Cost is less of an issue, while sustainability must be central to a product’s values – but shouldn’t cost more – and brand loyalty is cool again.
These are just a few of UK consumers’ rapidly shifting demands of the food and drink products they buy from supermarkets, according to recent consumer research from commercial supply chain and operations consultancy 4C Associates.
Just last year near a quarter of Brits (72.3%) cited cost as a primary concern and factor influencing purchase decisions. This has since dropped to under two-thirds (63.8%).
Consumer income stabilising
“This transition can be largely attributed to a combination of factors that have stabilised the economic environment,” said 4C Associates head of consumer products Katy Gallagher.
“Over the past year, 35% of consumers reported an increase in their household income, driven by easing inflation, stable interest rates, and modest but steady wage growth. This improved financial situation has allowed consumers to shift their focus from purely price-driven to evaluating the overall value of their purchases, including product variety and sustainability.”
Consumers were also open to exploring more diverse product ranges, a contrast to brands and retailers recently slashing and consolidating ranges.
Health continues to be a pull factor for consumers, with high-protein and locally produced items tracking highly. However, low-calorie is not essential, which highlights the complexities manufacturers face when formulating healthy products and “where health trends don’t always align with specific product preferences”, said Gallagher.
What consumers want from food and drink makers:
- Sustainability – but at no extra cost
- Brand loyalty
- Bigger ranges
- Value for money – but cost isn’t an issue
- Healthy products
- Low calorie no longer essential
Strategies to cater to consumer needs
To cater for these shifting, and sometimes contradictory, consumer demands, food and beverage makers should employ three key strategies, claimed Gallagher.
Balancing cost management with product diversity would allow makers to expand product ranges while also remaining competitive; embracing sustainability trends, by making cost-effective changes – such as sourcing locally to reduce carbon emissions; and sustaining brand loyalty through omnichannel retailing to ensure consumers face brands on multiple shopping experiences.
“As economic recover continues and consumer priorities necessarily evolve, agility and strategic adaption will be key to success in the F&B sector,” added Gallagher.
