Butter sales soar as shoppers demand more natural products

For spreadable butter is the fastest growing sector of the whole butter and spreads market which last year was worth pounds 861 million, according to trade magazine The Grocer.

Although the total market value increased by only 0.7 per cent and sales of traditional block butter are in decline the report says that spreadable versions of famous brand name products are driving growth.

Data from market analysts TNS Worldpanel shows that the spreadable butter category enjoyed soaring sales growth of 13.5per cent to pounds 210 million and now accounts for almost a quarter of total sales in the sector.

The Grocer said that given that 99 per cent of British households buy into butters and spreads in a year the category focus is to encourage consumers to add value to the market by spending more when they shop.

But it says that the growth in popularity of speadable butter has boosted the category with shoppers willing to pay more for convenience of having their butter in a tub and being able to spread it straight from the fridge.

The report says that the 'Jamie Oliver' effect is also playing a part as more Britons are encouraged to start cooking from scratch again.

Brands account for 98 per cent of spreadable butter sales with the biggest names Lurpak and Anchor accounting for more than 86per cent. Lurpak Spreadable is the number one brand in the category worth pounds 96 million and is currently growing at a rate of 8.7per cent year on year.

TNS Worldpanel said: "Developments in spreadable butters are continuing to drive market value. The emergence of healthier variants in this market are encouraging buyers to switch to more 'tasty' products without compromising their healthy ideals."

Lorraine Crowe, senior brand manager for Anchor made by Arla Foods said: "The decline in butter has slowed over the past nine months due to two key factors.

"The 'Jamie Oliver' effect is getting people cooking from scratch again with butter figuring as an important ingredient. Plus, people are turning to 100 per cent natural products, such as butter, rather than those containing artificial ingredients, such as some margarine products."

Alison Palmer, brand marketing controller for Kerrygold believes that this year more people will go back to butter as consumers opt for purer, more natural foods.

She said: "Products without hidden ingredients are being demanded by consumers. When eaten in moderation butter can play an important role in a well-balanced diet."

Emma Metcalf-King, Sainsbury's senior buyer in the category said: "Current growth in the butters and spreads market is largely driven by the continued popularity of spreadable butters which now account for 25 per cent of all category sales.

"Customers are increasingly choosing products for their versatility as they offer great taste and the convenience of being easy to spread."