In Home versus Out of Home
The Blurring Boundaries
An article from TNS

		The amount spent on food and drink out of home has grown by 2.6%, where as Retail spend has grown by 4.1% y-on-y (52 week ending April 05)

		This growth of out of home consumption has encouraged an increasing blur between the offerings from both the Foodservice sector and the Grocery sector. The competition is fierce

		The Foodservice sector is worth £27 billion in 2004 compared to the Grocery sector, worth £64 billion (again 52 Wk ending April 05)

Enjoyment and practicality are still key drivers

		Children's increasing healthy habits in home are being mirrored out of home with “healthy” snacks and meals on the increase in schools

		Key categories in growth are fruit, yoghurts and mineral water

		The effects of these “healthy” trends are having a direct impact on the decline of Burger Houses (-10% year on year), which are heavily reliant on families

		However, enjoyment and practicality are still the key drivers of food consumed out of home. Health still only accounts for 2%

Out of home experience in home

		Convenience is important for consumers both in and out of home

		Chilled ready meals and takeaways are both showing strong growth. Takeaways have increased by 5% over the last 2 years

		Heavy Consumers of meals out of the home are more likely to eat convenience in the home

		Prime examples include the introduction of new ranges such as M&S GastroPub, Waitrose, 'As Good as Going out' and Sainsbury's 'Fresh to Cook'

		These premium offerings provide the out of home experience in the home and consequently are positioned as a direct threat to the Foodservice industry

The growth of fast casual dining options

		The increase of sandwich consumption in and out of home (6% and 7% respectively) has heralded the growth of fast casual dining options such as Subway, Pret-a-Manger and Starbucks

		These types of outlets satisfy the 'holy trinity' of consumption drivers, providing a quick, enjoyable and healthy out of home experience

		These fast casual dining options are contributing to the demise of less healthy fast food alternatives

Ethnic foods stabilise but grow out of home

		Consumers are becoming more exposed to different types of cuisines from around the world and therefore ethnic foods have experienced good growth in home (4% year on year) and out of home (6%)

		However, due to the rapid increase in the number of varieties of ethnic cuisine in home, the market is stablising, whereas out of home Ethnic continues to grow. The retail sector needs to adapt to these changes

Copyright© TNS 2005

For a copy of the supporting charts please contact: Mark.Hallums@tns-global.com

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