Food & Drink Safety: Winning Back Consumer Trust

Published by: Datamonitor

Published: Aug. 17, 2007 - 43 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

INTRODUCTION: Food safety issues are gaining precedence

TREND: Consumer concerns over food and drink product safety are escalating

Consumer opinion research shows that food safety is increasingly important for shoppers

Food safety concerns are secondary to other general factors and in relation to food choice

Take-outs and implications: there is a clear need to restore consumer confidence over product safety

TREND: The allergen and intolerance food and drink market is booming as consumers act upon both perceived and actual nutritional problems

The issue of food allergens and intolerances has become both important and highly sensitive

Take-outs and implications: manufacturers and retailers need to respond to consumers' increasing food sensitivity

INSIGHT: Concerns over food and drink safety are broad ranging

There are numerous nutritional and broader safety risks associated with food and drinks

Europeans express worry about a broad range of food risks factors especially those out of their control

US consumers are also attentive to the range of factors influencing food safety perceptions

Take-outs and implications: manufacturers and retailers need to manage consumers' perceptions and expectations over a broad range of food and drink safety issues

INSIGHT: Socio-demographics influence consumer confidence in food and drink

Women are more concerned about safety issues than their male counterparts

Food and drink safety concerns typically escalate with age

Take-outs and implications: concerted efforts to restore consumer confidence should be targeted at older shoppers and females

INSIGHT: Product format and origin are important influencers in shaping consumer confidence in food and drinks

Consumers are most likely to express concerns over fresh food, especially meat

Many consumers perceive organic products as a safe and healthy way to avoid potential risks of exposure to pesticide residues in foods

Consumers have more confidence in food and drinks associated with particular places

Take-outs and implications: interest in food locality, organics and freshness will all increase as a result of more general concerns over product safety

INSIGHT: Reduced confidence as a result of a food safety incidents will result in boycotts, switching of brands, negative word of mouth and loss of trust

The impact of food safety incidents should not be underestimated

Food safety incidents impact US and European consumers in a similar manner

Reduced confidence in food and drinks negatively impacts brand trust which dampens possibilities of developing longer term relationships with consumers

Take-outs and implications: it is vital industry players manage food safety incidents appropriately

INSIGHT: Consumer confidence in product safety can be strengthened with an emphasis on certain information formats

Consumer groups, expert professionals and like-minded peers are the most trustworthy sources of information

Consumers react positively to transparency in the food supply chain

Take-outs and implications: consumers will respond more favorably to specific communication efforts made by manufacturers and retailers

ACTIONS

ACTION: Leverage the product attributes and communication cues that consumers perceive to be most trustworthy

Communicate the advantage of existing, established brands over new products

Build relationships with the 'expert community'

Be wary of the negative effects of celebrity endorsements

Make product quality a key brand value to build confidence in products

Communicate ethical and environmental credentials but make it the secondary part of any message

ACTION: Make transparency and traceability core features of supply chain and marketing communications development

Transparency and traceability initiatives need to focus on four areas

Make concerted efforts at the industry level

Be pro-actively open about the communication of a wide range of trust issues through traceability initiatives

Primarily target female and more mature consumers with confidence enhancing messages

ACTION: Avoid making product safety the central theme of marketing communications

APPENDIX

Definitions

Methodology

References/ Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Consumer survey: Response by country to the question: ""How important is checking food or drink for allergy or intolerance reasons"", 2006

Table 2: Market value (US$m) for the allergen and intolerance food market, 2001-2011

Table 3: Market value (US$m) for the allergen and intolerance drink market, 2001-2011

Table 4: Consumer survey: the percentage of European consumers who are worried about various risks associated with food and drinks, by country, 2005

Table 5: Consumer survey: a snapshot of US consumers' food safety concerns

Table 6: Consumer survey: US consumer concern for cleanliness, quality and safety, by age and gender

Table 7: Consumer survey: the top two reasons for US shoppers buying organic food, by age

Table 8: Consumer survey: Europeans views on whether EU produced food is safer than elsewhere

Table 9: Consumer survey: Europeans' reaction to hearing about a food being unsafe or bad for health

Table 10: Consumer survey: European and US consumer responses when they lose trust in a company

Table 11: Consumer survey: level of trust among Europeans towards various information sources in the wake of a serious food risk

Table 12: Consumer survey: the perceived credibility among Europeans and Americans of various sources of information, by region, 2006

Table 13: Consumer and industry opinion survey: the influence of various factors on (re)gaining consumer trust

List of Figures

Figure 1: There is a trust void between business and global consumers

Figure 2: Public opinion in the EU is divided on whether or not they are better off now in terms of food safety

Figure 3: Europeans are skeptical about the enforcement of food safety laws

Figure 4: Food safety is not a top-of-mind factor influencing food consumption or a top-of-mind concern compared to other lifestyle worries

Figure 5: Marked differences characterize food allergens and intolerances

Figure 6: Italians are the most concerned about food & drink allergen and intolerances

Figure 7: The numerous risks associated with food and drinks can be split into two categories

Figure 8: More than three-quarters of Europeans are ""very worried"" or ""a bit worried"" about potential risks related to food

Figure 9: The majority of US and European consumers place importance on reducing processed food consumption

Figure 10: The high importance that consumers place upon organic food and drinks is influenced by food safety concerns, especially the desire to avoid free of pesticides and preservatives

Figure 11: Ethnocentrism - among other things - contributes to a distrust towards 'foreign' companies

Figure 12: Gaining a reputation for the provision of good quality products is a hugely influential factor in gaining trust

Figure 13: Product quality - which is merely one of five factors affecting overall perceptions of premium status - can be categorized by four attribute groupings

Figure 14: Social responsibility can help to build trust with consumers

Figure 15: Ethical consumerism is becoming more complex and sophisticated over time

Figure 16: There are four core determinants of consumer trust in food and drink safety

Figure 17: Traceability initiatives effectively support the overall branding efforts of food and drinks

Figure 18: Safety/ risk considerations are secondary to a number of other important needs associated with food and drink consumption

Abstract

• Detailed insight and analysis covering consumers' confidence in the supply of food and drinks and how this is influenced by safety incidents.
• Assess the importance of food safety against the numerous other considerations shaping consumer buying behavior.
• Covers a broad range of issues related to product safety including the growing sensitivity surrounding food and drink allergens and intolerances.
• Strategic conclusions and actions highlighting how manufacturers and retailers should direct resources towards (re)gaining trust.

• Gain a detailed insight into consumer views towards food safety issues and understand the implications for product and communication management.
• Access a blend of quantitative and qualitative data aggregating the most compelling and recent research in this increasingly important topic.
• Ensure that you are well prepared for future safety crises and learn how to manage consumer perceptions and expectations most appropriately.

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