1. Deli Meat, Bacon and Sausages
Convenient and versatile, but do consumers make the most of them ?
June 2009

2. Issues in the market
Rising food costs are helping to position bacon and sausages as a good value protein source
Heavy discounting is holding back value sales growth
Own-label dominance in an established market
Reduced imports of pig meat into the UK provide more opportunities for UK producers
Sausages and bacon move beyond a breakfast staple

3. Summary Volume sales stall
Volume sales of deli meats, sausages and bacon increased by 1% in 2008 before falling an estimated 3% in Value sales have grown by 5.2% between 2007 and 2009 to reach £3.9 billion
Volume sales are set to grow by 2% from , indicating that value growth will increasingly need to come from premiumisation
Category sales
Suppliers have used price promotions to stimulate extra volume sales of bacon, and manufacturers have sought to add value to the sausage market by widening the premium offer
‘No additives/preservatives’ was a key product claim in the market between 2006 and Consumers are looking for natural products, and pay more attention to ingredients
Consumer Habits
As the bulk of sales go through grocery multiples (79%), consumers have a preference for pre-packed cooked meats and sausages compared to the loose or sliced to order option
Cooked meats are most likely eaten as part of lunch, while bacon and sausages prove quite popular when eaten as part of a traditional ‘English’ meal

4. Internal Market Environment
Warmer weather forecast for summer 2009 should benefit sausage sales, especially for the barbecue occasion
Changing breakfast habits have relegated bacon and sausages to a weekend treat
The increased focus on animal welfare ties in with the increased prominence given to the origin of food sold
Meat imports have fallen in the UK as the industry recovers from foot and mouth, blue tongue and other diseases

5. Broader Market Environment
The FSA has issued further recommendations for the reduction of fat and salt in certain foods
The farming sector has been exposed to recent fluctuations in global commodity feed prices
The over-64s who are forecast to grow by just under 13% over the next five years, are key targets for cooked meats as they are most likely eaten at home for lunch.
A World Cancer Research Fund report published in 2008 reported that those eating two rashers of bacon and two sausages a day had a 63% higher risk of bowel cancer

6. Strengths and Weaknesses
Deli meats bacon and sausages are versatile and have multiple uses
Premium ranges have benefited from consumer concerns about food provenance and the ingredients in their food
Cooked meats remain a lunchtime favourite, especially for retired consumers
Sausages are a good value protein source, increasingly eaten as part of a main evening meal
Appeal amongst all socio-demographic groups
A warm summer offers promising opportunities for sausages and deli meats
Wide range of products available at different price points
Dominated by own-labels, limiting shelf space for brands
Constant discounting and promotions can affect consumer’s judgement about product quality
Food inflation affecting cost of pig meat
World Cancer Research findings claim that processed meat increases the risk of bowel cancer
If the swine flu pandemic does not abate, there are fears that consumers may adopt a cautionary approach to pork
Bacon and sausages suffer from an unhealthy image due to their salt and fat content respectively
Volume sales have stagnated as consumers spend less time (if any) at the breakfast table

7. Who’s innovating?
NPD in processed meats, % by positioning,
As consumers increasingly pay greater attention to the food that they eat, they are increasingly looking for additive and preservative-free foods
Food manufacturers have been put under increasing pressure to reformulate their food products
This is especially the case for deli meats which have been criticised for being too salty
Processed meats are dominated by own-label launches, although brands are starting to increase their share of NPD activity
Grocery retailers are adding value to the sausages market with launches of premium own- label ranges
Source: Mintel GNPD
NPD in processed meats, % own-label vs. branded ,
Source: Mintel GNPD

8. Market size
UK retail volume and value sales of deli meats, bacon and sausages,
Source: Mintel
Retail value sales of deli meats, sausages and bacon have grown by an estimated 5% in the two years to However with the effects of inflation removed, the market fell 6%
Rising production costs, as well as consumers try to eat a healthy diet have stemmed growth in this market
Volume sales are set to stagnate, growing by just two percent from , indicating that value growth for this market will increasingly need to come from premiumisation

9. Segment Performance
UK retail value sales of bacon, sausage and delicatessen meats, at constant prices,
UK retail volume sales of bacon, sausage and delicatessen meats,
Source: Mintel
Source: Mintel
The bacon market has suffered price deflation as retailers run multiple sales promotions
Sausages have moved away from being just a breakfast favourite
Delicatessen meats will continue to be the fastest growing segment, increasing by 20% at current prices from

10. Brand Communications x
Main monitored media advertising expenditure on deli meats, bacon and sausages x
Source: Nielsen Media Research/Mintel
Own-label leadership of this category has limited advertising expenditure to a few key brands
Kerry Foods dominates advertising expenditure (contributing 37% in 2008) promoting such products as Richmond and Wall’s sausages
Below the line marketing activity is also used as an essential promotional tool to drive sales

11. Channels to market
UK retail value sales of delicatessen meats, bacon and sausages, by outlet type, 2006 and 2008
* includes convenience stores, forecourts, farmers’ markets, e-tailing etc
Source: Mintel
As consumers look to do all their weekly shopping under the same roof, butchers and other specialist retail outlets have seen their share of sales decline
“I tend to think that the quality of meat products from a butcher is of higher quality, and I like to think that they would be fresher as well, although it does tend to depend on the butcher.”.
25-34 year-old ABC1 male
“I will usually buy sausages and bacon from the supermarket, mainly because it’s cheaper and also because there is not a local butcher in my area.”
25-34 year-old C2DE female

12. The Consumer – What is eaten at home
‏Types of cooked meats eaten/served at home, March 2009
Base: 871 adults who eat/serve cooked meats
Consumers tend to stick to pre-packed cooked meats despite the deli counters offering a wider selection
Time pressures when doing the grocery shopping may also mean that consumers are less willing to queue up for cooked meats, preferring to choose from the pre-packed selection
Key consumers of pre-packed sliced meats are:
Aged 25-44
Socioeconomic group:C1
Children in household aged 5-9 years
4+ people in household
Source: Toluna/Mintel

13. The Consumer - Repertoire analysis
‏ Repertoire of cooked meats, bacon/gammon and sausages eaten/served at home March 2009
Base: 871 adults who eat/serve cooked meats, bacon/gammon and sausages
Consumers have a wider choice of cooked meats to choose from, leading to larger repertoires
At the lowest level, those eating just one type of cooked meat are most likely to opt for pre-packed ham or pre-packaged poultry meat
The choice is more restricted in bacon, thus bacon rashers are the key choice for most consumers
Source: Toluna/Mintel

14. The Consumer – Consumption Motivations
‏ When cooked meats/bacon and gammon/sausages are eaten/served at home, March 2009
Base: 1,000 adults aged 16+
Lunchtime is the most popular occasion for eating cooked meats, most likely in sandwiches
“I usually eat deli meats at lunch time, usually in a sandwich or with crackers.”
year-old ABC1 female
The versatility of sausages and bacon make them a popular ingredient in cooking
Sausages are one of the most popular barbecue foods as they are quick and easy to cook, and also a relatively inexpensive option
Source: Toluna/Mintel

15. Consumer Attitudes – Cooked meats
‏ Attitudes towards pre-packed cooked meats and pre-cooked meats available at the deli counter, March 2009
Base: 1,000 adults aged 16+
Consumers perceive products bought from the deli counter to be of better quality than the pre-packed alternatives
“You can certainly taste the freshness of meat brought from the deli counter, although it might cost a little bit more.”
year-old ABC1 male
“Deli counters are usually better, but they have fewer offers so I try the aisle first.”
year-old ABC1 male
Deli counters offer consumers the option to buy only the amount they need, hence reducing on waste
Source: Toluna/Mintel

16. Consumer Attitudes – Bacon and sausages
‏ Attitudes towards bacon and sausages, March 2009
Base: 1,000 adults aged 16+
The sausages and bacon bought from butchers is felt to be of better quality; however it is seen as a more expensive choice
“I tend to find that the butcher bought sausages have a better taste and quality, but store bought ones are a good alternative when looking for that cheaper option.”
year-old ABC1 male
“I doubt if there is a lot of difference between sausages and bacon bought at a butchers or the supermarket. I guess it does depend on the particular butcher.”
year-old C2DE male
Just over one in ten consumers have cut down their spend on premium products in order to save money
Premium foods have been one of the fastest growth sectors in recent yearx
Source: Toluna/Mintel

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