Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES

PRESERVED FRUIT AND VEGETABLES

The EU market for jams, jellies, pastes and purees

Publication date: October, 2009
Report summary This CBI market survey discusses the most important aspects of the EU market for jams, jellies, pastes and purees which are set out below. EU consumption of jams, jellies, pastes and purees in 2008 amounted to 2.0 billion and 1.2 million tonnes. The largest markets are Germany, the United Kingdom (the UK), Italy, France and Spain. Consumer preferences for jams and jellies are conservative. The most popular flavours are strawberry, cherry, raspberry and apricot. Production of jams, jellies, pastes and purees was 2.3 billion and 1.3 million tonnes in 2008. Germany, Italy and the UK are the main producers. For both consumption and production between 2004 and 2008, the value increased and the volume decreased. The retail sector is the largest sales channel for jams and jellies. Next to retail, jams, jellies, pastes and purees are used in the bakery industry, the ice cream industry and the dairy industry. The EU is a net exporter of jams, jellies, pastes and purees. Total EU imports increased on average by 6.9% annually in value between 2004 and 2008, totalling 0.7 billion and 0.4 million tonnes in 2008. The share of import value from developing countries (DCs) is only 6.6%. Import value from DCs increased on average by 28% annually in the period reviewed. The main DCs, supplying jams, jellies, pastes and purees to the EU are Turkey and Eastern European countries. This survey aims to provide DC exporters of jams, jellies, pastes and purees with productspecific market information related to gaining access to the EU market(s). By focusing on the EU market(s) for one product group this document provides additional in-depth information. Detailed information on the selected products is given in Appendix A. This survey discusses the EU in general and the following six markets in particular: France, Germany, the United Kingdom (UK), Italy, the Netherlands and Belgium.

Market description: industrial demand and production

Consumption In 2008, the consumption (including industrial demand) volume in the EU of jams, jellies, purees and marmalades was 1.2 million tonnes, representing a value of 2.0 billion. Between 2004 and 2008, consumption value increased 8.9% and consumption volume decreased 11%. This indicates that prices of jams, jellies, pastes and purees are increasing. Germany is the largest consumer with a share of 27% of EU value in 2008, followed by the UK (20%), Italy (13%), Spain (7.9%) and Poland (6.5%). Pastes and purees are mainly used for the industrial market. Industrial consumption decreased to a small extent because of the economic crisis. Germany is the largest consumer of jams, jellies, pastes and purees. Consumption in Germany in 2008 was 267 thousand tonnes, representing a value of 537 million (see Table 1.1). Consumption value increased 17% and consumption volume decreased 15%. In the UK, consumption volume in 2008 was 221 thousand tonnes, representing a value of 401 million.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 1 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Consumption volume decreased 4.1% and consumption value decreased 2.2% between 2004 and 2008. Italy was the third largest consumer with a volume of 114 thousand tonnes, representing a value of 271 million. Consumption volume decreased 11% and consumption value decreased 33% between 2004 and 2008. France is most likely the fourth largest consumer in the EU but exact data are not available. Spanish consumption volume was 100 million tonnes, representing a value of 159 million. Consumption volume increased 8.9% and consumption value decreased 7.3%. Consumption in Belgium was 63 thousand tonnes, representing a value of 106 million. Belgium is the only country for which consumption volume and value both increased (+25% in volume and +50% in value between 2004 and 2008). The ninth largest EU consumer is the Netherlands with a volume of 29 thousand tonnes, representing a value of 70 million. Consumption volume decreased 44% and consumption value decreased 16%. Throughout the EU similar flavours of jams and jellies are popular. The main flavour is strawberry. Other popular flavours are apricot, cherry, raspberry, other berries, and mixes of different fruits. Jams made of exotic fruits like pineapples are only minor products. The main difference exists for apricot jam which is preferred more in northern Europe than in southern Europe. Furthermore, in the UK consumers prefer firm jam while in France and many other EU countries consumers prefer soft jam. Table 1.1 Apparent consumption* of jams, jellies and marmalades, 2004-2008, value in million / volume in thousand tonnes
2004 Value Total Germany The UK Italy France Spain Poland Austria Belgium Sweden The Netherlands Greece Czech Republic 1,848 460 410 304 n.a.** 146 86 n.a. 85 86 84 51 38 Volume 1,291 314 231 171 n.a. 109 97 n.a. 42 59 52 70 n.a. 2006 Value 1,680 432 368 259 n.a. 146 114 n.a. 88 88 81 39 36 Volume 1,072 257 201 124 n.a. 88 121 n.a. 44 60 42 53 n.a. 2008 Value 2,013 537 401 271 n.a. 159 131 108 106 102 71 45 30 Volume 1,150 268 222 114 n.a. 101 85 55 63 69 29 34 22 16

Finland 31 18 30 17 30 Source: PRODCOM, 2009 *apparent consumption is calculated as production + import - export **n.a. means not available due to confidentiality of production data

Market segments Jams and jellies are purchased by all kinds of consumers. However, different market segments can be distinguished within the market for jams and jellies. The main consumer segment is families with children. It is used as spread on bread and is thus competing with other spreadable products for bread, such as peanut butter and honey. Luxury jams, which are made from fresh fruit, are mostly consumed by people who are willing to spend more money on food. These luxury jams and jellies are mostly sold in small, specialised grocery stores and not in the large retailers. Another main consumer segment are elderly people; marmalades are especially popular among this group.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 2 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES The retail market is by far the largest segment for jams, jellies, pastes and purees. Other segments are the food processing market and the wholesale market. The bakery industry, the ice cream industry and the dairy industry are the main consumers in the food processing industry. Trends in the consumer market The retail market for jams is known to be stable in terms of size and conservative in terms of taste preferences. The same types of jam have been popular for a long time (see market segments). However, there are some noticeable consumption trends. The influence of increasing health awareness A greater awareness of healthy eating habits can be noticed among EU consumers. Jams, jellies are generally not perceived as healthy as they contain much sugar. For jams and jellies the effect of increasing health awareness means a demand for reduced sugar content. As EU legislation requires that jam needs to have a minimum sugar content of 60%, a product containing less than 60% of sugar cannot be named jam. Producers give their products other names like fruit spread or use fruit juice (sometimes guava juice) as a substitute for sugar. There is a trend of offering diet jams, which contain no added sugar which can be consumed by people with diabetes. Another trend is the reduction of food additives. Consumers perceive additives as unhealthy and prefer natural ingredients. Traditionally produced jams with specified origin There is a growing demand for traditionally produced jams. These jams are mostly made from fresh fruits like blueberries and strawberry. (Other mainstream jams are generally made from frozen fruit). The origin is stated on the product and is used for branding. This is, for instance, the case with Scottish traditionally-produced jams which are consumed in other EU countries. The origin is a way to brand the product. When the origin is close to the consumer this can be an extra benefit. Exotic jams, jellies, pastes and purees EU consumers are exposed to a large variety of different fruits through television cooking programmes, recipes, or when travelling abroad. This exposure makes them interested in trying these exotic foods by including them in their daily diet. In many EU countries, a growing group of ethnic minorities with their own culinary traditions stimulates the consumption of ethnic and exotic ingredients. As the bakery industry is characterized by the use of traditional products, exotic jams, jellies, pastes and purees are not often used. However exotic jams, jellies, pastes and purees are increasingly used in desserts and ice creams. There are some exotic types of jams on offer (mango/passion fruit and guave/strawberry for instance produced by Hero, the Netherlands), but in general, the retail market for jams remains conservative. The market for exotic jams is small but has the potential to grow. Organic food Finally, a general increase of interest in organic and fair-trade food in the EU market has been noticeable over the last decade, although it differs per country. The trend is present mostly in the UK, the Netherlands and Germany and to a lesser extent in Spain and France. Organic production is most popular in Italy and Germany. There is also increasing interest in organic jams and jellies, although this development to date has been very modest. Trends in the industrial segment Within the industrial segment, the bakery industry is the main consumer of jams, jellies, purees and pastes. The bakery industry mostly uses traditional ingredients and is not likely to start using exotic products in large amounts. The dairy industry uses more and more jams, jellies, pastes and purees in yoghurt products and milk products. Also, the products made from exotic fruits are growing in demand. The juice industry uses purees for fruit juice drinks. Jams, jellies, pastes and purees for industrial use are often tailor-made in a partnership between a nearby (EU) producer and an industrial user.
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 3 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Forecast The market for jams, jellies, pastes and purees is conservative. Demand is expected to remain stable. Possibly in the future exotic jams, jellies, pastes and purees will become more popular but their market share will remain small. Production Production data have been obtained through Prodcom (PRODucts of the European COMmunity, provided by Eurostat). As already mentioned, Prodcom data should be interpreted with extreme caution as they are estimations because declaration of production is not obligatory within the EU. Please note also that production totals are larger than the numbers given because the production data is incomplete. Production of jams, jellies, marmalades and purees in 2008 was 1.3 million tonnes, representing a value of almost 2.3 billion (see Table 1.2). Germany is the largest producer of jams, jellies, purees and marmalades in the EU with a value share of 25%, followed by the United Kingdom (15%), Italy (14%), Spain (7.9%), Belgium (7.7%), Poland (7.1%) and the Netherlands (6.2%). Production volume decreased 7.0% between 2004 and 2008 while production value increased by 11%. Table 1.2 Production of jams, jellies, marmalades and purees, 2004-2008, volume in thousand tonnes / value in million
2004 Value Total Germany The United Kingdom Italy Spain Belgium Poland The Netherlands Austria Sweden Greece Finland Czech Republic 2,061 460 370 326 162 137 116 112 c* 77 58 28 37 Volume 1,421 304 202 190 133 80 121 104 c 49 81 16 c n.a. 2006 Value 1,901 437 322 289 164 136 141 119 c 75 53 29 39 n.a. Volume 1,229 237 161 158 124 79 143 116 c 50 75 15 0 n.a. 2008 Value 2,284 561 345 315 180 176 162 142 113 91 68 26 25 n.a. Volume 1,322 253 183 155 135 108 101 117 56 60 67 13 20 n.a.

France n.a. Source: PRODCOM, 2009

* c means that data are confidential Product groups Of all product groups, the production of strawberry jam is the largest. Other types of jam, for which production is relatively high are apricot, cherry, raspberry and other berries. Some pineapple jam is produced. Pastes and purees are only used in the industrial sector and as ingredients for jams, desserts and bakery products. To a lesser extent they are used in the food service sector. Main players The jams, jellies, pastes and purees industry consists of many large companies, some of them multinational, and a much larger number of small and medium enterprises (SMEs). Both SMEs and multinational companies are important in the sector.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 4 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Some of the main producers of jams, jellies, pastes and purees are listed below by country. Germany Natreen Fruchtaufstrich http://www.natreen.de; Schwartau-Extra http://www.schwartau-extra.de; Zentis http://www.zentis.de/english. France Bonne Maman http://www.bonne-maman.com; Andros http://www.andros.fr; Andresy Confitures http://www.andresy-confitures.com/confiture-haut-de-gammeeng.php. The United Kingdom Premier Foods http://www.premierfoods.co.uk; Duerrs http://www.duerrs.co.uk; Mackays http://www.mackays.com. Italy Carluccios Confettura http://www.carluccios.com. The Netherlands Hero B.V. http://www.hero.nl; Geurts Conserven B.V. http://www.geurts.com; Whole Earth (organic jams and fruit spreads) http://wholeearthfoods.com. Belgium Aldia http://www.aldia.be; Materne http://www.materne.com/english; Belberry Preserves http://www.belberry.com. The above-mentioned producers and exporters can be competitors to developing country (DC) suppliers. However, at the same time, these companies can also import jams, jellies, pastes and purees, making them a potential trade channel for DC suppliers aiming to enter the EU market. Depending on the product DCs produce, companies could either be competitors, buyers, or could be active in entirely different trade channels and industries. Trends in production The main trends in the production of jams, jellies, pastes and purees are: Traditionally produced jams; the origin of the jam is used in branding for the consumer market. Jams, jellies and marmalades with less sugar added and fewer additives. Increased production of organic jams and jellies. Opportunities and threats The main opportunities and threates for DC exporters are listed below. + The market for jams, jellies, pastes and purees is stable and not so much affected by the current economic crisis. The market for jams, jellies, pastes and purees is conservative. There are not many new product developments. The most popular jams in the EU are made from fruits that are grown in the EU. Exotic fruit jams are not popular and consumption is small. Jams, jellies, pastes and purees for industrial use are often tailor-made in a partnership between a nearby producer and an industrial user, which makes it harder for exporters from DCs to supply the industry.
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 5 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Increased competition in the retail market, with discounters and private labels accounting for the largest market shares in the different countries. Increased concentration and internationalisation of the retail sector strengthens the negotiating power of large retailers, forcing producers into cost-efficient and large-scale production and making it more difficult for small-scale and new producers to get access to the EU market.

Useful sources FRUCOM, is the umbrella organisation of the European Institutions of the European Federation of the trade in processed fruit and vegetables and similar foodstuffs http://www.frucom.org. Organisation of the European Industries Transforming Fruit and Vegetables (OEITFL) http://www.oeitfl.org. Confederation of the Food and Drink Industry in the EU (CIAA) http://www.ciaa.be. EUROPA - Eurostat - Data Navigation Tree - Crops data http://epp.eurostat.ec.europa.eu.

Trade channels for market entry

Trade channels Most jams, jellies, purees and pastes used in the EU (for retail and for industrial use) are produced in the EU. They are often produced from frozen fruit and frozen fruit pulp that is either produced in the EU or (equally important) imported from outside of the EU. Some small producers do not import frozen fruit but rather use locally produced fresh fruits. The origin of the fruit is then often part of the image of their brand. There are both large-sized producers in the EU (such as Schwartau) as well as small-sized (such as Geurtsen). Most jams and jellies are sold in consumer packages through retail. The industrial market uses a small amount of the jams and jellies, mainly for bakery and dairy products. Fruit pastes and purees are used by the fruit juice and dairy industry where they are often called fruit preps (preparations). Most of these food processing industries use specialised importers for the supply of fruit preps or they buy them directly from producers of fruit preps. Some of the largest producers of fruit preps are located in Western Europe. The producers of fruit preps often have to use imported frozen fruit and frozen fruit pulp as the main ingredient. Most suitable trade channels The share of jams, jellies, purees and pastes from DCs used by the food processing industry is small (and mainly from Turkey, see Chapter 3). The amount of jams, jellies, purees and pastes which are directly sold in retail is negligible. The jams, jellies, purees and pastes that are imported from DCS are mostly handled by importers and agents. The most interesting business partners for DC exporters are therefore importers and agents. Importers buy jams, jellies, pastes and purees and distribute these to the food processing industry and they also re-export. Importers obtain ownership of the goods and often take care of import formalities. In most cases, they have long-standing contacts with their suppliers and buyers. They can advise exporters on many issues, including legal and quality requirements, market trends and packaging. They often have strong relationships with their buyers all over the world and have extensive and up-to-date knowledge of the quality demands and market trends. Overall the opportunities for exporters of jams, jellies, pastes and purees from DCs are small, but there can be opportunities for exporting frozen fruit to the EU (see CBI survey The frozen fruit and vegetables market in the EU).

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 6 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Retail and food service organisations Multiple retailers and food service organisations are the final stage of the value chain of jams, jellies, pastes and purees and almost all food sales are made through these channels. The retail sector hardly ever imports jams, jellies, pastes and purees directly, but buys from wholesalers (or through own buying groups), importers and the food manufacturing industry. In the EU, large multiple retailers with their own buying groups are Carrefour (France), Metro (Germany), Tesco (UK), Aldi (Germany) and Ahold (the Netherlands). Like the multiple retailers, the food service organisations rarely buy directly from overseas sources. There are large differences across the EU in the extent of the dominance of multiple retailers in food sales. In France, the UK, Germany, Scandinavia and the Netherlands, multiple retailers typically dominate the sales of jams and jellies. However, in important consumer countries such as Italy and Spain, the multiple retailers have not gained as much dominance as in the northern European countries, leaving more room for smaller retailers. Retailing in eastern European countries such as the Czech Republic and Hungary is changing rapidly. The large, often Western European based, multiple retailers have entered the market and are rapidly gaining market share at the expense of small, independent retailers. These developments are, however, not so strong in Poland, which is the largest country in Eastern Europe. Trends in trade Concentration of the value chain Multinational food companies are present in almost all EU countries and have a large share of the market. At the other end, there are numerous small and medium companies active in the jams, jellies, pastes and purees market. Many multinational food companies arrange imports themselves or use an agent. Regarding specific products, multinational companies may even have production facilities at source or have strong relations with a small group of suppliers. Concentration at the retail level An ever-smaller number of retailers dominate food distribution and sales in the EU countries discussed. The process of concentration is most advanced in the UK, the Netherlands, Germany and France. Importers and other suppliers to multiple retailers must supply consistent volumes of guaranteed quality on a year-round basis, and moreover be very efficient, flexible and alert to new developments. Private label sales in the countries discussed showed a steady increase in turnover sales. Improvements in quality have led consumers to accept that many private label products are just as good as the leading brands, only lower priced. This results in increased competition between branded and private label products and lower margins for branded manufacturers. At the same time, discounters increasingly offer branded products. Concern about food safety, the environment and fair production Retailers and the food processing industry are responding to the increasing social concern about food safety, the environment and fair production. They are increasing their control over supply chains. They are working more often with a limited number of preferred suppliers (importers and producers) and place the responsibility for the quality of the food in the hands of these suppliers. As a result the mutual dependence is increasing. Gaining access to strongly integrated supply chains can be difficult for starting exporters. It is recommended that contact be made with traders that supply ingredients to the food processing industry rather than approaching food manufacturers directly. Price structure Although producers of jams, jellies, pastes and purees mostly use frozen fruits, there is still some dependence on fresh fruit. Weather conditions during the growing season of fruit and vegetables influence supply of fresh produce, especially in the short term. Reduced domestic harvests of fruit and vegetables will reduce the amount available for the processing industry. This will result in greater import requirements and higher prices.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 7 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Likewise, weather conditions in fruit and vegetable producing and exporting countries have an effect on the supply of jams, jellies, purees and pastes to the world market. At times when the harvest of fruits, used in jams, jellies, pastes and purees in the EU is small, exporters from DCs have the opportunity to gain market share. The market for jams, jellies, pastes and purees is regulated by the EU. For many products import duties have to be paid. Import duties are waived for many DCs, providing those countries with a relative advantage. For more information on duties, quotas and waiving of duties, see Chapter 6 and the website EU Expanding Exports Helpdesk http://exporthelp.europa.eu. Margins in the international trade in jams, jellies, pastes and purees are under pressure, especially due to the economic crisis. The market for jams, jellies, pastes and purees is not transparent to outsiders. It takes time to get to know the main players and what is going on in the market. Insiders with experience do have insights into what the market prices are. Jams, jellies, pastes and purees for industrial use have a lower price than for retail consumption as they often contain less fruit and consumers are willing to pay a higher price than the processing industry. Useful sources The Internet is a practical way to obtain up-to-date information. Some interesting websites for information are listed below. Fruit Processing Magazine http://www.fruit-processing.com. The Internet site http://www.europages.com is a useful source for finding contact details and information on the activities of importers. The most interesting contacts at Europages can be found under the category Food & Related Products. Other internet sites where buyers and sellers can meet online are: http://www.foodtrader.com, a B2B marketplace for the food and agriculture industry (login required); http://www.greentrade.net, an online marketplace for organically grown products where suppliers can specify their range.

Trade: imports and exports

Imports In 2008, total imports of jams, jellies, pastes and purees by EU member countries amounted to 0.4 million tonnes, representing a value of 0.7 billion (Table 3.1). France was the leading EU importer in 2008, accounting for 20% of the total import value, followed by Germany (16%), the UK (13%), Belgium (7.3%), Italy (5.7%) and the Netherlands (4.2%). The main product groups within the jams, jellies, pastes and purees group in 2008 were: strawberry (11% of import value), raspberry (4.7%), citrus (3.7%), cherry (2.2%), exotic1 (1.4%) and plums (1.3%). Between 2004 and 2008, imports increased by an average annual rate of +12% in value and +6.9% in volume. This increase was mainly due to the following products within the jams, jellies, pastes and purees group: exotic fruit (an average increase in value of +26% per year), raspberry (+11%), strawberry (+8%) and citrus (+7%). The import volume from DCs in 2008 was 30 thousand tonnes and 49 million in value. Imports from DCs increased more than total imports as volume increased on average by +24% per year and value increased by +28% between 2004 and 2008. The share of import value from DCs increased from 3.9% in 2004 to 6.6% in 2008.
1 The exotic product group consists of: jams, jellies, pastes and purees from guava, mangoes, mangosteens, papayas, jackfruit, passion fruit, tamarinds, cashew apples, lychees, sapodilla plums, carambola, pitahaya, coconuts, cashew nuts, Brazil nuts and areca.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 8 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES The following types of jams, jellies, pastes and purees showed high growth in DC import value: raspberry (an average increase of +47% per year), strawberry (+40%), plums (+37%), exotic fruit (+30%) and cherry (+22%). However the volume of these jams, jellies, pastes and purees is still low, related to the total import value from DCs. The main DCs, supplying jams, jellies, pastes and purees to the EU in 2008 were Turkey (mainly citrus and exotic), Serbia (mainly plums), Croatia, South Africa (mainly citrus) Ecuador, Swaziland and Costa Rica (mainly exotic). Imports of exotic fruit jams, jellies, pastes and purees are small and amounted to only 1.4% of total EU import value. The main EU suppliers were: Germany (18% of import value of the EU of this product group), France (12%), Belgium (12%) and the Netherlands (10%). The share import from DCs by value was 32% in 2008. Import value from DCs increased by 30% and import volume increased by 72% between 2004 and 2008. The main DCs that supplied the EU directly were Turkey (13%), Costa Rica (5.1%), South Africa (2.4%), Ecuador (2.1%) and Brazil (1.6%). Most of the selected countries have different suppliers depending on the type of exotic jams, jellies, pastes and purees. For example, for Belgium, the main supplier from DCs is Turkey, for Germany it is Ecuador and for France it is South Africa. Table 3.1 Imports and leading suppliers of jams, jellies, pastes and purees 2004 2008, share in % of value
2004 2004 2008 Leading suppliers in 2008 Share in % mln mln mln 467 584 738 446 531 672 Germany (17%), France (14%), the Netherlands (13%), Belgium (12%), Italy (7.8%) 3 15 17 Switzerland (1.7%), USA (0.3%), Japan (0.1%) 18 38 Share (%)

Total EU Intra-EU: Extra-EU ex. DC*: DC*:

91% 2.3%

France Intra-EU: Extra-EU ex. DC*: DC*: Germany Intra-EU: Extra-EU ex. DC*: DC*: The United Kingdom Intra-EU: Extra-EU ex. DC*: DC*: Belgium Intra-EU: Extra-EU ex.

74 72 0 2 92 89 0 4 70 67 1 2 34 33 0

104 98 1 5 108 98 1 9 78 75 1 2 39 36 0

6.6% 49 Turkey (3.8%), Serbia (0.4%), Croatia (0.3%), South Africa (0.3%), Ecuador (0.2%), Moldova (0.2%), China (0.2%), Swaziland (0.2%), Costa Rica (0.1%), Chile (0.1%) 150 145 Belgium (25%), the Netherlands (24%), Germany (21%), 97% Italy (11%), Spain (9.0%) 1 USA (0.2%), Japan (0.2%) 0.5% 4 Turkey (1.1%), South Africa (0.5%), Chile (0.2%), Peru (0.1%), China (0.1%), Lao (People s Democratic Republic) (0.1%), Tunisia (0.1%) 118 107 The Netherlands (17%), France (15%), Belgium (14%), Italy (13%), Austria (10%) 4 Switzerland (2.8%), Russia (0.1%) 2.5%

91% 3%

7 Turkey (2.3%), Serbia (1.4%), South Africa (0.7%), 6% Moldova (0.5%), Croatia (0.5%), Bosnia and Herzegovina (0.2%), India (0.1%), Philippines (0.1%) 96 92 France (26%), the Netherlands (18%), Germany (14%), Belgium (10%), Denmark (8.8%) 1 USA (0.7%), New Zealand (0.4%), Canada (0.1%) 96% 1.2%

3 Turkey (1.0%), Swaziland (1.0%), Ecuador (0.3%), China 2.9% (0.1%), South Africa (0.1%), Pakistan (0.1%) 54 45 France (32%), the Netherlands (19%), Germany (15%), 83% Italy (10%), Sweden (2.9%) 0 Switzerland (0.2%), Fr. Polynesia (0.1%) 0.3%

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 9 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES
DC*: DC*: Italy Intra-EU: Extra-EU ex. DC*: DC*: The Netherlands Intra-EU: Extra-EU ex. DC*: DC*:

1 40 39 0 1 35 34 1 1

3 41 33 7 2 43 38 2 2

9 Turkey (16%), Brazil (0.3%), Malaysia (0.2%), Lao (Peoples Democratic Republic) (0.1%), Chile (0.1%), South Africa (0.1%) 51 43 Germany (43%), France (17%), Belgium (7.2%), Austria (7.1%), the Netherlands (2.9%) 6 Switzerland (11%), Russia (0.2%), Japan (0.2%) 2 Turkey (1.5%), Croatia (0.7%), Chile (0.5%), China (0.5%), Ecuador (0.3%), Kenya (0.1%), Philippines (0.1%), Nepal (0.1%) 42 39 Germany (32%), Belgium (26%), France (21%), United Kingdom (5.6%), Italy (3.3%) 2 USA (2.7%), Switzerland (2.2%), Japan (0.1%) 2 Turkey (1.4%), Egypt (0.9%), Philippines (0.3%), Serbia (0.2%), Croatia (0.1%), Argentina (0.1%)

17%

84% 12% 4%

92% 5% 3.2%

Source: Eurostat (2008) *Developing Countries See Appendix A of CBI market survey The product market in the EU for a definition of the product groups

France France is the largest importer of jams, jellies, pastes and purees with an import volume of 0.1 million tonnes, representing a value of 150 million. This represents 20% of import value of the EU. Import volume from DCs was only 2 thousand tonnes, representing a value of 4.0 million in 2008. Total import value increased, between 2004 and 2008, on average 19% per year and 11% in volume, mainly due to increased import of strawberry and raspberry jams, jellies and purees. Import value from DCs increased slightly more than overall import growth. Also strawberry and raspberry jams, jellies and purees experienced the largest growth in imports. The share of import value from DCs was 2.5% in 2008. The share of imports from DCs was mainly exotic fruits. The main DCs, supplying exotic fruit jams, jellies, pastes and purees to France were South Africa (15% of import value of France of this product group), Senegal (1.3%), Mauritius (1.2%) and Togo (0.7%). Germany Germany is the second largest importer of jams, jellies, pastes and purees with a total import value of 120 million in 2008 and 79 thousand tonnes in volume. Import value increased 6.3% and import volume increased 1.5% between 2004 and 2008. This was mainly due to growing imports of the following: strawberry (an average increase of +9% per year between 2004 and 2008), citrus (+8.7%), raspberry (+8.2%) and plums (+6.5%). The main types imported from DCs were plums (54% of import value was from DCs) mainly from Serbia (29% of import value of this product group into Germany), Moldova (11%), Croatia (9%), Bosnia Herzegovina (5.2%). The share of import value of citrus from DCs was 4.5%. The main DCs supplying citrus jams, jellies, pastes and purees were South Africa (18% of import volume of this product group) and Swaziland (0.9%). The share from DCs of exotic jams, jellies, pastes and purees was 2.4%. The main DCs supplying this product group were Ecuador (8.9% of import value of this product group in Germany), Brazil (6.5%), India (2.0%) and Thailand (0.6%). Imports from DCs grew faster than total imports into Germany (+19% in import value and +19% in import volume). Growth of imports was mainly due to increased imports of jams, jellies, pastes and purees made from plums (an average increase of +46%), raspberry (+26%), strawberry (+25%). DC import value of exotic fruit jams, jellies, pastes and purees decreased.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 10 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES The UK The UK was the third largest EU importer of jams, jellies, pastes and purees with a share of 13% of EU import value in 2008. Import volume was 56 thousand tonnes, representing a value of 96 million. Import volume from DCs was 2.0 thousand tonnes, representing a value of 2.0 million. British imports grew between 2004 and 2008 by 8.5% annually in value and 7.5% in volume. Import value mainly increased for jams, jellies, pastes and purees made from raspberry (+8.9% per year), strawberry (+7.4% per year) and citrus (+5.8%). Citrus jams, jellies, pastes and purees had a high share of imports from DCs (mainly from Swaziland with 22% of import value in 2008). Another product group with a relatively high share from DCs was exotic fruit jams, jellies, pastes and purees. The main supplying DCs were Ecuador (8%), Jamaica (2.4%) and Malaysia (1.5%). Belgium The import volume of Belgium in 2008 was 26 thousand tonnes, representing a value of 54 million. The import volume from DCs was 3.0 thousand tonnes, representing a value of 9.0 million. Import value increased 12% per year and import volume 6.4% between 2004 and 2008. Import value from DCs increased 88% per year and import volume 49%. The share of import value from DCs is the highest of the selected countries at 17% of import value. The main product imported from DCs was exotic fruit jams, jellies, pastes and purees. The main DCs supplying this product group to Belgium in 2008 were Turkey (45% of import value of this product group), Brazil (11%), Malaysia (6.5%) and Laos (3.4%). The large imports by Belgium compared to its size and consumption can be explained by the important distribution function the country has. Because of the high costs involved in importing jams, jellies, pastes and purees to the European Union, they are often imported by one EU country, such as Belgium, in a large quantity and from there they are re-exported in smaller quantities to other EU countries. Italy Italy was the fifth largest EU importer of jams, jellies, pastes and purees in 2008. Between 2004 and 2008, Italian imports increased on average by 6.2% annually in value, totalling 51 million and 25 thousands tonnes in 2008. Imports from DCs increased 3.0% in value per year between 2004 and 2008, while import volume from DCs increased 25% per year in the same period. Imports from DCs only increased for the product group strawberry (+87% per year in value). The share from DCs was high mainly for exotic fruit jams, jellies, pastes and purees (14% of import value of this product group). The main DCs supplying this product group in 2008 were Ecuador (7.2% of import value of this product group), Kenya (4.9%) and Brazil (0.8%). The Netherlands Imports of jams, jellies, pastes and purees by the Netherlands increased between 2004 and 2008 on average by 4.7% annually in value, totalling 42 million and 26 thousand tonnes. The main product groups imported from DCs were exotic jams, jellies, pastes and purees of which 39% of import value was from DCs. The main DCs, supplying this product group to the Netherlands in 2008 were Egypt (24% of import value), the Philippines (9.4%), Vietnam (2.3%) and Peru (1.8%). Exports In 2008 European exports of jams, jellies, pastes and purees was 612 million tonnes with a value of 1.0 billion (Eurostat, 2009). Exports increased on average 10% per year by value between 2004 and 2008 and 7% per year in volume. Exports of jams, jellies, pastes and purees mainly consisted of the following types: strawberry, raspberry, citrus and exotic fruit. Most jams, jellies, pastes and purees are exported to other EU countries (79% of export value in 2008).

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 11 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES France is the main destination with 22% of the export value, followed by Germany (14%), Belgium (12%), the Netherlands (11%), Italy (9.4%). The UK had a share of 3.9% in export value. France is the main exporter of jams, jellies, pastes and purees in the EU. Export volume was 80 thousand tonnes in 2008, representing a value of 218 million. The share of France in EU export value of jams, jellies, pastes and purees was 22% in 2008. Export value increased by +8.3% on average per year. Germany is the second largest exporter with 64 thousand tonnes, representing a value of 142 million. The share of export value of the EU was 14%. Export value increased on average by +11% per year between 2004 and 2008. Belgium is the third largest exporter in the EU with a share of 12% of EU export value. Export volume in 2008 was 72 thousand tonnes, representing a value of 123 million. Export value increased on average by +9.2% per year. The Netherlands is the fourth largest exporter in the EU with a share of 9.4% of EU export value. Export volume in 2008 was 114 thousand tonnes, representing a value of 114 million. Export value increased on average by 16% per year between 2004 and 2008. The export volume of Italy in 2008 was 66 thousand tonnes, representing a value of 66 million. Italys share of EU export value was 9.4%. Export value on the average increased by +12% per year between 2004 and 2008. The UK is the ninth largest exporter of jams, jellies, pastes and purees in the EU. Export volume was 17 thousand tonnes, representing a value of 40 million. Export value increased on average by 7.2% per year between 2004 and 2008. The EU is a net exporter of jams, jellies, pastes and purees. This means there are limited possibilities for DCs to export to the EU, except for exotic fruits. Opportunities and threats Opportunities and threats for DC exporters are listed below. + Imports from DCs of jams, jellies, pastes and purees are increasing, especially imports from DCs, which offers opportunities for exporters from DCs. However, imports from DCs are very small. + The best export opportunities for DCs are for the following product groups: exotic, citrus, strawberry and plum and cherry jams, jellies, purees and pastes. Imports from DCs are dominated by Turkey and Eastern European countries. EU is a net exporter and does not depend much on imports outside of the EU for its supply of jams, jellies, pastes and purees. The share of imports from DCs is relatively small at 6.6%. Please note that the same development or trend can be an opportunity for one exporter and a threat to another. It is important, therefore, to analyse the developments and trends discussed in Chapter 1 to establish whether they are opportunities or threats. The outcome of the analysis depends on the specific situation of an exporter and conclusions may not be straightforward. Useful sources EU Expanding Exports Helpdesk http://exporthelp.europa.eu go to: trade statistics; Eurostat official statistical office of the EU http://epp.eurostat.ec.europa.eu; go to themes on the left side of the home page go to external trade go to data full view go to external trade - detailed data Understanding eurostat: Quick guide to easy comext

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 12 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES

http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf.

Price developments

The jams, jellies, pastes and purees fruit market is not a commodity market and world market prices are therefore determined (but not set) by importers and wholesaler. The price is based on national market dynamics, negotiation and yields. Domestic and import/export prices of jams, jellies, pastes and purees vary according to a number of factors: national market dynamics, often only known to people who are inside the market; harvest output in the supplying countries in relation to demand; negotiations between the different chain partners and the number of intermediaries buying and selling; the quality of the jams, jellies, purees and pastes aimed at the consumer markets. The average import price of jams, jellies, pastes and purees has increased between 2004 and 2008 by +21%. The average price was calculated by dividing import value by import volume. The import price of exotic jams, jellies, pastes and purees fluctuated between 2004 and 2008. The average price of this product group increased between 2004 and 2006 by +43% and decreased between 2006 and 2008 by -38%. The following internet pages provide information about the EU price structure on jams, jellies, pastes and purees: Foodnews http://www.foodnews.co.uk/commodity; ITC Market News Service http://www.intracen.org.

Market access requirements

As a manufacturer in a developing country preparing to access the EU, it is important to be aware of the market access requirements of trading partners and the government. Requirements are specified through legislation and through labels, codes and management systems. These requirements are based on environmental, consumer health and safety and social concerns. It is necessary to comply with EU legislation and to be aware of any additional non-legislative requirements of trading partners in the EU. Minimum standards for the amount of fruit in the jams are set by a directive of the EU. Fruit is considered to include fruits that are not usually treated in a culinary sense as fruits, such as tomatoes and other vegetables, and including carrots, sweet potatoes, cucumbers and pumpkins. Extra jam is subject to stricter rules that set higher standards for the minimum fruit content (45% instead of 35% as general rule, but lower for some fruits, such as redcurrants and blackcurrants). There are specific rules for packaging, marking and labelling of jams, fruit jellies, purees and pastes. These are described in Council Directive 2001/113/EC. This can be found at the following website: http://eur-lex.europa.eu/LexUriServ/site/en/consleg/2001/L/02001L011320040712-en.pdf. For information on legislative and non-legislative requirements, go to Search CBI database at http://www.cbi.eu/marketinfo, select your market sector and target country in the category search, click on the search button and click on Market Access Requirements. Information on tariffs and quotas can be found at http://exporthelp.europa.eu.

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 13 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Additional information on packaging can be found at the ITC website on export packaging: http://www.intracen.org/ep/packaging/packit.htm.

Doing business

Common practices for sales promotion of jams, jellies, pastes and purees can be found on the internet or by visiting product specific or sector-related trade fairs. Trade Fairs offer companies in DCs the opportunity to establish contacts, to build up a trustworthy image through attendance, to promote their products, and conduct EU market orientation. Interesting trade fairs include: Anuga which is an important biennial international fair in food and beverages, 8-12 October 2011 in Cologne, Germany http://www.anuga.com; BioFach, 17-20 February 2010 in Nuremberg, Germany http://www.biofach.de; SIAL, 17-21 October 2010 in Paris, France http://www.sial.fr; IFE: International Food and Drink Trade Exhibition, 13-16 March, 2011 in London, UK htt://www.ife.co.uk; Food Ingredients Europe 2009 / natural ingredients, 16-18 November, 2010 in Frankfurt, Germany http://www.fi-events.com; Food and Drink Expo, Biennial exhibition for food and drink products and services from around the world. The next exhibition takes place at 21-24 March, 2010 in Birmingham, UK http://www.foodanddrinkexpo.co.uk. Trade press can function as a means for gaining insight into market developments and competition, and can also have a promotional function. It can be a way of finding potentially interesting companies, as well as promoting activities and products. Trade press addressing the EU market that could be helpful for players in the jams, jellies, pastes and purees sector, are: Foodnews http://www.agra-net.com; FoodProductionDaily.com Europe http://www.foodproductiondaily.com; International Food Ingredients http://www.ifi-online.com; Fruit Processing Magazine http://www.fruit-processing.com. Some interesting associations for exporters of jams, fruit jellies, marmalades and purees are: Organisation of the European Industries Transforming Fruit and Vegetables (OEITFL) http://www.oeitfl.org; Confederation of the Food and Drink Industry in the EU (CIAA) http://www.ciaa.be. General information on doing business like approaching potential business partners, building up a relationship, drawing up an offer, handling the contract (methods of payment, and terms of delivery) can be found in CBIs export manuals Export Planner and Your image builder. Cultural awareness is a critical skill in securing success as an exporter. Information on cultural differences in the EU can be found in Chapter 3 of CBIs export manual Exporting to the EU. These manuals can be downloaded from http://www.cbi.eu/marketinfo - go to Search Publications. Also, the internet provides many sources on business practices and culture, such as http://www.kwintessential.co.uk/resources/country-profiles.html. It is important to know that these pages provide only general information and it is therefore important, when conducting business, to use intuition and an understanding attitude. This survey was compiled for CBI by Mercadero Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 14 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES Appendix A General product description This market survey deals with jams, fruit jellies, purees and pastes. They are used by the food industry, the food service market and sold through retail outlets. Within this product group, preservation takes place by cooking and adding sugar. The substance is more or less gel-like depending on the amount of pectin added. This method is generally only used for fruits. The best-known products are fruit jams, marmalades and chutneys. In some countries, fruit purees such as apple sauce are eaten as a side dish. Product groups This product survey covers those product groups of jams, jellies, pastes and purees which are interesting for developing country producers. The choice of groups was made based on trade data, competitor analysis and whether there is a market for the particular fruit in Europe. In this survey, trade data based on the Combined Nomenclature are used. These data are provided by Eurostat, the statistical body of the EU. The abbreviation CN stands for Combined Nomenclature. This Combined Nomenclature contains the goods classification prescribed by the EU for international trade statistics. The CN is an 8-digit classification consisting of a further specification of the 6-digit Harmonised System (HS). HS was developed by the World Customs Organisation (WCO). The system covers about 5,000 commodity groups, each identified by a six-digit code. More than 179 countries and economies use the system. The names used throughout the report and the related official product definition with HS codes are given in the Table below.
1. Fruit jams, jellies, purees and pastes Citrus fruit jams; marmalades; jellies; purees or pastes; being 15.33.22.30 cooked preparations (excluding homogenized preparations) Jams; marmalades; fruit jellies; fruit or nut purees and 15.33.22.90 pastes; being cooked preparations (excluding of citrus fruit, homogenised preparations) Homogenised preparations of jams, jellies, marmalades, 15.88.10.30 purees and pastes

These product groups have the following subgroups: For citrus fruit jams, marmalades, jellies, purees or pastes, obtained by cooking, these are:
20079110 20079130 20079190 Citrus fruit jams, jellies, marmalades, purees and pastes with a sugar content, higher than 30% Citrus fruit jams, jellies, marmalades, purees and pastes with a sugar content higher than 15%, but lower than 30% Citrus fruit jams, jellies, marmalades, purees and pastes with a sugar content lower than 13%

For jams, marmalades, fruit jellies or nut purees and pastes, obtained by cooking, these are:
20079910 20079920 20079931 20079933 20079935 20079939 20079950 20079951 20079955 Plum purees and pastes with a sugar content of more than 30% Chestnut purees and pastes with a sugar content of more than 30% Cherry jams, jellies, marmalades, purees and pastes with a sugar content of more than 30% Strawberry jams, jellies, marmalades, purees and pastes with a sugar content of more than 30% Raspberry jams, jellies, marmalades, purees and pastes with a sugar content of more than 30% Other jams, jellies, marmalades, fruit purees and pastes with a sugar content, higher than 30% Other jams, jellies, marmalades, fruit purees and fruit pastes with a sugar content between 13 and 30%. Chestnut purees and pastes with a sugar content, between 13 and 30%. Apple purees with a sugar content, higher than 13%

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 15 of 16

Preserved fruit and vegetables CBI MARKET SURVEY: THE EU MARKET FOR JAMS, JELLIES, PASTES AND PUREES
20079957 20079958 20079991 20079993 Other jams, fruit jellies, marmalades, fruit purees and fruit pastes with a sugar content between 13 and 30% Other jams, fruit jellies, marmalades, fruit purees and fruit pastes with a sugar content between 13 and 30% Apple puree with a sugar content of lower than 13% Jams, jellies, marmalades, purees and pastes of guavas, mangoes, mangosteens, papaws, papayas, jackfruit, passion fruit, tamarinds, cashew apples, lychees, sapodilla plums, carambola, pitahaya, coconuts, cashew nuts, Brazil nuts, areca 'betel' nuts, cola nuts and macadamia nuts with a sugar content of more than 13% Other jams, fruit jellies, marmalades, fruit purees and pastes with a sugar content, lower than 13% Other jams, fruit jellies, marmalades, fruit purees and pastes with a sugar content, lower than 13%

20079997 20079998

For homogenised preparations of jams, jellies, marmalades, purees and pastes, obtained by cooking, the subgroups are:
20071010 20071091 20071099 Homogenized preparations of jams, fruit jellies, marmalades, fruit or nut purees and pastes, obtained by cooking, with a sugar content of more than 13% Homogenized preparations of jams, fruit jellies, marmalades, fruit or purees and pastes of tropical fruits with a sugar content of more than 13% Other homogenized preprations of jams, fruit jellies, marmalades, fruit purees and pastes with a sugar content of more than 13%

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Launch Internet Explorer Browser.lnk

Page 16 of 16