Fats and Salad/Cooking Oils in the U.S.: Butter, Margarine, Olive Oil, and Beyond

Chapter 1: Executive Summary

Introduction

Market Definition: Fats and Oils

Report Methodology

Market Trends

U.S. Fats and Oils Market Approaches $9.2 Billion

Market Shares Remain Stable Among Categories

Figure 1-1: Share of SymphonyIRI-Tracked Sales of Fats & Oils: By Category, 2007 vs. 2011 (percent)

Supermarkets Account for 59% of the Market

Figure 1-2: Share of U.S. Fats & Oils Market Sales by Retail Channel, 2011 (percent)

Competitive Trends

Farmer Coops, Multinationals Share the Spotlight

Acquisitions and Mergers

Private-Label Sales Outpace Overall Market Sales

Fats and Oils Sales Grow in Natural/Gourmet Outlets

Marketing and New Product Trends

Fats & Oils Product Introductions Climb Despite Recession

Olive Oil Leads in New Product Intros

“Private Label” Tag Tops Claims List

Table 1-1: Top Product Claims/Tags for U.S. Fats & Oils Product Introductions, 2007-2011 (number)

The “Good” Fats

Consumer Trends

Majority of Americans Seek Healthy Lifestyles

Figure 1-3: Consumer Psychographics: Physical Health and Fitness, March 2011 (percent of U.S. grocery shoppers)

Salad/Cooking Oil Most Frequently Used Fats & Oils Product

Packaged Facts Survey Reveals More Shoppers Choosing Margarine

Personal/Family Favorites Dictate Product Choice

Olive Oil Most Frequently Used Fats and Oils Product

Fats and Oils Purchase Patterns at Retail

Organic Butter Purchasers Prefer Organic Foods and Beverages

Organic Butter Purchasers Favor Gourmet, Artisanal Products

Salted Butter Purchasers Less Likely to Focus on Health Goals

Chapter 2: Market Trends

Introduction

Market Definition: Fats and Oils

Report Methodology

Market Size & Composition

U.S. Fats and Oils Market Approaches $9.2 Billion

Table 2-1: U.S. Retail Sales of Fats & Oils, 2007-2011 (in billions of dollars)

Market Shares Remain Stable Among Categories

Figure 2-1: Share of SymphonyIRI-Tracked Sales of Fats & Oils: By Category, 2007 vs. 2011 (percent)

Dollar Sales Stable While Volume Shrinks

Table 2-2: SymphonyIRI-Tracked Retail Sales of Fats & Oils by Dollar and Volume Growth, 2010-2011 (in millions of dollars and pounds)

Butter Tops List of Dollar Growth

Table 2-3: Fats & Oils by Dollar Growth/Loss in SymphonyIRI-Tracked Dollar Sales, 2010-2011 (in millions of dollars)

Supermarkets Account for 59% of the Market

Figure 2-2: Share of U.S. Fats & Oils Market Sales by Retail Channel, 2011 (percent)

Market Outlook

Prolonged Economic Concerns Plague Consumers

Consumers Willing to Spend More for Quality Groceries

Table 2-4: Consumer Attitudes: Grocery Spending and Product Quality (percent)

Table 2-5: Consumer Attitudes: “Price Not Main Factor in Purchases” and “Spending More on Consumer Products,” February 2011 (percent)

Food Costs Rise Once More

Table 2-6: Consumer Price Index for Food at Home and Fats & Oils: 2001-2011

Butter Prices at a Premium

Stealth Downsizing

Specialty Fats and Oils Still Affordable

Holistic Approach to Wellness

Table 2-7: Consumer Opinion on Healthy Eating Habits, Winter 2010/11 (percent)

Fortification Important to Health Perception

Fat’s Health Halo

The Fight Against Trans Fats

Omega-3 to the Fore

Consumer Confusion Persists Despite Industry Efforts

Natural and Organic

Table 2-8: Consumer Opinions on Natural and Organic Products, February 2011 (percent)

What Is Natural?

Environmental Concerns

Sustainability Crucial to Consumer Good Will

Girl Scouts Draw Focus on Sustainable Palm Oil

“Green” Packaging

Food Safety

U.S. Fats and Oils Market to Reach $10.6 Billion in 2016

Table 2-9: Projected U.S. Retail Sales of Fats and Oils, 2011-2016 (in billions of dollars)

Chapter 3: Competitive Trends

Farmer Coops, Multinationals Share the Spotlight

Table 3-1: Leading Marketers of Fats & Oils by SymphonyIRI-Tracked Retail Sales, 2010-2011 (in millions of dollars)

Acquisitions and Mergers

Private-Label Sales Outpace Overall Market Sales

Table 3-2: SymphonyIRI-Tracked Retail Sales of Private-Label Fats & Oils by Category, 2010-2011 (in millions of dollars)

Trends in Butter

Private Label Dominates Butter Category

Table 3-3: Top Marketers and Brands of Butter by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Margarine/Spreads/Butter Blends

Unilever Leads Faltering Category

Table 3-4: Top Marketers and Brands of Margarine/Spreads/Butter Blends by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Mayonnaise and Sandwich Spreads

Hellmann’s Is Top Selling Mayonnaise Brand

Table 3-5: Top Marketers and Brands of Mayonnaise and Sandwich Spreads by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Cooking and Salad Oils

Value/Premium Brand Lines Succeed

Table 3-6: Top Marketers and Brands of Cooking and Salad Oils by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Olive Oil

Pompeian, Private-Label Post Growth

Table 3-7: Top Marketers and Brands of Olive Oil by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Cooking Sprays

ConAgra’s PAM Leads Category

Table 3-8: Top Marketers and Brands of Microwave Browning/Pan Sprays by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Shortening

Crisco Dominant Force in Shortening Market

Table 3-9: Top Marketers and Brands of Shortening by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in Popcorn Oil

ConAgra’s Orville Redenbacher Leads But Loses Share

Table 3-10: Top Marketers and Brands of Popcorn Oil by SymphonyIRI-Tracked Sales and Market Share, 2010-2011 (in millions of dollars)

Trends in the Natural/Specialty Channel

Fats and Oils Sales Grow in Natural/Gourmet Outlets

Olive Oil Largest Category in Natural Channel

Table 3-11: Fats and Oils Sales by Category: Natural Channel vs. Gourmet/Specialty Channel, 2010-2011 (in millions of dollars)

Top Brands Vary by Channel

Chapter 4: Marketing and New Product Trends

Fats & Oils Product Introductions Climb Despite Recession

Table 4-1: Number of U.S. Food Product Introductions: Overall vs. Fats & Oils, 2001-2011

Olive Oil Leads in New Product Intros

Table 4-2: Number of U.S. Fats and Oils Introductions by Product Category: Reports and SKUs, 2007-2011

“Private Label” Tag Tops Claims List

Table 4-3: Top Product Claims/Tags for U.S. Fats & Oils Product Introductions, 2007-2010 (number)

Natural-Related Claims Maintain Growth

Table 4-4: Number of New Fats & Oils Product Introductions by Top Natural-Related Package Tags/Claims, 2007-2011

Health-Related Claims Reclaiming Lost Ground

Table 4-5: Number of New Fats & Oils Product Introductions by Top Health-Related Package Tags/Claims, 2007-2011

Top Marketers Change Year to Year

Table 4-6: Leading Marketers of Fats & Oils in the U.S. Based on Number of Stock-Keeping Unit (SKU) Introductions, 2010 vs. 2011

U.S. Leads Global Fats & Oils Introductions

Table 4-7: Number of Fats & Oils Introductions by Country, 2007-2011 (number of reports)

Trends in Health and Wellness

The “Good” Fats

Types of Fats

Olive Oil, Canola Oil Score Health Claims

Functional Fats

Illustration 4-1: Crisco Puritan Canola Oil with Omega-3

Illustration 4-2: Smart Balance Heart Right Light Spread

Illustration 4-3: Smart Balance Omega Plus Mayonnaise

Illustration 4-4: Spectrum Organics Omega-3 Olive Oil

Illustration 4-5: Spectrum Organics Omega-3 Mayonnaise with Flax Oil

Illustration 4-6: Mazola Corn Oil Plus!

Inherently Healthy Oils

Olive Oil Goes Mainstream But Keeps Upscale Edge

Illustration 4-7: Crisco Olive Oils

Illustration 4-8: Olivari Olive Oil with Pop-Up Pourer

Illustration 4-9: Peque Oliva Oliver Petite Gourmet Olive Oil

Brand Profile: Pompeian Olive Oil

Illustration 4-10: Pompeian OlivExtra Premium

Illustration 4-11: Pompeian Grapeseed Oil

Canola Oil: The Preferred Additive

Illustration 4-12: Hellmann's Canola Cholesterol-Free Mayonnaise

Lesser-Known Healthy Oils

Illustration 4-13: Salute Santé Grapeseed Oil

Illustration 4-14: Olivado Avocado Oil

Illustration 4-15: La Tourangelle Walnut Oil

Illustration 4-16: Earthy Delights Tea Seed Oil

Coconut Oil Craze

Brand Profile: La Tourangelle Premium Oils

Illustration 4-17: La Tourangelle (latourangelle.com)

Less Is More: Spray Oils

Enhanced and Flavored Spray Oils

Illustration 4-18: Mazola Pure Cooking Spray

Illustration 4-19: Smart Balance Omega Cooking Spray

Illustration 4-20: Spectrum Organics Coconut Spray Oil

Illustration 4-21: Le Foam Lemon Dijon Spray Foam

Trends in Indulgence and Flavor

“Flavor Carriers”

Specialty Fats Heat Up

Flavored Mayonnaise and Gourmet Sandwich Spreads

Illustration 4-22: Kraft Sandwich Shop Mayonnaise

Illustration 4-23: Tiger Tiger May-O

Illustration 4-24: Baconnaise

Brand Profile: Empire Mayonnaise Co.

Illustration 4-25: Empire Mayonnaise

Flavored Butters

Illustration 4-26: Land O' Lakes Cinnamon Sugar Buttery Spread

Illustration 4-27: Transatlantic Foods Flavored Butters

Artisanal/Small-Batch Butters and Ghee

Illustration 4-28: Plugrá Butters

Illustration 4-29: Purity Farms Ghee

Brand Profile: Kerrygold Butter

Illustration 4-30: Kerry Gold Butters

Trends in the Natural and Organic Market

Interest in Natural and Organic Products Remains Strong

Illustration 4-31: PAM Organic Cooking Spray

Illustration 4-32: O Olive Oil Clementine

Brand Profile: Earth Balance

Illustration 4-33: Earth Balance MindfulMayo

Chapter 5: Consumer Trends

Shopper Insights

Methodology

Majority of Americans Seek Healthy Lifestyles

Figure 5-1: Consumer Psychographics: Physical Health and Fitness, March 2011 (percent of U.S. grocery shoppers)

Groceries and Consumer Health Goals

Figure 5-2: Consumer Psychographics: Healthy Eating and Dieting, March 2011 (percent of U.S. grocery shoppers)

Low Sugar, High Fiber Are Most Popular Healthy Product Positionings

Figure 5-3: Purchasing of Food and Beverage Products by Selected Package Labels/Claims, March 2011 (percent of U.S. grocery shoppers)

Shopper Use of Grocery Coupons

Figure 5-4: Types of Coupons Used During Grocery Shopping Trips, March 2011 (percent of U.S. grocery shoppers who use coupons)

Table 5-1: Sources of Coupons Used During Grocery Shopping Trips, March 2011 (percent of U.S. grocery shoppers who use coupons)

Fats and Oils Usage Trends

Salad/Cooking Oil Most Frequently Used Fats & Oils Product

Table 5-2: Percentage of U.S. Households Using Fats and Oils Products by Type, Brand, Amount: 2008-2011 (percent)

Packaged Facts Survey Reveals More Shoppers Choosing Margarine

Figure 5-5: Products Usually/Normally Purchased: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Figure 5-6: Planned vs. Impulse Purchases: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Figure 5-7: Response to Question “Did you choose a product that you usually buy?”: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Table 5-3: Type of Brand Purchased During Grocery Shopping Trips: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Sale Products Popular in Margarine Category

Figure 5-8: Percent of Products Purchased on Sale: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Figure 5-9: Price Comparison of Products Purchased, Compared to Similar Products: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Table 5-4: Type of Sale or Promotion: Margarine vs. Oils, 2011 (percent of U.S. grocery shoppers)

Personal/Family Favorites Dictate Product Choice

Table 5-5: Motivations (Other Than Price/Promotion) for Selection of Products Purchased: Margarine vs. Oils, March 2011 (percent of U.S. grocery shoppers)

Olive Oil Most Frequently Used Fats and Oils Product

Olive Oil Also Considered Healthiest Fat/Oil

Table 5-6: Percent of U.S. Consumers Using Fats & Oils During Past Three Months: By Type, 2011 (percent)

Table 5-7: Agreement with the Statement, “Which of the following fats or oils do you consider to be the healthiest choices?”, 2011 (percent of U.S. Consumers)

Salted Butter Most Frequently Used Butter Variety

Mustard Most Frequently Used Sandwich Spread/Flavoring

Table 5-8: Percentage of U.S. Butter Purchasers by Type Used in Past Three Months: 2011 (percent)

Table 5-9: Percent of U.S. Households Using Sandwich Spreads and Flavorings During Past Three Months: By Type, 2011 (percent)

Light Mayonnaise Considered Healthiest Fats & Oils Spread

Table 5-10: Agreement with the Statement, “Which of the following sandwich spreads or flavorings do you consider to be the healthiest choices?”, 2011 (percent of U.S. households)

Fats and Oils Purchase Patterns at Retail

Table 5-11: Purchasing Indexes by Retail Channel/Chain and Butter Varieties, 2011 (U.S. butter purchasers)

Table 5-12: Purchasing Indexes by Retail Channel/Chain and Oil Varieties, 2011 (U.S. grocery shoppers)

Fats and Oils Purchase Patterns and Select Psychographics

Organic Butter Purchasers Prefer Organic Foods and Beverages

Organic Butter Purchasers Favor Gourmet, Artisanal Products

Salted Butter Purchasers Less Likely to Focus on Health Goals

Table 5-13: Purchasing Indexes by Natural/Organic-related Psychographics and Butter Varieties, 2011 (U.S. butter purchasers)

Table 5-14: Purchasing Indexes by Natural/Organic-related Psychographics and Fats & Oils Purchases, 2011 (U.S. grocer shoppers)

Table 5-15: Purchasing Indexes by Gourmet/Upscale-related Psychographics and Butter Varieties, 2011 (U.S. butter purchasers)

Table 5-16: Purchasing Indexes by Gourmet/Upscale-related Psychographics and Oil Varieties, 2011 (U.S. grocery shoppers)

Table 5-17: Purchasing Indexes by Health/Wellness-related Psychographics and Butter Varieties, 2011 (U.S. butter purchasers)

Table 5-18: Purchasing Indexes by Health/Wellness-related Psychographics and Oil Varieties, 2011 (U.S. grocery shoppers)

Fats and Oils Demographic Patterns

Who’s Using Butter

Who’s Using Cooking/Salad Oil

Who’s Using Margarine

Who’s Using Mayonnaise

Table 5-19: Demographic Indexes for Butter Use: By Variety, 2011 (U.S. butter purchasers)

Table 5-20: Demographic Indexes for Oil Use: By Variety, 2011 (U.S. grocery shoppers)

Table 5-21: Demographic Indexes for Margarine/Margarine Spread Use: By Variety, 2011 (U.S. adults)

Table 5-22: Demographic Indexes for Mayonnaise Use: By Variety, 2011 (U.S. households)

Chapter 6: Looking Ahead

Trends and Opportunities

Fats and Oils Complete Healthy Diets

“Good” Fats Gain Wider Acceptance

Omega-3 Trend Maintains Momentum

Growing Number of Products Target Health Issues

Private-Label Products Sustain Consumer Interest

“Green” Concerns Once More a Priority

Natural and Organic Continue Move to Mainstream

Stricter Guidelines for Natural

From Mass Merchandiser to Supercenter

E-Marketing Fats and Oils

Social Networking: Facebook, Twitter, Then…

Location-Based Social Media: Yelp, Foursquare and Consmr

Focus on Savings: CPG and Groupon

What’s Next: Social Media Aggregators and Mobile Connectivity

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