Wonder

Research Outline

Prepared for David E. | Delivered March 8, 2021

Ambient Soups In Australia

Goals

To provide insight into the ambient soups market in Australia. To understand the trends that are governing consumption, purchasing, and consumer behavior, as well as cultural influences on the sector and customer engagement.

Early Findings

Industry trends
The Ambient Soup market in Australia was reportedly worth AUD 178.7 million in 2019. This represented a negative compound annual growth rate (CAGR) of -0.97% over the period from 2014-2019 and a decrease of -0.34% over 2018.
In 2020, the impact of the COVID-19 pandemic led to increased demand for soup in Australia from retail outlets, reportedly due to the effects of local lockdowns, the need for convenient meals, and the longevity benefits from stockpiling. Despite the consistent decline in recent years leading up to 2020, volume of sales saw growth during and throughout the year.
 Key players in the Australian ambient soup category are brands Heinz, Campbells and Baxters for tinned soups, while La Zuppa (owned by Valcorp Fine Foods) and Continental specialise in 'cup-a-soups'. Unilever and Continental are also leading brands in the Australian sector.
 2015 analysis of the soup market in Australia found that Dried Soup (mixes) was the largest value category, while UHT (ultra-high temperature processed)  Soup was expected to register the fastest growth over the next five-year period.
Companies creating meaningful connections with consumers seeking adventure from food
In 2016, Campbell's Soup were able to engage Australian audiences with a creative social media marketing campaign across the platform YouTube. The ad campaign was based around a series of different videos, which depicted soup as a convenient meal option for a range of different scenarios, and sort to remind Australians that Campbells had "a soup for every occasion".
Continental ran a 2014 marketing campaign featuring a set of advertisements where they encouraged consumers to enjoy a cup of soup alongside a sandwich.
Campbells provides customers with a list of soup recipes via their website. Advertising the versatility of their condensed soups, Campbells provide articles and media content on many different types of household meals, which can be made using a wide range of different ingredients.
McKenzie launched a new range of healthy and budget friendly 'soup kits' in 2018 consisting of pulses and stock sachets. These kits were designed to make the process for preparing soup at home easier, and required the customer to only purchase fresh ingredients, such as vegetables and meat, as required.
Most popular flavors of soup
An online article from industry news outlet foodmag reported on the "shift in consumer attitudes towards meat reduction and plant-based eating". Brands were said to be reacting to the trend by offering more plant-based and vegan choices to consumers within the Australian prepared meals market. The article also noted a trend towards brands "exploring regional Indian flavors and dishes", in order to "differentiate themselves by leveraging the momentum of Indian cuisine as it becomes mainstream", and Australia's food and drink culture being more and becoming more generally influenced by Asia.
A report from 2013 on the Australian soup market noted Mediterranean flavors as the "mainstay of the sector".
A study from taste.com based on the most viewed soup recipes, highlighted pumpkin soup, potato & leek soup, and minestrone soup amongst a list of 31 of Australia's most popular soups of all time.
Market researcher and industry analyst Megan Stanton reported in 2019 on the five most popular soups that Australians were currently buying. She noted Continental Cup a Soup Creamy Cauliflower with Aged Cheddar and Chives as a popular option for vegetarians, and Hart & Soul All Natural Laksa Noodle Soup as the most popular dry soup.
Perceptions of ambient vs canned vs chilled soup
In keeping with the wider industry focus on providing healthy, fresh, and natural food options and alternatives, growth in the Australian soup sector has been mostly within chilled soups.
In the years leading up to 2019, sales of canned soups were declining, and this was reportedly due to consumers eating fewer meals at home. 2020 however saw changes to this, with means being eaten almost exclusively at home (according to some reports) and this has led to incremental gains in this sector.