Citation
(2006), "Foodies" drive growth in posh products – premium sector set to expand", International Journal of Retail & Distribution Management, Vol. 34 No. 3. https://doi.org/10.1108/ijrdm.2006.08934cab.002
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited
"Foodies" drive growth in posh products – premium sector set to expand
Ten pence in every UK shopper's pound is spent on premium food and drink products in 2005. The value of the British premium sector is now estimated to be £11.6 billion, or 9.5 percent of the UK grocery market, with retailers like Waitrose leading the field with a growth rate of 69 percent over the past five years. The major supermarkets are extending their own-brand premium lines, for example Tesco with “Finest”, in order to compete effectively with Waitrose and Marks & Spencer.
International food and grocery think tank, IGD, says that the potential for premium food is large, with a majority of UK shoppers labelled as “foodies”, according to recent consumer research. The British market will grow and newcomers, like Whole Foods Market from the USA, look set to make the most of the opportunity by entering the sector.
IGD identifies a number of factors fueling the growth in premium foods:
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Consumers are becoming increasingly interested in the origins of food and the quality of ingredients – an interest that has been driven by media campaigns, celebrity chefs and best-selling books.
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The growth in farmers markets over the past five years is evidence of the increasing desire among consumers to buy local and regional foods.
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Over half the adult population of Britain now recognise the Fairtrade Mark which has grown over the past decade to be worth £140 million in the UK alone.
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Eight out of ten UK households bought some organic food in 2004 – many people are choosing organics as part of a healthier lifestyle.
“Clearly with a majority of consumers enjoying their food and seeing meal preparation as a fun event rather than a chore, there is still plenty of room in the premium market for new and existing players,” said Joanne Denney-Finch, chief executive of IGD. “In the UK we have a well-informed, educated population with an increasing interest in organic, fair trade, local and regional products and good food. It's up to retailers and food producers to satisfy our taste buds and our demands.”
Suppliers and retailers can purchase a copy of opportunities for growth in premium retailing from www.igd.com or by calling IGD on 01923 857141.
For further information contact: Jon Neal. Tel: +44 (0) 1923 851916, e-mail jon.neal@igd.com; Sarah Harper, Tel: +44 (0) 1923 851922, e-mail sarah.harper@igd.com