Attitudes Towards Ethical Food and Drink: Is Ethical a Profitable Route? - Ireland

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2008 - 93 Pages

Table of Contents

Issues in the Market

Key themes in the report

Definitions

Organic

Fair trade

Farmers’ markets

Definition of farmers and growers in RoI

Abbreviations

Market in Brief

Key drivers in the market

Organic market size estimates

Positive impact from farmers’ markets

Benefits and cost of going organic

Slowdown in Ireland’s economy

The impact of the price tag

RoI consumers pay higher price compared to EU counterparts

Struggling to supply domestic demand

NPD shapes the market

What will the future bring for Ireland’s ethical market?

Internal Market Environment

Key points:

What is classed ethical?

The true meaning of organic

Understanding the law behind organic farming

Award and costs of becoming an organic farmer

Benefits

Costs

Think before you eat

Changing consumer attitudes

Caring for consumers’ health and wellness

Retailers seek to improve ethical status

Figure 1: Packaging launched with type of product claims in food, UK and RoI, 2002-07

Attracting consumers through promoting health benefits

Figure 2: Packaging launched with type of product claims in drink, UK and RoI, 2002-07

Impact of food scares

Demand vs supply

Growing NI organic sector

Growing RoI organic sector

Packaging plays key role in ethical market

Waste disposal

Labelling and materials

Driving NI food to the next level

Broader Market Environment

Key points:

Future rewards of organic farming

UK organic farming employment trends

Has Ireland’s rainy day arrived?

Figure 3: Health of the economy, NI and RoI, 2006-08

Making an informed choice to be ethical

Retailers have a fundamental role to play in ethical market expansion

Figure 4: Comparison of ethical and non-ethical rsps, 2008

Limited supply results in organic price hike

Figure 5: Relevant statements regarding the environment and food and drink, NI and RoI, November 2007

Price plays a key role in younger consumers’ purchasing decisions

Rising food costs

Figure 6: Irish weather data - annual average figures, 2007

Older consumers show more ethical traits than younger counterparts

Figure 7: Population change, by age group, NI, 2000-20

Figure 8: Population change, by age group, RoI, 2000-20

Widening the ethical target market

Mixed messages on health claims

Conflicting scientific evidence

Market Insight

Key points:

Organic market size and insight

Organic market is heavily dependent on imports

Positive signs ahead for Ireland’s organic market

Figure 9: All-Ireland organic market size, 2004-12

Growing awareness of Fairtrade Mark

Figure 10: Estimated fair trade retail value, by country, 2004-06

Distribution networks assists fair trade growth in Ireland

The farm to fork debate

Free-range market insight

Figure 11: Agreement with statement ‘I buy free-range products whenever I can’, NI and RoI, 2001-07

Influences in Ireland’s free-range market

Slower growth for free-range, perchery and organic eggs

Figure 12: Sales of NI graded eggs, by destination, May 2007 (average cases per week)

Figure 13: Sales of NI graded eggs, by destination, May 2006 (average cases per week)

Growing popularity of farmers’ markets

Back to basics: expanding Ireland’s ethical distribution network

Company Insight

Key points:

Figure 21: Consumers who only buy products from companies whose ethics they agree with, 2004-07

The ethical war replaces the price war

Food and drink suppliers

Bernard Matthews

Country Crest

Ecoshop

Feelgood Organic Hampers

Glenisk

Green & Black’s

Johnsons Coffee

Moy Park

O’Briens

O’Kane Poultry

Organic Market 2U

Figure 22: Organic Market 2U variety of boxes including price, 2008

Roma

Supermarkets

Asda

Goals for the future

Curley Supermarket Ltd

Dunnes Stores

Musgrave Group

M&S

Sainsbury’s

Superquinn

Tesco

Other

Munster Wholefoods Ltd

Redcoral Catering Limited

Absolutely Organic

The Burgeoning Ethical Consumer

Key points:

Value of organic food

Figure 23: ‘It is worth paying more for organic food’, NI and RoI, 2001-07

Figure 24: ‘It is worth paying more for organic food’, by age, NI and RoI, 2007

Ethics vs cost

Figure 25: ‘It is worth paying more for organic food’, and consumer that agree ‘I look for the lowest possible price when shopping’, NI and RoI, 2001-07

Free-range food

Figure 26: ‘I buy free-range products whenever I can’, RoI and NI, 2001-07

Free-range produce has greater appeal to grey market

Less consumers ruling out GM food

Figure 27: ‘I would never buy genetically modified food’, NI and RoI, 2001-07

Fair trade product sales increasing

Figure 28: ‘I buy fair trade products when available’, NI and RoI, 2001-07

Appendix

Geographical, national and regional definitions

Conversion factors

Exchange rates

Who’s Innovating?

Figure 37: Top five brands in terms of ethical food and drink launches, UK and Ireland, 2007

TGI data

Figure 38: Attitudes towards food and drink, RoI, 2001-07

Figure 39: Attitudes towards food and drink, NI, 2001-07

Figure 40: Attitudes towards food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, NI, 2007

Figure 41: Attitudes towards food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, NI, 2007

Figure 42: Attitudes towards food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, NI, 2007

Figure 43: Attitudes towards food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, NI, 2007

Figure 44: Attitudes towards food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, NI, 2007

Figure 45: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, NI, 2007

Figure 46: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, RoI, 2007

Figure 47: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, RoI, 2007

Figure 48: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, RoI, 2007

Figure 49: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, RoI, 2007

Figure 50: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, RoI, 2007

Figure 51: Attitudes towards ethical food and drink, by gender, age, marital status, working status, socio-economic group, household size and lifestage, RoI, 2007

MORI data

Figure 52: Important aspects when grocery shopping for food and/or drink, NI and RoI, November 2007

Figure 53: Relevant statements regarding the environment and food and drink, NI and RoI, November 2007

NI demographics

Figure 54: Important aspects when grocery shopping for food and/or drink, by gender, age, socio-economic group, marital status, working status, urban/rural, presence of children under 16, Internet access and digital TV access, NI, November 2007

RoI demographics

Figure 55: Important aspects when grocery shopping for food and/or drink, by gender, age, socio-economic group, presence of children, shopping status, urban/rural, working status, presence of children under 16, Internet access and digital TV access, RoI, November 2007

Figure 56: Important aspects when grocery shopping for food and/or drink, by gender, age, socio-economic group, presence of children, shopping status, urban/rural, working status, presence of children under 16, Internet access and digital TV access, RoI, November 2007

Figure 57: Relevant statements regarding the environment and food and drink, by gender, age, marital status, working status, socio-economic group, urban/rural, presence of children under 16, Internet access and digital TV access, NI November 2007

Figure 58: Relevant statements regarding the environment and food and drink, by gender, age, socio-economic group, presence of children, shopping status, urban/rural, working status, presence of children under 16, Internet access and digital TV access, RoI, November 2007

Figure 59: Relevant statements regarding the environment and food and drink, by gender, age, socio-economic group, presence of children, shopping status, urban/rural, working status, presence of children under 16, Internet access and digital TV access, RoI November 2007

Consumer target groups

NI

Figure 60: Consumer typologies, by food and drink shopping attitudes, NI, 2007

Figure 61: Consumer typologies, by gender, age, socio-economic group, marital status, working status, presence of children, region and digital TV access,

RoI

Figure 62: Consumer typologies, by food and drink shopping attitudes, RoI, 2007

Figure 63: Consumer typologies, by gender, age, socio-economic group, marital status, working status, presence of children, household income, region, Internet use at home and work, brtoadband access and digital TV access, RoI, 2007

Abstract

Food scares, animal welfare issues, environmental concern and health and wellbeing are the clear motivations behind Irish consumers’ growing tendency to think before they eat. To date the organic sector is experiencing healthy growth, with an all-Ireland market value in 2007 of €136 million.

Nonetheless, the growing appreciation for ethical products is not without its problems, particularly in relation to availability issues (demand outstretching supply), which have seen Irish consumers paying up to 20-30% more for ethical produce; a major deterrent for broadening the consumer base when you consider that almost half of Irish consumers look for the lowest possible price when grocery shopping.

Key themes of the report:

• Will choosing the ethical route be a profitable one for Irish food and drink companies?
• What does being ethical really mean to Irish consumers?
• What micro and macro factors will influence Ireland’s ethical market in the future?
• What proportion of the consumer base does the ethical consumer represent? And will this grow over the coming years?
• How does Ireland’s ethical market compare to other EU countries? Is Ireland lagging behind?

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.