FDBusiness.com

Nearly Three Quarters of Consumers Will Pay Extra For Ingredients They Recognise

 Breaking News
  • Record High Number of New UK-based Wine Producers Opening The number of new wine producers opening within the UK in a year hit a record high last year with 80 new wine producers starting up – a rise of 25% from 64 in 2016, and more than double the 36 that opened five years ago, according to research by chartered accountants UHY Hacker Young [...]...
  • Mondelēz International Names New Chief Financial Officer Mondelēz International has announced that Luca Zaramella, Senior Vice President of Corporate Finance and a 20-year veteran of the company, will become EVP, Chief Financial Officer (CFO), effective August 1, 2018. As CFO, Zaramella will be responsible for the oversight of the company’s global Finance, Information and Technology Solutions and shared services functions. He will report directly [...]...
  • We’ll Pay Extra For More Protein, Say South American Consumers Nearly two thirds of shoppers in South America are willing to pay extra for a food or beverage product that is higher in protein, according to a survey commissioned by Arla Foods Ingredients. Researchers from Lindberg International asked 4,000 consumers in Argentina, Brazil and Colombia if they would spend more on buying a product if it [...]...
  • Nestlé and XPO Logistics Build a Digital Warehouse of the Future in the UK Nestlé, the world’s largest food and drink company, and XPO Logistics, a leading global provider of transport and logistics solutions, are co-creating a 638,000-square-foot distribution center at the new SEGRO East Midlands Gateway Logistics Park in Leicestershire, UK. The facility, a digital warehouse of the future, will be occupied predominantly by Nestlé for its consumer [...]...
  • Bord Bia’s 2018 Brexit Barometer Results The Irish Government has launched the Bord Bia 2018 Brexit Barometer, a comprehensive survey of 117 Irish food, drink and horticulture companies, representing 48% of the sector’s exporters to the United Kingdom. Over 100 senior industry representatives attended the launch in Bord Bia to hear the report findings. The purpose of the Brexit Barometer is to assess [...]...

Nearly Three Quarters of Consumers Will Pay Extra For Ingredients They Recognise

Nearly Three Quarters of Consumers Will Pay Extra For Ingredients They Recognise
December 19
09:00 2016

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, says: “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 adds: “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, says: “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%).

[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

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 25, 2018Packaged., The 7th Global Summit
  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements