Soup in Switzerland

2020 IMPACT

COVID-19 significantly boosts retail current value sales of soup, largely due to the long shelf life of dehydrated and instant soup

COVID-19 will have a significant positive effect on growth in both retail current value and volume sales of soup during 2020 due to stockpiling in the early stages of the pandemic and an increase in home cooking due to remote working and the closure of educational institutions and restaurants for an extended period. Dehydrated soup and instant soup will see the sharpest acceleration in retail current value sales growth, as these products are particularly suited to stockpiling, given their long shelf lives.

Manufacturers seek to shift perceptions of packaged soup as unnatural

During the review period as a whole, convenience was the key driver of growth in retail value sales of soup, as it represents a quick and affordable meal solution at lunch or dinner time for time-pressed consumers. However, retail current value sales growth was relatively weak, as packaged soup has come to be regarded as ‘un-natural’ by a growing number of consumers.

Unilever Schweiz GmbH looks to healthy and exotic new product launches to bolster its leadership

Unilever Schweiz GmbH and Nestlé Suisse SA continue to dominate value sales of soup in Switzerland. Leader Unilever Schweiz GmbH’s Knorr brand is the clear leader in both dehydrated and instant soup but remains absent from chilled soup.

RECOVERY AND OPPORTUNITIES

Chilled soup will remain main growth driver thanks to natural and healthy image

The rate of growth in retail current value sales of soup is forecast to strengthen during the forecast period. Chilled soup is set to remain the best performer, as the preference of consumers for products they perceive as natural continues to deepen.

Manufacturers encourage consumers to snack on soup via new formats

In an effort to drive volume growth, manufacturers will attempt to extend the appeal of soup to new consumption occasions during the forecast period. In addition to the existing ranges of cups, they are likely to launch products in other convenient pack types that are suitable for on-the-go consumption, such as small bottles or even shots.

Discounters will pose a mounting threat to incumbent supermarkets

Discounters are a growing presence in Swiss grocery retail, and the likes of Lidl and Aldi will pose a growing threat to Migros Genossenschaftsbund eG and Coop Genossenschaft during the forecast period. Swiss consumers are growing more comfortable with the discount channel, and both Lidl and Aldi are steadily expanding their store footprints in Switzerland.