Opportunities for Scottish food industries in existing and new markets

Challenges

The Covid-19 pandemic has brought significant changes to the operation of Scottish society while Brexit has disrupted the food industry, especially the parts with strong connections to the European Union (EU). Recovery not only requires regaining the levels of production before the pandemic but also creating value-added products and expanding Scottish exports to other markets, as noted in the plans of several industry associations like Scotland Food and Drink’s Ambition 2030.

The identification of market opportunities is an important task when developing new products or relaunching old ones. Our previous research has explored consumers’ interest in products with animal welfare using Kantar Worldpanel data; investigated trends towards healthier and safer products in China by considering the evolution of positioning claims over time using Mintel’s Global New Product Development Database (GNPD); and studied the importance of health claims on the adoption of new breakfast cereals products in the UK using both databases. The fact that GNPD has information for several markets with which the UK is establishing free trade agreements opened the possibility to study trends in those markets and potential opportunities for Scottish supply chains.

The key challenges being addressed by this project are:

• Good Food Nation policy: ensuring food companies are a thriving feature of the economy and places where people want to work.
• Scottish Government: supporting the food and drink industry and promoting sustainable production and procurement of domestic produce that is increasingly healthy and environmentally sound.
• Ambition 2030: Industry Strategy for Growth: success and growth must translate into greater profitability at the farmgate and on the fishing boat.
• UK’s Exit from the European Union (EU): Scottish supply chains affected in terms of their connections with the EU, such as supply chain links like imports of raw materials and exports.

Questions

Solutions

This project is learning from the attributes of the launched products that have been introduced in several domestic and foreign markets by food firms. We are using Kantar and GNPD databases to further understand current consumer trends within the Scottish food sector and how these might be supported, considering the impacts of EU exit, and any other relevant developments.

Mapping co-product production in Scotland’s food and drink sector

This project is mapping the co-product-producing arm of the Scottish food and drink sector for its production potential, nutritional value as animal feedstuff, utilisation attributes and constraints and typical market prices. We are collecting information using a combination of desk studies, field work, and synthesis.

Analysing Consumer Trends

Next, we are establishing a methodology to analyse trends in the markets where Scottish supply chains operate. The methodology allows us to understand what product attributes are important for certain markets. GNPD provides information for most of the markets for which the UK is establishing free trade agreements (FTA). We are conducting a literature review and consulting with stakeholders about FTA markets.

Product development and domestic and foreign markets

Using this methodology (above), we are identifying opportunities within the UK (e.g., England) and those associated with future UK trade deals arising from shifting consumer demand and tastes. We are exploring the characteristics of products launched in the domestic and foreign markets, and to generate insights for the Scottish food and drink sector.

Overall, this project is supporting the food and drink industry to grow and increase its competitiveness both through meeting the demands of an increasingly knowledgeable consumer while improving efficiencies along the supply chain.