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Learn moreSep 2020
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With lockdown in the UK in response to the emergence of COVID-19 resulting in many citizens being forced to remain at home as much as possible, consumers had a greater amount of free time available, which resulted in a surge in hobbies and activities including being able to prepare meals from scratch and engage in baking. This resulted in increasing demand for butter and cooking fats, despite the latter experiencing a general declining trend over the review period as it is perceived by many as being unhealthy amongst more health-conscious consumers.
Arla Foods Ltd strengthened its overall leadership of butter and spreads in Q2 2020, due to the more positive perception of butter in the UK, which this player dominates with its Danish brand Lurpak and the British brand Anchor. These brands offer a range of butter products covering both spreadable and block variants, although the healthier perception of the latter resulted in stronger share gain and value growth performances for Lurpak Block and Anchor Block, while second-ranked Lurpak Lighter Spreadable lost notable value share and recorded undynamic growth which is mainly linked to local consumers searching for products with healthier credentials, while reduced fat options have a more processed perception.
The distribution of butter through retailers continued to be dominated by modern grocery retailers during the lockdown, with supermarkets, hypermarkets and discounters all permitted to remain open as essential businesses. However, increasing price sensitivity amongst local consumers in addition to limited availability of branded products, especially within butter due to stockpiling, resulted in these retailers’ private label lines gaining further value share in Q2, resulting in notable growth for Tesco, and Sainsbury's (including Sainsbury's Butter, Slightly Salted Organic) in addition to other private label products from the likes of discounters Lidl and Aldi.
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Discover the latest market trends and uncover sources of future market growth for the Butter and Margarine industry in United Kingdom with research from Euromonitor's team of in-country analysts.
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