Annual Report 2020

Our Markets

As a consumer-led organisation, our markets have been expanding exponentially with each decade – driven by the rise of the & consumer.

Our Markets - Where the Consumer is at the Centre of Everything We Do

The consumer landscape has significantly evolved over the past 40 years, with profound changes in recent years led by millennials and younger consumers.

This has meant an increased appetite for new experiences, a greater awareness of how food and beverages are made, their ingredients, and what the companies that produce them stand for.

The & consumer has now become the primary influencer of food and beverage purchasing decisions within households across the globe. Brands today must make great tasting products that nourish consumers, while enhancing their lives and regenerating the planet.

Key Consumer Influences
1980
Key Consumer Influences
TV & News outlets are authority on social norms
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Consumer Expectations

1980
Kerry Revenue
<€1bn
F&B Consumer Expectations

Convenient, value driven family meals
&
Taste ‘or’ nutrition

Customer & Industry Impact
  • Big brands dominated the landscape
  • More focus on brand marketing
  • Lower level of innovation
  • Start-up culture less prevalent
1990
Key Consumer Influences
Governments step up guidance on nutritional recommendations
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Consumer Expectations

1990
Kerry Revenue
<€1bn
F&B Consumer Expectations

3x meals per day balanced nutrition
&
Convenient, value-driven family meals
&
Global tastes

Customer & Industry Impact
  • Big brands dominated the landscape
  • More focus on brand marketing
  • Lower level of innovation
  • Start-up culture less prevalent
2000
Key Consumer Influences
The internet and search capability a catalyst for changing behaviours
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Consumer Expectations

2000
Kerry Revenue
€3bn
F&B Consumer Expectations

More focus on reducing fat, salt & sugar
&
On-the-go
&
Convenient, value priced family meals
&
Indulgent taste

Customer & Industry Impact
  • Big brands dominated the landscape
  • More focus on brand marketing
  • Lower level of innovation
  • Start-up culture less prevalent
2005
Key Consumer Influences
Social media outlets begin to foster a start-up business culture
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Consumer Expectations

2005
Kerry Revenue
€4bn
F&B Consumer Expectations

On-the-go
&
More low and reduced options
&
Local or organic
&
Single serving, smaller portions
&
Culinary inspired taste

Customer & Industry Impact
  • Increase in smaller brands entering market
  • Nature of innovation more incremental
2010
Key Consumer Influences
Millennials come of age amidst a recession
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Consumer Expectations

2010
Kerry Revenue
€5bn
F&B Consumer Expectations

Rise of premium and value options
&
Local or organic
&
Single serving, smaller portions
&
Greater awareness of sustainability
&
Premium taste

Customer & Industry Impact
  • Cost optimisation prioritised to compete with private label
  • Marketing investment to promote brands
  • Emerging brands gaining market share
2015
Key Consumer Influences
50% of world’s population is online; rise of influencers
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Consumer Expectations

2015
Kerry Revenue
€6bn
F&B Consumer Expectations

Balanced nutrition; high protein, low sugar
&
Free-from
&
Clean label/trusted ingredients
&
Locally sourced
&
Premium quality, value prices
&
Sustainable brands & options
&
New world tastes

Customer & Industry Impact
  • Larger players began challenging existing business models
  • Nutritional optimisation required to maintain market share
  • Greater urgency to remove 'no-no’s’ from label declarations
2020
Key Consumer Influences
Digital-centricity enhanced by global health crises
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Consumer Expectations

2020
Kerry Revenue
€7bn
F&B Consumer Expectations

Plant based
&
Sustainability / Purpose
&
Cleaner labels – trusted and reduced number of ingredients
&
Personalised nutrition / functional food
&
Digital / out-of-home / delivered
&
Locally sourced
&
Authentic and safe
&
Taste without compromise

Customer & Industry Impact
  • Stiff competition for first-to-market status with functional innovation
  • Increased importance of long term, strategic supplier partners
  • Outsourced and integrated innovation processes
Tomorrow
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Consumer Expectations

Better for All
The
&
Consumer
altGlobal
altFunctional
altOmni-channel
altSustainable
altPlant-based
altNutrition
altTaste
markets

The Impact On Our Industry

These changes are reshaping the industry, challenging long established business models and redefining traditional ways of working. This is leading to significant market opportunity, as customers continue to look for partners that provide an enhanced innovation service.