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| INGREDIENTS |
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| Food Seasonings |
| Total consumer expenditure on food seasonings in 1998 equalled £84.6m, representing a tiny proportion of overall consumer food expenditure of £54.6bn. Whilst the market has shown some growth over the last 4 years – increasing by 10.7% between 1994 and 1997 – future sales growth is forecast to be weak. This somewhat contradictory trend (bearing in mind the increasing popularity of spicy and oriental foods) is explained by the growing demand for convenience foods. Therefore, whilst the upsurge in international travel has whetted consumers pallets for spicy and seasoned foods, chilled ready meals and cooking sauces have been the main beneficiaries.
Market Breakdown
Dried herbs and seasonings
In 1998 sales were £36.4m or 43% of the food seasonings market. This represented growth over the 4 years to 1998 of 8.1%. The dried herb market has been hit hardest by the upsurge in convenience foods.
Salt
In 1998 sales were £20.1m or 28.8% of the food seasonings market. This represented growth over the 4 years to 1998 of just 7.9%. Per capita consumption of salt has fallen by a massive 37.5% since 1987 and indicates a long term decline in the consumption of salt despite new product development such as rock and sea salt.
Ground pepper
In 1998 sales were £11.4m or 13% of the food seasonings market. This represented growth over the 4 years to 1998 of 11.3%. Whilst the growth has been slightly better than salt the underlying trend is still one of long term decline.
Curry powder
In 1998 sales were £4.4m or 4% of the food seasonings market. This represented a huge decline over the 4 years to 1998 of 20%. This is perhaps the best example of the contradictory trend outlined in the opening paragraph – curry has become increasingly popular over the last decade yet the main beneficiaries have been pre-prepared ethnic ready meals and sauces, not curry powder.
Other herbs and spices
This sector is comprised mainly of fresh herbs and herbs in oils. Whilst representing a small percentage of the market (11.1% and 4.6% respectively) both have grown in the last few years and that growth is expected to continue. Again the reason lies in the increasing popularity of convenience foods which has encouraged consumers to buy fresh herbs, not for home cooking, but to sprinkle on pre-prepared meals.
Issues
Weather
Like all fresh produce the weather can have a huge impact on supply and therefore price. What is unique about the food seasonings market is the growing times of some crops – Nutmeg and cloves take 6 to 8 years to harvest whilst vanilla and pepper take 3 years. Therefore the effects of a bad weather year can impact supplies for years.
Politics
The majority of herbs and spices are grown in Far Eastern countries which, from time to time, experience periods of political unrest. This can have catastrophic effects on exports as was demonstrated in the Iranian revolution back in the 70’s. Prior to the troubles Iran had been the worlds cumin seed supplier but supplies were abruptly cut following the Shah’s fall from power and the subsequent rise of the new regime which promptly cut all ties with the West. Cumin is now grown in India bur for several years supplies were decimated.
Production
McCormick, through its Schwartz brand, dominates the industry – in 1998 they supplied 52% of the UK market for herbs and seasonings. The rest of the industry is incredibly diverse. It is comprised of specialist herbs and spices suppliers, food ingredients and processing companies and ethnic food manufacturers.
Health
Salt consumption is in long-term decline mainly as a result of consumers' concerns over its effect on their health. Despite this concern and the steep decline in salt consumption (see salt section) per capita consumption of salt is still 40% higher than the UK Health Authority’s recommended daily intake of salt which they have set at 6 grams. One problem is the lack of control consumers have over their salt intake; it is estimated that 2/3’s of daily intake is through processed foods.
Ignorance
Consumers are not particularly knowledgeable about lesser known spices which can limit impulse purchases.
Distribution
Supermarkets control 70% of distribution in the UK with the balance going to health food stores and ethnic food stores.
GM Foods
Whilst no evidence exists that herbs have been genetically modified there is a danger that they may get caught up in the GM debate through association. Conversely, consumers worried about GM foods in processed foods, may turn to herbs and spices which generally have a healthy image.
Trends
Home cooking
Home cooking has traditionally been the main source for herbs and seasonings but is in long term decline. Thus, whilst the profile of herbs and seasonings has grown over the last few years as a result of consumers travelling abroad and the popularity of cooking programmes, the main beneficiaries have been pre-prepared meals and cooking sauces. Increasingly herbs and spices are being used as an addition to ready meals and sauces.
New product development is making some inroads into the convenience market with products such as herbs in oil, minced spices and cubed spices.
Ethnic minorities
Home cooking continues to remain an important trend in ethnic households where the family unit (characterised by large families) continues to hold sway with family meals very much the norm. This, combined with a traditional reliance on herbs and spices in meals, means a steady demand for food seasonings. Whilst it continues to be an important market it is also a small one with only 5.8% of the population or 3.3m people.
Societal changes
As explained in the 'Trends' sections of this guide, changes in society are having a profound effect on food consumption. Working women, single parent households, smaller family units and flexible working hours have resulted in the decline of the traditional home cooked family meal and a surge in demand for convenience foods.
Net importer
Unsurprisingly the UK is a net importer of herbs and spices with £62m entering the UK in 1998. This trend is set to continue and increase since a large portion of the home produced product is represented by salt, which is in long term decline.
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