Market opportuntities highlighted at Bord Bia Small Business Open Day

The UK grocery market is worth €100 billion with an average household spend of £3,800. Growth in the Irish market is flat overall but key categories currently experiencing growth include condiments and sauces with an increase of 10.3% year on year (2012 v 2011) mainly driven by new format packaging for stock pots which has revitalised the category, fresh fish at 9.7% and fresh produce (fruit, vegetable and salads) at 7.3%. 

Four key drivers of growth were identified for brands in the Irish grocery market place. These are:

1. The importance of having a point of difference – Develop and communicate your USP and demonstrate what makes your product different from private label offerings

2. New Product Development – Innovating and Refreshing is the second area that is important for brands to grow with 67% of shoppers claiming they like to try new products, while 13% of overall grocery spend in 2012 came from new products. 8 out the 13 categories showing growth in 2012 had invested in excess of 13% of overall spend on NPD with some companies focussing on innovative new products and others on refreshing the offer and reworking existing formats. 

3. Range – It is important for companies to develop a broad range of products and variants to meet the diverse needs and trends of the consumer population. In recent years, the 15 – 24 year age bracket has seen population declines while all other age brackets have increased. Reflecting the rise in population of Pre Family and Empty Nester groups, two member households are registering growth in numbers.

4. Identify and know your target consumer – Knowing and understanding your target consumer and their key drivers and motivations to purchase are critical elements when looking to grow and develop a brand. Bord Bia’s Consumer Lifestyle Trends provide valuable insights into current consumer behaviour and trends.