Frugality, the word of 2009
The dawn of New Year is upon us but rather than optimism consumers have a palpable feeling of trepidation as they enter 2009.
Concern over expanding waistlines following the Christmas excess will lose out to retracting purse strings; the priority diet being one that saves the pennies, rather than loses the pounds.
Frugality will be the word at the checkout this year as food sales continue to fall as has been witnessed for the first time in 20 years. Reverting to war-style rationing, it's no wonder I heard that 'Cancel the Restaurant Eat At Mine' (CREAM) will become the new mantra.
A recent YouGov poll of 4,000 UK shoppers highlighted the top 20 items that they have already been forced to forgo in order to live more frugally. Coming in at numbers nine to 12 are food 'luxuries': organics, branded food, fresh coffee and uncut bread.
So what opportunities exist for product development in such a frugal climate? Consumers are not just cutting down on expensive food treats, but also the amount of food waste. It makes sense to look again at your current portion and pack sizes and shelf-life where end of life microbiological status of existing products may have scope for extension. Secondly, capitalising on raw materials which have been little affected by soaring food costs is a wise move, incorporating them into prepared dishes which consumers will consume as part of their restaurant-at-home dining experience. Tomatoes, oranges and bananas are a good starting point.
Thirdly, more effective sourcing of raw materials and further process optimisation to strip unnecessary costs out of food manufacturing will help suppliers ultimately pass on savings to the end consumer.
No doubt 2009 will be tough but the healthier survivors will be those that exploit every opportunity on existing lines and in niche areas where category market share is always there for the taking.
Angela Mitton is creative product developer at NPD consultancy Beetroot & Orange http://www. beetrootandorange.com
