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    There's more to the purchase decision than taste, price and convenience

    Half of Americans also weigh "evolving drivers" into food and beverage purchase decisions.

    By Store Brands, Stagnito Business Information

    Taste, price and convenience are no longer the sole deciding factors for American consumers buying food and beverages, according to a new study from New York-based Deloitte, Food Marketing Institute (FMI), Arlington, Va., and the Washington, D.C.-based Grocery Manufacturers Association (GMA).

    The study, “Capitalizing on the Shifting Consumer Food Value Equation,” found that roughly half of Americans surveyed (51 percent) weigh “evolving drivers” — including health and wellness, safety, social impact, experience and transparency — in their purchasing decisions, in addition to the traditional drivers of taste, price and convenience. Moreover, this reality is true regardless of demographic factors.

    “Contrary to conventional wisdom, it’s not just the millennials or most affluent putting these evolving drivers in the mix,” said Jack Ringquist, principal and global consumer products leader, Deloitte Consulting LLP. “Our research reveals that the preference for these attributes does not differ by generation, income level or region, but is pervasive across these groups. The U.S. consumer has changed in a fundamental and impactful way, and people’s preferences are becoming even more fragmented than the food industry may have anticipated.” 

    The study also showed a shift in the way people think about food safety. Americans no longer define the concept of food safety based on near-term risks to their health, according to the study. Instead, nearly three-quarters (74 percent) of consumers Deloitte surveyed for its study believe that a definition of food safety limited to “one that will not cause any immediate, physical, harm” is insufficient. Consumers now link health, wellness and transparency with their definition of safety, Deloitte said, and include factors such as "free from harmful ingredients"(62 percent), "clear and accurate labeling" (51 percent), and "fewer ingredients, processing and nothing artificial" (42 percent).

    “Food retailers are inherently ‘shopper advocates,’ and they respect that their customers want both genuine and transparent shopping experiences,” said Mark Baum, FMI's chief collaboration officer. “Our study sheds light on how companies can better understand the intersection of these new consumer food values and their own growth strategies.”

    The joint Deloitte, FMI and GMA study addresses several implications of the shifting value equation for the food and beverage industry — one where some brands will “double down” on their strengths and focus more specifically on the more-traditional needs, while others will invest more and explore evolving needs. Industry implications of the report’s findings, the organizations said, include: 

    • Consumer tastes and preferences will continue to fragment
    • Retailers’ role influencing consumer purchase decisions will continue to increase
    • Smaller, newer companies will leverage new technologies, third-party relationships and improve engagement to earn consumer trust
    • Larger competitors within the industry will adjust to fulfill new, unique value propositions
    • Market success will be determined by building purpose-driven competitive advantages

    “Today’s consumers have a higher thirst for knowledge than previous generations, and they are putting the assessment of that information into their value equation,” said Jim Flannery, senior executive vice president, operations and industry collaboration for GMA. “There is no doubt that the consumer value equation has changed — as taste, price and convenience are now only the foundation with the need to leverage the emerging value drivers. Brands that win with consumers will likely be those that provide the information they seek, well beyond what is on the label.”

    By Store Brands, Stagnito Business Information
    • About Store Brands Store Brands delivers the strategic and tactical information retail executives need to develop and support compelling, differentiated store brand programs. From industry trends and opportunities to innovation tools and store brand success stories, Store Brands provides actionable ideas for maximizing quality and profitability in store brand programs.

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