Introduction
Consumers feel they are getting torn in all directions by time pressure leaving them seeking an antidote, and so are wishing to 'reconnect with the real' with authentic products. These are products with a compelling brand narrative and based on traditions, heritage and passion. In the US, the specialty market for food and drink was worth US$63.2 billion compared with US$37.4 billion in Europe.
Scope
Unique consumer survey of key factors contributing to the diverse elements in the purchase of authentic products, segmented by demographic groupings.
In-depth analysis and insight into the drivers and needs of the underlying desire for authentic food and drink.
Quantitative data outlining the current and future value of the specialty food and drink market segments.
Detailed action points offering practical strategies based on the trends and insights analyzed in the report.
Highlights
Authentic food matters to Italian and UK consumers the most as they are most likely to have reduced their consumption of processed food. As many as 73% of Italians and 65% in the UK have acted in this way in the last year.
Middle income Americans are one of the least likely groups to have altered consumption of organic produce over the last year, with 56.9% making no change and only the highest earners making less change overall. In Europe there is a stronger correlation between consuming more organic goods and higher income (authentic products in certain respects).
French and Spanish consumers are self-treating with indulgent authentic food and drink considerably more than in the past year, but the biggest rise in these occasions has been in the UK with 45% of consumers increasing their stress-beating, self-treating consumption to some degree.
Reasons to Purchase
Improve your marketing strategy by targeting the most profitable consumers and understand their purchase motivations.
Understand how purchasing behavior varies by major national market and socio-demographic grouping and how you can best capitalize on these differences.
View best practice examples of targeting affluent and up-trading consumers with the key areas for future new product development.
TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
The hot topic 3
The future decoded 3
Action points 4
CHAPTER 2 THE FUTURE DECODED 11
‘Authenticity’ is a concept built on six core attributes 11
The organic and specialty markets are key indicators of the development of the authenticity trend 12
TREND: Sales of specialty food & drinks are growing 13
TREND: People are choosing authenticity as a backlash to aspects of modern life 14
Consumers would like to escape the rat race but can’t 14
Self-treating with authentic products is a popular way to relieve stress 17
People are rebelling against the superficiality of modern life 18
TREND: Consumers are seeking to ‘reconnect with the real’ 19
Consumers want products that reflect their values 19
Consumers seek authentic products to improve their health 21
Safety concerns are encouraging people to seek out authentic products 22
INSIGHT: Buying authentic goods is most prevalent among the rich 23
High earners are genuine targets for authentic products 24
INSIGHT: ‘Boomers and Generation Y ‘buy into’ authenticity 28
Baby Boomers are the original ‘authenticity-seekers’ 28
INSIGHT: Consumers expect more from authentic products than standard ones 30
Consumers have greater emotional involvement in premium products 30
Consumers’ cognitive dissonance impacts authentic products 32
INSIGHT: An artisanal approach is a compelling aspect of authenticity 33
Consumers value the traditions of authentic products 33
Consumers want a compelling brand story 34
INSIGHT: Freshness is one compelling aspect of authenticity 36
INSIGHT: The ‘best’ quality of ingredients is essential 39
Consumers are turning to absolute quality more and more 39
Consumers will wise up quickly to false authenticity 41
INSIGHT: Provenance is an authenticity cue sought by consumers 43
‘Terroir’ is a key opportunity beyond the wine category 43
INSIGHT: Consumers are seeking better quality from everyday products 45
Traditional wisdom about the trading-up frequency of mature consumers no longer holds true 45
US and French consumers are still trading up to treat themselves 46
Conclusions 47
CHAPTER 3 ACTION POINTS 48
Introduction 48
Protect the brand strength of ethically-focused authentic products 48
Develop credible niche brands… 50
…Or acquire credible existing authentic brands 51
Incorporate clear authenticity cues into packaging 53
Make packaging consistent with the prime brand value 53
Include provenance as an authenticity cue 54
Heavily leverage origin where your product has advantage 54
Gently evoke a national idyll where relevant 55
Use distribution and décor as key authenticity markers in retail and foodservice 56
Follow Safeway’s example by making freshness the core of authenticity 58
Conclusions 59
CHAPTER 4 APPENDIX 60
Supplementary data 60
Research methodology 62
Definitions 62
Further readings 63
Report writing team 63
How to contact experts in your industry 64
LIST OF TABLES
Table 1: Specialty food & drink sales (US$ m), US & Europe, 2001-2011 13
Table 2: Trends in work-life balance patterns by generational cohort (% respondents), US & Europe, 2006 15
Table 3: Trends in work-life balance patterns by household income group (% respondents), US & Europe, 2006 16
Table 4: Trends in self-treating (% respondents), US & Europe, 2006 18
Table 5: Trends in ethical food and drink purchasing (% respondents), US & Europe, 2006 20
Table 6: Trends in healthy eating approaches (% respondents), US & Europe, 2006 22
Table 7: Trends in healthy eating attitudes by income group (% respondents), US & Europe, 2006 25
Table 8: Trends in organic food purchase by income group (% respondents), US & Europe, 2006 26
Table 9: Trends in artisanal food purchase by income group (% respondents), US & Europe, 2006 27
Table 10: Trends in artisanal food and drink purchase by generational cohort (% respondents), US & Europe, 2006 29
Table 11: Trends in ethical food and drink purchase by generational cohort (% respondents), US & Europe, 2006 30
Table 12: Trends in trading-up purchasing behavior (% respondents), US & Europe, 2006 31
Table 13: Trends in nostalgic purchasing behavior (% respondents), US & Europe, 2006 34
Table 14: Attitudes to fresh food and drink (% respondents), US & Europe, 2006 37
Table 15: Trends in indulgence product consumption by lifestage group (% respondents), US & Europe, 2006 46
Table 16: Trends in trading-up behavior (% respondents), US & Europe, 2006 47
Table 17: Trends in artisanal food and drink purchase by country and generational cohort (% respondents), US & Europe, 2006 60
Table 18: Trends in ethical food and drink purchase by country and generational cohort (% respondents), US & Europe, 2006 61
Table 19: Definitions 63
LIST OF FIGURES
Figure 1: Authentic products share many core attributes 11
Figure 2: Modern life creates the conditions for authenticity in CPG products 19
Figure 3: Jack Daniel’s is a perfect example of an authentic global brand 35
Figure 4: Birds Eye has exploited the healthiness of its frozen food 38
Figure 5: Jones soda’s use of cane sugar will boost its authenticity 40
Figure 6: Regional authenticity brings benefits and constraints 41
Figure 7: Changing consumer attitudes have forced Sunny D to change 42
Figure 8: The Grey Goose bottle is an integral part of its attraction 44
Figure 10: Ethical approaches must vary by brand / company size 49
Figure 11: L’Oreal has smoothly integrated The Body Shop 50
Figure 12: Company or brand size impacts authenticity credibility 51
Figure 13: Ben & Jerry’s is a sustainable authentic brand 52
Figure 14: Ty Nant’s fluid bottle communicates the purity of the water 53
Figure 15: Imperia uses Russian heritage at the heart of its marketing 55
Figure 16: Subtle branding cues reinforce geographical provenance 56
Figure 17: Nando’s décor strengthens its authentic brand values 57
Figure 18: Safeway has added brand authenticity through product range and in store environment 58