Due to growing health concerns, consumers are increasingly leading healthier lifestyles. Global concerns about the sugar content in food being linked to lifestyle diseases are expected to slow growth.
Health-conscious consumers are pushing manufactures towards ingredients that are considered beneficial to their health. This has led to an increase in variants for nut and seed-based spreads products, who appeal to consumers through nutritional qualities, including protein, fibre and vitamins.
Increased sophistication in consumer tastes and preferences, has been responded to by manufacturers of jams and preserves. Players have expanded their ranges to include more exotic fruit combinations, such as seasonal mango and peaches, and more savoury preserves, predominantly based on tomatoes.
Domestic players such as Trufoods hold the lead due to their long-standing presence in sweet spreads and their ability to innovate to cater to changing consumer needs. Furthermore, modern retail channels are usually more receptive to promoting local brands on their shelves as consumers are aware of local producers, who offer innovative products.
Producers are expected to carry out aggressive marketing campaigns to maintain their value shares. With a wide range of products and variants available, consumers are spoilt for choice and have limited brand loyalty.
American Garden Products and Trufoods face price competition when it comes to their peanut butter products. Trufoods is a domestic product that is locally made, so it can be available at a cheaper price point, whereas American Garden Products is an international brand that has a long-standing and loyal consumer base.
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This industry report originates from Passport, our Packaged Food market research database.