Maple syrup suppliers are now eyeing opportunities in the UK market, where demand for natural sweeteners and premium products continues to grow.
This article is based on the impressions of market research conducted in the summer of 2020 for GRed, a Canadian maple syrup brand aiming to enter the UK market.
As in many other sectors, the food industry has three main distribution channels: 1) raw materials for food producers, 2) supply for hotels and restaurants, and 3) retail sales for supermarkets and e-commerce platforms. Most food distributors in the UK specialize in one of these categories.
Maple Syrup
Maple syrup, commonly used in the US and Europe, is a rare product with high nutritional value produced only in Eastern Canada and the Northeastern US. Quebec is the largest supplier, and the Quebec Maple Syrup Producers Organization controls the production and prices of maple syrup.
For raw material importers in the UK, maple syrup is often a difficult-to-access source. When food producers want to purchase maple syrup as a raw material, they need a stable supply guarantee in terms of quality and import volume.
Like the rest of the world, the food service sector was significantly affected by the pandemic in 2020. Distributors specializing in this sector sought alternative opportunities under the current conditions. Distributors with strong financial structures supplying products to the food service sector, such as hospitals and schools, were not negatively impacted by this process. Currently, the strongest and almost sole supplier of maple syrup to the food service sector in the UK is Clarks. Therefore, although this market segment has temporarily shrunk due to the pandemic, the UK food service sector can now be considered a suitable market to enter.
The UK has long had strong ties with Canada and the Northeastern US states. Therefore, maple syrup has been known and sold in the UK for a long time. Currently, maple syrup is one of the standard products available in every supermarket in the UK. However, regular consumers may not be aware of the product’s origin or that it is made from a tree. With a new market promotion effort, when the product’s image is reshaped (for example, as a healthy, nutritious, and 100% natural product), there is potential for maple syrup to become increasingly popular.
In the UK supermarket market, the strongest brands are Tesco, Asda (a Wal-Mart subsidiary), Sainsbury’s, and Morrisons. These “big four” supermarket chains hold a combined market share of over 70% of the UK market. Discount stores, particularly German Aldi and Lidl, along with some local market chains, have a growing share in the market. The US organic product specialist Whole Foods, which entered the UK in 2007, operates mainly in London and its surroundings.
Margins and prices
When determining maple syrup prices, the costs for producer companies and the margins at various stages before the product reaches the shelf are considered. On the producer side, the maple syrup market is controlled by the Maple Syrup Producers Organization in Quebec. Producer prices are easily found through public information and websites. On the retailer side, consumer prices can be accessed through the websites of the largest retailers.
Contact us
If you would like more information about maple syrup, the food industry, FMCG, the US market situation, and partners in these sectors, please contact us. We can arrange a meeting with our consultant who managed the distributor search project for this Canadian company in the UK.
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