June 09, 2014 - Blogs
PrintToday’s consumers do not just want products that are natural, free-from potentially harmful ingredients, and low in sugar and fat. They are seeking something extra, and protein seems to be the ticket. But are consumers in developed and emerging markets willing to shell out extra money on “enhanced natural" products? Global business intelligence provider Euromonitor International delved into this question in the March issue of theBoardroom Journal to see how this trend may develop in the foreseeable future.
Over the past decade, consumers have been growing increasingly suspicious of what they perceive to be chemical or synthetic ingredients “contaminating" their food and drinks. Euromonitor International’s Global Consumer Trends Survey 2013 analyzed the lifestyle traits of 16,300 online consumers in nine major developed and emerging markets. The survey not only confirmed that looking out for “limited or no artificial ingredients" played a key role in consumers’ packaged food purchasing decisions, but that this factor was particularly important in emerging markets, where nearly 60 percent of survey participants claimed to pay attention to this.
The elimination of “suspect" additives is not enough, however. Consumers also want functionality; they are demanding what may be termed “enhanced natural" offerings.
Probably the most pertinent manifestation of this is the high-protein trend, which has catapulted Greek-style yogurt to success in the United States. Chobani, ostensibly labeled as containing “only natural ingredients" and boasting “12 grams protein" per 150-gram serving, is the leading U.S. yogurt brand with sales of $1.7 billion in 2013, equating to a value share of 21 percent.
The question is—are consumers actually prepared to pay more to compensate the industry for its ongoing efforts to make products healthier? According to Euromonitor’s survey, more than half of consumers are willing to pay more for food items with added nutrients, compared to the same product without such attributes. Further, three-quarters would pay more and one-third would pay a price 50-percent more or higher for products that offer health benefits.
For a closer look at “enhanced natural" products in the marketplace, visit “From Clean Label to Enhanced Natural," in the March issue of the Boardroom Journal: Navigating Consumer Activism.
The elimination of “suspect" additives is not enough, however. Consumers also want functionality; they are demanding what may be termed “enhanced natural" offerings.
Probably the most pertinent manifestation of this is the high-protein trend, which has catapulted Greek-style yogurt to success in the United States. Chobani, ostensibly labeled as containing “only natural ingredients" and boasting “12 grams protein" per 150-gram serving, is the leading U.S. yogurt brand with sales of $1.7 billion in 2013, equating to a value share of 21 percent.
The question is—are consumers actually prepared to pay more to compensate the industry for its ongoing efforts to make products healthier? According to Euromonitor’s survey, more than half of consumers are willing to pay more for food items with added nutrients, compared to the same product without such attributes. Further, three-quarters would pay more and one-third would pay a price 50-percent more or higher for products that offer health benefits.
For a closer look at “enhanced natural" products in the marketplace, visit “From Clean Label to Enhanced Natural," in the March issue of the Boardroom Journal: Navigating Consumer Activism.
