CBI Product Factsheet: Dried Fruits in the United …...Dried fruit is fruit from which the majority...
Transcript of CBI Product Factsheet: Dried Fruits in the United …...Dried fruit is fruit from which the majority...
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CBI Product Factsheet:
Dried Fruits in the United Kingdom
CBI | Market Intelligence Product Factsheet Dried Fruits in the United Kingdom | 2
Introduction
The United Kingdom (UK) is Europe’s largest market for dried fruits. In 2014, this country accounted for approximately
25% of all EU imports and for 10% of total world imports of dried fruits. Imports of dried fruits from countries outside
Europe are larger than intra-EU imports and they have grown over the last few years, providing opportunities for exporters
from developing countries (DCs). Dried fruits fulfil British’ needs for more healthy products. This product fact sheet
provides you with information on product specification, statistics, and trends of dried fruits in the UK market.
Product Description
Dried fruit is fruit from which the majority of the original water content has been removed either naturally, through sun
drying, or through the use of specialized dryers or dehydrators. Dried fruit has a long tradition of use, and is prized
because of its sweet taste, nutritive value, and long shelf life.
This product fact sheet covers general information regarding the market of dried fruits in the United Kingdom which is of
interest for producers in developing countries. Examples of products that fall within this product category are provided in
the table below:
Dried fruits
Dried bananas
Dried dates
Dried figs
Dried pineapples
Dried oranges and clementines
Dried grapefruit
Dried lemons and lime
Dried grapes, currants and sultanas
Dried apricots
Dried prunes
Dried apples
Dried peaches, incl. nectarines
Dried pears
Other dried fruit or mixtures of dried fruit
Please see the Annex for the full table with the products (and their product codes) in the product group of dried fruits.
Product Specification
Quality
Dried fruits retain most of the nutritional value of fresh fruits, and could therefore also be considered as healthy food
products. Dried fruits are important sources of vitamins, minerals and fibre in the diet and provide a wide array of
bioactive components.
Dried fruits are a remarkably stable food due to the high drying and processing temperatures, the intrinsic low pH of the
fruit, the low water activity (moisture content) and the presence of natural antimicrobial compounds. There is no known
incident of a food-borne illness related to dried fruit.
Information on quality requirements for specific dried fruits can be found in the Codex Alimentarius (‘Food code’ of WHO
and FAO).
Labelling
In accordance with European labelling regulations, food has to be labelled with information. For bulk products, it is allowed
to put some of the mandatory information in the accompanying commercial documents instead of on the external
packaging. However, a minimum set of information should always appear on the external packaging:
name of the product;
lot identification;
name and address of the manufacturer, packer, distributor or importer;
date of minimum durability or ‘use by’ date and
storage instructions.
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However, lot identification, and the name and address of the manufacturer, packer, distributor or importer may be
replaced by an identification mark, provided that such a mark is clearly identifiable with the accompanying documents.
Other mandatory food information shall be noted in the commercial documents:
List of ingredients (in descending order of weight);
Net quantity (in metric);
The place of origin or provenance where failure to give such particulars might mislead the consumer;
Instructions for use should be included to enable appropriate use of the foodstuff;
A nutrition declaration.
For more information, see 1169/2011/EC which lays down the general rules related to labelling, presentation and
advertising of foodstuffs. As from December 13th 2014, this Directive and replaced the previous one. In product
specifications it is common for all types of dried fruit to be labelled according to the size of the product. It is common for
dried fruit to have internationally accepted grading standards which usually describe the number of fruits in 0.5k or 1 kg of
products (in the UK these grading standards can be described also by the number of fruits in 0.5 lb instead of kg). It is
also necessary to label the type of product according to the presence or absence of pits in the fruit.
Size and packaging
In general, the following requirements apply with regard to packaging of the product (see Codex Alimentarius):
Materials. Packaging materials should be stored in a clean and sanitary manner and should not transmit to the
product objectionable substances beyond limits acceptable to the official agency having jurisdiction and should
provide appropriate protection from contamination.
Techniques. Packaging should be done under conditions that preclude the introduction of contamination into the
product.
See the Codex Alimentarius standards for fill and weight requirements for individual dried fruits.
Major packaging materials for dried fruits are corrugated board and plastic film. Dried fruit is usually packaged in export
carton boxes lined with food grade polyethylene. In some cases dried fruit can also be packed in bags. Within Europe, the
standard bulk package is 10kg, but 12 kg cartons, 12 - 15 kg plywood joint boxes and 25-70 kg linen fabric bags are also
used. When packaged in corrugated or millboard cartons, the product should be transported on pallets. The selected
packaging size should be such that the dimensions of the individual area modules or area module multiples conform to the
conventional pallet sizes (800x1200 mm and 1000x1200 mm) and cargo units may thus be produced.
Retail requirements for packaging differ widely between customers and market segments. Therefore it is crucial that you
discuss with your customers about their preferred packaging requirements.
Processing
There are differences in processing between the different types of dried fruits. Dried fruits can be dried whole (e.g.,
grapes, berries, apricot, plum), in halves, or as slices, (e.g., mango, papaya, kiwi). Alternatively they can be chopped after
drying (e.g., dates), made into pastes, or concentrated juices. They can also be freeze dried.
Buyer requirements
Buyer requirements can be divided into (1) musts, requirements you must meet in order to enter the market, such as legal
requirements, (2) common requirements, which are those most of your competitors have already implemented, in other
words, the ones you need to comply with in order to keep up with the market, (3) niche market requirements for specific
segments.
A general overview of the EU buyer requirements for processed fruits and vegetables (including edible nuts and dried
fruits) you can find on the Market Intelligence Platform of CBI.
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Requirements you must meet
Food safety: Traceability, hygiene and control
Food safety is a key issue in EU food legislation. The General Food Law is the legislative framework regulation for food
safety in the EU. To guarantee food safety and to allow appropriate action in cases of unsafe food, food products must be
traceable throughout the entire supply chain and risks of contamination must be limited. An important aspect to control
food safety hazards is defining critical control points (HACCP) by implementing food management principles. Another
important aspect is subjecting food products to official controls. Products that are not considered safe will be denied access
to the EU.
Control of food imported to the EU
In the event of repeated non-compliance of specific products originating from particular countries can only be imported
under stricter conditions such as having to be accompanied with a health certificate and analytical test report. Products
from countries that have shown repeated non-compliance are put on a list included in the Annex of Regulation (EC)
669/2009. At the moment dried fruits (Ochratoxin A) from different countries (e.g. Afghanistan) are on the list.
Tips:
Search in the EU’s Rapid Alert System for Food and Feed (RASFF) database to see examples of
withdrawals from the market and the reasons behind these withdrawals. Dried fruits can be found in
the category Fruits and Vegetables.
EU buyers will often ask buyers to implement a food (safety) management system based on HACCP-
principles (see under Common requirements).
Read more about HACCP and health control in the EU Export Helpdesk
Tips:
To help you answer key questions about health control refer to the guidance document of the EU.
Check if there are any increased levels of controls for your product and country. The list is updated
regularly. Check the website of EUR-Lex for the most recent list (see under Amended by).
Read more about health control in the EU Export Helpdesk.
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Avoid contamination to ensure food safety
Contaminants are substances that may be present as a result of the various stages of its growing, processing, packaging,
transport or storage. In order to guarantee public health, it is not allowed to place food which contains a contaminant to an
amount unacceptable on the EU market.
The different forms of contamination for dried fruits are:
Aflatoxin: limits have been set for aflatoxins B1, B2, G1 and G2 in most edible nuts and dried fruit (see section 2 of
Annex of Regulation (EC) No 1881/2006). Dried figs are one of the most problematic products in terms of aflatoxin
presence. In 2014 RASFF reported 36 alerts of high presence of aflatoxin in dried figs, of which 34 were imported
from Turkey.
Ochratoxin A: applies to dried vine fruit (currants, raisins and sultanas). OTA is hard to prevent as it has a lot to do
with climatic conditions. In 2014 RASFF reported 15 alerts of high presence of ochratoxin A in dried figs and dried
grapes.
Heavy metals: there are restrictions for lead and cadmium (see section 3 of Annex of Regulation (EC) No 1881/2006)
Pesticides: the EU has set maximum residue levels (MRLs) for pesticides in and on food products. Products containing
more pesticides than allowed will be withdrawn from the EU market.
Foreign matter: contamination by foreign matter like plastic and insects are a threat when food safety procedures are not
carefully followed.
Additives and flavourings
Product can be rejected by buyers and EU custom authorities in case they have undeclared, unauthorised or too high limits
of extraneous materials. There is specific legislation for additives (e.g. colours, thickeners) and flavourings that list what E-
numbers and substances are allowed to be used. In case you want to add vitamins you will have to know which vitamins
(see Annex I) and sources, vitamin formulations and mineral substances are allowed (see Annex II).
No product specific legislation regarding composition applies to dried fruits.
A common problem in the export of dried fruit is undeclared or excessively high content of preservatives such as sulphites
or sorbic acid.
Labelling
In case you are supplying consumer labelled product (in for example cans, jars or boxes) you will have to take into
account labelling requirements laid down in EU Regulation 1169/2011. This should inform consumers about composition,
manufacturer, storage methods and preparation. See also the information on labelling in the previous section.
Tips:
Understand better growing, drying, processing and storage practices and discuss them with your
suppliers. For an example refer to the good manufacturing practices for Tree Nuts and Dried Fruit
Processing Plants in Afghanistan.
For information on safe storage and transport of processed fruit and vegetables and edible nuts go to
the website of the Transport Information Service.
Check the European Commission’s factsheet on food contaminants "Managing food contaminants: how
the EU ensures that our food is safe"
Read more about contaminants in the EU Export Helpdesk
To find out the MRLs that are relevant for your products, you can use the EU MRLdatabase in which all
harmonised MRLs can be found. You can search on your product or pesticide used and the database
shows the list of the MRLs associated to your product or pesticide. Read more about MRLs in the.
A good way to reduce the amount of pesticides, is applying integrated pest management (IPM) which
is an agricultural pest control strategy that uses complementary strategies including growing practices
and chemical management.
Tips:
Refer to Buyer Requirement module on natural colour, thickeners and flavours for more information.
E-numbers indicate approval by the EU. To obtain an E-number the additive must have been fully
evaluated for safety by the competent food safety authorities in the EU (EFCH). For an overview of E-
numbers refer to the Annex of Regulation 1333/2008 (see under Consolidated versions).
Read more about legislation on authorised food additives and flavourings under general conditions of
preparation of foodstuffs.
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Nutrition and health claims - Nutrition and health claims suggest or indicate that a food has a beneficial characteristic.
They cannot be misleading. Therefore, only EU approved nutrition and health claims can be made. If new nutrition or
health claims are made these have to be approved in advance by the European Food Safety Agency (EFSA).
Allergens - Pre-packed products that contain allergens (such as dried fruits that are mixed with nuts) have to be labelled in
such a way that it is clearly visible to consumers that they contain allergens.
Full overview of requirements for dried fruits
For a list of requirements consult the EU Export Helpdesk where you can select your specific product code for dried fruits
under chapter 08.
Common requirements
Food Safety Certification as a guarantee
As food safety is a top priority in all EU food sectors, you can expect many players to request extra guarantees from you in
form of certification. Many EU buyers (e.g. traders, food processors, retailers) require the implementation of a (HACCP-
based) food safety management system. The most important food safety management system in the EU are BRC, IFS,
FSSC22000 and SQF. Different buyers may have different preferences for a certain management system, so before
considering certification against one of these standards, it is advised to check which one is preferred (e.g. UK retailers
often require BRC and IFS is more commonly required on by other European retailers). All the mentioned management
systems are recognised by the Global Food Safety Initiative (GFSI), which means that any of them should be accepted by
several major retailers. However, in practice some buyers still have preferences for one specific management system.
Common Market Organisation
EU marketing standards for dried fruits are aligned with international standards, as pursued by the United Nations
Economic Commission for Europe (UNECE) and Codex Alimentarius. These sources are considered ‘soft law’ in the EU and
thus provide an important reference for exporters.
Tips:
In December 2014 EU Regulation 1169/2011 came into effect. This new labelling legislation
considerably changed current legislation. For example, allergens have to be highlighted in the list of
ingredients and requirements on information on allergens also cover non pre-packed foods, including
those sold in restaurants and cafés. Read more on the website of the EU about the new labelling
legislation.
Read more about food labelling in the EU Export Helpdesk.
Tip:
For more information about nutrition and health claims refer to the website of the EU.
Tips:
EU market entry preparation is more likely to include implementing a food safety management system
than not, and it is therefore important to familiarise yourself with them.
When you plan to target one or more markets, check with your buyer which specific food safety
management systems are most commonly requested. In any case choose for a management system
that is GFSI approved.
If there is no information indicating otherwise, to start with a general system such as HACCP and ISO
22000. After having this implemented, it will be more easy to move to a more specific system such as
BRC and IFS, if specific markets demand this.
Read more on the different Food Safety Management Systems at the Standards Map.
Tips:
See Council Regulation (EC) No 1234/2007 and Council Regulation (EC) No 361/2008 for more general
information concerning a common organisation of agricultural markets.
See information on the Codex Alimentarius and the UNECE standards. Use the websites’ search facility
to find specific information on individual dried fruits.
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Corporate responsibility
EU buyers (especially large ones in western and northern EU countries) pay more and more attention to their corporate
responsibilities regarding the social en environmental impact of their business. This also affects you as a supplier. Common
requirements are the signing of a suppliers’ code of conduct in which you declare that you do your business in a
responsible way, meaning that you (and your suppliers) respect local environmental and labour laws, stay away from
corruption etc. Furthermore, in the UK, importers may also participate in the Ethical Trading Initiative (ETI). This initiative
focuses on improving social conditions in their members’ supply chains. This implies that you, as a supplier, are also
required to act in compliance with their principles.
Niche market requirements
Fairtrade Certification
Fairtrade products are produced with extra focus on the social conditions in the producing areas. An example is Fair Trade.
Having your products certified is the most far-going way to prove your business performance for social conditions in your
supply chain. After certification by an independent third party, you may put the Fair Trade logo on your product. In
general, premium prices are paid for fair trade products. Although growing, the market for Fair Trade certified dried fruits
is still a niche market.
Organic, niche market
Organic dried fruits are produced and processed by natural techniques (e.g. crops rotation, biological crop protection,
green manure, compost). Although growing, the size of the market is still relatively small. To market dried fruits in the UK
as organic, they must be grown using organic production methods which are laid down in EU legislation and growing and
processing facilities must be audited by an accredited certifier, before you may put the EU organic logo on your products.
Although there is an EU-wide system for the regulation of organic farming, the Soil Association logo can continue to be
used in the UK.
Tips:
When targeting the UK market familiarise yourself with the ETI base code to check what ETI members
require from their suppliers.
Be aware that many of the environmental and social sustainability issues take place at farm level. To
test to what extent your farmers are sustainable you could ask them to fill in the Farmer Self
Assessment by the Sustainable Agriculture Initiative.
Consider defining and implementing your own code of conduct. This is not required by buyers, but may
be a good way to show potential buyers your views on corporate responsibility. Refer to the Code of
Practice of the Fruit Juice Association (AIJN) for inspiration. The AIJN represents a large share of the
European fruit juice producers.
Implementing a management system such as ISO14000 (environmental aspects), OHSAS 18001
(occupational health and safety) or SA 8000 (social conditions) is away to address sustainability and
possibly gain a competitive advantage. Research with your buyer whether this is appreciated.
Tips:
Check the Fair Trade Standards for small producer organisations.
Consult the Standards Map database for more information on the Fair Trade label.
Before applying for one of this certifications, we advise you to check your buyers’ preferences for
certain national labels.
Tips:
Implementing organic production and becoming certified can be expensive. In the current market the
return on investment may not be high. On the other hand it can increase yields and improve quality.
Check the Soil Association standard for Food and drink to get an idea of the requirements of organic
production.
Consult the Standards Map database for the different organic labels and standards.
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Trade and Macro-Economic Statistics
General information and figures about production and trade developments for Processed Fruit and Vegetables in the
European market is provided in the CBI Trade Statistics. In addition, information and figures about production and trade
developments for Edible Nuts and Dried Fruits in the European market is provided in the CBI Product Factsheet of the
same name. This section provides you with more detailed statistics of trade, production and consumption of dried fruits in
the United Kingdom.
Imports
Figure 1: UK imports of dried fruits, in thousand tonnes Figure 2: Breakdown of UK total import volume of dried fruits in 2014,
by country of origin, in % of quantity
Source: Eurostat Source: Eurostat
Analysis and interpretation
In terms of value, UK imports of dried fruits have grown by 6% in the last five years. In 2014 they reached €1,142.
In terms of quantity, positive growth was also present, but at a slower pace of 2.4% and imports reached 900,000
tonnes in 2014.
Dried grapes account for the largest share of imports, followed by dried apples. In the dried grapes subcategory
approximately 50% of imports are represented by sultanas, 40% by other dried grapes and 10% by currants.
The highest growth in import volume in the last five years was in imports of dried apples (19%), followed by prunes
(14%) and different types of exotic and so-called superfruits (such as goji berries, red jujubes, tamarinds).
The dried fruit import market in the UK is highly concentrated. The two leading supplier countries have more than a
50% market share. The largest supplier of dried fruit into the UK is Turkey (mainly dried grapes, apricots and figs),
followed by the USA (mainly dried sultanas and prunes).
In the last five years DC countries with the highest dried fruit export growth into the UK market were: Guatemala,
Colombia, Bangladesh and Ecuador in the category of dried tropical fruits and superfruits.
0
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200
300
400
500
600
2010 2011 2012 2013 2014
Intra-EU Developing Countries Rest of the world
Turkey38%
USA13%
Germany11%
Chile6%
Greece6%
China6%
Italy5%
France4% Others
11%
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Exports
Figure 3: UK exports of dried fruits, in thousand tonnes Figure 4: Breakdown of UK exports of dried fruits in 2013, by destination
country, in % of quantity
Source: Eurostat Source: Eurostat
Analysis and interpretation
The UK is a small exporter of dried fruits. In terms of value, UK exports of dried fruits are showing a decline and in
2014 reached a five-year low of €43 million. However, the UK is also a large manufacturer of breakfast cereals
containing dried fruits, but these exports are reported under another customs code.
More than 90% of UK exports of dried fruits go to other European countries (intra EU trade). Ireland is the main
destination market of UK exports of dried fruits (37% in 2014), followed by Poland, Germany, the Netherlands and
Denmark. The major part of exports is re-exports in the form of re-packed mixtures of dried fruits and nuts and re-
exports of tropical and superfruits.
0
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10
15
20
25
30
35
40
45
50
2010 2011 2012 2013 2014
Intra-EU Developing Countries Rest of the world
Ireland37%
Poland16%
Germany6%
Netherlands4%
Denmark4%
Turkey3%
France3%
Others27%
Tips:
Consider exporting to the UK as being one of the larger markets within EU in terms of population with
a specific interest in dried fruits. In this respect, Britain is one of the largest consumers of cereals and
cereal snacks (including dried fruits) in Europe. Also, the disposable income in the UK is relatively high,
indicating opportunities for selling dried fruits which are not a basic element of anyone’s diet.
Due to migration and travelling, UK consumers are thirsty for new experiences. They are open to new
(exotic) tastes and flavours. This opens opportunities for developing countries.
Dried tropical and superfruits such as acai berries, acerola, cranberries and goji berries are the fastest
growing category in the UK dried fruit market. This subcategory is still small but promising.
Take a closer look at the DC suppliers that are increasing their market share in the UK market.
The outlook for dried fruits in the UK is promising, as long as prices are affordable to consumers and
supply is stable. Please be aware of the potential negative effect of high prices on consumers’
willingness to pay, and also on continuity of supply.
Find a reliable intermediary or importer who can sell your products to the larger industries at a good
price. In this context, it is worthwhile to explore the possibilities of long term contracts to secure your
sales. In addition, try to involve UK experts in setting up your business.
A list of the main trading companies in the UK can be found on the membership page of the website of
the National Dried Fruit Trade Association.
Do not focus only on the UK market, but take German, Dutch and Italian importers into consideration
also. For example, The Netherlands is one of the largest European trade-hubs for dried fruits in
Europe. You may find your importer here and supply Europe with one partner.
Tips:
Ireland is the most important destination market for the UK. Established exporters may consider
exploring the potential for exporting to these countries directly, but obviously at a risk of alienating
possible UK buyers from them.
More information on promising EU growth markets can be found on the websites of European
associations FRUCOM (European Federation of the Trade in Dried Fruits and Edible Nuts) and INC
(International Nut and Dried Fruit Council) as well as in the CBI Tailored Market Intelligence database
in which market studies can be found with regard to edible nuts and dried fruits in Europe.
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Production and consumption
Figure 5: UK total production of dried fruits, 2009-2013, in million euros
Figure 6: Apparent consumption of dried fruits in the UK, 2009-2013, in million euros.
Data source: PRODCOM Eurostat Data source: PRODCOM Eurostat
NB. Notice that the figures above display the production of manufactured goods, which include intermediate goods as well
as final goods.1 This implies that it is possible that there is overlap in production data and import data, since raw materials
may be imported and further processed.
Analysis and interpretation
Production of dried fruits in the UK has shown a steady increase in the last few years and in 2013 it reached more
than €550 million. However, the UK does not have significant drying facilities and production is mainly represented by
the packing industry. The UK produces dried grapes, but also a lot of dried fruits in manufactured goods like breakfast
cereals.
The UK is a medium player in Europe regarding the production of dried fruits; smaller than countries such as Spain,
France and Greece, but bigger than countries such as Italy and Poland.
Dried fruits are widely used by the processing industries for further processing. Key manufacturers operating in the
UK market include Whitworths (UK’s largest manufacturer of dried fruit), Eat Natural (UK manufacturer of fruit and
nut bars), and Weetabix (manufacturer of cereals). Next to these companies, multinationals like Nestle also operate
on the UK market of dried fruits. The main players in the UK dried fruit industry can be found on the list of members
of The National Dried Fruit Trade Association UK.
Consumption of dried fruits in the UK shows a stable increase and in 2013 it reached €1,161. This difference between
consumption growth in terms of value and quantity may be due to a shift in the type of dried fruit that is being
consumed (e.g., toward more expensive dried fruit, such as more exotic dried fruits or fair trade/ organic dried fruit).
Dried fruits can be consumed directly as a snack, but they can also enter the market sweetened, flavoured, enriched
with vitamins and minerals or mixed with other products such as nuts and cereals or to be used in salads, desserts,
entrées, and in baking and cooking.
More information on consumption trends can be found in the next section (Market trends).
1 In the case of edible nuts and dried fruits, intermediate (manufactured) goods can be nuts or edible fruits that are used as food
ingredients, whereas final (manufactured) goods are products in which nuts or dried fruits are processed like biscuits, chocolate bars, etc.
0
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2009 2010 2011 2012 2013
0
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1500
2009 2010 2011 2012 2013
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Macro-economic statistics
Figure 7: Real GDP in the UK, 2014-2016, % change from previous year
Figure 8: Real private consumption expenditure in the UK, 2014-2016, % change from previous year
Source: OECD Economic Outlook 96 database. Source: OECD Economic Outlook 96 database.
Analysis and interpretation
In total, the UK has over 64.5 million inhabitants, and the UK is one of the more densely populated countries. The British
population is expected to grow to more than 67 million in 2020 and the society is ageing.
People in the UK have more money to spend compared to some of the other European countries; the disposable income of
households is above the EU average.
Between 2014 and 2016, GDP and private consumption expenditures in the UK are expected to increase, although at a
slightly slower pace than in the previous years. This may indicate that the current consumption trend of dried fruits is likely
to continue.
2,2
2,4
2,6
2,8
3
3,2
2014 2015 20161,5
2
2,5
2014 2015 2016
Tips:
DC exporters could benefit from the health trend by becoming a source of information for their
customers (i.e., UK import and trade), who can use it in their marketing and promotion. This implies
that as a DC exporter you should be at least as knowledgeable as your clients. So for example, you
can make a website listing health research considering dried fruit or referring to established and
reputable sources.
Dried fruits are good candidates to be marketed as "added value products". They have an excellent
potential in the UK for the health food market.
o o Differentiate your products (for example, by focusing on the type of dried
o fruit) and try to find matching market niches for your products.
o o For differentiation, you can also focus on the different sustainability options
o (see also section with niche market requirements).
Check the Global Statistical Review on the website of International Nut & Dried Fruit Council (INC) for
production and consumption statistics of specific types of dried fruits in the UK.
Explore the main trade channels, retailer requirements and consumer preferences in growing
consumer markets in the UK. Alongside the general information provided in this document, more
specific information can be found in market research reports. Examples can be found on the websites
of IGD.com, Euromonitor and Nielsen.
Tip:
Consider exporting to the UK, as it is one of the larger markets within the EU in terms of population with a specific interest in dried fruits.
Tip:
The disposable income in the UK is relatively high, indicating opportunities for selling dried fruits as
part of a healthy snack diet.
CBI | Market Intelligence Product Factsheet Dried Fruits in the United Kingdom | 12
Trends
CBI Trend mapping provides you with general trends in the European market for processed fruits and vegetables. This
section provides more details about specific trends in the UK market for dried fruits.
Social and health market drivers:
In the UK, smaller households and increased out-of-home consumption have driven demand for more convenient products.
Dried fruits can benefit from this trend because they are highly portable and storable.
Lack of time to eat due to fast paced lifestyles led to an increase in demand for snack products that are wholesome and
deliver sustainable energy. If combined with other products, dried fruits have the potential of being main ingredients in
meals suitable for the-on-go consumer.
Convenience has also led to an increase in the development of kids oriented single-serving dried fruit product launches.
It is expected that wellness and health will continue to be one of the most significant market trends for the next years.
This trend can open broad opportunities for dried fruit, especially in combination with the trend that people increasingly
allow themselves to enjoy from food. Currently there are not many products that offer something that is indulgent but still
fits in the health category. Dried fruits are well positioned to fill this gap.
This health trend has two aspects: First, a focus on natural products, products that contain no additives or chemical
processing. Secondly, products that contain healthy ingredients (anti-oxidants, etc.). The popularity of so-called
superfoods can be labelled under this second aspect. Especially, some berries have enjoyed the status of superfood (i.e.,
goji berries, bilberries), offering potential for their dried variants.
Environmental market drivers:
For many companies involved in the production and trade of dried fruit products sustainability has become a buzz word.
Be aware that Europe pays more attention to sustainability issues than other importers (e.g. China), that are not that
detailed/ strict in sustainability legislation. Trading companies are finding that there is a shift from Europe to other
countries (mainly emerging markets) because of this.
Sustainability moves the focus of European buyers from short-term competition on price to long-term partnerships.
More consumers are gaining awareness on environmental issues, i.e. they require organic, pesticide free, or ecologically
responsible products.
Tip:
Due to migration and travelling, UK consumers are thirsty for new experiences. They are open to
exotic tastes and flavours. This opens opportunities for DCs.
Tip:
Convenience: Consider innovative packaging of your product that could help to position your product
on the market for convenient food. For example, consider dried fruit products packaged in easy-to-
open, easy-to-eat, and stay-fresh packages. Plastic zip packages are growing trends as dried fruit
manufacturers are creating reusable bags for the home, office and car.
Tips:
Health: Consider introducing dried fruits or products with dried fruits that can be labelled as healthy,
natural, fat free, etc.
Be cautious with health claims. Currently, the industry redefines health into a broader, more holistic
perspective, with added value based on other product attributes than health, like taste.
The health trend opens opportunities for companies that focus on specific niche markets. For these
companies it is easier to establish a direct link with the producer. Be aware that a good ICT
infrastructure is required for optimal traceability.
More information on the health effects of nuts can be found on the website of the International Nut
and Dried Fruit Council (INC).
CBI | Market Intelligence Product Factsheet Dried Fruits in the United Kingdom | 13
New products are increasingly marketed as organic or natural choice and corresponding labels are emerging.
Economic and technological market drivers:
In the dried fruits industry, prices are increasing. In this sector the shift from preferred supplier to preferred buyer started
several years ago.
Also, higher demand from countries outside Europe leads to price increases in Europe (including the UK). This could be
problematic given that Europe has the lowest prices compared to other countries.
Innovation will continue to be crucial for manufacturers in order to stay ahead of the competition. The industry is
innovating with new flavours, new textures and new packages.
Market Channels and Segments
With respect to dried fruits, an extensive study about market channels and segments in the EU market is available. See
the CBI Market Channels and Segments for Edible Nuts and Dried Fruits.
Price
World market prices for dried fruits are determined by importers and wholesalers. The dried fruit market is partly
characterized by high prices, but low margins. The high prices are to a large extent inherent to the expensive and rather
difficult production process of dried fruits, which requires large quantities of fresh fruit and tight quality control.
Import prices of dried fruit vary also according to the type of dried fruits in question and the negotiations between the
different chain partners and the number of intermediaries buying and selling. Furthermore, because of the wide variations
in availability caused by fluctuating harvests, weather conditions or disasters, changes in supply have a much larger effect
on price levels than changes in demand.
Dried fruits are sold to consumers for different prices. Price depends on the product, its quality, brand and retail outlet.
When quality of dried fruits is not up to standard, the products will be diverted to the industry for processing, which also
puts pressure on the prices.
The figure below (Figure 7) provides you with an estimation of the price break down that gives an overview of the gross
margins each actor in the trade channel receives. Generally, the highest margins are made by producers and retail. In
Tips:
Be aware of the following market entry barrier: UK importers become more aware of production that is
taking place within the UK or Europe. European supply is increasingly preferred.
Sustainable exporters from DCs are preferred. Consider certification and sustainability labelling for
your products (see also the Tips under Non-legislative requirements).
Tell your story behind the product and its added value through promotion and labelling. Cooperate with
the food industry and retail, for example in their marketing activities (pictures and stories of the local
producers on retail packages).
Tips:
FoodNews offers a good guideline to get insight in prices and price developments for different dried
fruits, but you should always verify with their local traders. And you should do your own research:
speak with the competition, go to fairs, etcetera.
Europe still pays the lowest prices, you can also consider selling your products to other countries (e.g.
US or Asia).
In order to secure your supply chain, you should start looking for preferred buyers. Points of attention
in selecting your buyers, are: they should be consistent in behaviour, they should be reliable, they
should be financially sound, and they should add value (i.e., by providing access to the market). In
addition, presence of your buyers in your country (i.e., purchasing activities, own plants) could be an
advantage.
Focus your innovation efforts on introducing new flavours or new snack products that target different
consumer groups or consumption occasions.
CBI | Market Intelligence Product Factsheet Dried Fruits in the United Kingdom | 14
addition, margins may vary between private labels and A-brands. The VAT rate paid on the gross margin of each actor is
the rate that is applicable in the UK (20%).
Figure 7: Price breakdown in the supply chain of dried fruits
*Shipping costs may vary depending on type of shipment (air or sea) and inland transportation. Import costs may vary due to seasonality,
weather conditions and offered volumes.
Field of Competition
With respect to dried fruits, an extensive study about market competitiveness in the EU market is available. See the CBI
Market Competitiveness for Edible Nuts and Dried Fruits and Top 10 Tips.
Useful Sources
Export and market entry support:
http://www.cbi.eu/
http://exporthelp.europa.eu/thdapp/index.htm
Certification schemes:
http://www.isealalliance.org/
http://www.standardsmap.org/
Marketing and trade standards:
http://www.unece.org/trade/agr/standard/fresh/FFV-StandardsE.html
http://www.codexalimentarius.org/codex-home/en/
Statistics and sector information:
http://www.profel-europe.eu/
http://faostat.fao.org/
http://ec.europa.eu/eurostat
http://comtrade.un.org/
http://www.driedfruit-info.com
CBI Market Intelligence
P.O. Box 93144
2509 AC The Hague
The Netherlands
www.cbi.eu/market-information
This survey was compiled for CBI by Globally Cool.
in collaboration with CBI sector expert Freek Jan Koekoek.
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
November 2015