Profile of the Irish seafood market
Profile of the Irish seafood market Richard Donnelly July 2008
BIM Market Development
Irish market (ROI) for seafood trade value
Foodservice
Retail
€213m
€169m
BIM Market Development
Irish seafood market trade value 2005-2007 250 € millions
200 150
Foodservice Retail
100 50 0 2005
BIM Market Development
2006
2007
Irish seafood foodservice market
BIM Market Development
Hotels and Restaurants
• Represent 65% of foodservice market • Valued at €138m • Will use higher valued species but still predominately salmon and cod • Higher proportion of fresh fish
BIM Market Development
Pubs
• Represent 16% of foodservice market • Valued at €34m • Salmon and cod main species • Price sensitive
BIM Market Development
Institutions
• Represent 5% of foodservice market • Valued at €11m • High volume of frozen product • Very price sensitive
BIM Market Development
Contract Caterers
• Represent 6% of foodservice market • Valued at €13m • Very price sensitive • High volume of frozen product
BIM Market Development
Take Away Food
• Represent 8% of foodservice market • Valued at €17m • Price sensitive • Frozen low cost material favoured
BIM Market Development
Structure of the Foodservice Market
6%
8%
HORECA Pubs Institutions Contract Catering Take Away
6%
16% 64%
BIM Market Development
Irish seafood retail market
BIM Market Development
TNS Superpanel Ireland Specification •
4,000 households - Island of Ireland.
•
Demographically representative
•
Using purpose-built hand-held barcode scanning equipment in home
•
All family members scanning all purchases brought into the home
•
Non-barcoded fresh foods entered by scanning patented code book
BIM Market Development
BIM Seafood Classification Fillet With sauce Fresh
Breaded
Prepack
Frozen
Smoked
Loose
Speciality Whole Fingers/ Bites Ready Meal
Species BIM Market Development
BIM Seafood Classification Fillet
Speciality
Prepack Ready Meal
Whole
BIM Market Development
Irish fresh seafood retail market value 2004-2007
€ millions
140 120 100 80 60 40 20 0 2004
BIM Market Development
2005
2006
2007
Sales of seafood by outlet Domestic Market Ireland
Turnover 3,260.1m euro*
No. of Formats 1
Operating countries 3
No. of Stores ROI:119
Sales area 4,612,400 sq ft
100% 90%
80% 70%
60%
Domestic Market Ireland
Turnover 430.4m euro*
No. of Formats 2
Operates in Ireland
50%
No. of Stores ROI: 24
Sales area 360,000 sq ft
40%
Other Outlets Multiple retailers
30% 20%
Domestic Market UK
Turnover ROI: €2,761m*
No. of Formats 6
Operating Countries 14
No. of Stores ROI: 110
Sales area ROI 2,499,00 sq ft
Turnover ROI: €2,762m No of Stores ROI: 637
10% 0%
Of these Supervalu: 200 Stores Turnover €1,911m
Operating Countries 3
BIM Market Development
*IGD
Total fish market split: volume & value annually 52 w/e 30 December 2007 – fresh fish is fuelling the overall growth within the market Volume Split
51.3
Value Split
46.8
43.4
53.2
56.6
30-Dec-07
31-Dec-06
38.9
Frozen Fresh
48.7
31-Dec-06 BIM Market Development
61.1
30-Dec-07
In actual terms what sector is growing/declining? 52 w/e 30 December 2007 – fresh fish is growing by 27% annually 21.1
Volume 10.7
0.9
Total Market
Fresh
Frozen
27.0
Value 17.5
5.2
Total Market BIM Market Development
Fresh
Frozen
Photo of wet fish and prepacks
BIM Market Development
BIM Market Development
Understanding the growth in the fresh fish market 000’s Euros €132.5m +27% Increase of €28.2m
Volume /000
Average Price
10.4kg +21%
€12.72 +5%
Contribution €22.6m
Contribution €5.6m
Volume per buyer
Penetration %*
8.7kg +12%
81% +5%
Contribution €13.6m
Contribution €8938k
Avg buying freq
Avg quantity per trip
17.3 trips +7%
0.5kg +5%
Contribution €8259k
Contribution €6370k
BIM Market Development
* Includes population growth 3.1%
When you compare sales of fish by day of week the market is very dependent on Friday and both fresh and loose fish significantly under trade on sat and sun is this due to availability?
25.4
20.3 18.2
18.8
18.5
16.2 11.9
11.3 10
10.2
12.3
10.3
9.4 7.2
Monday
Tuesday
BIM Market Development
Wednesday
Total Grocery
Thursday
Friday
Fresh fish
Saturday
Sunday
Demographic Profile of shoppers by weekday younger, more upmarket buyers are shopping on Sunday and Monday 70
Sunday
% Housewives aged under 45
68 66
Saturday
Thursday
64
Monday
62 60
Friday
Tuesday
58
Wednesday 56 54 52 50 10
12
14
16
18
20
22
% Social Class AB BIM Market Development
24
26
28
30
SEAFOOD SPECIES MATRIX Complicated to prepare
Lemon Sole
Trout
Seabass
Monkfish
Prawns Ray
Inexpensive
Expensive Swordfish
Cod Coley
Tuna Salmon
Donegal Catch BIM Market Development
Easy/convenient to prepare
The Role Of At Home Seafood Consumption
Monkfish
Less Everyday
Sole
Smoked Salmon Plaice Mussels
More Indulgent
Less Indulgent Prawns
Donegal Catch
Cod Salmon Darnes
Trout
More Everyday BIM Market Development
Drivers to Purchase and Consumption of Seafood
Purchase Drivers
Consumption Drivers
•
Availability
•
Health Benefits
•
Expertise and knowledge of a fishmonger
•
Brain Power for Children “You can't help feeling when your kids are eating fish, they are getting cleverer” “Fish is good for the brain”
•
A “lighter meal”. Seafood is perceived as a food product that was easy to digest
•
For a change, as an alternative to meat and poultry
•
Price Promotions in the supermarket
BIM Market Development
Barriers to Purchase and Consumption of Seafood Purchase Barriers
Consumption Barriers
•
Availability
•
Presence of bones
•
Perceived lack of expertise and knowledge of staff members
•
Time required for gutting and other preparation
•
Not being able to freeze fresh seafood
•
Residue of fish smell on kitchen utensils
•
Cost “I honestly believe more Irish people would eat fish if the price came down”
BIM Market Development
Price Perceptions •
For some fish is an expensive dish: “Fish is great but it is expensive enough” “It is dearer than steak” Every Day Fish
Special Occasion Fish
Cod
Smoked salmon
Plaice
Monkfish
Salmon
John Dory
Trout
Black sole/Lemon sole Crab
Affordable BIM Market Development
Special Occasion Fish
Total fillet fish: volume & value share 52 w/e 30 December 2007 –plaice and cod are more important within the fillet sector Volume
Value
8.8
9.7
6.8 1.0
4.8 1.3 6.6
Other Types Whiting
7.2
Tuna Trout Salmon
41.3
44.2
Plaice Mackerel 4.9
Haddock Coley Cod
BIM Market Development
5.8
6.5 5.2 0.7
4.1 4.5 0.5
17.7
18.4
30-Dec-07
30-Dec-07
Fresh fillet sales by value 2006-2007 €8,000 €7,000 €6,000
Cod
€5,000
Coley €4,000
Haddock Salmon
€3,000
Whiting
€2,000 €1,000 €0
12
12
12
12
12
12
12
12
12
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
30
07
17
25
31
08
18
26
01
c De 07
7
07
t0 Oc
Jun
7
06
06
06
06
06
r0 Ma
c De
t Oc
Jun
r Ma
Jan
BIM Market Development
Fresh fillet price per kg 2006-2007 €16
€14
€12
Cod €10
Coley
Haddock
€8
Salmon
Whiting
€6
€4
€2
€0
12
12
12
12
12
12
12
12
12
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
30
07
17
25
31
08
18
26
01
c De
07
7
06
07
07
t0 Oc
Jun
r Ma
c De
6
06
06
06
t0 Oc
Jun
r Ma
Jan
BIM Market Development
Cod
Salmon
16 14 12 10 8 6 4 2 0 € p er kg
Retail Sales Price of Fresh Cod Fillets 2004- 2007
1 Q /0
2 Q /0
3 Q /0
4 Q /0
1 Q /0
2 Q /0
3 Q /0
4 Q /0
1 Q /0
2 Q /0
3 Q /0
4 Q /0
1 Q /0
2 Q /0
3 Q /0
4 Q /0
4
4
4
4
5
5
5
5
6
6
6
6
7
7
7
7
BIM Market Development
Retail Chain for Fresh Cod €12.03 TNS Average Price: €13.25
Retail Margin 40%
€8.59
€6.87
Processing yield price*
Processing & Distribution 25%
€3.23 BIM Market Development
* Yield based on FAO conversion factor
Retail Chain for Fresh Salmon €10.98 TNS Average Price: €14.10
Retail Margin 40%
€7.84
€6.27
Processing
Marketing & Distribution 25%
Yield Price*
€4.01 BIM Market Development
* Yield based on FAO conversion factor
Supply
BIM Market Development
Total Landings Value 2007 €311m*
Description
Value (m)
% of Total
Mackerel
€97
30%
Nephrops
€42
13%
Hake
€25
8%
Monkfish
€23
7%
Crab
€12
4%
Bottom Mussel
€11
3%
Megrim
€11
3%
Herring
€10
3%
Horse Mackerel
€8
2%
Whiting
€7
2%
Haddock
€7
2%
Cod
€5
2%
BIM Market Development
* Landed value
Total Aquaculture Supply €120m*
Description
Value (m)
% of Total
Salmon
€60
50%
Mussels
€38
32%
Oysters
€16
13%
Trout (FW &SW)
€4
3%
Others
€2
2%
*Harvest value
BIM Market Development
Imports Values in Millions 2007
€9 €19 Fresh and Frozen Processed Fish
€63
BIM Market Development
€105
Processed Shellfish Fish oil and misc
Supply Balance for Fresh Cod (Live Weight Equivalent)
Demand
Supply
Retail: 1,783 tonnes
Landings: 1,638 tonnes
Foodservice: 1,800 tonnes
Imports: 2,712 tonnes
Less Exports: 659 tonnes
Total: 3,583 tonnes BIM Market Development
Total: 3,691 tonnes
Supply Balance for Plaice (Live Weight Equivalent)
Demand
Supply
Retail: 485 tonnes
Landings: 388 tonnes
Foodservice: 400 tonnes
Imports: 524 tonnes
Less Exports: 123 tonnes
Total: 885 tonnes BIM Market Development
Total: 789 tonnes
Supply Balance for Salmon (Live Weight Equivalent)
Demand
Supply
Retail: 6,788 tonnes
Harvest: 11,119 tonnes
Foodservice: 6,500 tonnes
Imports: 7,914 tonnes
Less Exports: 5,692 tonnes
Total: 13,288 tonnes BIM Market Development
Total: 13,341 tonnes
Cod Fresh Fillet Market
Outlet
Volume (tonnes LWE)
Value (m)
Retail Prepack
708
€3.3
Loose
1,075
€7.8
Foodservice
1,800
€8.0
3,583
€18.6
TOTAL
BIM Market Development
Plaice fresh fillet market
Outlet
Volume (tonnes LWE)
Value (m)
Retail Prepack
159
€1.4
Loose
326
€2.1
Foodservice
400
€2.0
TOTAL
885
€5.5
BIM Market Development
Salmon fresh fillet market
Outlet
Volume (tonnes LWE)
Value (m)
Retail Prepack
1,320
€12.7
Loose
1,742
€14.0
Foodservice
3,000
€20.0
6,062
€46.70
TOTAL
BIM Market Development
Summary points
• Total Irish market is values at €382m trade value
• Market for both foodservice and retail have seen significant growth in recent years
• Salmon and cod dominate sales in both foodservice and retail
• Consumer has preference for cod and salmon due to price, availability and convenience
• Value of the fresh cod and salmon fillet market is c. €65m
BIM Market Development
BIM Market Development
Irish market (ROI) for seafood trade value
Foodservice
Retail
€213m
€169m
BIM Market Development
Irish seafood market trade value 2005-2007 250 € millions
200 150
Foodservice Retail
100 50 0 2005
BIM Market Development
2006
2007
Irish seafood foodservice market
BIM Market Development
Hotels and Restaurants
• Represent 65% of foodservice market • Valued at €138m • Will use higher valued species but still predominately salmon and cod • Higher proportion of fresh fish
BIM Market Development
Pubs
• Represent 16% of foodservice market • Valued at €34m • Salmon and cod main species • Price sensitive
BIM Market Development
Institutions
• Represent 5% of foodservice market • Valued at €11m • High volume of frozen product • Very price sensitive
BIM Market Development
Contract Caterers
• Represent 6% of foodservice market • Valued at €13m • Very price sensitive • High volume of frozen product
BIM Market Development
Take Away Food
• Represent 8% of foodservice market • Valued at €17m • Price sensitive • Frozen low cost material favoured
BIM Market Development
Structure of the Foodservice Market
6%
8%
HORECA Pubs Institutions Contract Catering Take Away
6%
16% 64%
BIM Market Development
Irish seafood retail market
BIM Market Development
TNS Superpanel Ireland Specification •
4,000 households - Island of Ireland.
•
Demographically representative
•
Using purpose-built hand-held barcode scanning equipment in home
•
All family members scanning all purchases brought into the home
•
Non-barcoded fresh foods entered by scanning patented code book
BIM Market Development
BIM Seafood Classification Fillet With sauce Fresh
Breaded
Prepack
Frozen
Smoked
Loose
Speciality Whole Fingers/ Bites Ready Meal
Species BIM Market Development
BIM Seafood Classification Fillet
Speciality
Prepack Ready Meal
Whole
BIM Market Development
Irish fresh seafood retail market value 2004-2007
€ millions
140 120 100 80 60 40 20 0 2004
BIM Market Development
2005
2006
2007
Sales of seafood by outlet Domestic Market Ireland
Turnover 3,260.1m euro*
No. of Formats 1
Operating countries 3
No. of Stores ROI:119
Sales area 4,612,400 sq ft
100% 90%
80% 70%
60%
Domestic Market Ireland
Turnover 430.4m euro*
No. of Formats 2
Operates in Ireland
50%
No. of Stores ROI: 24
Sales area 360,000 sq ft
40%
Other Outlets Multiple retailers
30% 20%
Domestic Market UK
Turnover ROI: €2,761m*
No. of Formats 6
Operating Countries 14
No. of Stores ROI: 110
Sales area ROI 2,499,00 sq ft
Turnover ROI: €2,762m No of Stores ROI: 637
10% 0%
Of these Supervalu: 200 Stores Turnover €1,911m
Operating Countries 3
BIM Market Development
*IGD
Total fish market split: volume & value annually 52 w/e 30 December 2007 – fresh fish is fuelling the overall growth within the market Volume Split
51.3
Value Split
46.8
43.4
53.2
56.6
30-Dec-07
31-Dec-06
38.9
Frozen Fresh
48.7
31-Dec-06 BIM Market Development
61.1
30-Dec-07
In actual terms what sector is growing/declining? 52 w/e 30 December 2007 – fresh fish is growing by 27% annually 21.1
Volume 10.7
0.9
Total Market
Fresh
Frozen
27.0
Value 17.5
5.2
Total Market BIM Market Development
Fresh
Frozen
Photo of wet fish and prepacks
BIM Market Development
BIM Market Development
Understanding the growth in the fresh fish market 000’s Euros €132.5m +27% Increase of €28.2m
Volume /000
Average Price
10.4kg +21%
€12.72 +5%
Contribution €22.6m
Contribution €5.6m
Volume per buyer
Penetration %*
8.7kg +12%
81% +5%
Contribution €13.6m
Contribution €8938k
Avg buying freq
Avg quantity per trip
17.3 trips +7%
0.5kg +5%
Contribution €8259k
Contribution €6370k
BIM Market Development
* Includes population growth 3.1%
When you compare sales of fish by day of week the market is very dependent on Friday and both fresh and loose fish significantly under trade on sat and sun is this due to availability?
25.4
20.3 18.2
18.8
18.5
16.2 11.9
11.3 10
10.2
12.3
10.3
9.4 7.2
Monday
Tuesday
BIM Market Development
Wednesday
Total Grocery
Thursday
Friday
Fresh fish
Saturday
Sunday
Demographic Profile of shoppers by weekday younger, more upmarket buyers are shopping on Sunday and Monday 70
Sunday
% Housewives aged under 45
68 66
Saturday
Thursday
64
Monday
62 60
Friday
Tuesday
58
Wednesday 56 54 52 50 10
12
14
16
18
20
22
% Social Class AB BIM Market Development
24
26
28
30
SEAFOOD SPECIES MATRIX Complicated to prepare
Lemon Sole
Trout
Seabass
Monkfish
Prawns Ray
Inexpensive
Expensive Swordfish
Cod Coley
Tuna Salmon
Donegal Catch BIM Market Development
Easy/convenient to prepare
The Role Of At Home Seafood Consumption
Monkfish
Less Everyday
Sole
Smoked Salmon Plaice Mussels
More Indulgent
Less Indulgent Prawns
Donegal Catch
Cod Salmon Darnes
Trout
More Everyday BIM Market Development
Drivers to Purchase and Consumption of Seafood
Purchase Drivers
Consumption Drivers
•
Availability
•
Health Benefits
•
Expertise and knowledge of a fishmonger
•
Brain Power for Children “You can't help feeling when your kids are eating fish, they are getting cleverer” “Fish is good for the brain”
•
A “lighter meal”. Seafood is perceived as a food product that was easy to digest
•
For a change, as an alternative to meat and poultry
•
Price Promotions in the supermarket
BIM Market Development
Barriers to Purchase and Consumption of Seafood Purchase Barriers
Consumption Barriers
•
Availability
•
Presence of bones
•
Perceived lack of expertise and knowledge of staff members
•
Time required for gutting and other preparation
•
Not being able to freeze fresh seafood
•
Residue of fish smell on kitchen utensils
•
Cost “I honestly believe more Irish people would eat fish if the price came down”
BIM Market Development
Price Perceptions •
For some fish is an expensive dish: “Fish is great but it is expensive enough” “It is dearer than steak” Every Day Fish
Special Occasion Fish
Cod
Smoked salmon
Plaice
Monkfish
Salmon
John Dory
Trout
Black sole/Lemon sole Crab
Affordable BIM Market Development
Special Occasion Fish
Total fillet fish: volume & value share 52 w/e 30 December 2007 –plaice and cod are more important within the fillet sector Volume
Value
8.8
9.7
6.8 1.0
4.8 1.3 6.6
Other Types Whiting
7.2
Tuna Trout Salmon
41.3
44.2
Plaice Mackerel 4.9
Haddock Coley Cod
BIM Market Development
5.8
6.5 5.2 0.7
4.1 4.5 0.5
17.7
18.4
30-Dec-07
30-Dec-07
Fresh fillet sales by value 2006-2007 €8,000 €7,000 €6,000
Cod
€5,000
Coley €4,000
Haddock Salmon
€3,000
Whiting
€2,000 €1,000 €0
12
12
12
12
12
12
12
12
12
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
30
07
17
25
31
08
18
26
01
c De 07
7
07
t0 Oc
Jun
7
06
06
06
06
06
r0 Ma
c De
t Oc
Jun
r Ma
Jan
BIM Market Development
Fresh fillet price per kg 2006-2007 €16
€14
€12
Cod €10
Coley
Haddock
€8
Salmon
Whiting
€6
€4
€2
€0
12
12
12
12
12
12
12
12
12
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
w /e
30
07
17
25
31
08
18
26
01
c De
07
7
06
07
07
t0 Oc
Jun
r Ma
c De
6
06
06
06
t0 Oc
Jun
r Ma
Jan
BIM Market Development
Cod
Salmon
16 14 12 10 8 6 4 2 0 € p er kg
Retail Sales Price of Fresh Cod Fillets 2004- 2007
1 Q /0
2 Q /0
3 Q /0
4 Q /0
1 Q /0
2 Q /0
3 Q /0
4 Q /0
1 Q /0
2 Q /0
3 Q /0
4 Q /0
1 Q /0
2 Q /0
3 Q /0
4 Q /0
4
4
4
4
5
5
5
5
6
6
6
6
7
7
7
7
BIM Market Development
Retail Chain for Fresh Cod €12.03 TNS Average Price: €13.25
Retail Margin 40%
€8.59
€6.87
Processing yield price*
Processing & Distribution 25%
€3.23 BIM Market Development
* Yield based on FAO conversion factor
Retail Chain for Fresh Salmon €10.98 TNS Average Price: €14.10
Retail Margin 40%
€7.84
€6.27
Processing
Marketing & Distribution 25%
Yield Price*
€4.01 BIM Market Development
* Yield based on FAO conversion factor
Supply
BIM Market Development
Total Landings Value 2007 €311m*
Description
Value (m)
% of Total
Mackerel
€97
30%
Nephrops
€42
13%
Hake
€25
8%
Monkfish
€23
7%
Crab
€12
4%
Bottom Mussel
€11
3%
Megrim
€11
3%
Herring
€10
3%
Horse Mackerel
€8
2%
Whiting
€7
2%
Haddock
€7
2%
Cod
€5
2%
BIM Market Development
* Landed value
Total Aquaculture Supply €120m*
Description
Value (m)
% of Total
Salmon
€60
50%
Mussels
€38
32%
Oysters
€16
13%
Trout (FW &SW)
€4
3%
Others
€2
2%
*Harvest value
BIM Market Development
Imports Values in Millions 2007
€9 €19 Fresh and Frozen Processed Fish
€63
BIM Market Development
€105
Processed Shellfish Fish oil and misc
Supply Balance for Fresh Cod (Live Weight Equivalent)
Demand
Supply
Retail: 1,783 tonnes
Landings: 1,638 tonnes
Foodservice: 1,800 tonnes
Imports: 2,712 tonnes
Less Exports: 659 tonnes
Total: 3,583 tonnes BIM Market Development
Total: 3,691 tonnes
Supply Balance for Plaice (Live Weight Equivalent)
Demand
Supply
Retail: 485 tonnes
Landings: 388 tonnes
Foodservice: 400 tonnes
Imports: 524 tonnes
Less Exports: 123 tonnes
Total: 885 tonnes BIM Market Development
Total: 789 tonnes
Supply Balance for Salmon (Live Weight Equivalent)
Demand
Supply
Retail: 6,788 tonnes
Harvest: 11,119 tonnes
Foodservice: 6,500 tonnes
Imports: 7,914 tonnes
Less Exports: 5,692 tonnes
Total: 13,288 tonnes BIM Market Development
Total: 13,341 tonnes
Cod Fresh Fillet Market
Outlet
Volume (tonnes LWE)
Value (m)
Retail Prepack
708
€3.3
Loose
1,075
€7.8
Foodservice
1,800
€8.0
3,583
€18.6
TOTAL
BIM Market Development
Plaice fresh fillet market
Outlet
Volume (tonnes LWE)
Value (m)
Retail Prepack
159
€1.4
Loose
326
€2.1
Foodservice
400
€2.0
TOTAL
885
€5.5
BIM Market Development
Salmon fresh fillet market
Outlet
Volume (tonnes LWE)
Value (m)
Retail Prepack
1,320
€12.7
Loose
1,742
€14.0
Foodservice
3,000
€20.0
6,062
€46.70
TOTAL
BIM Market Development
Summary points
• Total Irish market is values at €382m trade value
• Market for both foodservice and retail have seen significant growth in recent years
• Salmon and cod dominate sales in both foodservice and retail
• Consumer has preference for cod and salmon due to price, availability and convenience
• Value of the fresh cod and salmon fillet market is c. €65m
BIM Market Development
