E-cigarettes, sports nutrition and “free-from” are the fastest-growing products in UK supermarkets by sales volume – according to the latest data from global information and insights company Nielsen.
Volume sales of e-cigarettes are up 49.5% year-on-year, followed by sports
nutrition bars, powders and shakes (up 42.8%).
The rise of e-cigarettes has seen an accompanying 6.1% decline in volume sales
of nicotine replacement products such as patches and gum.
Adam Leyland, editor of The Grocer, who analysed Nielsen’s data, says: “As the
Chancellor continues targeting the tobacco industry, cigarette sales continue
to fall, down 2.2% by volume, however, rolling tobacco sales are up
4.4%. The rise of e-cigarettes is the biggest trend in this market, with
10 Motives overtaking E-Lites as the leading brand.”
“The fastest-growing categories are being driven by the major supermarkets who have a strategic advantage over discounters in having a depth and breadth of range, both in store and online,” says Mike Watkins, Nielsen’s UK head of retailer and business insight.(pictured)
“This is particularly important for less frequently-shopped categories where
shoppers need a wide choice, such as sports nutrition and free-from, or where
shoppers wish to choose from a wide range of brands, such as champagne.”
The rise of free-from
Free-from products were the third fastest growing category by sales volume, up
15.4%.
“Free-from went mainstream, surging past half a billion pound in sales,” says
Leyland. “Dairy-free milk brand Alpro, up 20.3% in sales value, is now the
third largest brand in milk. Gluten-free bread Genius also soared (by 49%), as
Nestle became the latest multi-national to enter the free-from market in the UK
following Warburtons (2011) and Heinz (2013).”
Key macro purchasing trends
Britons are expected to spend £145bn at the UKs largest supermarkets in 2014 –
projected to be down -0.7% vs. 2013.
E-cigarettes and sports nutrition products lead grocery sales boost http://t.co/A9EQPU3RMK via @guardian
— Will Corry (@slievemore) December 30, 2014
Bread (-8.9%) and soup (-7.9%) are seeing the biggest decline in sales volumes, reflecting changing shopper purchasing behaviour. Nielsen identifies four key macro themes on the changing supermarket landscape:
-
Falling
inflation becoming deflation in food and drink at the end of 2014 which has led to falling sales values in many packaged
food categories
-
Consumers
shopping at a wider selection
of supermarkets, discounters, other value retailers (such as Poundland)
and at different store formats including online
-
Shoppers
buying traditional staples
such as bread, soup, hot drinks and canned goods at the discounters Aldi
and Lidl, attracted by cheaper price messaging but also the wish to
economise but not compromise, including choosing private label
- Savvy shopping to save money to then be able to buy more indulgent goods or specialist or personal care items of choice.
Micro purchasing trends (The Grocer)
Based on Nielsen data, The Grocer’s editor Adam Leyland highlights trends on
individual product categories:(pictured)
-
World
Cup Year eclipsed by sales of Champagne and Prosecco. In a World Cup year, brewers welcomed lager’s return
to growth - for the first time since 2010 - with value and volume up 2%
and 2.6%, respectively. World Cup beer sponsor Budweiser was the standout
performer as it racked up an extra £30.5m (+11.4%) in growth
However, it was the performance of Champagne and sparkling wines that stood out in the alcohol category, with volume up 12%. Several leading Champagne marques recorded double digit sales value increases, led by the #1 Champagne brand Moet et Chandon’s 13.3% growth. The category’s continuing sales momentum reflected the growing popularity of Italian sparkling wine Prosecco (sales value up 55%).
-
Frozen
food sales continue to fall.
In the case of frozen ready meals, the horsemeat scandal was merely an
additional hurdle in its uphill battle, but pastries, desserts and frozen
chips/potatoes were also under the cosh once again
Fad for low carbohydrate diets sees supermarket bread sales plunge faster than any other product http://t.co/7yonJWqrBU via @MailOnline
— Will Corry (@slievemore) December 30, 2014