1. Salad and Salad Dressings
Is innovation customisation?
August 2009

2. Issues in the market
Growth of 4% in prepared salads in 2008, to £823 million, was largely driven by price inflation, the rainy summer dampening demand. Brand activity fuelled 4% growth in salad accompaniments sales, to £210 million.
Price inflation and the warmer weather supported salad sales in early summer 2009, however with the weather set to deteriorate, growth for the year is expected at 3% to £848 million. Salad accompaniments are estimated to grow by 3% to £216 million, driven largely by mayonnaise.
How have changing attitudes to healthy eating impacted on the salad and salad dressing market?
What are the differences across demographic groups on perceptions and use of salad and salad dressings?
Which trends dominate new product development and how do these reflect the broader food market?
How will salads and salad dressings perform as the economic downturn continues?

3. Summary Market Performance
Growth of 24% in value sales over will see the prepared salads market reach an estimated £848 million, however price inflation is the key driver of this growth rather than increased consumption.
At 14%, to stand at £216 million in 2009, salad accompaniments have posted much slower growth over the period. Price inflation has contributed to growth also here, together with brand activity.
Opportunities for growth
Only one in ten adults do not eat salad at all, but nearly half the population (45%) eat it in only one or two ways, suggesting a broad existing user base with opportunities for wider usage.
The new healthy standards for school lunches could help salads to tap into the estimated 1.52 billion lunches eaten at school annually.
Older consumers and high income households are highly engaged with salads, many liking to be adventurous when making them, a high potential target for new products and ingredients.
Future of the market
Growth of 24% is forecast for the prepared salads market over , to reach £1,052 million in The salad accompaniments market is forecast to grow by 20%, to £259 million.
Food price inflation will fuel some of the growth, however demographic changes are also expected to benefit these markets. Brand activity, including NPD and marketing, will remain an important growth driver.

4. Internal Market Environment
5-a-day still far away
Two thirds (67%) of adults know they should eat at least five portions of fruit and vegetables per day, but only a quarter manage this. Vegetable consumption has stagnated in recent years.
Opportunities in natural
Two in five adults would pay more for food without artificial additives, and 29% for organic. This points to opportunities for brands to differentiate themselves on natural credentials, such as using spring water to wash prepared salads.
Salads need sunshine
Demand for salad is significantly higher in the summer months than winter, fuelled further by spells of hotter weather. This pattern remains, despite more than half of adults eating salad all year round and only 13% only in the summer.

5. Broader Market Environment
Growth in ABs and 64+ is good news for salads
The number of over-64s and ABs is expected to grow ahead of other population segments over Both groups stand out as highly engaged with salads, including being adventurous when making them.
A nation of slimmers
With obesity a major health issue, nearly 45% of adults were dieting or trying to get slim in Salads are well-placed to play a part in wholesome weight management.
Convenience is here to stay
More than a third of UK households eat ready prepared meals at least once a week, with room for salads and dressings to leverage the long-running trend for convenience.

6. Strengths and Weaknesses
Salads enjoy a broad user base, with considerable room for wider usage.
Half of salad eaters try to eat more salad for a healthier diet, boding well for the future.
Pre-packed salads tap into some long-running trends, such as the demand for convenience and for pure and natural food
High income and older consumers are highly engaged with salads, both groups set to gain share in the population.
Active innovation in prepared salads and salad dressings is encouraging consumer interest and helping to expand usage.
The new healthy standards for school lunches suggest more opportunities for salads.
Vegetables and salad consumption has stagnated in recent years, with only one in four (27%) people meeting the five-a-day target.
The marketing support for salads and accompaniments is limited, with only a handful of major brands in the market.
A strong seasonal and weather-related element continues to affect demand for salads.
The economic downturn has seen a shift towards comfort foods.
The potential for product innovation in e.g. mayonnaise and salad cream is limited by the nature of these mature products.

7. Who’s Innovating?
Supermarket own-labels dominate NPD in prepared salads and salad dressings, in line with their strong position in the market.
Value for money has been a key trend in prepared salads recently, through eg budget ranges, price cuts and larger salad packs.
The long running trends for convenience (eg complete salad kits) and variety (eg world cuisines) in prepared salads remain strong.
A focus on new flavours (eg exotic) and ingredients (eg superfoods) in new product launches has helped inject excitement into salad accompaniments.
The long-running trend in lighter versions is still present in NPD in salad accompaniments.

8. Market Size and Forecast
UK retail value sales of salads and salad accompaniments and growth index,
Source: Mintel
Growth of 24% is forecast for sales of prepared salads over , with the market expected to reach £1,052 million in Real growth (excluding inflation) is projected at 13%.
Forecast to grow by 20% over to reach £259 million, salad accompaniments will perform behind salads, with real growth of 9%.
Both sectors are expected to benefit from demographic changes and the ongoing push for healthy eating, while uncertainty remains over price inflation.

9. UK retail value sales of prepared salads, by type, 2004-14
Segment Performance - Salads
UK retail value sales of prepared salads, by type,
Source: Mintel
Dressed salads are forecast to continue outperforming the pre-packed category, though by a much lower margin than in recent years. The focus on healthy eating should continue to benefit the leafy salad category in the long run.
The economic downturn may put some pressure on salads in the short term, as consumers remain value-driven, and many see healthy eating, such as fresh fruit and vegetables, as more costly than convenience food and snacks.

10. UK retail value sales of salad accompaniments, by type, 2004-14
Segment Performance - Salad Accompaniments
UK retail value sales of salad accompaniments, by type,
Source: Mintel
Mayonnaise is expected to continue to post the strongest growth in the market, in line with recent performance benefiting from NPD and active support by Hellmann’s.
Salad cream is forecast to see growth accelerate, reflecting the rising numbers of its core, older, users. Attracting younger consumers is central for the long-term viability of the market.
Growth is also projected to gather speed in salad dressings, in line with the longer term upward trend in the market, and supported by the rising numbers of older consumers and ABs, highly engaged with the category.

11. Market Share Manufacturer shares in pre-packed salads, 2008
Own-labels dominate the pre-packed salads market, estimated to capture some 92% of sales. Florette, as the only brand of note, is slowly gaining share.
Hellmann's holds nearly three quarters of the mayonnaise market. Competition from other brands (Heinz, Branston’s) has intensified, but their stake in the market remains marginal.
The salad cream market remains firmly in the hands of Heinz, the long-established brand taking some four fifths of the mature market.
Leading brand Kraft takes a fifth of the fragmented salad dressings market, own- label’s share being quite high at an estimated 46%.
Source: Mintel
Manufacturer shares in mayonnaise, 2008
Source: Mintel

12. Brand Communication and Promotion
Main monitored media advertising spend on salad accompaniments,
Source: Nielsen Media Research/ Mintel
Main media adspend on prepared salads remains low, at £1.4 million in The segment benefits from the far higher (£9.6 million in 2008) level of spend on salad accompaniments.
Major brands dominate adspend, even in categories where own-label takes the bulk of sales. Florette accounts for 95 pence in every pound spent on supporting salads; Hellmann’s and Heinz contribute a similar share in salad accompaniments.
Fresh, natural, authentic and long-standing have all featured strongly as brand attributes in recent advertising, reflecting some of the key current trends in the wider food market.

13. Salad eating occasions, April 2009
Consumer Usage
Salad eating occasions, April 2009
Base: 1,000 Internet users age 16+
Eaten by nearly half the population as a main meal, snack and sandwich filling, salad comes across as popular and versatile, but a strong seasonal element remains.
The over-54s are the most engaged in salads, most types of salad usage rising with age to peak among this group. Higher household income is also linked to higher engagement and more varied usage.
Mixed-leaf bagged salad and head of lettuce are the nation’s favourites, chosen by more than half of salad eaters. Coleslaw also makes it past the 50% mark.
Salad dressings and mayonnaise fight neck and neck for the title of the most popular salad accompaniment, eaten by 59% and 58% of the population, salad cream (37%) lagging far behind.
Source: Toluna/Mintel

14. Attitudes towards salads and salad dressings, April 2009
Consumer Attitudes and Motivations
Attitudes towards salads and salad dressings, April 2009
Half of salad eaters mark a healthier diet as a motivation for trying to eat more salad, boding well for the category.
Over a third (36%) of salad eaters note whole heads as being cheaper than pre-packed salads. However, variety, value for money and convenience are key reasons to buy pre-packed salads.
One in four say they like to be adventurous when making salads, notably the older consumers and ABs. These early adopters are likely fruitful targets for new products.
More than one in four salad eaters are making more salads at home. This peaks among the 35-54s.
Source: Toluna/ Mintel

15. Target groups by attitudes, salad and salad accompaniments, April 2009
Targeting Opportunities
Target groups by attitudes, salad and salad accompaniments, April 2009
Their high incomes and willingness to pay extra for prepared salads make the ‘Health-driven’ a lucrative target. Solutions making salads more enjoyable and exciting while remaining healthy could appeal to them.
The ‘Salad enthusiasts’ are keen on salads, with some interest in healthy eating, but are likely to look for value for money in the salad aisle.
The ‘Self preparers’ are highly engaged with salads and keen on scratch-cooking. They are more likely to take interest in new ingredients and varieties than convenient solutions.
Nearly half of adults come across as ‘Apathetic’ in relation to salads. There is potential to better inform them about salads and dressings, but their disinterest may be unprofitably high to overcome.
Source: Toluna/ Mintel

16. oxygen
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