THE UK COOK – A CHANGING BREED

The UK Cook - A Changing Breed | 3

The global overview – who are the experts?

Entertaining at home vs. dining out

The market for cooking equipment

The healthy cooking consumer

The connected home

What does this mean…?

In conclusion

The UK overview

Introduction

9

10

11

12

8

6

5

4

4

CONTENT OVERVIEW

4 | The UK Cook - A Changing Breed

Cooking: country comparison

Source: GfK survey among 27,000+ consumers (ages 15+) in 22 countries – rounded* How much do you agree or disagree with the following statements? Top 2 boxes (agree + agree strongly)** excluding those who say ‘none’

Whether you produce or sell food and drink, make the tables consumers eat at, the kitchens they cook in or the appliances and utensils that help them, it’s vital that you know about trends in cooking. GfK is able to bring together a unique set of data sources to provide an insight into people’s attitudes,

The UK is neither famous for its culinary skills nor deep interest in the subject. It’s therefore not surprising we fall behind many countries in key measures such as time spent cooking, level of

behaviour and aspirations around eating at home. We draw on multiple sources including sales data, consumer trends and forward-focused research exploring homes of the future to highlight opportunities for innovation and growth across multiple food-connected categories.

knowledge and degree of passion for cookery. But behind that headline lies a matrix of change in our attitudes and behaviours in the kitchen.

INTRODUCTION

THE GLOBAL OVERVIEW – WHO ARE THE EXPERTS?

© GfK 2015

Source: GfK survey among 27,000+ consumers (ages 15+) in 22 countries – rounded * How much do you agree or disagree with the following statements? Top 2 boxes (agree + agree strongly)** excluding those who say ‘none’

Ukraine 13.1h 40% 31%

COOKING: COUNTRY COMPARISON

India 13.2h 48% 39%

38% 25% 5.2h Brazil

37% 40% 4.9h Turkey

13% 13% 3.7h South Korea

40% 30% 5.8h Mexico

21% 21% 5.8h Sweden

24% 20% 5.5h France

26% 26% 5.4h Germany

32% 28% 5.8h China

37% 35% 5.9h USA

26% 22% 5.9h UK

20% 19% 5.9h Belgium

South Africa 9.5h 50% 42%

Indonesia 8.3h 38% 40%

Italy 7.1h 35% 43%

Spain 6.8h 20% 27%

Russia 6.5h 20% 19%

Canada 6.4h 25% 29%

Australia 6.1h 20% 24%

Poland 6.1h 21% 21%

Argentina 6.0h 24% 33%

All countries

6.4h 29% 32%hours per week**

knowledge*

passion*

The UK Cook - A Changing Breed | 5

Time spent cooking

We might reasonably consider the greatest time spent cooking to be during the family years with children at home. But our data confirms otherwise.

This may be explained by the grea-ter availability of time to spend in the kitchen for the over 60s, or a mistrust/dislike of ready meals and the desire to create meals from scratch. In contrast, a busy household with small children may rely more upon convenience food and quick cooking.

The picture that emerges in the UK is that of a mix of creative cooks who use the latest gadgets, to time-pressed or unenthusiastic cooks who prefer the easiness of a ready meal.

This presents an interesting proposition for manufacturers offering the range of culinary aids, devices and eating experiences and makes the need to identify your target market correctly a key challenge.

Expanding our knowledge and interestTelevision brings us a huge 220+ hours of cookery programmes each week. This attracts a total audience figure of around 30 million, nearly half the UK population. Sales of cookery books have also increased dramatically as our interest and desire for cooking expertise has grown.

When we look at the amount of time spent cooking, we see that the time increases with age.

Source: GfK survey among 27,000+ consumers (ages 15+) in 22 countries – global average – mean number of hours consumers spend on cooking weekly (exclu-ding those who say ‚none’)

UK: Average number of hours per week spent cooking split between men and women.

Average hours per week British consumers spent cooking

4.3hours

5.9hours

15-19years

20-29years

30-39years

40-49years

50-59years

60+years

5.4hours

5.7hours

5.9hours

6.4hours

6.5hours

5.4hours

6.3hours

5.9hours

THE UK OVERVIEW

6 | The UK Cook - A Changing Breed

Source: GfK survey among 27,000+ consumers (ages 15+) in 22 countries – global average – rounded* How much do you agree or disagree with the following statements? Top 2 boxes (agree + agree strongly)** excluding those who say ‘none’

Entertaining at home is decreasing and dining out has regained the level it was pre-recession. However, we have seen a substantial rise in people cooking for fun over the last seven years, suggesting that cooking may be seen as a leisure activity as much as a domestic need. The ready meal is still

popular and encouraged by the supermarkets, with highly competitive meal deal marketing.

The impact of these changes drives growth in opposite ends of cookery-related markets.

Ready meal evolution

The occasions that have traditionally driven meal deals, such as Valentine’s Day ,have been added to by more everyday occasions; family night in, movie night and Sunday lunch.

In the past, ready meals were not considered or expected to be of great nutritional value. Nor did they offer taste and visual appeal. Now, ready meals are positioned as healthier and balanced meals and maybe more in keeping with the type of meal we might cook from raw ingredients. But they cannot offer truly fresh, unprocessed food with the minimum of waste.

Entertaining at home

Eating out

Cooking for fun

61%

70%

48%

50%

72%

68%

2007 2014

ENTERTAINING AT HOME VS. DINING OUT

The UK Cook - A Changing Breed | 7

8 | The UK Cook - A Changing Breed

Source: GB Point of Sales Tracking, Cookware

Despite this growth in our engagement in and knowledge of cooking, our overall purchases of basic cooking equipment – namely pots and pans – have not enjoyed the same increase. However, GfK Point of Sales data does show that in recent years there has been an increase in sales of premium range pots and pans (£20+).

This suggests increasing involvement and interest in cooking as a lifestyle activity rather than a functional activity necessitating the unemotional purchase of the basics.

Perhaps it indicates that consumers are becoming more selective; investing time, energy and money into cooking the meals that matter, on weekends and relaxed weekday evenings. Takeaways, meals out and ready meals may be relied upon more for routine, mundane, time-limited weekday meals.

It’s worth noting that ceramic non-stick pans are gaining traction, with growth rates in 2014 reaching 87% in value versus 2013. Aggressive marketing activity and price erosion have certainly fuelled the growth. Health consciousness is also a significant driver, not only do ceramic pans allow for cooking without oil, but ceramic is also marketed to involve a more environmentally friendly manufacturing process than traditional PTFE (Polytetrafluoroethylene) coatings.

Value share of sales over £20

30%

2009

35%

2012

31%

2010

38%

2013

33%

2011

37%

2014

THE MARKET FOR COOKING EQUIPMENT

The UK Cook - A Changing Breed | 9

Juicers:Over the last two years, juicers have commanded the highest growth of small kitchen appliances, tripling in value to over £25.5m last year. Juice diets have become a widespread health trend and a new breed of premium products, designed to reduce waste and hassle, operate at similar price points to premium coffee machines.

Centrifugal juicers, which remove juice from pulp, claim around 95% of the market and remain the most popular and affordable. Masticating juicers optimise juice yield by crushing fruit and vegetables more effectively, resulting in less pulp and potentially more nutrients. Whilst still relatively small, growth of these products reached 190% in 2014, constituting over £500K.

Other food preparation gadgets:Food preparation gadgets promoting healthy eating other than juicers proved popular in 2014. The liquidiser market nearly doubled its value year on year, growing to over £70m. This was one of the few markets to see average price rise, from £34 to £38.

As in the juicer market, sturdier glass and metal products helped lift premium products, as did the continuing success of models that incorporate soup-making functionality. In the non-cooking liquidising segment, models with a cup attachment are driving sales. These products are marketed as smoothie and nutritional drink makers with a handy takeaway function.

The health grill market also improved after a lacklustre period from 2010. A growth of 22% saw values increase to £22m. Those products retailing at over £100, which

come with a range of settings, significantly contributed to the bottom line. There were some casualties: low or zero oil deep fryers which had been a hero product line with a 48% uplift in value, saw a £2m drop in sales for 2014, suggesting market saturation for this particular healthy cooking option.

Overview: ▪ The desire to eat healthily has

contributed to the rapid rise in sales of juicers, presses and ceramic pans.

▪ The lack of time available to spend cooking is reflected in the rising sales of food preparation devices such as blenders, mixers, liquidisers etc.

▪ The prices paid for kitchen gadgets has increased and people turn to the higher end product ranges.

Source: GB Point of Sales Tracking, small domestic appliances.

Liquidisers drive food preparation growth, Jan - Dec 2014

38%

17%

97%

12%

76%

5%

12%

Value

Value

MAT

gro

wth

rat

esM

AT g

row

th r

ates

Volume

Volume

Price

Price

Food Preparation

Liquidisers

Segment value share

Models with a Take-Away cup

Other FoodPrep segments

Liquidisers

47%Value

43%Volume

THE HEALTHY COOKING CONSUMER

10 | The UK Cook - A Changing Breed

They do however offer a substantial mid-term potential for today’s portable ‘plug and play’ solutions and longer term future potential as smart home-owners.

The future smart kitchenSmart appliances in the kitchen have not yet made much impact on general domestic appliance sales – they are expensive and in their technological infancy. Washing machines with remote controls are the most successful, but sales remain small. However, as products develop and become more attractive to consumers with a corresponding fall in price, the market will undoubtedly see growth.

The scope for innovation is wide: fridge freezers which keep track of their contents to create weekly shopping lists and recipes ideas, ovens with cooking suggestions and remote temperature controls. Whilst greater convenience for the consumer is important, the energy- saving potential of the technology may play the most significant role in the concept of a smart home.

For connected appliances to become mainstream, they must add real value, above their current ‘nice to have’ status’, and generate greater long-term savings for the consumer.

The market opportunities created by the evolution of the connected home are numerous. A household managed from the owner’s devices, offering status reports and access information and linked via a hub, would open up a wealth of untapped functionality.

The reality of this vision may not be far away. High internet penetration and consumers familiarity with connected devices mean the foundations are in place. Smart appliances are already starting to make their way into some homes, bringing big challenges and opportunities for manufacturers and retailers.

Who wants a smart home?In a UK study, we found high desire for smart homes amongst 18-45 year olds.

18-34s 35-45s 55+

88% 83% 57%

While the younger audience may better understand the concept of the smart home, fewer of them own homes and they are unlikely to invest in converting a rental property into one.

THE CONNECTED HOME

The UK Cook - A Changing Breed | 11

For food retailers?It is likely that two poles of behaviour will continue.

Ingredients necessary for cooking from scratch will still be in demand, but perhaps with a more variable focus as certain food types come in and out of fashion.

For food producers?Ready meals are here to stay and time spent cooking is

lower among the younger generation. For this age group, cooking for fun tends to be centred around particular items or occasions rather than everyday meals. However, the need to deliver healthy, fresh, balanced meals will continue to grow.

For cooking utensil manufacturers?Interest in cooking is strong,

but the opportunity appears to focus on the premium end of the market - utensils that speed up the cooking process, look good in the kitchen when entertaining at home and offer a healthy cooking method.

For kitchen and dining furniture manufacturers and retailers?

Kitchens clearly still need to be functional in design to enable time-efficient food

preparation and cooking, but they also need to be inviting, enjoyable places to be when cooking for fun. The kitchen must also deliver a pleasant environment to eat, whether for family or for entertaining guests.

For domestic appliance manufacturers?We’ve seen how the emergence

of the smart home could revolutionise our interaction with our kitchens. The success of connected appliances depend on a few steps for manufacturers and retailers to consider:

1. Convert the idea of the smart home from ‘nice to have’ to ‘essential to have’.

2. Create real consumer need by offering appliances at affordable prices.

3. Ensure appliances are easy to use and address privacy concerns.

4. Raise awareness and drive demand by promotional activity and partnerships that sell appliances as packages.

5. Train sales staff to understand and communicate the features and benefits of smart appliances.

With these conditions addressed, smart appliances are a perfect way to drive consumer interest, demonstrating innovation and technological leadership.

WHAT DOES THIS MEAN…

© GfK 2015

www.gfk.com GfK. Growth from Knowledge

About GfKGfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.

Despite the fact that the UK has lagged behind other countries in terms of interest in and passion for cooking, the trend for healthy eating and awareness of how technology can transform our experience of cooking, means that the market is in an interesting period of change. The fortunes of the ready meal market have altered over time, as have the occasions in which convenience foods are used compared to cooking from scratch. These shifts present opportunities for the manufacturers and retailers who are most aware of their consumers’ changing needs.

IN CONCLUSION