Preferences of urban rice consumers in South and Southeast...
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Transcript of Preferences of urban rice consumers in South and Southeast...
Preferences of urban rice consumers in South and Southeast Asia
Marie Claire Custodio (MBA), Consumer Specialist Market Research Team, Social Sciences Division
International Rice Research Institute
International seminar on consumer preference in rice Kasetsart University, Bangkhen Campus, Thailand
17 February 2015
Agenda
• Background
• Consumer preferences in Southeast Asia
• Consumer preferences in South Asia
• Case of Bangladesh: Linking consumer preferences with midstream and upstream actors in the value chain analysis
• Key take-out and implication for rice breeding
Preferences are bi-directional
Market-driven and targeted rice varietal development program
•More and stable income for farmers
•Better targeting of varieties to end market
•More efficient value chains
•More affordable rice for consumers
• Identifying priority rice traits/characteristics per location (intrinsic attributes)
• Estimate demand and potential market size for specific grain quality traits and combinations
• Assess how markets may change
(This work is part of an on-going research on rice preferences of different value chain actors in South and Southeast Asia)
End-market opportunities
Source: FAO. 2014. Developing sustainable food value chains – Guiding principles. Rome
“Given that the VC should be geared toward specific end-market opportunities, the identification and quantification of such opportunities is the starting point for every successful strategy aimed at improving the performance of a VC”
• Identifying priority rice traits/characteristics per location (intrinsic attributes)
• Estimate demand and potential market size for specific grain quality traits and combinations
• Assess how markets may change
Increasing urban population – leverage point
Source: FAO STAT. http://faostat3.fao.org/download/O/OA/E
0
100
200
300
400 19
61
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Rural population Urban population
Southeast Asia (Philippines, Indonesia, Thailand, Vietnam, Cambodia)
- 200 400 600 800
1,000 1,200
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Rural population Urban population
Annual population by urban and rural (in millions)
South Asia (Bangladesh, India)
Increasing demand for rice
0
20000
40000
60000
80000
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Philippines Indonesia Thailand Vietnam Cambodia Bangladesh India
Total rice consumption per country 1 (In ‘000 tons)
1FAO data in World Rice Statistics http://ricestat.irri.org:8080/wrs 2GRISP (Global Rice Science Partnership). 2013. Rice almanac. 4th edition. Los Banos (Philippines):International Rice Research Institute. 286-287 p
71.674.463.2
43.151.6
42.5 47.647.0
29.1
69.6
51.746.2
64.2
31.4
IndiaBangladeshCambodiaVietnamThailandIndonesiaPhilippines
Year 2009Year 2000
Rice in total calorie supply2 (In %)
Understanding consumer preferences: Multi-country consumer survey
Objectives • Consumers’ purchase and consumption habits • How consumers choose and value rice grain quality • How these vary
‒ geographically: across and within countries ‒ by urban and rural markets ‒ gender ‒ income level
Survey sites: 7 countries, 24 urban zones
Not included in this presentation: Rural districts (Bangladesh = 12 districts in 4 divisions), (East India = 10 districts in 2 states )
Sample size (n)
Margin of error (%)
Philippines 500 4 Metro Manila (NCR) 200 7 Cebu City (Visayas) 150 8 Davao City (Mindanao) 150 8 Indonesia 500 4 Jakarta (West Java) 200 7
Surabaya (East Java) 150 8
Medan (North Sumatra) 150 8
Thailand 500 4 Greater Bangkok (Central)
200 7
Chiang Mai (North) 150 8 Khon Kaen (Northeast) 150 8
Sample size (n)
Margin of error (%)
Vietnam 300 6 Ho Chi Minh City (South)
200 7
Hanoi (North) 100 10 Cambodia 350 5 Phnom Penh (Plain region)
200 7
Siem Reap (Tonle sap region)
150 8
Sample size: 2,150 urban households in Southeast Asia
Sample size: 1,919 urban households in South Asia Sample size
(n) Margin of
error (%)
INDIA 1,919 2 URBAN SOUTH 619 4 Chennai (Tamil Nadu)
255 6
Erode (Tamil Nadu)
155 8
Hyderabad (Andhra Pradesh)
209 7
URBAN EAST 801 4 Calcutta (West Bengal)
201 7
Guwahati (Assam)
150 8
Bhubaneshwar (Odisha)
150 8
Patna (Bihar)
150 8
Dhanbad (Jarkhand)
150 8
RURAL EAST 499 4 Rural West Bengal 249 6 Rural Odisha 250 6
Sample size (n)
Margin of error (%)
BANGLADESH 1,099 3
URBAN 499 4
Dhaka 200 7
Chittagong 150 8 Khulna 149 8 RURAL 600 4 Khulna Division (Jessore, Jhenaidah, Khulna)
150 8
Barisal Division (Barisal, Bhola, Patuakhali)
150 8
Rangpur Division (Rangpur, Dinajpur, Kurigram)
150 8
Dhaka Division (Gazipur, Myemenshingh, Faridpur)
150 8
Research design Data collection approach: • Door-to-door, face-to-face interviews • Structured pen & paper questionnaire
Target respondents: • Grocery decision maker • Cooks or prepares meal for the household Fieldwork period: • Philippines, Indonesia, Thailand: May to June 2013 • Vietnam and Cambodia: September to October 2013 • India: May-June 2013, Sep-Oct 2013, Jan-Feb 2014 • Bangladesh: Sep-Oct 2013, Oct to Nov 2014
Sampling method: 2-stage sampling: • Random selection of primary sampling units (PSU) • Systematic sampling to select households
Q07. How would you describe the traits or characteristics of rice which your family prefers? Please describe to us the three most important characteristics or traits. It can be in terms of eating quality, physical characteristics of the uncooked and cooked rice, nutritional benefits or cooking quality
Capturing preference through spontaneous elicitation
Most Important: ____________________ Second: ____________________ Third: ____________________
Results: Consumer preferences in Southeast Asia
Aromatic Soft White High volume expansion Chewy
White Nasinya pulen*
Aromatic Soft
Good taste
Soft Aromatic
White Long grains
High volume expansion
Soft Aromatic
Good taste White Firm
Top 5 ranking
Market for aromatic rice is pronounced with shared preference across SEA
Sticky & chewy Aromatic Soft White Good taste
*Nasinya pulen – combination of soft, chewy, not sticky, good taste; “pulen” = soft
Soft
Soft
Soft Soft
Soft
Shared preference for soft texture.
Soft 42% Easily dissolves 31%
Easy to chew 30% Easy to swallow 29%
Top 5 ranking
CM&KK Rank 1: Soft
Rank 8: Sticky
Nasinya pulen*
Sticky & chewy
Chewy
Firm
*Nasinya pulen – combination of soft, chewy, not sticky, good taste; “pulen” = soft
Segment for sticky rice is evident in N VN and N/NE TH
Indonesia: Preference for aroma is widely shared – mostly from Surabaya and those in upper class
32 48 20
Jakarta Surabaya Medan
47 30 11 12
SEC AB SEC C1 SEC C2 SEC DE
Location and socio-economic class of those who prefer aroma (In %)
13
17
8
10
Consumed
Preferred
Consumed
Preferred
All respondents (In %)
Pandan Wangi
Rojolele
(variety, aromatic)
(variety, aromatic)
Most often consumed and preferred rice
Philippines: What is consumed is not necessarily their preferred rice
4023
30
1221
519
19
ConsumedPreferred
ConsumedPreferred
ConsumedPreferred
ConsumedPreferred
“Sinandomeng”
Angelica
Jasmine rice
“Dinorado” (non-aromatic)
(Metro Manila , In %)
(non-aromatic)
(aromatic)
(non-aromatic)
Most often consumed and preferred rice
Philippines: Metro Manila
Market samples1
Price range (P/kg)
Length
(mm)
Shape
(L/W ratio)
Amylose content
(%)
Chalkiness
(%)
Head rice
(%)
Sinandomeng 36‒50 6.7 (Long)
3.3 (Slender)
25.2 (High)
11.4 (Grade 3)
68.4 (Premium)
Angelica 38‒46 6.7 (Long)
3.3 (Slender)
25.4 (High)
11.4 (Grade 3)
57.8 (Premium)
Jasmine 50‒64 6.8 (Long)
3.3 (Slender)
19.7 (Low)
6.8 (Grade 2)
90.8 (Premium)
Dinorado 43‒54 6.7 (Long)
3.3 (Slender)
23.4 (Intermediate)
9.2 (Grade 2)
82.8 (Premium)
120 market samples were purchased: Sinandomeng – 7, Angelica – 5, Jasmine - 4, Dinorado - 4. Market samples obtained in October 2013
• Long and slender grains •Sinandomeng and Angelica (most consumed): High amylose content • Jasmine and Dinorado : Low/intermediate amylose content
Philippines: Metro Manila market samples
Philippines: Long and slender grains are widely available; Preferred rice have soft texture
Greater Bangkok Soft
White Aromatic
High volume expansion Long
Slender (rank 7)
Thailand Soft
Aromatic White Long
High volume expansion
Slender (rank 8)
Top 5 preferred characteristics Khon Kaen
Soft Aromatic
White Head rice
Not mushy Sticky (rank 8)
Chiang Mai Soft Long
Aromatic White
Slender Sticky (rank 8)
Thailand: Segments are evident in preferences of consumers – aromatic, white rice, sticky rice
White rice15%
Jasmine rice76%
Specialty rice9%
Rice types consumed most often Branded or unbranded rice consumed most often (%)
White rice is non-fragrant rice with long and slender grains regardless of variety. Specialty rice includes glutinous rice, red rice, unpolished rice and other fragrant rice.
Thailand: First mover in branding rice
% of households
GBKK Chiang
Mai Khon Kaen
Jasmine rice 78 95 59 White rice 22 3 15 Specialty rice 0 2 26
0 20 40 60
Unbranded rice
Branded rice
Jasmine White rice Specialty rice
Results: Consumer preferences in South Asia
Bangladesh
Urban Bangladesh
Good taste
White
Slender
Short size
Aromatic Top 5 most preferred rice characteristics
Preference ranking
India
Urban East India Urban South India
Rank 1 Slender Good taste
Rank 2 White White
Rank 3 Medium size Slender
Rank 4 Aromatic Medium size
Rank 5 Good taste Smooth texture
South Asia: Size and shape matters; Slender grains: Market leader effect of India
6% 9%
40% 45%
71%
80%
21%
31% 31%
29% 13%
71%
29% 24%
Calcutta Dhanbad Patna Bhubaneshwar Guwahati
Short Medium Long to extra long
Base: Those who consider size as a priority trait
n=116 n=67 n=92 n=127 n=23
Different grain sizes are preferred by consumers in different cities in East India
54%
16% 28%
29%
57% 23%
17% 27%
50%
Dhaka Chittagong Khulna
Short Medium Long to extra long
Preference for grain size varies by location in Bangladesh
Base: Those who consider size as a priority trait
n=143 n=28 n=26
Case of Bangladesh: Linking consumer preferences with midstream and upstream actors in the value chain analysis
Stacked survey with different segments: FGD with farmers In-depth interviews with midstream actors and retailers.
Bangladesh: How are preferences transmitted?
Long slender grains Length: 6.4mm Shape: 3.5 L/W ratio (vs. 3.3 L/W ratio of BRRI dhan 28)
Consumers: What matters to them? What do they eat and what do they prefer?
47
42
Consumed
Preferred
All Dhaka Chittagong Khulna Unbranded Miniket 96% 95% 97% 94%
Aarong Fresh Miniket 13% 21% - -
PranMiniket 10% 17% - -
Awareness of “Miniket”
Consumption, Preference of “Miniket” (%)
“Miniket” grain quality evaluation
Top 3 most preferred rice characteristics Good taste, white, slender
Bangladesh: How are preferences transmitted?
•Yield •Resistance/tolerance to biotic & abiotic stresses
•Short duration •Profitability (price and market demand) - fine grains, tasty, not sticky, high volume expansion
• Boro: BRRI dhan 28 • Aman: Swarna, BR 11,
Traditional varieties (Jamaibabu, Malshira, Khirshabog)
Priority characteristics & considerations Preferred varieties
Upstream - Production
Farmers: What matters to them? What do they grow? What do they prefer?
•Good taste, white, slender • “Miniket” Consumers
Downstream - Retail Midstream - Wholesale,
distribution - Processing - Trading
Bangladesh: How are preferences transmitted?
Priority characteristics & considerations Preferred varieties
Retailers and midstream actors: How are they capturing value?
Downstream - Retail
Midstream - Wholesale,
distribution - Processing - Trading
•Market demand: influenced by grain classification as fine, medium, coarse
•Quality: purity of variety, no bad smell, good taste, white grains, translucent grains
• BRRI dhan 28 • “Miniket” • Swarna
• BRRI dhan 28 further polished
• BRRI dhan 29, BRRI dhan 23 mixed with processed BRRI
dhan 28 and labelled
Miniket’s price premium over BRRI dhan 28: •Processors 12% •Wholesalers 9% •Retailers 18%
Lesson from the Bangladesh story
Consumers: more slender grains = “Miniket”
Farmers: What needs to be done? Better targeting to end market to address the gap
Midstream actors: • Demand of consumers through further
processing and labeling • Capture the benefits of higher retail
prices and consumers’ willingness to pay for quality rice
Key take-out and implications for breeding program
Key take-out and implication for breeding program
• Southeast Asia: Priority traits are texture, aroma and color (white) • Market for aromatic rice is evident. • Texture is an important trait but different characteristics are preferred.
• Shared preference for softness . • Different types of texture: Chewy in Philippines, nasinya pulen in Indonesia,
sticky in NE Thailand, sticky & chewy in Vietnam, firm in Cambodia
• South Asia: Priority traits are size, shape, color (white), taste and aroma (sweet) • Size and shape matters for South Asian consumers. • Regional preference for slender grains. • Preference for grain size varies geographically.
• Case of Bangladesh: Better targeting to end market will allow farmers to capture the
benefits of consumer’s willingness to pay for quality rice
• Implication for rice breeding program: The identified priority rice traits will guide breeding program in product profile development to match the demands of consumers.
– must traits, range traits, value added traits.
Market Research Team @IRRI: Dr. Matty Demont
Dr. Alice Laborte Ma. Lourdes Velasco
Catalina Diaz Jhoanne Ynion
Neale Paguirigan Dr. Rosa Paula Cuevas
Thank you!