK Plc registered a 17% value share in 2012.

Brand operators are targeting added value and convenience in a bid to drive value sales, for example, launching smaller pack sizes, such as Lurpak Lighter Spreadable (Arla Foods UK Plc) in a 250g format, or offering more accessible formats such as Stork Baking Liquid (Unilever Foods UK Ltd), the company's first new product launch in this category since 1920.

Celebrity chefs are set to remain as influential as ever and strong endorsement of products will help boost sales over the coming years, as the UK cooking fats market increases at a compound annual growth rate (CAGR) of 1%.

For more information on the UK cooking fats market, see the latest research: UK Cooking Fats Market

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