‘More exciting’ food-to-go products needed

More exciting food-to-go products needed to help manufacturers and retailers break into the £2.3bn market opportunity

Food manufacturers and independent convenience retailers are being urged to offer more exciting ‘food-to-go’ choices to avoid missing out on the £2.3bn business opportunity.

Sales of sandwiches, sushi, salads and snacks grew 6.6% to £584M in the high street convenience multiples for the year ended March 25 2017, boosting revenues by £36M, latest figures by market research firm IRI showed.

Food-to-go sales at petrol stations and travel outlets rose by 2.9% to £185M, the figures also showed.

‘Slight decline’

But, independent convenience retailers, including Budgens, Londis, Spar, CostCutter and Nisa – which IRI suggested were more dependent on selling sandwiches – suffered a slight decline of -0.4% to £96M.

Across all retailers, higher priced items – including baguettes, salads and sushi – showed fastest growth.

Ready-to-eat salads grew 5.1% to £800M, while sushi sales grew by 12% to £100M.

Martin Wood, head of strategic retail insight at IRI, told FoodManufacture.co.uk that it had been difficult for food brands to establish a firm foothold in convenience, where sandwiches, sushi and salads were overwhelmingly own-label.

‘Innovate with new versions’

“There is an opportunity for food brands to work with the wholesale and buying group partners that distribute to the symbols and independents; in particular to innovate with new versions of their brands for the food-to-go space,” he said.

“Ginsters, for example, now provides ‘to go’ single serve pasties and pies, and Costa Coffee has made an imprint on many of the petrol forecourts and other convenience stores. In this sector, shoppers will be influenced by strong brands that could become a draw for shoppers into these stores.”

Meanwhile, in June, manufacturers were urged to innovate to take advantage of the growing food-to-go demand from millennials. New product development, aimed at 18 to 25-year-olds, was key to making the most of the market, which was estimated to reach £21bn within four years.

Related News

The food-to-go sector will increase £6.1bn in value over the next five years, according to IGD

Food-to-go sector to be worth £23.5bn by 2022

Manufacturers must take advantage of millennial's demand for food-to-go

Food-to-go opportunity after millennial demand

Around Noon ceo Gareth Chambers (left) and Around Noon chairman Howard Farquhar (right)

Food-to-go firm Around Noon buys Chef in a Box

Greencore reported a 46% rise in revenue

Greencore revenue up 46.1% after food-to-go boost

Greggs reported a 10% rise in profits in its full-year trading update

Greggs profits rise 10% as food-to-go sales rise

Greencore acquired a new West Drayton factory

Greencore buys factory from Street Eats maker

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.