Brits have bought 100 million more eggs in the past 12 months - but shelled out barely any extra for them. Although the number of eggs sold in the UK has risen 1.9%, falling average retail prices mean the value of the market has crept up just 0.1% - or £1.2m - to £870.8m [Kantar Worldpanel 52 w/e 2 March 2014].
Growth has slowed considerably since last year, when Kantar recorded a 4% hike in volume and 9% rise in value sales [52 w/e 17 February 2013]. The plateau has come despite an increase in promotional activity - over the past 12 months, the average depth of deal on eggs in the big four has risen from 25.1% to 26.6% [BrandView.com].
Yet despite operating in such a commmoditised market, suppliers and trade organisations remain upbeat about the egg market’s prospects and particularly the opportunities to add value to it.
Higher welfare eggs are seen as a key route to this. The average price of a non free-range egg is just 12p, which is roughly half that of free-range and less than a third of that of an organic egg.Free-range accounts for just under half the market in volume but 62.5% in value [Kantar], and industry insiders say further value can be added by flagging up and exploiting different definitions of free-range.
“Free-range production varies dramatically,” points out Chris Moreman, sales director at supplier Stonegate, adding there could be opportunities for free-range to show these differences on pack and through marketing activity such as shelf barkers and profiles of producers.
Organic, with its big premium over both caged and free-range, is also seen as a potential value driver. Currently just 1.1% of total market value, organic is set to be boosted by the Happy Egg Co entering the market this month. Its organic eggs will be sold in packs of six for £2.20, compared with £1.70 for six standard medium Happy Eggs.
Hard to beat
Another established way to add value to the category is by offering alternatives to hens eggs, and suppliers believe there are further opportunities to clarify and promote the different flavours and functional performance of species such as quail, goose and duck.
“For instance, duck eggs, which are generally laid in spring, work best in baked goods like cakes and make waffles really fluffy due to their higher than normal fat content,” says Rob Newell, head of brand marketing at the Happy Egg Co owner Noble Food.
Of course, hens eggs are also well placed to tap the baking trend. Stonegate already does so through its Ella Valentine brand - pitched as “eggs born to be baked” - and the category could accelerate its current growth by embracing such trends further, suggests Andrew Joret, chairman of the British Egg Industry Council (BEIC).
Breakfast is also a key opportunity for eggs, he says, and the BEIC is continuing to push the culinary and nutritional benefits of eggs through its Main Meals in Minutes campaign. “The sector is communicating the benefits of eggs well, but it would profit from more packaging innovation, NPD and above-the-line activity, ” he adds.
Just this month, Noble Foods unveiled some novel marketing activity, teaming up with TV star Dom Joly to print ’lolly-stick ’style jokes on Big & Fresh eggs.
Packers and retailers could also learn from the way other categories have evolved to meet changing consumer lifestyles and requirements, suggests Joret. One such change is the boom in nutritional advice advocating a high-protein diet.
With the sight of health-conscious workers scrambling eggs in the office microwave becoming increasingly common, there is clearly an opportunity for more convenient egg products.
“A quick, easy source of protein that is 100% natural is exactly what people are looking for,” says Claire Nuttall, founding partner of branding agency Thrive.
Thinking outside the box
Some suppliers are already responding to this, with Pork Farms last year unveiling the Dippy Egg - a single pasteurised whole egg that is pre-cooked in its shell using the sous vide process. Consumers remove the egg from its plastic pouch, put it back in the provided pot, pour over boiled water and leave for five minutes.
Another innovation brought to market last year was Snack Egg, launched by Stonegate under its The Original Egg Company brand. The individual, peeled, hard-boiled eggs, which come in flow-wrapped packaging, have been seasonally delisted but will return following further development that could bring both different species and high-welfare lines to the snacks category.
“We are looking at alternative options for the Snack Egg such as quail, organic and a free-range snack product that taps into both hen welfare and the need for something different within the marketplace,” says Stonegate’s Moreman.
Nuttall suggests such products could be made even more appealing to healthy eaters. “Covering snacking egg products in nutritious seeds or crunchy healthy grains could make them even better,” she says.
The Scotch egg has long offered consumers a coated egg product, of course, but premium NPD is now driving fresh interest in the format - although not necessarily of such a healthy variety.
“Scotch eggs to date have been quite small and looked upon as more of a snack, but with the use of large eggs and thicker wrappings, they can comfortably take the place of Cornish pasties or sandwiches,” believes Lionel Cozens-Smith, director at producer Nell Ball Farm Foods. “The Scotch egg is gaining popularity as there are now some credible examples on the market.”
Recent launches have included the innovative runny Scotch egg sold by M&S, and Cozens-Smith adds that the success of his own eggs, which retail at £2.79, shows added-value egg products can command a premium price.
These are examples of the kind of NPD the BEIC is keen to see developed further. “We welcome more ready-to-eat products, such as tortillas, boiled eggs and poached egg pots with toppings,” says Joret. “There is a big opportunity for more innovative egg-based meal options to encourage consumers to choose eggs when eating out of home.”
Go to work on an egg was the mantra of the industry more than 50 years ago - could go to work with an egg become its mantra in years to come?
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