Processors misjudge consumers over pricing and freshness

Manufacturers are misguided when it comes to consumer expectations of product pricing and freshness, according to a survey conducted by consultancy firm Deloitte.

While 42% of consumers claimed that lower prices were a key factor in determining where they do their shopping, only 8% of manufacturers cited price-led value as a key trend.

Almost two fifths (39%) of shoppers said that the freshness of fruit and veg was an important factor in food shopping, but only 13% of manufacturers mentioned freshness as a trend. “If manufacturers under-estimate the importance of freshness, then they probably over-estimate demand for organic produce,” said Deloitte. This was cited as a key consumer trend by 25% of suppliers, yet just 15% of consumers wanted retailers to have a better selection organic products.

“While organic produce has its supporters, many consumers take a more sceptical approach to the ‘organic’ label. Scrubbed and pre-packed supermarket carrots labelled ‘organic’ look and often taste very much like the standard offerings. They are very different from the dirtier and misshapen ‘organic’ versions found in many farmers’ markets and regarded as more authentic,” said Deloitte. “If authenticity becomes more transparent then this scepticism may diminish,” it added.

Processors also felt that local sourcing was a big trend with 46% regarding it as important, although it was only mentioned by 15% of consumers. However, Deloitte claimed the industry was showing “prescience” as in recent weeks concerns raised by green campaigners over climate change had increased and the emphasis on food miles had grown.

The trend perception data was published in ‘An appetite for change: Food and beverage 2012’, which reported on a survey of more 1,000 consumers and 77 senior executives at leading food and beverage businesses.