Miriam Tuomey, Food & Beverage Division, Bord Bia – Irish Food Board

The fresh soup market in Ireland is showing steady growth year on year. According to Kantar data from August 2014, the market is worth €23.5m, representing a growth of 7.7% on the previous year, which had grown 15.5% from 2012.

More shoppers are buying into the category, and buying greater volumes. However, the average price per pack is dropping back by 4.5%. This is a category that has branded affinity, with over 72% of the value of the market representing branded soups.

Just over 43% of Irish consumers have bought into the category in the last year. Chilled soup is perceived as ‘fresh’ by consumers, and fits with people’s desires for nutrition, naturalness and substance. The chilled soup variety changed the rules of the soup market, and, essentially, put dry and ambient soups in the shade. Relative to other sub categories of soup, chilled soup is seen as the superior offering.

In the UK, although a much bigger market (£114m), sales are showing a decline of 5.5%. Fresh soup in the UK is private label led, with 59% of the value of the soup market represented by retailer brands. Less than a 1/3 of GB households buy fresh soup over the course of a year, with those that do buying on average 6 times.

The Glorious brand has created a slight niche by appealing to a younger, more affluent buyer, whilst Yorkshire Provender hits the upmarket target group. The newer brands have focused on exciting new innovative flavours that capture the imagination, and trying to differentiate their offering with Meal Soups and Skinnylicious offerings. “Skinny” brands are also aiming to revive the food-to-go segment and address demands for a healthy and convenient lunchtime option. Health claims being that the soups contain less than 200 calories and provide two portions of the recommended five-a-day. According to one UK brand owner, 63% of soup occasions in the UK are at lunchtime, so one of the big opportunities is to create new formats to grow soup's share of the lunchtime 'on the go' occasion.

Who buys Chilled Soup?

Strong female, 30+ years of age bias towards chilled soup in both markets. An opportunity presents itself for the 45+ age group in the UK. Soups are potentially used as a meal replacement in small households.

With both markets being quite different, the opportunity exists in both markets for innovative brands with fresh and exciting new flavours and strong health claims.

For more information contact miriam.tuomey@bordbia.ie