wells of consumer concern than is immediately apparent. Like gluten-free, it is fuelled by multiple benefit platforms (
including the 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 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 city-center cafes from Australia
to Scotland, and a small but increasing
number of adventurous, trend-riding entrepreneurs are using 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
Consumers Willing to Pay More for Products with Clear Labeling
Nearly half of U.S. consumers would pay 75% or more extra for products with ingredients they recognized and trusted.
As many as 73% of consumers are willing to pay a higher retail
price for a food or drink product made with ingredients they recognize and trust, according to a global survey of 1,300 consumers
across Europe, North America and Asia-Paci;c that was commissioned by specialist PR agency Ingredient Communications.
More than half of respondents (52%) said they would spend over
10% more on a food or drink product that contained ingredients
they recognized and trusted. Meanwhile, nearly a ;fth (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 recognized and trusted.
The ;ndings of the survey, which was conducted by online market researcher Surveygoo, underlined the growing importance of
clean and clear labeling and the use of ingredients that are familiar
to consumers. They also suggest that there is a signi;cant opportunity to harness the potential of co-branding between food and
beverage manufacturers and their ingredient suppliers.
The survey included 1,300 consumers (500 in the U.K., 200 in
India, 50 in the U.S., 100 in Malaysia, 50 in Australia, 50 in Canada,
50 in New Zealand, 200 in the Philippines, 100 in Singapore) and
was conducted Oct. 19-26, 2016.
“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,” said Richard Clarke, director of ingredi-
ent communications. “We have seen the power of the ‘Intel Inside’
concept in the home computer market. If it works for selling lap-
tops, then why not food and drink? Co-branding can develop con-
sumer trust and provide a clear signpost for differentiation, which
can be converted into higher spend, loyalty and repeat purchases.”
He added: “Marketing ;nished products that contain ‘branded’
ingredients that consumers recognize 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 pro;ts.”
“Our survey reveals signi;cant convergence in the way consum-
ers across the globe share similar priorities in sourcing and con-
suming high quality foods,” said Neil Cary, founder of Surveygoo
Market Research Consultancy. “However, there are also key differ-
ences between markets. Willingness to pay more for recognizable
ingredients is strongest in the U.S., highlighting the importance of
clean and clear labeling 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 big-
gest drivers of product choice, with more than half of respondents
(52%) considering it to be an important factor. This was compara-
ble with an ability to see nutrition information on-pack (considered
important by 53%) and acceptability of price (55%).
An ability to recognize 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%).