Local Procurement - US

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2009 - 61 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

A cultural sea change and the recession drive local procurement

Three types of consumers

Deeply held beliefs drive purchases

Marketing platforms

Food: Most popular items purchased

Brand leaders and innovators

Key demographics: Respondents with children in the household and 25-34s

MARKET SIZE AND FORECAST

Key points

Local produce enjoys strong growth…

…and will see greater growth in the future

Figure 1: Number of operating farmers’ markets, 1994-2008

Figure 2: Purchase venues for organic food and beverages in past year, 2006-08

Figure 3: Total U.S. sales and forecast of organic food, at current prices, 2003-13

Figure 4: Total U.S. sales and forecast of organic food, at inflation-adjusted prices, 2003-13

COMPETITIVE CONTEXT

Figure 5: Percentage of shoppers visiting mass merchandisers, by key top stores, 2007 and 2008

MARKET DRIVERS

Key points

An emerging new ethos buoys local procurement

Buying local to keep the local economy strong

Figure 6: Reasons for buying local goods/services, November 2008

A taste for taste

Trading down in the recession from big-ticket items to crafts from local artisans

The internet drives local procurement

Families and 25-34s are the most avid consumers

Figure 7: Households, by size, 2006

Figure 8: Population, by age, 2003-13

BRAND QUALITIES

Whole Foods: A leader in local procurement

Local taken literally at Henry's Marketplace

Kroger’s got milk…and more

UC Berkley goes local, and so do college students across the country

Two national foodservice companies go local

Burgerville’s been chewing the (local) fat since 1961

BALLE’s Local First campaign yields significant dividends for local merchants

INNOVATION AND INNOVATORS—FOOD

Trendsetter Google goes local…and a ripple effect follows

Chipotle serves up local pork

Local Procurement

Wal-Mart steps up its efforts

Sellers Market Restaurant is strictly local

River Valley Market Co-op attracts shoppers en masse

Vassar College restarts its local efforts

Penn State gets more local

INNOVATION AND INNOVATORS—NON-FOOD

Whole Foods in Orange County sells local lotions

Nordstrom partners with Blue Hawaii

Green Zebra guides San Franciscans on a search

Timberland takes a bold step forward

Investors’ Circle puts its money where its mouth is

The city of Denver pushes local

Local virtualization at etsy.com

The Wedge holds promise on this side of the Atlantic

ADVERTISING AND PROMOTION

OVERVIEW

Figure 9: Top ad expenditures by supermarkets, 2006 and 2007

Web marketing efforts

St. Helena Farmers’ Market (CA)

San Francisco Ferry Plaza Farmers' Market

Freshfarm Market

Analysis of commercials

Figure 10: Whole Foods television ad, 2007

Figure 11: Whole Foods television ad, 2007

Figure 12: Wal-Mart television ad, 2007

WHO BUYS LOCAL?

Key points

Females like local

Figure 13: Places where local goods/services are purchased, by gender, November 2008

25-34s like local

Figure 14: Purchasing behavior based on local sourcing, by age, November 2008

Larger families go local

Figure 15: Purchasing behavior based on local sourcing, by number of people in HH, November 2008

PURCHASE OF LOCAL FOOD PRODUCTS

Key points

Fruits, vegetables, and baked goods: top three items purchased

Figure 16: Purchase incidence for local food goods, November 2008

Presence of children drives local meat purchases

Figure 17: Purchase incidence for local meat, by presence of children and number of people in HH, November

2008

With children and buying local dairy

Figure 18: Purchase incidence for local cheese/dairy, by presence of children and number of people in HH,

November 2008

With children and buying fruits and vegetables

Figure 19: Purchase incidence for local fruits and vegetables, by presence of children and number of people in

HH, November 2008

Local baked goods go with kids

Figure 20: Purchase incidence for local bread/baked goods, by presence of children and number of people in

HH, November 2008

PURCHASE OF LOCAL NON-FOOD GOODS

Key points

Apparel, flowers, and accessories about once a year

Figure 21: Purchase incidence for local non-food goods, November 2008

With children and purchasing accessories

Figure 22: Purchase incidence for local accessories (eg, handbags, jewelry, belts, etc.), by presence of children

and number of people in HH, November 2008

Buying apparel with kids

Figure 23: Purchase incidence for local apparel (T-shirts, jackets, dresses, pants, etc.), by presence of children

and number of people in HH, November 2008

Arts and crafts and families

Figure 24: Purchase incidence for local arts and crafts, by presence of children and number of people in HH,

November 2008

Flowers and families go together

Figure 25: Purchase incidence for local flowers, by presence of children and number of people in HH, November

2008

PARTICIPATION IN AND PATRONIZATION OF LOCAL PROCUREMENT INSTITUTIONS

Key points

At the farmers’ market with kids in tow

Figure 26: Incidence of membership in local food networks, by presence of children and number of people in

HH, November 2008

Farmers’ markets lure the under-45s

Figure 27: Incidence of membership in local food networks, by age, November 2008

With money and shopping freely

Figure 28: Location of local goods purchased, by household income, November 2008

ATTITUDES AND MOTIVATIONS

Key points

Local procurement elicits deeply held values

Figure 29: Reasons for buying local goods/services, November 2008

Barriers to purchase

Figure 30: Reasons for not buying local goods/services, November 2008

Friends are the source

Figure 31: Lifestyles related to purchasing local goods, November 2008

Less income translates into more zeal for things local

Figure 32: Strictness of purchasing behavior for local goods, by household income, November 2008

Blacks more strict about buying local

Figure 33: Strictness of purchasing behavior for local goods, by race/Hispanic origin, November 2008

APPENDIX: OTHER USEFUL CONSUMER TABLES

Moms buy local meat

Figure 34: Purchase incidence for local meat, by gender and presence of children in HH, November 2008

Moms and males with children buy local bread/baked goods

Figure 35: Purchase incidence for local bread/baked goods, by gender and presence of children in HH,

November 2008

Moms and dads buying locally prepared food

Figure 36: Purchase incidence for other local prepared foods (eg, locally sourced meals in a restaurant, or

foodservice at a farmers’ market), by gender and presence of children in HH, November 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

• Identification of key demographics that purchase locally procured food and non-food items
• Attitudes and motivations behind their purchases
• Demographics interested in local procurement, and the barriers that are currently preventing purchase
• The many complex and important factors driving local procurement, and how companies can position themselves to capitalize on them
• Specific strategies and tactics companies can use to integrate local procurement into their daily business and brand building activities

• Identification of key demographics that purchase locally procured food and non-food items
• Attitudes and motivations behind their purchases
• Demographics interested in local procurement, and the barriers that are currently preventing purchase
• The many complex and important factors driving local procurement, and how companies can position themselves to capitalize on them
• Specific strategies and tactics companies can use to integrate local procurement into their daily business and brand building activities

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