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UNDERSTANDING HOW CONSUMER ATTITUDES TOWARDS FOOD ARE CHANGING 
NOVEMBER 2014 
BY LAMINE LAHOUASNIA – HEAD OF PACKAGED FOO...
© Euromonitor International 
2 
•Global provider of Strategic Market Intelligence 
•12 Regional offices - 800+ analysts in...
© Euromonitor International 
3 
Packaged Food = 
Baby Food + Bakery + Canned/Preserved Food + Chilled Processed Food + Co...
© Euromonitor International 
4 
The State of the Food Industry 
INTRODUCTION 
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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 questi...
© Euromonitor International 
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The ‘Processed’ Element of Packaged Food Hinders Organic Sales 
CONSUMER ATTITUDES TOWARDS...
© Euromonitor International 
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…As Does the Different Understanding of the term ‘Organic’ 
CONSUMER ATTITUDES TOWARDS ORG...
© Euromonitor International 
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Mass market 
Health-driven 
Pesticides and food additives 
Convenience and pricing 
Premi...
© Euromonitor International 
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Organic Penetration Varies Substantially Across Categories 
CONSUMER ATTITUDES TOWARDS OR...
© Euromonitor International 
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Organic Credentials 
Mass Market Brand 
The Organic Conundrum for Food Companies 
CONSUME...
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 ...
© Euromonitor International 
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Organic Food Sales Growth Remaining Flat 
Wider Corporate Ethical Positioning 
Importance...
© Euromonitor International 
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General Mills Seeks US Growth with Annie's Homegrown Purchase 
ASSESSING CORPORATE STRATE...
© Euromonitor International 
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WhiteWave Foods Becomes Largest Organic Food Company 
ASSESSING CORPORATE STRATEGY 
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© Euromonitor International 
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So Does Organic Food Really Have a Future… 
ASSESSING CORPORATE STRATEGY 
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CONSUMER ATTITUDES TOWARDS ORGANIC FOOD 
ASSESSING CORPORATE STRATEGY 
FINDING THE NEXT ORGANIC 
Image: Courtesy of Walmart
© Euromonitor International 
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…It Could Do, But it Needs More 
FINDING THE NEXT ORGANIC 
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The Organic + Campaign 
FINDING THE NEXT ORGANIC 
Organic + consumer group 
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sa...
© Euromonitor International 
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The Other Emotions Consumers Feel Towards Food 
FINDING THE NEXT ORGANIC 
Graph: Recreate...
© Euromonitor International 
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Implications for the Pesticide and Veterinary Medicines Industry 
FINDING THE NEXT ORGANI...
© Euromonitor International 
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Moving from ‘Buy Local’ to ‘Buy Quality’ 
FINDING THE NEXT ORGANIC 
Images: Courtesy of F...
© Euromonitor International 
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National Food Identity 
City Food Identity 
Regional Food Identity 
Recent examples from ...
© Euromonitor International 
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Where the ‘Buy Australian’ Movement Could Take Off 
FINDING THE NEXT ORGANIC
THANK YOU FOR LISTENING 
Lamine Lahouasnia | Head of Packaged Food Research Lamine.Lahouasnia@euromonitor.com 
Euromonitor...
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Understanding How Consumer Attitudes Towards Food Are Changing

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Growth rates for organic packaged food have struggled to return to their pre-recession heights and there are those in the industry that in are search of another label that represents natural, healthy and sustainable food. Could national or even regional branding replace the need for an organic label? We look at what the term organic means for consumers around the world and what its potential replacements are.

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Understanding How Consumer Attitudes Towards Food Are Changing

  1. 1. UNDERSTANDING HOW CONSUMER ATTITUDES TOWARDS FOOD ARE CHANGING NOVEMBER 2014 BY LAMINE LAHOUASNIA – HEAD OF PACKAGED FOOD RESEARCH
  2. 2. © Euromonitor International 2 •Global provider of Strategic Market Intelligence •12 Regional offices - 800+ analysts in 80 countries •Cross-country comparable data and analysis •Consumer focused industries, countries and consumers •5 - 10 year forecasts with matching trend analysis •All retail channels covered •Subscription services, reports and consulting About Euromonitor International INTRODUCTION London Singapore Shanghai Dubai Vilnius Cape Town Santiago Tokyo Sydney Chicago Bangalore Sao Paulo
  3. 3. © Euromonitor International 3 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
  4. 4. © Euromonitor International 4 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 Growth US$ Trillion World: The Performance of Organic and Non-Organic Packaged Food Non-Organic Value Sales Organic Value Sales Non-Organic Growth Rates Organic Growth Rates
  5. 5. CONSUMER ATTITUDES TOWARDS ORGANIC FOOD ASSESSING CORPORATE STRATEGY FINDING THE NEXT ORGANIC Image: Courtesy of Walmart
  6. 6. © Euromonitor International 6 Demand for Organic Food Varies Considerably Across the Globe… INTRODUCTION
  7. 7. © Euromonitor International 7 •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
  8. 8. © Euromonitor International 8 The ‘Processed’ Element of Packaged Food Hinders Organic Sales CONSUMER ATTITUDES TOWARDS ORGANIC FOOD 0 10 20 30 40 50 60 Germany Spain France Japan Australia US UK % of respondents selecting 'very important' or 'most important' Consideration of 'Green' Product Features Fresh Food Packaged Food
  9. 9. © Euromonitor International 9 …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
  10. 10. © Euromonitor International 10 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
  11. 11. © Euromonitor International 11 Organic Penetration Varies Substantially Across Categories CONSUMER ATTITUDES TOWARDS ORGANIC FOOD 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 1 2 3 4 5 6 7 8 9 10 Dairy Bakery Products Ready Meals Baby Food Chilled Processed Meats, Fish/Seafood and Lunch Kit Oils and Fats Sweet and Savoury Snacks Sauces, Dressings and Condiments Confectionery Spreads Pasta Soup Rice Snack Bars Ice Cream Noodles Dessert Mixes % Penetration of Organic Retail Value Sales – US$ billion The Value Organic Food by Category, 2014 Retail Value Sales Retail Value Penetration
  12. 12. © Euromonitor International 12 0 2 4 6 8 10 12 14 16 18 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Penetration of Organic 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
  13. 13. © Euromonitor International 13 Organic Credentials Mass Market Brand The Organic Conundrum for Food Companies CONSUMER ATTITUDES TOWARDS ORGANIC FOOD
  14. 14. CONSUMER ATTITUDES TOWARDS ORGANIC FOOD ASSESSING CORPORATE STRATEGY FINDING THE NEXT ORGANIC Image: Courtesy of Walmart
  15. 15. © Euromonitor International 15 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 General Mills Lactalis Retail Value Sales – US$ million Top 10 Food Companies and their Organic Sales, 2014 Standard PK Other HW Organic
  16. 16. © Euromonitor International 16 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
  17. 17. © Euromonitor International 17 General Mills Seeks US Growth with Annie's Homegrown Purchase ASSESSING CORPORATE STRATEGY 0 2 4 6 8 10 12 14 16 18 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Retail Value Sales – US$ billion General Mills: Packaged Food Sales in the US and the Rest of the World USA RoW
  18. 18. © Euromonitor International 18 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's Kitchen Koninklijke Wessanen Organic Valley Market Share - % Top 10 Organic Food Companies, 2014 Pre-Acquisition Post Acquisition
  19. 19. © Euromonitor International 19 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 Growth US$ Trillion World: The Performance of Organic and Non-Organic Packaged Food Non-Organic Value Sales Organic Value Sales Non-Organic Growth Rates Organic Growth Rates
  20. 20. CONSUMER ATTITUDES TOWARDS ORGANIC FOOD ASSESSING CORPORATE STRATEGY FINDING THE NEXT ORGANIC Image: Courtesy of Walmart
  21. 21. © 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 Growth US$ Trillion 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
  22. 22. © Euromonitor International 22 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
  23. 23. © Euromonitor International 23 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 Cultural Effects Physiological Effects 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
  24. 24. © Euromonitor International 24 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
  25. 25. © 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
  26. 26. © Euromonitor International 26 National Food Identity City Food Identity Regional Food Identity Recent examples from SIAL Paris 2014 FINDING THE NEXT ORGANIC
  27. 27. © Euromonitor International 27 Where the ‘Buy Australian’ Movement Could Take Off FINDING THE NEXT ORGANIC
  28. 28. THANK YOU FOR LISTENING Lamine Lahouasnia | Head of Packaged Food Research Lamine.Lahouasnia@euromonitor.com Euromonitor International 60-61 Britton Street London EC1M 5UX Telephone: +44 (0) 207 251 8024

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