Edible Oils - UK - August 2009
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Since 2007, value sales of edible oils have grown by 30%, to reach £323 million. When the effects of inflation are taken into account, value sales grew by 17% in real terms.
Agricultural commodity price increases led to high food prices during 2008 as well as currency rate fluctuations, and the poor performance of Sterling against the euro affected the cost of imports into the UK.
Therefore, significant value sales growth in this market has come from price increases in vegetable and sunflower oil.
Consumer awareness of the need to reduce their intake of saturated fats has prompted steady growth in the olive oil market, largely at the expense of solid oils. Speciality oils have performed particularly well thanks to growth of ethnic cuisine and the use of oils in homemade salad dressings.
Consumers take comfort from well-known brands, but as they face higher food bills they may start to question whether it is worth paying for the branded ranges over own-label alternatives.
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