Food & Drink Safety: Winning Back Consumer Trust

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