The soup market - Italy

1.2 A growing global market

In ****, soup market revenues amounted to nearly $**.* billion globally. This figure is expected to grow at a compound annual rate of *.** percent over the forecast period ****-****.

The growth is influenced by the growing demand for quick, easy-to-prepare meals with healthy ingredients. In addition, soups are made from foods that are inexpensive, which is why they are considered a convenient product for consumers.

Soup market revenues World, ****-****, in billions of dollars Source: ****

Europe is not among the top * countries in terms of soup market revenues. In fact, this type of product is much more popular in Indonesia, Mexico, Japan, China, and the United States. These countries are also characterized by rapid population growth as well as an established culture of soup consumption. The table below shows the revenues in the countries mentioned in **** and the volume of soup sold for each country.

Source: ****

1.3 The Italian market

The soup market is a growing market in Italy, where consumers are looking for quick, healthy and convenient meals. In addition, soup is a food that is part of Italian cuisine in various forms of preparation. From the graphs below, in ****, revenues amounted to €*** million in ****, with a volume of *** million kg, and are expected to grow to nearly €*.* billion in ****, with a volume of *** million kg. The forecast period is from **** to ****.

Soup market revenues Italy, ****-****, in billion euros Source: ****

Soup volumes Italy, ****-****, in millions of kilograms Source: ****

At the European level, in ****, Italy accounted for *.* percent of total European revenues. Thus, it ranks better than France (***). Looking at the different areas of Europe, the central and western part is the one that drives the market, accounting for **.** percent of total European revenues. Southern Europe is the second area, accounting for **.**%.

Market share of European areas Europe, ****, in percent Source: ****

1.4 A surplus trade balance

The following graph shows the evolution of imports and exports of:

Soups, broths and related preparations

The graph below shows that from **** to ****, the value of exports was always higher than the dollar value of imports, with some lows and highs. Notably, in ****, exports and imports contracted due to the COVID pandemic and the subsequent restrictions that halted international trade. However, in ****, the value of exports grew to $** million, ** percent higher than in ****. It can be said that since ****, the international market has recovered and exports are increasing year by year. Imports, as well have grown, however, one year behind exports.

The coverage rate, shown with the solid blue line, is important because it measures the percentage of exports covered by imports. it is calculated as the percentage ratio of the country's exports to imports. This value can be greater or less than ***, and means that the trade balance is in surplus or deficit, respectively. For the market of soups, broths and related products, Italy has always had a coverage rate above ***, thus, it has always had a surplus trade balance.

Exports, Imports, Coverage rate of soups, broths and related preparations Italy, ****-****, in millions of dollars and as a percentage Source: ...

2.1 Demand analysis

The soup market is growing and developing in line with:

The attitude toward conscious consumption of healthy, ready-to-eat foods

Ready-made soup, in particular, is an ideal product for those who do not have time in preparing and cutting vegetables. Moreover, it is a healthy, ready-to-eat anywhere product that manages to attract so many consumers[***].

Not only soups, but also minestrone and fresh purees are products that have increased the purchases of consumers who are looking for products that are practical and can be eaten outside the home.These products have registered an increase of +**.* percent in **** according to Il Sole ** Ore. Their success, along with vegetable purees and creams, has attracted new competitors from other segments of the food industry, such as Alce Nero and Mutti.

Soups, purees, and minestrone are all products that are well suited to the multiple needs of consumers who seek tasty, healthy, vegan, and zero-waste products. Italians' consumption of these products is significant, hovering at an average of nearly *.* kg per capita per year in ****. This figure has been on the rise in recent years, as can be seen in the graph below, and is always higher than the average per capita consumption worldwide.

Average volumes ...

2.2 Soup, a seasonal product

Traditionally classified as a winter "must-have," soup is now seen primarily as a winter ally against the cold. In ****, peak interest in the soup product is observed between the beginning of October and the end of February, with a high return of interest in April. The period when consumers have minimal interest is the summer, when the frequency of google searches for soup remains between ** and **, or between a quarter and half of total annual searches.

However, recent years have seen an increase in demand for cold "summer" soups, particularly gazpacho, but this does not drive consumer interest to the same levels observed in the winter period.

Source: ****

The market for industrial soups is therefore strongly linked to the weather: a very cold winter will greatly favor soup consumption, while a mild winter will tend to cause a direct drop in demand and volume.

The regions with the largest number of google users conducting searches are: Aosta Valley, Umbria, Emilia-Romagna, Friuli-Venezia Giulia and Veneto. Thus, mainly in northern Italy.

2.3 Ready-made products vs. homemade recipes

Ready-made products are more popular than homemade recipes. The Everli survey, on purchases made on the website and via app, revealed that * out of ** consumers, or ** percent of respondents, prefer ready-made soups, while ** percent prefer to eat home-prepared soups over ready-made ones. The reasons for these preferences are convenience combined with the healthiness of ready-made products in ****[***].

According to the survey, ready-made soups are liked because they are a dinner saver, for when you don't have enough time, for ** percent of consumers, followed by the fact that they are a healthy alternative to classic convenience foods, for ** percent, and because they are also a good alternative for taking more vegetables in personal food consumption, for ** percent of consumers [***].

The table below shows the most purchased product categories by Italians in ****. According to Everli's research, the most purchased products by Italians are: vegetable-only minestrone (***).

source : Myfruit

3.1 Market structure

The soup market is very diversified in meeting different consumer needs and also competitive. It is not long since, for example, the Black Elk company entered the soup market to gain market share. The sector is characterized by large manufacturers offering a wide range of products, with higher market shares, and many small and medium-sized companies producing soups, broths, artisanal or specialized purees.

it is also a sector characterized by product innovations to improve taste, devising high-quality products, and to meet the growing demand for organic, natural, gluten-free, and other products.

Italy is fourth in terms of value of production of soups and similar products in Europe. The graph below shows that in **** the products' production amounted to *** million euros.

Value of production of soups and related products Italy - Europe, ****, in millions of euros Source: ****

3.2 Value chain

Value chain refers to the process by which a product is created, distributed and sold to consumers, adding value at each step in the process. In the sector of soups, minestrone, velvety and other similar products in Italy, the value chain can be divided into several stages:

In summary, the value chain in the sector of soups, minestrone, velvety soups and other similar products in Italy includes a number of business processes ranging from research and development to production, distribution, retail sales with marketing and consumption activities. Each step in the process adds value to the product and contributes to the success of companies in the industry.

3.3 The offline channel as the main distribution channel

The market is divided between online and offline, however, the predominant one is the offline channel for **.*% of sales of soups, broths, and other products, mind, online counts for only *.*% of product sales[***].

Large-scale retail is the main channel in which products are offered both in the long-life Ambient version, in the fresh counter, and in frozen food freezers[***].

In Italy, supermarkets and discounters are the places where ready meals are most sold with a value of *** mln euros or *** thousand tons and *** mln euros or ** thousand tons of products sold, respectively[***].

Ready meals turnover by channel type Italy, ****, in millions of euros Source: ****

4.1 A highly differentiated offering

Consumption of soup, according to research from Pennsylvania State University, helps eliminate toxins in the body and facilitate liver and kidney function due to the substances contained in vegetables. In addition, its intake benefits brain activities and prevents their decline according to the study in the American Journal of Epidemiology[***].

Other benefits of soup include digestibility, regulation of intestinal motility and slowing the absorption of fats and sugars in our bodies. These benefits, for our bodies and their essential activities, come from the many fibers, vitamins and minerals contained in the raw materials.

Another product that is ready in a few minutes and with about ** kcal per serving is veloutés. The most purchased by Italians is the creamy orange cauliflower-based one, followed by carrots and potatoes, pea and zucchini velouté, and pumpkin and carrot-based.

Source: ****

4.2 The prices

The determinants of prices in the soups, purees, creams, and minestrone sector in Italy are influenced by several key factors, including: the cost of raw materials (***) and more expensive features.

Thus, fluctuations in the prices of raw materials and the other determinants mentioned above can lead to changes in the prices of finished products of soups, purees, creams, and minestrone. The following table shows the types of products and their prices with references to their quantity and brand.

Source: ****

The graph below gives an overview of average prices per unit of products over the years and also the price forecast in euros for the forecast period ****-****. Price increases, from ****, are likely to be influenced by higher raw material and energy costs. In ****, an increase of nearly ** percent has been forecast compared to **** unit prices.

Average prices per unit of products soup market Italy, ****-****, in euros Source: ****

4.3 Supply trends

The main trends on the supply side include: increased product differentiation with the rise of convenience products and increasingly sustainable packaging.

In recent years, there has been an increasing focus on health and wellness, and this has also influenced the soup sector. There are more and more consumers looking for natural and nutritious products with organic ingredients and no artificial additives. Companies, therefore, have realized to introduce products to meet these new needs and to sell both fresh, frozen, and countertop soups with innovative ingredients and different recipes. The focus has been on vegetarian and vegan products, without the use of meat broth for example, and on the use of spices to create soups and broths of different flavors.

For example, the company Dimmidisì, which specializes in making soups and broths, has decided to change the recipe and packaging of its vegetable soup. The new recipe includes the addition of organic and natural ingredients, eliminating artificial additives and preservatives. The new packaging is designed to reduce environmental impact by using recyclable and compostable materials[***].

5.1 Regulatory framework

There are some general guidelines that apply to all food products and are also reflected in the market for soups and related products. These guidelines focus on food safety, product quality and proper labeling. Here are some of the main standards and guidelines to consider:

On food information

Legislative Decree No. *** of January **, ****, on the provisions on the labeling, presentation and advertising of food products, for example, states that The labeling, presentation and advertising of food products shall not mislead the purchaser about the characteristics of the product. In addition, Art. *, stipulates that pre-packaged food products intended for consumers must bearthe following indications:

(***) the place of origin or provenance, if the omission could mislead the purchaser as to the origin or provenance of the product.

Regulation (***) No. ****/**** of the European Parliament and of the Council of October **, **** requires clear and comprehensible information on substances that may cause allergies or intolerances, the origin of the product, the net quantity, the expiration date or the minimum shelf life, and the method of storage. In addition, the label should contain nutritional information, including energy value, amounts of fat, saturated fatty acids, carbohydrates, sugars, protein, and salt.

On food hygiene

Regulation EC No. ***/**** of ...

6.1 Segmentation

• Unilever Italia
• orogel
• Carrefour Italia
• Esselunga s.p.a
• Conad
• Coop Italia