Name Your Price: Nearly three quarters of consumers will pay extra for ingredients they recognise
As many as 73% of consumers are happy to pay a higher retail price for a food or drink product made with ingredients they recognise and trust, according to new research.
In a survey of 1,300 consumers across Europe, North America and Asia-Pacific, commissioned by specialist PR agency Ingredient Communications[1], more than half of respondents (52%) said they would spend over 10% more on a food or drink product that contained ingredients they recognised and trusted. Meanwhile,nearly a fifth (18%) said they would pay 75% or more extra.
In addition, overall, more than three quarters of respondents (76%) said they would be more likely to buy a product that contained ingredients they recognised and trusted.
The findings of the survey, which was conducted by leading online market researchers Surveygoo, underline the growing importance of clean and clear labelling and the use of ingredients that are familiar to consumers. They also suggest that there is a significant opportunity to harness the potential of co-branding between food and beverage manufacturers and their ingredients suppliers.
Richard Clarke, Director of Ingredient Communications, said: “Co-branding of ingredients in the food and beverage industry is still fairly unusual, and yet our survey suggests it would resonate with many consumers. We have seen the power of the ‘Intel Inside’ concept in the home computer market. If it works for selling laptops, then why not food and drink? Co-branding can develop consumer trust and provide a clear signpost for differentiation, which can be converted into higher spend, loyalty and repeat purchases.”
He added: “Marketing finished products that contain ‘branded’ ingredients that consumers recognise could be key to commanding a substantial price premium in-store. One barrier to co-branding is a perception among food and beverage companies that it reduces their ability to shop around among suppliers of raw materials to achieve the best price. However, with consumers willing to pay such large price premiums for products made with ingredients they know, this factor might easily be offset by increased sales and profits.”
Consumers in the US were willing to pay the highest prices – with 44% stating that they would pay 75% or more extra for ingredients they recognised and trusted. This was followed by consumers in India (32%), the Philippines (29%) and Malaysia (26%), indicating a strong preference for recognisable ingredients among consumers in Asia.
Neil Cary, Founder of Surveygoo Market Research Consultancy, said: “Our survey reveals significant convergence in the way consumers across the globe share similar priorities in sourcing and consuming high quality foods. However, there are also key differences between markets. Willingness to pay more for recognisable ingredients is strongest in the US, highlighting the importance of clean and clear labelling in the American market. Asian consumers also put a very high value on the quality of their food and are willing to pay a premium for the best ingredients, even though average incomes are lower.”
The survey found recognition of ingredients to be one of the biggest drivers of product choice, with more than half of respondents (52%) considering it to be an important factor. This was comparable with an ability to see nutrition information on-pack (considered important by 53%) and acceptability of price (55%).
An ability to recognise ingredients by name was rated more important than both an ability to tell that a product was high quality (selected by 32%) and taste (50%).
ENDS
For further information please contact:
Steve Harman, Ingredient Communications
Tel: +44 (0) 1293 886444 | +44 (0) 7494 307911
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
About Ingredient Communications
Based near London, Ingredient Communications specialises in global PR & communications for suppliers of ingredients to the food, beverage, dietary supplement and personal care sectors. To find out more, visit www.ingredientcommunications.com.
About Surveygoo
Surveygoo are market research consultants, specialising in online quantitative surveys. They design, programme and run online surveys using proprietary tools, and operate panels in the UK and Asia-Pacific. They work with small and large enterprises, with a strong track record helping Marketing and PR agencies. Surveygoo is owned by Asia Opinions Ltd, a provider of online surveys and panel services in Asia-Pacific. Find out more at www.surveygoo.com.
[1]Survey of 1,300 consumers (500 in the UK, 200 in India, 50 in the US, 100 in Malaysia, 50 in Australia, 50 in Canada, 50 in New Zealand, 200 in the Philippines, 100 in Singapore) conducted between 19 and 26 October 2016
Personalized nutrition is the next big growth opportunity in the healthier food and beverage industry
When a giant food company invests $32 million in a startup focusing on personalized nutrition – as Campbell’s recently has – then you know that “personalization” has reached its tipping point.
Personalized nutrition is a key growth opportunity for food and beverage companies as consumers increasingly turn to individually-tailored diets.
“Personalisation is about consumers ‘taking back control’,” says Julian Mellentin, director of New Nutrition Business and author of the newly-published report 10 Key Trends in Food, Nutrition and Health 2017.“They want to feel more empowered and confident to create their own healthy eating patterns. It goes hand-in-hand with growing awareness that diet is a personal matter – and it’s another stage in the long slow death of “one size fits all” dietary recommendations.”
Many consumers are embracing personalized services such as wearable gadgets providing guidelines based on their weight, height, sleep pattern, heart rate and activity. A smaller but growing number of consumers look for more in-depth services, such as a genetic profile, or metabolism and disease risk via DNA tests.
“The industry can tap into the personalization trend in three ways,” says Mellentin. “First, smart companies will create a portfolio of brands, made to meet the needs of different consumer diets and preferences. Second, they will invest in a multi-platform approach, offering support and tailored dietary advice. This means partnering with entities providing advice on diet planning or with fitness gadgets. Finally, they should invest in e-commerce, as it has proven to be a main route to niche consumers.”
Personalized nutrition services also include tests for biomarkers for chronic inflammation, connecting to another Key Trend for 2017,Inflammation. If you are looking for “the next gluten-free” – the next high-potential long-term growth opportunity – this is it.
“Just like gluten-free back in 2001, many people say inflammation faces several challenges: consumers don’t understand it, it doesn’t have strong scientific support, and you cannot immediately feel the benefit of anti-inflammatory foods. In fact, all of these objections are rapidly being overcome,” says Mellentin.
And like gluten-free before it, one of the most important drivers of growing interest in inflammation is consumer belief. Like gluten-free, inflammation taps into deeper wells of consumer concern than is immediately apparent. Like gluten-free, it is fuelled by multiple benefit platforms (including the powerful Digestive Wellness trend) and early signs of its potential are connected to the intense growth in consumer interest reflected already in surging sales of supplements of the “flagship” anti-inflammatory spice, turmeric.
Turmeric is a trend in itself – and also a health halo ingredient that acts as a gateway for consumers to the complex idea of inflammation.Turmeric lattes can be found in cutting-edge city-centre cafes from Australia to Scotland, and a small but increasing number of adventurous, trend-riding entrepreneurs are starting to use turmeric as a health halo in foods and beverages.
And turmeric’s appeal is not limited to entrepreneurs. Larabar, a former startup nutrition-bar brand now owned by General Mills, recently introduced a line of Organic Superfoods bars in three varieties based on “trend-forward” ingredients, two of which include turmeric.
Growth opportunities can also be found in Key Trend 3: Sportification. Regular foods with a health halo are increasingly popular among people who do sport for health reasons – as opposed to elite athletes – and they want a natural product. “Some people have long argued that sports nutrition would go mainstream, and that foods designed for elite athletes would become regular food for everyone,” says Mellentin. “While this is happening to some extent, by far the bigger trend is one which has gone the opposite direction. ‘All natural’ foods are becoming more attractive in sport. Regular food companies, that are not sports-oriented, can drive success if they attach their product to the image of health and sport.”
Digestive Wellnessis a long-established benefit platform now entering a new era thanks to new technologies, new products and new understanding of the broad effects that gut health has on overall health. Key trend 1: Digestive Wellness 2.0 explains that consumers want to ‘feel the benefit’ and they are willing to try a variety of routes to get it. The popularity of products with a free-from benefit, such as gluten-, lactose- and dairy-free, was powered by the perception that avoidance of a specific ingredient would make consumers feel better. Many new types of avoidance are emerging – and new food types, notably fermented foods (like kimchi) and drinks (like kombucha) are taking digestive wellness in exciting new directions.
Meet SPACE team at Eurotier
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SPACE will exhibit at Eurotier, which will take place from 15 to 18 November in Hanover, in Germany.
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The 17th China (Guangzhou) International Food Exhibition & Guangzhou Import Food Exhibition 2017 (IFE 2017)
FE 2017- The 17th China (Guangzhou) International Food Exhibition & Guangzhou Import Food Exhibition, the professional and authoritative food & beverage expo in China, is to be staged during June 16-18th ,2017at China Import and Export Fair Pazhou Complex, Guangzhou, China(No.382, Yuejiang Zhong Road, Guangzhou, China).
Organized by China National Food Industry Association (CNFIA) and Guangzhou Yifan Exhibition Service Co., Ltd, the 17th China (Guangzhou) International Food Exhibition & Guangzhou Import Food Exhibition (IFE 2017) provides the toppest trade show platform and focuses on assisting oversea companies to find the distributors and agents to expand the food & beverage market in China.
2016 Review
58,600+ sqm exhibition space
1,533+ exhibitors from 60 countries and regions
83,480+ professional visitors
2017 Preview
65,000+ sqm exhibition space
1,700+ exhibitors
98,000+ visitors
VISITOR'S PROFILE:
Food and beverage producers, processing experts, organic food experts, nutritional food professionals and traders of food and beverage products, Food testing experts, market analysts, suppliers, dealers, distributors, packaging professionals, fermentation experts and dairy and poultry professionals,Metal detection experts, food ingredient executives, machine handlers, frozen food & meat experts, decision making authorities, etc.
EXHIBITOR'S PROFILE:
Exhibition Products:
1. Imported food area: Specialty food from all of the world, native products, regional products ,travel food, snack food, candy, biscuit, chocolate , grain puffing food, dried fruit, nuts, meat products, seasoning, beverage and drinking, wine, beer, spirit and other products.
2. Food and beverage area: Baking and bakery products, cakes, oat cereals and soy products, candy and chocolate, dairy products and milk, egg products, fruit products, wine, beer, spirits, coffee and tea, juices and soft drinks, mineral water, snack food, seasoning goods and jams, olive products and olive oil, pasta, frozen food, ethnic specialty foods, halal food, geographical food, meat and meat products, poultry and poultry products, seafood, vegetable products and salted products, cans food.
3. Nutrition and health food exhibition: Nutrients, nutritional supplements, nutritious food, functional food, natural supplements, organic food, green food and so on.
4. Food additives and ingredients Area: All kinds of food additives, food ingredients, plant extracts, functional food ingredients, food processing aids.
5. Food processing and packing equipment: food processing equipment, meat processing equipment, metal detector, fruit and vegetable processing equipment, cry logy, bio-ferment technology, packing machinery, spurts and code machinery, packing material, printing machinery, beverage producing line, food test equipment etc.
IFE2017 Committee
Guangzhou Yi Fan Exhibition Service Co.,Ltd
Address: Room 201, Yi Yan Building, No.25, Yan ling Road, Guangzhou Post Code:510507
Tel: +86-20-61089057 / [M] +86 13265914628
Fax: +86-20-61089459
Ingredient Communications Presents
The re-birth of cheese: cheese snacks are the number-one dairy growth opportunity
Reinventing cheese as a naturally-healthier snack is the biggest growth opportunity for dairy companies, reveals New Nutrition Business in its new report, 10 Key Trends in the Business of Dairy Nutrition.
Cheese has had a major boost from scientific research showing that it is one of nature’s “naturally functional” whole foods, with no negatives either from fat or sodium content.* Now, new sales numbers show that connecting cheese to the snackification trend spells market success.
One of the most successful products launched in the US, with first year sales hitting $67 million, is Sargento Balanced Breaks, a snack that pairs cheese with fruit and nuts. Its winning marketing strategy highlights the convenience of a snack as well as cheese’s naturally-nutritious properties.
And consumers are willing to pay a premium price for a cheese snack. Sargento Balanced Breaks retail at a 150% premium to regular mass-market cheese. “For profitable growth, premium niches are the highest-opportunity, least-risk targets in dairy. In almost every case the most effective strategy for profitable dairy growth is to begin by focusing on the low-volume, high-value segments of the market”, says Julian Mellentin, director of New Nutrition Business.
Spire Brands is another company that found a simple solution for a growing consumer need. Its Moon Cheese snack – dried pieces of Gouda, Cheddar, or Pepper Jack in a convenient pack – hit a $10-million run rate in early 2016 with prospects to double annual revenues to about $20 million in 2017.
For years cheese has been out of favour because of its high fat content and faulty research linking it to cardiovascular disease. But new consumer awareness about the health benefits of cheese means there is scope for growth in countries where cheese consumption has been low. If Americans were to reach the same per capita consumption of cheese as France, for example, the US market would double in size.
Dare to be dairy-free
Just when a critical mass of science revealed that dairy is a natural whole-food with a wealth of health benefits, it is faced with some new negatives (thanks to online bloggers), and these are helping fuel the dairy-free trend.
“Non-dairy dairy is both an opportunity and a threat. Dairy companies must take note of the trend and know how to respond to it – which in many cases means entering the market,” says report co-author Joana Maricato, senior market analyst at New Nutrition Business.
Danone has turned non-dairy into an opportunity by acquiring WhiteWave, thus becoming both one of the world’s biggest dairy companies and the world’s biggest non-dairy company.
Almond and coconut milk brands have been capitalizing on people’s interest in digestive health (one of the most powerful trends in the food and beverage industry), positioning themselves as “easier to digest” than dairy milk. Addressing people’s worries about dairy and digestive wellness presents a wealth of opportunities for dairy, as the A2 cows’ milk brand has demonstrated in Australia, where it has taken a 12% share of the liquid milk market with its “easy to digest” marketing message.
*References available on request
eatmaker@list.ru