2009 - Jams Jellies Pastes and Purees2

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Preserved fruit and vegetablesCBI MARKET SURVEY:

THE EU MARKET FOR JAMS, JELLI ES, PASTES AND PUREES

Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

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PRESERVED FRUIT AND VEGETABLES

The EU market for jams, jellies, pastes and purees

Publication date: October, 2009

Report summaryThis 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 and1.2 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 arestrawberry, cherry, raspberry and apricot.

Production of jams, jellies, pastes and purees was 2.3 billion and 1.3 million tonnes in2008. Germany, Italy and the UK are the main producers.

For both consumption and production between 2004 and 2008, the value increased and thevolume 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 thedairy industry.

The EU is a net exporter of jams, jellies, pastes and purees. Total EU imports increased onaverage by 6.9% annually in value between 2004 and 2008, totalling 0.7 billion and 0.4million tonnes in 2008.

The share of import value from developing countries (DCs) is only 6.6%. Import value fromDCs 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 Europeancountries.

This survey aims to provide DC exporters of jams, jellies, pastes and purees with product-specific market information related to gaining access to the EU market(s). By focusing on theEU 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 theEU in general and the following six markets in particular: France, Germany, the United

Kingdom (UK), Italy, the Netherlands and Belgium.

1 Market description: industrial demand and production

ConsumptionIn 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. Between2004 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 forthe industrial market. Industrial consumption decreased to a small extent because of theeconomic 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 Table1.1). Consumption value increased 17% and consumption volume decreased 15%. In t he UK,consumption volume in 2008 was 221 thousand tonnes, representing a value of 401 million.


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Consumption volume decreased 4.1% and consumption value decreased 2.2% between 2004and 2008. I t a l y was the third largest consumer with a volume of 114 thousand tonnes,representing a value of 271 million. Consumption volume decreased 11% and consumptionvalue decreased 33% between 2004 and 2008. France is most likely the fourth largestconsumer in the EU but exact data are not available. Spanishconsumption volume was 100million tonnes, representing a value of 159 million. Consumption volume increased 8.9% and

consumption value decreased 7.3%. Consumption in Belg iumwas 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 and2008). The ninth largest EU consumer is t he Ne the r lands with a volume of 29 thousandtonnes, representing a value of 70 million. Consumption volume decreased 44% andconsumption value decreased 16%.

Throughout the EU similar flavours of jams and jellies are popular. The main flavour isstrawberry. 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 maindifference exists for apricot jam which is preferred more in northern Europe than in southernEurope. 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 2006 2008

Value Volume Value Volume Value Volume

Total 1,848 1,291 1,680 1,072 2,013 1,150

Germany 460 314 432 257 537 268

The UK 410 231 368 201 401 222

Italy 304 171 259 124 271 114

France n.a.** n.a. n.a. n.a. n.a. n.a.

Spain 146 109 146 88 159 101Poland 86 97 114 121 131 85

Austria n.a. n.a. n.a. n.a. 108 55

Belgium 85 42 88 44 106 63

Sweden 86 59 88 60 102 69

The Netherlands 84 52 81 42 71 29

Greece 51 70 39 53 45 34

Czech Republic 38 n.a. 36 n.a. 30 22

Finland 31 18 30 17 30 16

Source: PRODCOM, 2009*apparent consumption is calculated as production + import - export

**n.a. means not available due to confidentiality of production data

Market segmentsJams and jellies are purchased by all kinds of consumers. However, different market segmentscan 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 otherspreadable products for bread, such as peanut butter and honey. Luxury jams, which are madefrom fresh fruit, are mostly consumed by people who are willing to spend more money onfood. These luxury jams and jellies are mostly sold in small, specialised grocery stores and notin the large retailers. Another main consumer segment are elderly people; marmalades areespecially popular among this group.


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The retail market is by far the largest segment for jams, jellies, pastes and purees. Othersegments are the food processing market and the wholesale market. The bakery industry, theice cream industry and the dairy industry are the main consumers in the food processingindustry.

Trends in the consumer market

The retail market for jams is known to be stable in terms of size and conservative in terms oftaste 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 awarenessA 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 EUlegislation 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 othernames 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 perceiveadditives 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 fromfresh 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 bean extra benefit.

Exotic jams, jellies, pastes and purees

EU consumers are exposed to a large variety of different fruits through television cookingprogrammes, recipes, or when travelling abroad. This exposure makes them interested intrying these exotic foods by including them in their daily diet. In many EU countries, a growinggroup of ethnic minorities with their own culinary traditions stimulates the consumption ofethnic and exotic ingredients. As the bakery industry is characterized by the use of traditionalproducts, 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 someexotic 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 foodFinally, a general increase of interest in organic and fair-trade food in the EU market has beennoticeable over the last decade, although it differs per country. The trend is present mostly inthe UK, the Netherlands and Germany and to a lesser extent in Spain and France. Organicproduction 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 segmentWithin 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 tostart 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 fromexotic 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.


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ForecastThe market for jams, jellies, pastes and purees is conservative. Demand is expected to remainstable. Possibly in the future exotic jams, jellies, pastes and purees will become more popularbut 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 obligatorywithin the EU. Please note also that production totals are larger than the numbers givenbecause 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 ofjams, 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 theNetherlands (6.2%). Production volume decreased 7.0% between 2004 and 2008 whileproduction value increased by 11%.

Table 1.2 Production of jams, jellies, marmalades and purees, 2004-2008, volumein thousand tonnes / value in million

2004 2006 2008

Value Volume Value Volume Value Volume

Total 2,061 1,421 1,901 1,229 2,284 1,322

Germany 460 304 437 237 561 253

The United Kingdom 370 202 322 161 345 183

Italy 326 190 289 158 315 155

Spain 162 133 164 124 180 135

Belgium 137 80 136 79 176 108

Poland 116 121 141 143 162 101

The Netherlands 112 104 119 116 142 117

Austria c* c c c 113 56

Sweden 77 49 75 50 91 60

Greece 58 81 53 75 68 67

Finland 28 16 29 15 26 13

Czech Republic 37 c 39 0 25 20

France n.a. n.a. n.a. n.a. n.a. n.a.

Source: PRODCOM, 2009

* c means that data are confidential

Product groupsOf all product groups, the production of strawberry jam is the largest. Other types of jam, forwhich 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 asingredients for jams, desserts and bakery products. To a lesser extent they are used in thefood service sector.

Main players

The jams, jellies, pastes and purees industry consists of many large companies, some of themmultinational, and a much larger number of small and medium enterprises (SMEs). Both SMEs

and multinational companies are important in the sector.


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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-gamme-

eng.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, pastesand purees, making them a potential trade channel for DC suppliers aiming to enter the EUmarket. 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 thecurrent economic crisis.

The market for jams, jellies, pastes and purees is conservative. There are not many newproduct developments.

The most popular jams in the EU are made from fruits that are grown in the EU. Exoticfruit jams are not popular and consumption is small.

Jams, jellies, pastes and purees for industrial use are often tailor-made in a partnershipbetween a nearby producer and an industrial user, which makes it harder for exporters

from DCs to supply the industry.


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Increased competition in the retail market, with discounters and private labels accountingfor the largest market shares in the different countries. Increased concentration andinternationalisation of the retail sector strengthens the negotiating power of large retailers,forcing producers into cost-efficient and large-scale production and making it more difficultfor 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.

2 Trade channels for market entry

Trade channe ls Most jams, jellies, purees and pastes used in the EU (for retail and for industrial use) areproduced in the EU. They are often produced from frozen fruit and frozen fruit pulp that iseither produced in the EU or (equally important) imported from outside of the EU. Some smallproducers do not import frozen fruit but rather use locally produced fresh fruits. The origin ofthe fruit is then often part of the image of their brand. There are both large-sized producers inthe 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 usesa 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 thelargest producers of fruit preps are located in Western Europe. The producers of fruit prepsoften have to use imported frozen fruit and frozen fruit pulp as the main ingredient.

Most su i tab le t r ade channe ls 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 pasteswhich are directly sold in retail is negligible.

The jams, jellies, purees and pastes that are imported from DCS are mostly handled byimporters and agents. The most interesting business partners for DC exporters are thereforeimporters 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 goodsand often take care of import formalities. In most cases, they have long-standing contacts withtheir suppliers and buyers. They can advise exporters on many issues, including legal and

quality requirements, market trends and packaging. They often have strong relationships withtheir buyers all over the world and have extensive and up-to-date knowledge of the qualitydemands 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 frozenfruit and vegetables market in the EU).


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Reta i l and food serv ice o rgan isa t ionsMultiple 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. Theretail sector hardly ever imports jams, jellies, pastes and purees directly, but buys fromwholesalers (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 multipleretailers, 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 infood sales. In France, the UK, Germany, Scandinavia and the Netherlands, multiple retailerstypically dominate the sales of jams and jellies. However, in important consumer countriessuch 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 easternEuropean 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 rapidlygaining 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 i n t r ade Concentration of the value chainMultinational 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 thejams, jellies, pastes and purees market. Many multinational food companies arrange imports

themselves or use an agent. Regarding specific products, multinational companies may evenhave production facilities at source or have strong relations with a small group of suppliers.

Concentration at the retail levelAn 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 supplyconsistent volumes of guaranteed quality on a year-round basis, and moreover be veryefficient, flexible and alert to new developments. Private label sales in the countries discussedshowed a steady increase in turnover sales. Improvements in quality have led consumers toaccept that many private label products are just as good as the leading brands, only lowerpriced. This results in increased competition between branded and private label products andlower margins for branded manufacturers. At the same time, discounters increasingly offerbranded products.

Concern about food safety, the environment and fair production

Retailers and the food processing industry are responding to the increasing social concernabout food safety, the environment and fair production. They are increasing their control oversupply 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 handsof these suppliers. As a result the mutual dependence is increasing. Gaining access to stronglyintegrated supply chains can be difficult for starting exporters. It is recommended that contactbe made with traders that supply ingredients to the food processing industry rather than

approaching food manufacturers directly.

Pr i ce s t r uc tu re Although producers of jams, jellies, pastes and purees mostly use frozen fruits, there is stillsome dependence on fresh fruit. Weather conditions during the growing season of fruit andvegetables influence supply of fresh produce, especially in the short term. Reduced domesticharvests of fruit and vegetables will reduce the amount available for the processing industry.This will result in greater import requirements and higher prices.


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Likewise, weather conditions in fruit and vegetable producing and exporting countries have aneffect on the supply of jams, jellies, purees and pastes to the world market. At times when theharvest of fruits, used in jams, jellies, pastes and purees in the EU is small, exporters fromDCs 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 thosecountries 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 nottransparent to outsiders. It takes time to get to know the main players and what is going on inthe 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 retailconsumption as they often contain less fruit and consumers are willing to pay a higher price

than the processing industry.

Usefu l sourcesThe 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 andinformation on the activities of importers. The most interesting contacts at Europages can befound 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 (loginrequired);

http://www.greentrade.net, an online marketplace for organically grown products wheresuppliers can specify their range.

3 Trade: imports and exports

Imports

In 2008, total imports of jams, jellies, pastes and purees by EU member countries amountedto 0.4 million tonnes, representing a value of 0.7 billion (Table 3.1). France was the leadingEU 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 mainproduct 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%) andplums (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 withinthe 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 importvalue 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, cashewnuts, Brazil nuts and areca.


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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%), exoticfruit (+30%) and cherry (+22%). However the volume of these jams, jellies, pastes andpurees 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 ofexot ic f ru i t jam s, je l l ies , pastes and pureesare small and amounted to only1.4% of total EU import value. The main EU suppliers were: Germany (18% of import value ofthe EU of this product group), France (12%), Belgium (12%) and the Netherlands (10%). Theshare 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%) andBrazil (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 DCsis 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 purees2004 2008, share in % of value

2004 2004 2008 Leading suppliers in 2008 Share

mln

mln

mln

Share in % (% )

Total EU 467 584 738

Intra-EU: 446 531 672 Germany (17%), France (14%), the Netherlands (13%),

Belgium (12%), Italy (7.8%)

91%

Extra-EU ex.

DC*:

3 15 17 Switzerland (1.7%), USA (0.3%), Japan (0.1%) 2.3%

DC*: 18 38 49 Turkey (3.8%), Serbia (0.4%), Croatia (0.3%), SouthAfrica (0.3%), Ecuador (0.2%), Moldova (0.2%), China(0.2%), Swaziland (0.2%), Costa Rica (0.1%), Chile(0.1%)

6.6%

France 74 104 150

Intra-EU: 72 98 145 Belgium (25%), the Netherlands (24%), Germany (21%),Italy (11%), Spain (9.0%)

97%

Extra-EU ex.DC*:

0 1 1 USA (0.2%), Japan (0.2%) 0.5%

DC*: 2 5 4 Turkey (1.1%), South Africa (0.5%), Chile (0.2%), Peru(0.1%), China (0.1%), Lao (People s DemocraticRepublic) (0.1%), Tunisia (0.1%)

2.5%

Germany 92 108 118

Intra-EU: 89 98 107 The Netherlands (17%), France (15%), Belgium (14%),Italy (13%), Austria (10%)

91%

Extra-EU ex.DC*:

0 1 4 Switzerland (2.8%), Russia (0.1%) 3%

DC*: 4 9 7 Turkey (2.3%), Serbia (1.4%), South Africa (0.7%),Moldova (0.5%), Croatia (0.5%), Bosnia and Herzegovina(0.2%), India (0.1%), Philippines (0.1%)

6%

The UnitedKingdom

70 78 96

Intra-EU: 67 75 92 France (26%), the Netherlands (18%), Germany (14%),Belgium (10%), Denmark (8.8%)

96%

Extra-EU ex.DC*:

1 1 1 USA (0.7%), New Zealand (0.4%), Canada (0.1%) 1.2%

DC*: 2 2 3 Turkey (1.0%), Swaziland (1.0%), Ecuador (0.3%), China(0.1%), South Africa (0.1%), Pakistan (0.1%)

2.9%

Belgium 34 39 54

Intra-EU: 33 36 45 France (32%), the Netherlands (19%), Germany (15%),

Italy (10%), Sweden (2.9%)

83%

Extra-EU ex. 0 0 0 Switzerland (0.2%), Fr. Polynesia (0.1%) 0.3%


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DC*:DC*: 1 3 9 Turkey (16%), Brazil (0.3%), Malaysia (0.2%), Lao

(Peoples Democratic Republic) (0.1%), Chile (0.1%),South Africa (0.1%)

17%

Italy 40 41 51

Intra-EU: 39 33 43 Germany (43%), France (17%), Belgium (7.2%), Austria(7.1%), the Netherlands (2.9%)

84%

Extra-EU ex.DC*:

0 7 6 Switzerland (11%), Russia (0.2%), Japan (0.2%) 12%

DC*: 1 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%)

4%

TheNetherlands

35 43 42

Intra-EU: 34 38 39 Germany (32%), Belgium (26%), France (21%), UnitedKingdom (5.6%), Italy (3.3%)

92%

Extra-EU ex.DC*:

1 2 2 USA (2.7%), Switzerland (2.2%), Japan (0.1%) 5%

DC*: 1 2 2 Turkey (1.4%), Egypt (0.9%), Philippines (0.3%), Serbia(0.2%), Croatia (0.1%), Argentina (0.1%)

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

FranceFrance is the largest importer of jams, jellies, pastes and purees with an import volume of 0.1million 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 4.0million in 2008. Total import value increased, between 2004 and 2008, on average 19% peryear 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 inimports. 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 andpurees 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%).

GermanyGermany is the second largest importer of jams, jellies, pastes and purees with a total importvalue 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 growingimports of the following: strawberry (an average increase of +9% per year between 2004 and2008), citrus (+8.7%), raspberry (+8.2%) and plums (+6.5%). The main types imported fromDCs 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 citrusjams, jellies, pastes and purees were South Africa (18% of import volume of this productgroup) and Swaziland (0.9%). The share from DCs of exotic jams, jellies, pastes and pureeswas 2.4%. The main DCs supplying this product group were Ecuador (8.9% of import value ofthis 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 pureesdecreased.


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The UKThe UK was the third largest EU importer of jams, jellies, pastes and purees with a share of13% of EU import value in 2008. Import volume was 56 thousand tonnes, representing a valueof 96 million. Import volume from DCs was 2.0 thousand tonnes, representing a value of 2.0million. British imports grew between 2004 and 2008 by 8.5% annually in value and 7.5% involume. 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 DCswas exotic fruit jams, jellies, pastes and purees. The main supplying DCs were Ecuador (8%),Jamaica (2.4%) and Malaysia (1.5%).

Belg iumThe import volume of Belgium in 2008 was 26 thousand tonnes, representing a value of 54million. 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 and2008. Import value from DCs increased 88% per year and import volume 49%. The share ofimport 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 mainDCs supplying this product group to Belgium in 2008 were Turkey (45% of import value of thisproduct 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 theimportant 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 EUcountry, such as Belgium, in a large quantity and from there they are re-exported in smallerquantities to other EU countries.

I t a l y

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 51million and 25 thousands tonnes in 2008. Imports from DCs increased 3.0% in value per yearbetween 2004 and 2008, while import volume from DCs increased 25% per year in the sameperiod. Imports from DCs only increased for the product group strawberry (+87% per year invalue). 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 in2008 were Ecuador (7.2% of import value of this product group), Kenya (4.9%) and Brazil(0.8%).

The Nether lan dsImports of jams, jellies, pastes and purees by the Netherlands increased between 2004 and2008 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 ofwhich 39% of import value was from DCs. The main DCs, supplying this product group to theNetherlands in 2008 were Egypt (24% of import value), the Philippines (9.4%), Vietnam(2.3%) and Peru (1.8%).

ExportsIn 2008 European exports of jams, jellies, pastes and purees was 612 million tonnes with avalue of 1.0 billion (Eurostat, 2009). Exports increased on average 10% per year by valuebetween 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 otherEU countries (79% of export value in 2008).


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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 exportvalue.

Franceis the main exporter of jams, jellies, pastes and purees in the EU. Export volume was80 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. Belg ium is thethird largest exporter in the EU with a share of 12% of EU export value. Export volume in 2008was 72 thousand tonnes, representing a value of 123 million. Export value increased onaverage by +9.2% per year. The Nether landsis 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 ofI t a l y in 2008 was 66 thousand tonnes,representing a value of 66 million. Italys share of EU export value was 9.4%. Export value onthe 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 yearbetween 2004 and 2008.

The EU is a net exporter of jams, jellies, pastes and purees. This means there are limitedpossibilities 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 athreat 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 theanalysis depends on the specific situation of an exporter and conclusions may not bestraightforward.

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


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

4 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 basedon national market dynamics, negotiation and yields.

Domestic and import/export prices of jams, jellies, pastes and purees vary according to anumber 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.

5 Market access requirements

As a manufacturer in a developing country preparing to access the EU, it is important to beaware of the market access requirements of trading partners and the government.Requirements are specified through legislation and through labels, codes and managementsystems. These requirements are based on environmental, consumer health and safety andsocial concerns. It is necessary to comply with EU legislation and to be aware of any additionalnon-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. Fruitis considered to include fruits that are not usually treated in a culinary sense as fruits, such astomatoes and other vegetables, and including carrots, sweet potatoes, cucumbers andpumpkins. Extra jam is subject to stricter rules that set higher standards for the minimumfruit content (45% instead of 35% as general rule, but lower for some fruits, such asredcurrants and blackcurrants).

There are specific rules for packaging, marking and labelling of jams, fruit jellies, purees andpastes. 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/02001L0113-20040712-en.pdf.

For information on legislative and non-legislative requirements, go to Search CBI database athttp://www.cbi.eu/marketinfo, select your market sector and target country in the categorysearch, click on the search button and click on Market Access Requirements.

Information on tariffs and quotas can be found athttp://exporthelp.europa.eu.


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Additional information on packaging can be found at the ITC website on export packaging:http://www.intracen.org/ep/packaging/packit.htm.

6 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 companiesin DCs the opportunity to establish contacts, to build up a trustworthy image throughattendance, 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, 8-12October 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 fromaround 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 andcompetition, and can also have a promotional function. It can be a way of finding potentiallyinteresting companies, as well as promoting activities and products. Trade press addressingthe 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, buildingup a relationship, drawing up an offer, handling the contract (methods of payment, and termsof 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 culturaldifferences 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 SearchPublications.

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 thatthese pages provide only general information and it is therefore important, when conductingbusiness, 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


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Append ix A General product description

This market survey deals with jams, fruit jellies, purees and pastes. They are used by the foodindustry, 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-likedepending 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 pureessuch as apple sauce are eaten as a side dish.

Product groupsThis product survey covers those product groups of jams, jellies, pastes and purees which areinteresting for developing country producers. The choice of groups was made based on tradedata, 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 CombinedNomenclature. This Combined Nomenclature contains the goods classification prescribed by theEU 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 CustomsOrganisation (WCO). The system covers about 5,000 commodity groups, each identified by asix-digit code. More than 179 countries and economies use the system. The names usedthroughout the report and the related official product definition with HS codes are given in the

Table below.

1. Fruit jams, jellies, purees and pastesCitrus fruit jams; marmalades; jellies; purees or pastes; being

cooked preparations (excluding homogenized preparations)

15.33.22.30

Jams; marmalades; fruit jellies; fruit or nut purees andpastes; being cooked preparations (excluding of citrus fruit,homogenised preparations)

15.33.22.90

Homogenised preparations of jams, jellies, marmalades,

purees and pastes

15.88.10.30

These product groups have the following subgroups:

For citrus fruit jams, marmalades, jellies, purees or pastes, obtained by cooking, these are:20079110 Citrus fruit jams, jellies, marmalades, purees and pastes with a sugar content, higher

than 30%

20079130 Citrus fruit jams, jellies, marmalades, purees and pastes with a sugar content higherthan 15%, but lower than 30%

20079190 Citrus fruit jams, jellies, marmalades, purees and pastes with a sugar content lowerthan 13%

For jams, marmalades, fruit jellies or nut purees and pastes, obtained by cooking, these are:

20079910 Plum purees and pastes with a sugar content of more than 30%20079920 Chestnut purees and pastes with a sugar content of more than 30%

20079931 Cherry jams, jellies, marmalades, purees and pastes with a sugar content of more than30%

20079933 Strawberry jams, jellies, marmalades, purees and pastes with a sugar content of morethan 30%

20079935 Raspberry jams, jellies, marmalades, purees and pastes with a sugar content of morethan 30%

20079939 Other jams, jellies, marmalades, fruit purees and pastes with a sugar content, higherthan 30%

20079950 Other jams, jellies, marmalades, fruit purees and fruit pastes with a sugar contentbetween 13 and 30%.

20079951 Chestnut purees and pastes with a sugar content, between 13 and 30%.

20079955 Apple purees with a sugar content, higher than 13%


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20079957 Other jams, fruit jellies, marmalades, fruit purees and fruit pastes with a sugar contentbetween 13 and 30%

20079958 Other jams, fruit jellies, marmalades, fruit purees and fruit pastes with a sugar content

between 13 and 30%

20079991 Apple puree with a sugar content of lower than 13%

20079993 Jams, jellies, marmalades, purees and pastes of guavas, mangoes, mangosteens,papaws, papayas, jackfruit, passion fruit, tamarinds, cashew apples, lychees, sapodillaplums, carambola, pitahaya, coconuts, cashew nuts, Brazil nuts, areca 'betel' nuts, colanuts and macadamia nuts with a sugar content of more than 13%

20079997 Other jams, fruit jellies, marmalades, fruit purees and pastes with a sugar content,lower than 13%

20079998 Other jams, fruit jellies, marmalades, fruit purees and pastes with a sugar content,lower than 13%

For homogenised preparations of jams, jellies, marmalades, purees and pastes, obtained bycooking, the subgroups are:20071010 Homogenized preparations of jams, fruit jellies, marmalades, fruit or nut purees and

pastes, obtained by cooking, with a sugar content of more than 13%

20071091 Homogenized preparations of jams, fruit jellies, marmalades, fruit or purees and pastesof tropical fruits with a sugar content of more than 13%

20071099 Other homogenized preprations of jams, fruit jellies, marmalades, fruit purees andpastes with a sugar content of more than 13%

2009 - Jams Jellies Pastes and Purees2

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