High quality ingredients define premium food product
Far from fancy packaging, or celebrity endorsed products,
consumers the definition of a premium food lies in the quality of
its ingredients.
Confirming the drive by food manufacturers to use such
value-added ingredients, the IGD study finds that shoppers, while
still price conscious, are willing to pay the extra for something
special “as it authenticates their own feelings of
success”.
IGD, like other market observers, believes the ‘premiumisation’
of the food and grocery market represents a major opportunity for
the industry.
Shoppers will expect a more engaging experience and may seek a
more diverse offer within the retail environment, they comment.
“Creating differential advantage through innovation and
service improvements will be key in maintaining shopper
loyalty,” adds the report.
According to the ‘Shopportunities’ survey, the latest in a
series of similar research studies from IGD that assesses shopper
attitudes to various issues. 51 per cent of shoppers expect a
premium product to use high quality ingredients.
By comparison, only 17 per cent of participants responded ‘more
expensive’ to what makes a food premium.
Fair trade, packaging, organic and free range also all fell far
behind ‘high quality ingredients’ as the definition of premium
food.
An apparent trend in the food industry, many retailers are
enhancing their premium label range as a way of differentiating
their offer to appeal to the increasingly demanding consumer.
In addition to the food makers and retailers looking for added
gains from their premium ranges, high margin value-added
ingredients are currently the holy grail for ingredients makers
looking to boost the bottom line in an increasingly competitive
business climate.
For many shoppers, premium is a comparative term. Premium
products or services must continually innovate to provide added
value and justify their higher price, reports IGD.
‘Value-added’ ingredients have the scope to meet these ongoing,
and increasingly urgent, needs.
