Cider Growth Predicted to Continue

The spectacular growth of the UK cider industry in recent years is not a ‘fad’ and growth is expected to continue for at least the next 12 months.

That’s not wishful thinking by the industry itself but comes from an authoritative in-depth survey of 100 on and off trade retailers, drinks buyers and drinks industry experts conducted by the industry’s number two producer, the Gaymer Cider Company.

The influential group were asked their views on the challenges ahead for cider and specifically whether the enormous success of the market will continue.

The key findings were:

• Cider is here to stay and growth is predicted to continue 
• Marketing investment is seen as the most important factor in maintaining growth, more important than innovation 
• Maintained growth will be challenged by increased competition among brands, the credit crunch, and duty and legislation 
• Wide choice is a key factor for consumers 
• Natural ingredients, regional products and low food miles are predicted to grow in importance to consumers

70% of respondents believed that the growth in the cider market is not a fad but is sustainable. When asked if they agreed with the statement ‘cider is past its peak’, an overwhelming majority (92%) did not agree, pointing to the fact that they see further growth for this category.  When asked which drinks cider consumers have switched from, 81% felt that cider’s growth has been at the expense of lager.

Commenting on the findings, John Mills, Managing Director, Gaymer Cider Company, said:

‘Cider has been the fastest growing drinks category for three years, and it is extremely encouraging to see that the trade shares our view that this growth is here to stay.  Drinks categories can come and go, like RTDs did, but others take hold and become very much a part of consumers’ lives.  Wine is a good example of a category that has continued to grow in the UK, and it is my belief that cider can do the same, keeping its place in the market and consumers’ repertoires.’

When surveyed on what cider producers will need to tackle to ensure continued growth, respondents cited ‘brand competition’ (22%), the ‘credit crunch’ (19%) and ‘duty and legislation’ (also 19%) as the main challenges.

Said John, ‘Clearly, while ourselves and the trade believe cider will continue to grow, it’s important for us and other manufacturers not to rest on our laurels, but to continue to invest in the market.  Some respondents to our survey thought the market growth may begin to flatten out in the next year, though not decline.  Personally, I don’t believe this and as long as we keep investing, growth will continue well beyond the next two years.

‘As an industry, cider mustn’t repeat the mistakes of the past.  In the 90’s, when growth slowed, the industry cut its investment and focused on price at the expense of quality.  As a result, the market declined. 

• Natural ingredients, regional products and low food miles are predicted to grow in importance to consumers

‘The results of our survey show that our customers see a good future ahead for cider.  My challenge to the industry is that we must continue to invest in high profile and engaging marketing campaigns and in building authentic, differentiated brands, not faddy fruit flavours.  This will ensure we retain current cider drinkers and continue to draw new consumers to the market.’

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