Value of UK fruits and vegetables market grew 2.8% in 2011, forecast to rise another 11.5% by 2016, new report predicts
January 25, 2013
Research and Markets (http://www.researchandmarkets.com/research/3czhjq/fruit_and) has announced the addition of the "Fruit & Vegetables Market Report 2013" report to their offering.
This Key Note Market Update examines the fruit and vegetable industry in the UK. In 2011, the market grew by 2.8% at current prices.
Fruits and vegetables are a staple part of Britain's diet. Moreover, consumers are aware of the importance of eating fruits and vegetables on a daily basis, as part of a healthy lifestyle. However, retail price increases, combined with the economic crisis, mean that fresh produce is getting increasingly expensive for UK consumers. Although the value of the market has risen on an annual basis since 2007, volume sales have declined. This trend is most noticeable among low income households. Cash-strapped consumers are unable to afford fresh produce, choosing frozen variants and processed foods instead that offer at least one of the recommended 5-a-day'. Moreover, Britons are increasingly simply cutting back on their fruit and vegetable consumption, with cost concerns taking precedence over health during the economic crisis.
Growers are also operating in a difficult environment. Harvests are vulnerable to weather conditions, which are unpredictable and increasingly volatile. Moreover, farmers must compete with imports, which tend to be cheaper compared with UK produce, due to higher standards of production in the UK and escalating farmgate and energy costs. Moreover, retailers, who are mainly concerned about prices, have the power to dictate the terms and conditions of contracts. As a result, growing fruits and vegetables is no longer profitable for farmers in the UK. This has caused market consolidation and will continue to threaten production in the future, in addition to the UK's ability to be self-sufficient. Although Britons want to support local trade, their priority is currently value.
Waste is also a key issue in the industry. Vegetables are the most wasted food in the UK, followed by bread and fruit. The average family throws away £680 of food every year. This trend has a negative impact on both the environment and consumers' purses. The economic crisis and rising awareness of the problem, due to media articles and campaigns such as Love Food Hate Waste, mean that consumers are consciously finding ways to minimise waste; this includes not buying unnecessary fruits and vegetables, thus further threatening sales in the industry.
Key Note predicts that the value the market will continue to augment in the future, rising by 11.5% between 2012 and 2016. This will be due to price increases rather than a growing demand for fresh produce. On the contrary, consumers will buy fewer fresh fruits and vegetables, causing volume sales to further decline in the UK.
- Capespan International Ltd
- Del Monte (UK) Ltd
- Dole Fresh UK Ltd
- Greenvale Ap Ltd
- G'S Group Holdings Ltd
- Soleco UK Ltd
- Total Produce Ltd
For more information visit http://www.researchandmarkets.com/research/3czhjq/fruit_and
Research and Markets
Laura Wood, Senior Manager.
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Sector: Food and Beverage
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