Eating Responsibly

Consumers are looking to purchase foods and beverages from companies whose practices best align with their personal values. That includes treatment of employees, approaches to animal welfare, agricultural/processing methods, and transparency as well as environmentalism.

One-third (35%) of consumers say that food responsibility or sustainability has a great impact on their food purchase decisions (4 or 5 on a 5-point scale), and more than three-quarters (77%) rate its importance at 3 or higher, according to the International Food Information Council’s (IFIC) 2016 Food & Health Survey. In 2015, for the first time, these “evolving values” were a primary driver of purchase decisions versus price, taste, and convenience, reports Deloitte in its Capitalizing on the Shifting Food Value Equation analysis.

The global market for ethically labeled packaged foods totaled $794 billion in 2015 and is projected by Euromonitor to reach nearly $873 billion by 2020. China is now the third-ranking market for ethical labels, behind the United States and Japan. The United Kingdom leads in animal welfare with $30 billion in related food sales.

The humane treatment of farm animals and reducing the use of antibiotics and growth hormones in poultry/livestock are very important to more than half of Americans, per the Food Marketing Institute’s (FMI) 2016 U.S. Grocery Shopper Trends. One-third think the ongoing use of antibiotics/hormones represents a serious health risk, and 26% say it poses some risk.

Two-thirds of consumers believe that grass-fed beef products are healthier, and 62% believe that free-range/cage-free products are healthier; 49% and 39% of consumers, respectively, think they are tastier, explains Technomic’s 2016 Healthy Consumer Trend Report. IRI reports that no antibiotics ever (NAE) contributed 67% of total dollar sales growth for chicken in 2015. Sales of NAE meat reached $2.9 billion, up 23% versus 2014. NAE deli meat sales jumped even more in 2015—up 29%.

Six in 10 U.S. adults are very interested in meat/poultry “raised in the USA,” and 41% feel that way about locally produced meat/poultry, per FMI’s 2016 Power of Meat survey. FMI also reports that 5% of U.S. adults are on a vegetarian diet; 2% are vegan.

The degree of transparency (what is in or not in food) is increasingly becoming an important factor in determining brand trust and quality. According to the Hartman Group’s 2015 Culture of Food report, 100% natural, minimal processing, local, 100% organic, sustainably produced, unique origin/production story, and handmade/artisanal are now among the attributes that define foods as high in quality.

One-third of consumers are avoiding genetically modified organisms (GMOs), according to IFIC; 52% are concerned about their safety, up 7% versus 2015. FMI’s 2016 Shopping for Health report notes that 34% of shoppers bought organic products in order to avoid GMOs. Sales of organic food/beverages reached $39.7 billion, +11% in 2015, per the Organic Trade Assoc. According to the Hartman Group’s 2016 Organic & Natural Report, the definition of organic has broadened from basic “farm level purity” to reflect “made simply” and “made responsibly,” factoring in USDA standards related to consumer health, animal welfare, the environment, and workers.

Ten of the top 15 overall hot culinary trends for 2016 cited in the National Restaurant Assoc.’s 2015 What’s Hot? survey reflect sustainable values: locally sourced meats/seafood, locally grown produce, hyper-local sourcing, natural ingredients/minimally processed foods, environmental sustainability, sustainable seafood, house-made items, farm-/estate-branded items, and artisan butchery.

In 2015, 47% of Americans thought a lot about how their food was produced, per IFIC; 40% thought it was very important that foods are produced in a sustainable way. Interest in responsible farming methods has jumped 39% since 2013, per Hartman’s 2015 Transparency Report. Watch for consumers to become increasingly concerned about agricultural chemicals beyond pesticides.

In terms of social responsibility, corporate actions rank third in importance to food shoppers behind providing quality products and the humane treatment of animals, per FMI. Working conditions/treatment of employees is considered most important, cited by 47% of adults; support for the U.S. economy is a priority for 44%. Other issues of importance are the wages/benefits a corporation provides, its efforts to reduce waste and pollution, its support of the local economy, and its efforts to avoid excess packaging.

Mintel reports that 7.9% of new U.S. foods/drinks carried a Fair Trade claim in 2015; just over a quarter (26%) of consumers said they were more likely to buy a food/drink with a Fair Trade icon.

Food industry environmental sustainability targets for 2020 will continue to focus on energy use/renewable energy; waste management, including water; food waste; food security; reducing carbon footprints; and sustainable sourcing of fish, coffee, cocoa, and palm oil.

A. Elizabeth Sloan, PhD, Contributing Editor
President, Sloan Trends Inc., Escondido, Calif.
[email protected]