Brand names are not enough for the new caring consumer

In 2005 grocery shoppers were asked for their main motivation for paying a little more for food and drink products. Half of the respondents said that they would pay extra for their favourite well-known brand. This question was asked again in 2007, the percentage dropped to 33% and in 2010 it fell to just 20%, according to new data from IGD.

"It's no longer enough for manufacturers to rely on their brand name, however strong it is," said Williams. He was speaking at a French speciality foods networking event in London, organised by French Trade Commission last month. "The number of people paying extra for products because of brands has been in decline for a number of years, it's not just a trend that has popped up as a result of the recession and tighter consumer spend."

In some cases, consumers were even actively turning away from bigger, "more corporate" brands in favour of locally sourced foods, he added. For example, the number of people that said that they bought local products in the last month was 30% in 2010 compared with 15% in 2006.

"Buying locally produced foods fits into an overriding trend," he said, "and that is: paying for values. The recession has not dampened people's appetite for ethical products, although people are more careful about what they buy. Without trying to sound like a cliché, they want values for value. But value doesn't necessarily mean price because consumers are still paying a little extra where it is justified."

The number of people that have bought Fairtrade in the last month, for example, was 9% in 2006, which increased to 27% in 2010. People buying high-welfare food also increased from 11% in 2006 to 18% in 2010. Despite this, price still remained one of the key sales drivers, he added.