The fresh prepared sector has amazed analysts with its resilience to the economic downturn, which has made it even stronger.
According to a report just out by Rabobank on the EU fresh-cut fruit and vegetable market, growth across the union is estimated at four cent for 2009 and five per cent for 2008. The UK accounts for a third of the whole market.
Report author and analyst Cindy Rijswick said: “Of course there are differences between products, but in the UK, which is the leading country in this sector, suppliers and supermarkets have responded really well to the economic crisis. Promotional activity has been increased and pack weights have been reduced to offer more attractive price points for the consumer. For example, some of the £1 product lines have performed really well.”
Van Rijswick thinks that the downturn has proved a spur to a category that might otherwise have gone stagnant in growth terms. “I think maybe some companies thought that because of the crisis they would have to put some effort in and innovate,” she said. “There were too many product lines - especially on the different lettuce mixes - and the sector has rationalised some SKUs. This has given more clarity to shoppers.”
Rabobank believes there is still more growth to come in this sector, even in mature markets such as the UK as retailers multi-channel with convenience, high street and superstore formats.