The total citrus market, defined as oranges, easy peelers, grapefruit, lemons and limes, is worth £530 million, which represents 17 per cent of the total fruit market.
Its annual performance has been good, with expenditure for the 52 weeks to January 4, 2004, up 10 per cent. Key to this performance is the growth rate of 15 per cent for easy peelers. This sector now accounts for 53 per cent of the citrus category value. Volume however shows a slightly different story. The citrus market and easy peelers is up just two per cent in volume terms, indicating price inflation is driving the market growth. These price movements are a result of a change in promotional tactics by the retailers, from the standard mechanics to two for £2 promotions. These new promotions involving cross-promotional activity have helped drive orange sales, which are up four per cent annually.
Lemons and limes have also had a good year, albeit from a small base. Annual volume growth stands at nine per cent and 32 per cent respectively. Both of these fruits have seen growth due to more consumers buying into the market and buying more frequently.
While the annual picture is looking bright, the latest quarter has been disappointing, with the total citrus category down four per cent in volume. Easy peelers have driven this decline, with volume down seven per cent. Decline is a result of the late season for satsumas and clementines.
Looking at the retailers, the multiples continue to gain share. They now hold 84 per cent of the market value compared to 82 per cent two years ago. Tesco is the big winner, adding £23m to its citrus category to grow by 19 per cent year-on-year. In volume terms, the over performing retailers are Morrisons, Waitrose and M&S.
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