Consumers and Sustainability: Food and Beverage

Published by: Packaged Facts

Published: Sep. 1, 2009 - 38 Pages

Table of Contents

Chapter 1: Methodology

A Joint Publication of The Hartman Group and Packaged Facts

The Hartman Group Quantitative and Qualitative Methods

About The Hartman Group, Inc

About Packaged Facts

Chapter 2: Sustainability & the American Consumer

Establishing a Definition of Sustainability

Figure 2-1: What “Sustainability” Means to Consumers

Sustainability Concerns and Purchasing Decisions

Figure 2-2: Frequency of Purchase Decisions Based on Sustainability Concerns

A Consumer-based Model of Responsibility

Figure 2-3: The Four Zones of Sustainability

Experiential Triggers

Figure 2-4: Triggers for Awareness

Informational Triggers

Figure 2-5: Top Sources of Information on Sustainability

The World of Sustainability: Core to Periphery

Figure 2-6: The World of Sustainability

Motivations and Barriers to Purchase

Convenience

Price

Expert Opinion

Experience

Knowledge

Table 2-1: Motivations and Barriers for Sustainable Purchases

Chapter 3: Foods, Beverages, & the Sustainability Consumer

The Food Market and the Zones of Sustainability

Personal Benefit Zone of Sustainability

Environmental Zone of Sustainability

Organic

Figure 3-1: Properties Associated with the Term “Organic”

Local

Gardening

Vegetarianism

Social Zone of Sustainability

Local Satisfies Desire for Connection

Humane Treatment of Animals

Economic Zone of Sustainability

Buying Local

Fair Trade

Product Adoption, Purchase Criteria, and Packaging Issues

Product Adoption Patterns

Figure 3-2: Adoption of Sustainable Foods and Beverages

Freshness is Foremost

Purchase Criteria

Table 3-1: Purchase Criteria for Sustainable Foods and Beverages

Packaging Issues

Table 3-2: Dos and Don’ts for Sustainable Food and Beverage Packaging

Quantitative Findings on Sustainable Food and Beverage Purchases

Table 3-3: General Food and Beverage Categories and Corresponding Sustainable Versions

Figure 3-3: Purchasing of Foods and Beverages (By Product Category: General Category vs. Sustainable Versions)

Figure 3-4: Current Market Reach of Sustainable Food and Beverage Products (By Product Category)

Figure 3-5: Current Market Reach and Immediate Growth Opportunity of Sustainable Food and Beverage Products (By Product Category)

Figure 3-6: Willingness to Pay a Premium (20% More) for Sustainable Foods and Beverages (By Product Category)

Chapter 4: Summary and Key Insights

Foods Are Central to Sustainability

Tenets for Package Communications

Chapter 5: Market Update

Responses to Economic Downturn

Sustainability Convictions Largely Unchanged by Recession

Table 5-1: Recent Trends in Sustainability Psychographics: Opinions, Winter 2007/08 Through Spring 2009

Table 5-2: Recent Trends in Sustainability Psychographics: Behaviors, Winter 2007/08 Through Spring 2009

Consumers Remain Receptive to Organic and Natural Foods

Table 5-3: Patterns for Agreement With Statement, “When Shopping for Food, I Especially Look for Organic or Natural Foods,” Winter 2007/08 Through Spring 2009

Table 5-4: Percent Agreeing with Selected Psychographic Statements on Natural or Organic Foods, February 2009 (U.S. adults)

Projected Market Growth

Table 5-5: Projected U.S. Retail Dollar Sales of Natural and Organic Foods and Beverages, 2009-2013

Local and Bulk: Beyond the CPG Aisles

Abstract

Sustainability means different things to different people. Asked to identify what the term means to them, consumers most frequently respond “the ability to last over time” (76%) and “the ability to support oneself.” Sustainability is also strongly associated with environmental concerns, whereby consumers are being challenged to develop and express an “eco-consciousness” in their daily habits and purchases. Thus, nearly half of consumers associate sustainability with conserving natural resources and with recycling.

But using “eco-conscious” or “green” as synonymous with sustainability unduly limits the term. “Green” falls short as a description for the variety of social, economic and environmental issues that real-world individuals believe are important to sustaining themselves, their communities, and society at large. Adoption of sustainable products mirrors the health and wellness progression that The Hartman Group has previously reported, in which consumers first consider the impacts of things in the body, followed by on the body, and finally around the body.

As consumers become more educated about the environmental, social, and economic implications of their shopping habits, their health and wellness motivations dovetail with societal concerns, such that four zones of sustainability become relevant to purchasing choices:

• The Personal Benefit Zone
• The Environmental Zone
• The Social Zone
• The Economic Zone

Measurement of consumer purchasing of sustainable products across 20 food and beverage categories shows a range of adoption rates among sustainability-minded consumers, and a range by product category in willingness to pay a 20% cost premium for sustainable products. Nonetheless, while sustainability consumers have certainly modified their behavior in response to financial conditions, tradeoffs and cutbacks are less likely to be made in product categories that sustainability consumers view as essential to their quality of life, including food.

To balance the agenda to save money with the commitment to buy sustainable goods, for example, many consumers are shifting purchases of these products to discount outlets such as Walmart. At the same time (and in response), supermarkets are upping the sustainability credentials of their private-label lines, opening up another pathway to sustainable-at-a-discount shopping. Retailers are also stressing sustainability options outside of the packaged good aisles, notably local produce and bulk merchandise. At the current intersection of sustainability awareness and financial downturn, the market is ripe for food products that allow consumers to shop more sustainably and spend less money.

Series Methodology

This report series was jointly produced by The Hartman Group and Packaged Facts, and is based on The Hartman Group’s 2009 multi-category study, Sustainability: The Rise of Consumer Responsibility. In addition, Packaged Facts provides an update of consumer attitudes and spending based on a proprietary online poll conducted in February 2009 and on Experian Simmons surveys fielded from November 2008 to June 2009.

The Hartman Group Quantitative and Qualitative Methods

This report draws primarily on an online survey of 1,856 U.S. adults conducted in September 2008 by The Hartman Group to understand consumer attitudes and behaviors related to sustainability. The sample was drawn from a panel of adult U.S. consumers with Internet access, and was designed to provide good representation of the U.S. population according to geographic area, age, gender, race and income. The Hartman Group also conducted qualitative research on sustainability in three markets (Seattle, Dallas, and Columbus) during August 2008, using consumer ethnography with fifty consumers as the cornerstone of qualitative research. Ethnographic interviews included one-on-one conversations at an individual’s home or at a specific retail setting, as well as group interviews also at consumers’ homes. These engagements garnered more than 100 hours of in-depth, revelatory consumer discussion.

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