Food & Drink Safety: Winning Back Consumer Trust

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

Overview

Introduction

Informed consumers worldwide share a common interest in seeking accurate information about food safety, expanded food choices, and a balanced diet that can maximize their potential for sustained good health. With this, product safety has become an important topic in recent years, especially for food and drink.

Scope

• Detailed insight and analysis covering consumers' confidence in the supply of food and drinks and how this is influenced by safety incidents.
• Assess the importance of food safety against the numerous other considerations shaping consumer buying behavior.
• Covers a broad range of issues related to product safety including the growing sensitivity surrounding food and drink allergens and intolerances.
• Strategic conclusions and actions highlighting how manufacturers and retailers should direct resources towards (re)gaining trust.

Highlights

Research in both Europe and the US shows that the majority of consumers are concerned about the safe provision of groceries. The recent spate of high profile incidents which includes contaminations, recalls and confusion over marketing claims have eroded trust in consumer packaged goods (CPG) manufacturers and retailers.

Manufacturers and retailers need to respond to consumers' increasing food sensitivity. Datamonitor research found that 44% of European consumers felt that "checking food or drinks for allergy or intolerance reasons" was either ' important' or ' very important' . A similar level of importance was also placed upon this by US respondents (43%).

Overall perceptions and consumer confidence in food and drinks are shaped by the product type being purchased as well as where it was produced. With respect to socio-demographic variables women are more concerned about safety issues than their male counterparts. Food safety concerns also typically escalate with age but not with education levels.

Reasons to Purchase

• Gain a detailed insight into consumer views towards food safety issues and understand the implications for product and communication management.
• Access a blend of quantitative and qualitative data aggregating the most compelling and recent research in this increasingly important topic.
• Ensure that you are well prepared for future safety crises and learn how to manage consumer perceptions and expectations most appropriately.

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • INTRODUCTION: Food and beverage safety issues are gaining precedence
  • TREND: Consumer concerns over food and drink product safety are escalating
    • Consumer opinion research shows that food safety is increasingly important for shoppers
    • Food and beverage safety concerns are secondary to other general factors and in relation to product choice
    • Take-outs and implications: there is a clear need to restore consumer confidence over product safety
  • TREND: The allergen and intolerance food and drink market is booming as consumers act upon both perceived and actual nutritional problems
    • The issue of food allergens and intolerances has become both important and highly sensitive
    • Take-outs and implications: manufacturers and retailers need to respond to consumers' increasing food sensitivity
  • INSIGHT: Concerns over food and drink safety are broad-ranging
    • There are numerous nutritional and broader safety risks associated with food and drinks
    • Europeans express worry about a broad range of food risks factors especially those out of their control
    • US consumers are also attentive to the range of factors influencing food safety perceptions
    • Take-outs and implications: manufacturers and retailers need to manage consumers' perceptions and expectations over a broad range of food and drink safety issues
  • INSIGHT: Socio-demographic status influences consumer confidence in food and drink
    • Women are more concerned about safety issues than their male counterparts
    • Food and drink safety concerns typically escalate with age
    • Take-outs and implications: concerted efforts to restore consumer confidence should be targeted at older shoppers and females
  • INSIGHT: Product format and origin are important influencers in shaping consumer confidence in food and drinks
    • Consumers are most likely to express concerns over fresh food, especially meat
    • Many consumers perceive organic products as a safe and healthy way to avoid potential risks of exposure to pesticide residues in foods
    • Consumers have more confidence in food and drinks associated with particular places
    • Take-outs and implications: interest in provenance, organics and freshness will all increase due to heightened product safety concerns
  • INSIGHT: Reduced confidence as a result of food safety incidents will result in boycotts, switching of brands, negative word of mouth and loss of trust
    • The impact of food safety incidents should not be underestimated
    • Food safety incidents impact US and European consumers in a similar manner
    • Reduced confidence in food and drinks negatively impacts brand trust, which dampens possibilities of developing longer term relationships with consumers
    • Take-outs and implications: it is vital industry players manage food safety incidents appropriately
  • INSIGHT: Consumer confidence in product safety can be strengthened with an emphasis on certain information formats
    • Consumer groups, expert professionals and like-minded peers are the most trustworthy sources of information
    • Consumers react positively to transparency in the food and drink supply chain
    • Take-outs and implications: consumers will respond more favorably to specific communication efforts made by manufacturers and retailers
• ACTIONS
  • ACTION: Leverage the product attributes and communication cues that consumers perceive to be most trustworthy
    • Communicate the advantage of existing, established brands over new products
    • Build relationships with the ' expert community'
    • Be wary of the negative effects of celebrity endorsements
    • Make product quality a key brand value to build confidence in products
    • Communicate ethical and environmental credentials but make it the secondary part of any message
  • ACTION: Make transparency and traceability core features of supply chain and marketing communications development
    • Transparency and traceability initiatives need to focus on four areas
      • Make concerted efforts at industry level
      • Be pro-actively open about the communication of a wide range of trust issues through traceability initiatives
      • Primarily target female and more mature consumers with confidence-enhancing messages
  • ACTION: Avoid making product safety the central theme of marketing communications
• APPENDIX
  • Definitions
  • Methodology
  • References/ Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Consumer survey: Response by country to the question: "How important is checking food or drink for allergy or intolerance reasons", 2006
    • Table 2: Market value (US$m) for the allergen and intolerance food market, 2001-2011
    • Table 3: Market value (US$m) for the allergen and intolerance drink market, 2001-2011
    • Table 4: Consumer survey: the percentage of European consumers who are worried about various risks associated with food and drinks, by country, 2005
    • Table 5: Consumer survey: a snapshot of US consumers' food safety concerns
    • Table 6: Consumer survey: US consumer concern for cleanliness, quality and safety, by age and gender
    • Table 7: Consumer survey: the top two reasons for US shoppers buying organic food, by age
    • Table 8: Consumer survey: Europeans views on whether EU produced food is safer than elsewhere
    • Table 9: Consumer survey: Europeans' reaction to hearing about a food being unsafe or bad for health
    • Table 10: Consumer survey: European and US consumer responses when they lose trust in a company
    • Table 11: Consumer survey: level of trust among Europeans towards various information sources in the wake of a serious food risk
    • Table 12: Consumer survey: the perceived credibility among Europeans and US consumers of various sources of information, by region, 2006
    • Table 13: Consumer and industry opinion survey: the influence of various factors on (re)gaining consumer trust
  • List of Figures
    • Figure 1: There is a trust void between business and global consumers
    • Figure 2: Public opinion in the EU is divided on whether or not they are better off now in terms of food safety
    • Figure 3: Europeans are skeptical about the enforcement of food safety laws
    • Figure 4: Food safety is not a top-of-mind factor influencing food consumption or a top-of-mind concern compared to other lifestyle worries
    • Figure 5: Marked differences characterize food allergens and intolerances
    • Figure 6: Italians are the most concerned about food & drink allergen and intolerances
    • Figure 7: The numerous risks associated with food and drinks can be split into two categories
    • Figure 8: More than three-quarters of Europeans are "very worried" or "a bit worried" about potential risks related to food
    • Figure 9: The majority of US and European consumers place importance on reducing processed food consumption
    • Figure 10: The high importance that consumers place upon organic food and drinks is influenced by food safety concerns, especially the desire to avoid free of pesticides and preservatives
    • Figure 11: Ethnocentrism - among other things - contributes to a distrust towards ' foreign' companies
    • Figure 12: Gaining a reputation for the provision of good quality products is a hugely influential factor in gaining trust
    • Figure 13: Product quality - which is merely one of five factors affecting overall perceptions of premium status - can be categorized by four attribute groupings
    • Figure 14: Social responsibility can help to build trust with consumers
    • Figure 15: Ethical consumerism is becoming more complex and sophisticated over time
    • Figure 16: There are four core determinants of consumer trust in food and drink safety
    • Figure 17: Traceability initiatives effectively support the overall branding efforts of food and drinks
    • Figure 18: Traceability initiatives are particularly relevant to fresh food and drinks
    • Figure 19: Safety/ risk considerations are secondary to a number of other important needs associated with food and drink consumption

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