The 2019 U.S. Grocery Shopper Trends report from the Food Marketing Institute and the Hartman Group was just released, and these three findings really caught my attention.
1) ONLINE SHOPPING REMAINS VERY IMPORTANT, GROWTH SIGNS ARE MIXED
2) ORGANIC CLAIMS CONTINUE TO BE LESS SOUGHT OUT
When purchasing food, product claims that shoppers are seeking:
33% – No artificial ingredients
32% – No preservatives
27% – No trans fats
27% – Not bioengineered
25% – Natural
19% – Certified organic
11% – Gluten-free
3) ETHICS AND SOCIAL IMPACT DO MATTER TO CONSUMERS
When deciding which retail shopping store is the most desirable, customer-facing attributes, such as low prices and high-quality fruits and vegetables, are still the most important. However, a substantial number of shoppers still believe that business practices, recycling/sustainability and community involvement carry significant weight.
Attributes that are “very important” in primary store selection:
46% – Open and honest business practices
24% – Store’s recycling and sustainability practices
20% – Community involvement
Out of frequent and occasional-use smartphone users, 20% of those people are using QR code scanning to learn about social responsibility or sustainability.
MY TAKE
Two key takeaways.
First, just as with last year’s report, the “organic” claim trails behind “natural”, “not bioengineered” and “no artificial ingredients”.
This continues to show that shoppers do not fully understand what organic means, resulting in millions, if not billions, of lost sales for our industry. As we move forward, organic stakeholders cannot dismiss the scandals that are plaguing our industry — fraudulent imported grains from abroad and organic dairy “factory farms” – and the long-term damage that these may do to the integrity of the organic seal.
That being said, shoppers did seek out the organic claim 19% of the time, up from the 2018 number of 14%.
Second, while the data presented in the report about the importance of ethics and social impact was in regard to retailers, it is reasonable to assume that this data would be comparable for when consumers decide to purchase organic products.
So, the question then becomes, how well are brands articulating their social and community involvement on their packaging or websites? And how much of the packaging design is dedicated to these initiatives?
According to a report from The Label Insight and the Food Marketing Institute:
– 75% of consumers say they’ll switch to a brand that provides more in-depth product information, beyond what’s provided on the physical label.
– 61% say they’re willing to pay more for products with in-depth product information.
This data proves the point that all product attributes, including social and environmental impact, will influence the behavior of shoppers.
Yet, after covering the organic industry for more than a decade, I believe that most brands fall short in communicating this story to consumers and do not get the credit or recognition they deserve.
This presents a real opportunity for incremental sales and new customers.
 |
With gratitude, 
Max Goldberg, Founder |
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