Friday, March 29, 2024

What’s driving new consumer trends?

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Consumer awareness of the environmental impacts on food production is on the rise with demand for sustainable alternatives increasing and meeting that will require the constant attention of food producers, marketers and retailers.
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Keynote speakers at a Lincoln University B.linc Innovation Workshop looked at the changing consumer preferences and what is driving new consumer trends.

Lincoln University marketing lecturer Samantha White says market-based strategies need to directly reflect consumer behaviour.

A two-year meat reduction and substitution research project’s findings clearly show people are becoming increasingly aware of food production, particularly in the animal food sector.

White says social media is making it easier for consumer awareness of the impacts on the environment and dietary preferences are changing with a rise in veganism.

Health concerns account for some of the change, but the adverse impacts on the environment, animal welfare and ethics are also a motivation to eat less meat.

White’s research shows 25% of consumers in the US are willing or intending to reduce meat in their diets; in Canada the figure is 60%; in the UK 26%; and Germany 44%, with Australia the fastest growing market for plant-based alternatives behind China and the UAE.

The study revealed meat reduction in young adults came down to control, compromise, crave and concern.

“Many have left home and for the first time are controlling what they buy in the grocery shopping; they are experimenting in their cooking and eating and they are compromising, maybe only cooking meat once a week, or not at all at home,” she said.

“That comes to crave – they see meat as a treat, not reducing meat because of taste but now a social crave when they eat out.

Meat substitution brings in the individual factors of perceptions, values, gender, competency in cooking, social networks and convenience.

The consumer is changing; less loyal, but more conscientious, shying away from stores and preferring experience over products.

In crop production White says there is opportunity to create high-quality substitutes for product innovation.

Foodstuffs South Island senior category manager Holly Lloyd says customer trends are complex and changing daily.

“Our job is to figure out pretty damn quick what they want and execute it in a way that meets these ever-changing needs with integrity and excellence in retailing,” Lloyd said.

“The future consumer will continue to surprise, excite, confuse and challenge us.

Lloyd says about 25% of customers are already actively engaged in reducing meat in their diet.

“Conscious consumerism is complex, there’s been a major shift over the past three years and big producers are seeing the trends and changing,” she said.

“Investment in sustainability is no longer an option but what the customer is demanding.

“Our customers’ expectations are high; they are holding us to account and raising the bar more and more.

“As retailers and suppliers we have to lead.”

From a farmer perspective High Peak Station farm operations manager Hamish Guild says diversification of the family’s business has enabled innovation and adaptation to better fit changing consumer demand.

“We farm livestock – including deer, sheep and cattle –, operate tourism – including hunting, fishing and heliskiing – and (do) beekeeping,” he said.

“We are targeting export markets trying to get our products as close to the consumer as possible, while focusing on less intensive, more profitable.

“Having multiple diverse business income streams is helping us get the value we want.”

Developing branded export product direct from the farm is challenging.

“When we ventured into branded export we were told it would be three times harder, three times more expensive and take three times longer than you think,” he said.

“Two years in, I absolutely back that. They say you kiss a lot of frogs before you kiss a princess – we have kissed a lot of frogs.”

Guild says if consumers move away from red meat, farming in the Canterbury high country would be a struggle.

“Here we climatically struggle to grow other proteins – we have to stick with what we have got, chase the niche opportunities and connect the consumers to our story,” he said.

In doing that there are plans afoot to build a lodge on the High Peak property and bring the customers to the farm.

“Consumers want to really know us and have trust in knowing we are who we say we are,” he said.

“We will bring them on-farm to stay and we’ll go about doing what we do every day, and they can get a real sense of knowing us and where their product comes from.”

Already export branded wool and honey products are proving successful in the export venture.

“It’s about pragmatic marketing at its finest while controlling the value chain for our own products to meet new customer trends and demands,” he said.

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