● BSM remains in decline in both value (–2.4%) and volume (–3.8%), driven primarily by declines in dairy spreads. However, an increase in average price (up 1.6%) has reduced the impact of the decline on the category in value terms.

● Factors contributing to the price rise include the continued shift from dairy spreads into butters and own label block butter’s reversal of the price deflation seen last year.

● An overall decline in promotions is contributing to price inflation. Value sold on promotion is down from 53.5% to 49.6%.

Health benefits as a driver for using BSM products is growing at 3.9% year on year and the desire for more natural/less processed products even faster at 10.3%. Another trend is a drop-off in occasions where a BSM product might be used, including the decline of sandwiches (–2.3%).

● Suppliers and retailers will need to communicate new occasions for BSM to offset the impact of declining host foods and will also need to cater to the shifting perception of what constitutes a healthy BSM product.

Ali Loughlin / Kantar Worldpanel