Olive oil established as leading UK edible oil
varieties - vegetable, sunflower and seed oils - for the first
time, according to Mintel.
The market analyst says that olive oil market has been on fire since 2000, growing by 39 per cent to date in order to break through the £100 million mark.
Olive oil tops the market
Back in 2000 olive oils made up just 43 per cent of the liquid oils market value, with standard oils taking 52 per cent and speciality oils accounting for the remainder. But health concerns and a general move towards premium products have transformed the sector.
Today, the olive oil sector is worth some £104 million and alone accounts for an estimated 51 per cent of the total market.
"Although by volume standard oils still command the vast majority of the market, the fact that Brits now spend more on olive oil than on standard oils shows a willingness to pay a premium price for more sophisticated alternatives to everyday products," said Claire Birks, senior market analyst at Mintel.
"What is more, the popularity of olive oil has not only been helped by its aspirational value, but also by its association with Mediterranean cooking and the health claims linked with this way of life."
According to Mintel, the number of consumers buying virgin or extra virgin oil has risen from 25 per cent in 2003 to 30 per cent last year, with those purchasing regular olive oil remaining stable at 44 per cent.
Standard oil sales subdued
Meanwhile, the popularity of standard oils has been mixed, with vegetable oil in particular falling out of favour. Back in 2003 some 54 per cent of consumers had bought this variety but this has dipped to just 44 per cent - meaning olive oil is now just as popular as this once store cupboard staple.
Speciality oils tap current trends
In addition, speciality oils such as sprays, mild/light oils, non-olive/seed based and flavoured oils, have also experienced amazing growth. Worth £14 million in 2004, the segment has increased its market value by as much as 76 per cent.
Mild and light varieties have proved a major boost.
"As the British consumer becomes increasingly better off and more demanding they are likely to continue to turn to higher quality products, a trend that will of course benefit speciality oils," said Birks.
"In the future manufacturers will need to tap into this, looking at ways to add value to their products and as a result we should be seeing ever more premium end oils on our supermarket shelves."
Overall edible oils market outlook
Overall, Mintel says that the market for edible oils has increased 15 per cent since 2002 to reach just under £220 million last year, with liquid oils taking some 94 per cent of sales.
The remainder of the market is made up of solid fats, dominated by lard and it is this sector that is now really starting to feel the heat. Value here has melted away from £22 million to just £14 million since the start of the millennium, a decline of some 35 per cent.
"Solid fats have largely suffered at the hands of the decline in home baking, which has become less fashionable due to increased interest in convenience food and the unhealthy image of pastry, cakes and biscuits," said Birks.
The future looks equally as cloudy for solid fats with the sector expected to decline at a similar speed seen over the last five years to below £10 million. Meanwhile, sales of all liquid oils are expected to rise in both value and volume, with the value of the market rising some 11 per cent by 2010 to just under £230 million.
The Mintel report, entitled Edible Oils, is available priced £995.
