Understanding How Consumer Attitudes Towards Food Are Changing
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Transcript of Understanding How Consumer Attitudes Towards Food Are Changing
UNDERSTANDING HOW CONSUMER ATTITUDES TOWARDS FOOD ARE CHANGING NOVEMBER 2014
BY LAMINE LAHOUASNIA – HEAD OF PACKAGED FOOD RESEARCH
© Euromonitor International
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• 12 Regional offices - 800+ analysts in 80 countries
• Cross-country comparable data and analysis
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consumers
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About Euromonitor International
INTRODUCTION London
Singapore
Shanghai
Dubai
Vilnius
Cape Town
Santiago
Tokyo
Sydney
Chicago
Bangalore
Sao Paulo
© Euromonitor International
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Packaged Food =
Baby Food + Bakery + Canned/Preserved Food + Chilled Processed Food + Confectionery + Dairy + Dried Processed Food + Frozen Processed Food + Ice Cream + Meal Replacement + Noodles + Oils and Fats + Pasta + Ready Meals + Sauces, Dressings and Condiments + Snack Bars + Soup + Spreads + Sweet and Savoury Snacks.
Organic =
All varieties of Packaged Food which have been certified organic by a local authoritative board are included.
Definitions and Datasets
INTRODUCTION
© Euromonitor International
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The State of the Food Industry
INTRODUCTION
0%
2%
4%
6%
8%
10%
12%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Y-o
-Y G
ro
wth
US
$ T
ril
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World: The Performance of Organic and Non-Organic Packaged Food
Non-Organic Value Sales Organic Value Sales Non-Organic Growth Rates Organic Growth Rates
CONSUMER ATTITUDES TOWARDS
ORGANIC FOOD
ASSESSING CORPORATE STRATEGY
FINDING THE NEXT ORGANIC
Image: Courtesy of Walmart
© Euromonitor International
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Demand for Organic Food Varies Considerably Across the Globe…
INTRODUCTION
© Euromonitor International
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• Average unit price for organic food is 58% higher than standard food
Is it just a question of price?
• Opposing views on the proven impact of organic food versus standard food
Is it better for you?
• Organic food works better in combination with other claims and positioning
Is it just a value multiplier?
…But What is Causing such a Difference in Acceptance?
INTRODUCTION
© Euromonitor International
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The ‘Processed’ Element of Packaged Food Hinders Organic Sales
CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
0
10
20
30
40
50
60G
erm
an
y
Sp
ain
Fra
nce
Ja
pa
n
Au
stra
lia
US
UK%
of
re
sp
on
de
nts
se
lec
tin
g '
ve
ry
im
po
rta
nt'
or
'm
os
t im
po
rta
nt'
Consideration of 'Green' Product Features
Fresh Food Packaged Food
© Euromonitor International
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…As Does the Different Understanding of the term ‘Organic’
CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
France
Russia
US
US
Japan
Japan
India
France
China
Russia
Germany
India
0 10 20 30 40 50 60 70 80
Natural
Is produced according to stringent regulations
Is healthier than non-organic
Is sustainably produced
Respects animal welfare (i.e. free range)
Is locally sourced
To me, an 'organic' product is one that is…
Weakest Belief Stronget Belief
© Euromonitor International
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Mass market
Health-driven
Pesticides and food additives
Convenience and pricing
Premium indulgence
Occasional
Higher quality
Beyond organic
Sceptical
Specialist retailers and niche brands
Conscious
Environment and ethics
Niche brands
Fairtrade
Organic Consumer Types
The Four Primary Organic Consumer Types
CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
© Euromonitor International
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Organic Penetration Varies Substantially Across Categories
CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
0.0
0.5
1.0
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Da
iry
Ba
ker
y P
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uct
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ad
y M
eals
Ba
by
Fo
od
Ch
ille
d P
roce
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d M
eats
,F
ish
/Sea
foo
d a
nd
Lu
nch
Kit
Oil
s a
nd
Fa
ts
Sw
eet
an
d S
av
ou
ry S
na
cks
Sa
uce
s, D
ress
ing
s a
nd
Co
nd
ime
nts
Co
nfe
ctio
ne
ry
Sp
rea
ds
Pa
sta
So
up
Ric
e
Sn
ack
Ba
rs
Ice
Cre
am
No
od
les
De
sser
t M
ixes
% P
en
etr
ati
on
of
Or
ga
nic
Re
tail
Va
lue
Sa
les
– U
S$
bil
lio
n
The Value Organic Food by Category, 2014
Retail Value Sales Retail Value Penetration
© Euromonitor International
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0
2
4
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20
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% P
en
etr
ati
on
of
Or
ga
nic
Organic Baby Food by Region
Asia Pacific Australasia
Eastern Europe Latin America
Middle East and Africa North America
Western Europe
Sensitive
Premium
Ethical
Organic Baby Food Finds a Permanent Place on the Shelf
CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
Images: Courtesy of Flickr user Alpha
© Euromonitor International
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Organic Credentials
Mass Market Brand
The Organic Conundrum for Food Companies
CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
CONSUMER ATTITUDES TOWARDS ORGANIC
FOOD
ASSESSING CORPORATE STRATEGY
FINDING THE NEXT ORGANIC
Image: Courtesy of Walmart
© Euromonitor International
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Organic Penetration in Biggest Food Companies Remains Low…
ASSESSING CORPORATE STRATEGY
0
10
20
30
40
50
60
70
80
Nestlé Mondelez PepsiCo Inc Unilever Danone Mars Kellogg Kraft GeneralMills
Lactalis
Re
tail
Va
lue
Sa
les
– U
S$
mil
lio
n
Top 10 Food Companies and their Organic Sales, 2014
Standard PK Other HW Organic
© Euromonitor International
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Organic Food Sales Growth Remaining Flat
Wider Corporate Ethical Positioning
Importance of M&A in the Organic Food World
…But Things Could be Changing
ASSESSING CORPORATE STRATEGY
© Euromonitor International
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General Mills Seeks US Growth with Annie's Homegrown Purchase
ASSESSING CORPORATE STRATEGY
0
2
4
6
8
10
12
14
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20
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Re
tail
Va
lue
Sa
les
– U
S$
bil
lio
n
General Mills: Packaged Food Sales in the US and the Rest of the World
USA RoW
© Euromonitor International
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WhiteWave Foods Becomes Largest Organic Food Company
ASSESSING CORPORATE STRATEGY
-
0.5
1.0
1.5
2.0
2.5
3.0
Hain Celestial Hipp WhiteWave Nature's Path Yili Mengniu Arla Amy'sKitchen
KoninklijkeWessanen
OrganicValley
Ma
rk
et
Sh
ar
e -
%
Top 10 Organic Food Companies, 2014
Pre-Acquisition Post Acquisition
© Euromonitor International
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So Does Organic Food Really Have a Future…
ASSESSING CORPORATE STRATEGY
0%
2%
4%
6%
8%
10%
12%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Y-o
-Y G
ro
wth
US
$ T
ril
lio
n
World: The Performance of Organic and Non-Organic Packaged Food
Non-Organic Value Sales Organic Value Sales Non-Organic Growth Rates Organic Growth Rates
CONSUMER ATTITUDES TOWARDS ORGANIC
FOOD
ASSESSING CORPORATE STRATEGY
FINDING THE NEXT ORGANIC
Image: Courtesy of Walmart
© Euromonitor International
21
…It Could Do, But it Needs More
FINDING THE NEXT ORGANIC
0%
2%
4%
6%
8%
10%
12%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014 2015 2016 2017 2018 2019
Y-o
-Y G
ro
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US
$ T
ril
lio
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World: The Expected Performance of Organic and Non-Organic Packaged Food
Non-Organic Value Sales Organic Value Sales Non-Organic Growth Rates Organic Growth Rates
© Euromonitor International
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The Organic + Campaign
FINDING THE NEXT ORGANIC
Organic + consumer
group
Organic +
safety
Organic + functional
Organic + convenience
Organic +
lower unit price
Images: Courtesy of Flickr users Chung Chu, iT@c, Nora Kuby, Alpha, Sarah Barker
© Euromonitor International
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The Other Emotions Consumers Feel Towards Food
FINDING THE NEXT ORGANIC
Graph: Recreated from an original work by Rome’s La Sapienza University with support from Nestlé
Cu
ltu
ra
l E
ffe
cts
Ph
ys
iolo
gic
al
Eff
ec
ts
Social and Environmental Responsibility Traceability Proximity Safety
Territorial Identity Tradition Familiarity Innovativeness
Context Price
Preparation
Personal Memories Psycho-Physical Wellbeing Conviviality Group Belonging
Ability to Satisfy Digestibility
Lightness Organoleptic Perception
Composition Genuineness
Duration Recognisability
© Euromonitor International
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Implications for the Pesticide and Veterinary Medicines Industry
FINDING THE NEXT ORGANIC
So where does this leave the industry?
In search of the next Organic…
The Rise of Organic Coming to an End?
Confusion over the meaning of Organic lead to growth rates slowing down as the Organic label loses its lustre
Produce vs. Processed
Consumer scrutiny of pesticide + veterinary medicines use on fresh produce likely to be more significant than for processed food
© Euromonitor International
25
Moving from ‘Buy Local’ to ‘Buy Quality’
FINDING THE NEXT ORGANIC
Images: Courtesy of Flickr users Cyn Furey, Blake Buettner, Renata F. Oliveira and arbyreed
© Euromonitor International
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National Food Identity City Food Identity Regional Food Identity
Recent examples from SIAL Paris 2014
FINDING THE NEXT ORGANIC
© Euromonitor International
27
Where the ‘Buy Australian’ Movement Could Take Off
FINDING THE NEXT ORGANIC
THANK YOU FOR LISTENING Lamine Lahouasnia | Head of Packaged Food Research [email protected]
Euromonitor International
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London
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Telephone: +44 (0) 207 251 8024