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London Food Market
Diversity • Convienience
                   Premium Products
Healthy Food and Value added


"Britain is the only country in the world where the food is more dangerous than the sex." Jackie Mason
For years, we have been poking fun at the British for their lack of culinary flair. Now, London boasts more Michelin-starred restaurants than any place outside of France. The London dining scene is diverse and booming, throwing off the previous notions of poorly cooked food, dull surroundings and bad service. The city's restaurants have become a major attraction for real estate investors who parlay them into big bucks; fashion designers who compete to dress the serving staff; and architects and interior designers who gain fame by creating the ambiance.


Diversity
London is a melting pot of cultures. Over 25% of the people working in London were born elsewhere. There are over 300 languages spoken and 1.8 million overseas nationals live in London.

The city now boasts food from more than 60 different countries and regions. These are available in over 12,000 restaurants and cafes.

"In most developed countries around the world there is no population growth and what growth there is, if at all, comes from immigration. That has an interesting impact on the food industry. We tend to absorb some of the culinary ethos of the immigrants. Often that works to the advantage of our country. British food, which has never been great, has improved tremendously from Bangladeshi and Pakistani influence." Dr. David Hughes, Professor Emeritus, Agribusiness & Food Marketing, Imperial College, Wye, UK


Convenience
The British work hard. Each day over one million people enter central London during the morning rush hour. Britain's cash-rich, time-strapped consumers have created great opportunity for convenience-food manufacturers. Extended working hours and the longest commuting times in Europe are pushing up heat-and-serve meal sales faster than any other food sector in the country.

Convenience food sales in 2001 were £11bn in the UK and estimated to grow by 33% in the next ten years. Customers are also offered incentives such as reward schemes, easy parking and long opening hours (24 hour opening is common) to fit in with busy lifestyles.

The British also like convenience when buying food. The ‘big five’ supermarket chains in the UK (Sainsbury's, M&S, Tesco, Safeway/Morrisons, Asda and Somerfield) now account for about 70% of food retail sales. An average store such as Sainsbury’s can offer upwards of 30,000 different items on its shelves.


Ready Meals
Convenience food has had an impact on home made meals. One of the apparent paradoxes of modern food is that, while the amount of time spent cooking meals in Britain has fallen from 60 minutes a day in 1980 to 13 minutes a day in 2002, the number of books and television programmes on cooking has multiplied.

Ready meals from supermarkets are the main result of the drive to convenience in Britain. Ten years ago, the sector barely existed; it is now worth £1.5 billion and is growing at 6% a year. Around 40 per cent of households eat at least one ready meal a week - double the number in France. Between 1998 and 2004, sales grew by around 44 per cent with Indian, Italian and Chinese meals accounting for nearly half of the sales.

"Increasing numbers of smaller sized households has an enormous impact on the food industry because it drives convenience. In the UK, 30% of households are one person. If there is one person then why bother cooking, and even if there are two people who are both working, why wouldn’t we eat out more or why wouldn’t we bring in ready meals. It has long-term implications for the food industry." Dr. David Hughes


Premium Products
The pioneers of ready meals in the 1980s were Marks & Spencer - the home of the middle-class shopper. Today, Tesco's and Sainsbury's use ready meals as the backbone of their "premium" ranges.

"We are in such time stressed environments so when we do sit down, hey, give myself a treat. I want something premium, I want something authentic. I want something with a story. That particularly works on the weekends. Monday to Friday we get by on take-a-ways, on ready, on eating out and snacks. On the weekends we just might cook. Let’s be old-fashioned, using ingredients. We want to know where those ingredients come from, what’s the providence? Is it local? Is it traditional? Is it seasonal?" Dr. David Hughes

In recent years, British food manufacturers have become bright stars in an otherwise gloomy manufacturing sector. Some 7,000 new food products are tested in the UK each year, a good indication of the pace of change and competition in this sector. UK supermarket Tesco launches 1,200 new convenience products a year because variety boosts consumption.


Adding-Value
The UK food industry probably does more to add value to their food than any other nation in the world. The British recognize adding labour can increase sales of boring products. Once upon a time, carrots were carrots. Now they are diced, chopped, shredded or peeled into nice little rounded sticks for children's snacks. Each process allows the supermarket to charge more.

"The more involved we get with the act of eating and the act of cooking, the more value is injected into the occasion, the more money we are willing to pay." Dr. David Hughes


Health, Wellness and Well-Being
British consumers are increasingly interested in diet and health. As a result, UK food and drink manufacturers are developing an increasing range of products to meet changing lifestyle and dietary requirements. The market for enhanced nutrition (functional foods) is now worth more than £1.2billion with the sector growing by 523% (1998-2003).

About 53% of British adults eat cereals at least once a day, which explains why the UK accounts for just over half of the entire European market.

Baby-boomers marching into middle age are inspiring a broad range of wellness cereals. Cereals have always been perceived as a healthy option. The range of genuinely wellness cereals is growing with the addition of added-fruit mueslis to functional products with pro-biotic bacteria and ingredients promoting 'gut-friendly’ bacteria. Even UK Supermarket private labels and major brands have leapt on this bandwagon.

The UK is now the third biggest outlet for organic food in the world, £1.2bn a year, behind the USA with sales £5.9bn a year, and Germany with £1.6bn. Market analysts are predicting that the organic food and drinks market in the UK will be worth £1.6bn by 2007. However, the sector still only accounts for less than 2 percent of the total UK grocery business.

Fresh and Wild, an up and coming organic retailer with 6 stores in London, was recently purchased by Whole Foods based in the US. Whole Foods operate 145 stores in the United States plus stores in both Toronto and Vancouver.