CPA food shopper trends - network research report June 2011

© Network Research 2011

25 West Tenter StreetLondon E1 8DT

t +44 (0)20 7680 5100f +44 (0)20 7680 5101w www.networkresearch.co.uk

Shopper Trends, Global Food Security and The Role of Science in the Food ChainPrepared by Network Research - June 2011


page 2

Contents

Demographics

4 to 7

Section One : Attitudes to Shopping

8 to 22

Section Two : Global Concerns

23 to 33

Section Three: Role of Science in the Food Chain

34 to 40

Section Four: Conclusions

41 to 42


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Introduction : Objectives and Methodology

The main objective of this survey is to help the Crop Protection Association’s understanding of the UK’s Consumers Attitudes to Global Food Security and the impact of Food Science. The key topics that the questionnaire covered were:

• The impact of the current economic crisis on consumers shopping behaviour

• Consumers awareness and concerns relating to Global Food Security

• Consumers attitudes and any resistance to the use of Food Science in the agricultural food chain

Online survey (sample drawn from a leading panel provider)

• Fieldwork period – 16th May 2011 – 19th May 2011

• 1009 completes

• Representative sample of the UK Food Shopping population ( 70% - primary shoppers)

• 10 minute survey


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Gender and age

%

As we wanted the majority of our respondents to be primary shoppers, the demographics reflects this with over 2 in 3 respondents being female

31%31% 69%


page 5

Social grade

%

Over two-thirds of respondents classified themselves as being in the ABC1 group

ABC167%

C2DE33%


page 6

Region

%

There was an even spread when grouping respondents by regions

• NORTH – 34% • MID – 29%

• SOUTH – 36%


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Household composition

The majority of adults live with other adults and have no children under the age of 18 in their household

• 62% have no children under the age of 18 living in their household

20%

53%

15%

12%

Adults in Household Children under 18 years

19%

15%

5%


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Section OneAttitudes to Shopping


page 9

Current household food shopping bill

Over two thirds of respondents believe that their current food shopping bill was “significantly more expensive” or “more expensive” than 12 months ago


page 10

Reasons – Current household food bill more expensive


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“Everything that I would normally buy, or used to buy and have now stopped buying or replaced with

cheaper alternatives has increased in price by at least 10%. I am a canny shopper so a lot of items I now only buy when they are on special offer.”

Male/45-54/ABC1

“I have the same monthly budget for food that I had a year ago, although I

purchase fewer items and fewer branded items than twelve months

ago, I find myself using my food budget up quicker than a year ago.”

Male/35-44/ABC1

“I have to select recipes with less expensive types of food to keep my bill at the same level as twelve months ago. If I were to still buy the products I did twelve months ago, my food bill would be a lot

more expensive.”Female/35-44/ABC1

“Last year I could buy all the basic food stuffs I needed, household

cleaning agents and a few treats for about £22 a week. Since February I

have really struggled to complete the same shopping, less luxury food items for under £35 a week. My weekly treat

of a pizza and bottle of Hoegaarden has now become monthly.”

Female/25-34/ABC1

“Basic items like pasta, bread and sugar etc have shot up in price. I only buy fruit &

eggs that is on offer now. Otherwise my bill would be unaffordable.”

Female/35-44/C2DE

“I am very certain food prices are going up on an extraordinary level. The VAT has gone up to 20% here. I am definitely

paying more for the same products than I was 12 months. You just notice it.”

Male/25-34/C2DE

Reasons – Current household food bill more expensive


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Average food spend per week

Over half of respondents (55%) in the 18-24 years age band spend £50 or less on their weekly food shopping

One in four respondents between 45 and 54 years old spend more than £100 each week on their food supplies

Unsurprisingly, larger households with two children under the age of 18 spend significantly more on grocery shopping than households without children (£88 vs. £57)

The average shopper spends £66.80 per week on their household food shopping


page 13

Frequency of food shopping

Younger primary shoppers (18-24) tend to purchase food more frequently i.e. 2 to 3 times per week than 35 to 44 years old shoppers (38% vs. 23%)

While not significant, the proportion of respondents shopping once every week or every two weeks is higher in the North than in the Southern region of the country (65% vs. 58%).

The one week main shop with some top up shopping is the most popular choice of behaviour


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Household food shopping patterns in the last 12 months

More than half of 45-54 shoppers agree that they pay more attention to labels. The proportion drops in the age band 35-44, where less than 4 in 10 agree or strongly agree with the statement.

Eight in ten woman agree or strongly agree that they are more conscious of their food spending, a significantly higher proportion than men (71%)

68% of 45-54 years old agree that they buy fewer luxury items, a significantly higher proportion than 18 to 24 years old (53%)

Again, a significantly higher proportion of woman (66%) than men (57%) agree that reducing waste is important to them

Shoppers have become far more conscious about what they are spending and are purchasing fewer luxuries

Please note that only top 2 and bottom 2 boxes have been shown.


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The proportion of woman that agree they are looking for ways to stretch their food budget is significantly higher than men (74% vs. 60%). Likewise, social grade has a significant impact on the necessity of stretching household food budget. 74% of C2DE agree with the statement, compared to 67% of ABC1

Again, gender plays a determinant role: a significantly higher proportion of woman than men agree that they are taking advantage of special offers (83% vs. 66%)

Almost two in three (62%) C2DE and households with more than 4 adults (63%) agree than they buy more of the Supermarket value lines than they used to



page 16


Four in ten C2DE agree that they are cutting down other expenses in order to pay their food bills, a significantly higher proportion than ABC1

45% of shoppers in households that spend between £101 and £150 a week on food agree that they are reducing other expenses in order to meet their food needs. As expected, the proportion of shoppers who spend between 0 to £50 agreeing with this statement is significantly lower (34%)

A significantly greater proportion of woman than men ( 65% vs. 57%) state that their food bills now accounts for a greater share of their household budget

As seen in the previous statement, respondents whose weekly shopping expenditure is between £101 and £150 are significantly more likely to agree that their food shopping accounts for a greater proportion of their household expenditure

Higher food prices are taking a larger slice of household income and making shoppers about what they buy



page 17


Over 2 in 5 respondents agree that they will continue to buy what is best for their family regardless of the current prices

Unsurprisingly the ABC1 group are significantly more likely to agree that they will continue to buy what is best for their family regardless of price the C2DE group (49% vs. 38%)

While the C2DE group are significantly more likely to state that they are having to go without key items that they used to purchase because of the current food prices (40% vs. 29%)



page 18

Comparing current prices of selected foods to 12 months ago

A significantly higher proportion of shoppers falling into the 45-54 age group believe prices for most items are more expensive than shoppers between 18 and 24 years old (Fruit and vegetables 78% vs. 58%/ Meat 88% vs. 62%/ Staples 69% vs. 36%)

Almost four in five shoppers (75%) assess the price of meat products to be more expensive that a year ago. The proportion rises to 80% in households with two children.

Shoppers have seen price increases across all the categories presented



page 19

Attitudes towards food purchasing – Organic Food

Food should be produced using sustainable resources

Organic food is too expensive

I am willing to spend more for Organic Food

% Agree % Disagree

22 55

82 4

68 4

Surprisingly, young shoppers between 18 and 24 years old seem to be less concerned about food being produced with sustainable resources compared to older shoppers in the 55-64 age band (63% vs. 73%)

The belief that organic food is too expensive is significantly more marked in woman and shoppers between 55 and 64 years old.

Almost two in three (62%) C2DE are unwilling to spend more for organic food. As expected, household that spend between £101 and £150 a week on food are significantly more likely to agree that they are willing to spend more on organically produced food

Shoppers want to buy food from sustainable sources but are not willing to trade into more expensive organic options



page 20

Attitudes towards food purchasing – local and Fairtrade sourced food

I prefer to buy food produced in Britain

I prefer to buy locally sourced food

I prefer to buy food that is from Fairtrade sources

% Agree % Disagree

53 10

41 18

58 8

ABC1 are significantly more likely to agree that they prefer to buy food produced in the UK.

Six in ten respondents from the Mid region express a preference for British grown and produced food

Female, 55 to 64 shoppers and once again ABC1 are significantly more likely to buy locally sourced food

A significantly greater proportion of ABC1 than C2DE (47% vs. 30%) agree that they prefer to buy food from Fairtrade sources.



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Summary: Food Shopping Behaviour (1)

• Almost 70% of the respondents felt that there food shopping bill was more expensive than a year ago.

• With the average household spending almost £70 per week on household food shopping this represents for some a significant proportion of household income.

• Consumers are becoming more conscious of their food bills (78%) and are using a variety of means to stretch their budgets, including the greater use of promotions, supermarket value propositions and reducing waste.

• Despite these increases, and with food accounting for a higher proportion of household expenditure, just over a third of our sample are agreeing that they reduce other household expenditure to meet there food bills.

• Almost half of the sample (stronger amongst the more affluent) suggest that what is best for the family is important and that core food shopping will not be compromised. They would rather reduce the number of items purchased, reduce waste and the weekly ‘treats’.


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Summary: Food Shopping Behaviour (2)

• All of the food categories presented were seen to be more expensive for the majority of our sample in the last 12 months, with older (and perhaps more savvy) shoppers claiming stronger opinions.

• Consumers do want sustainable food to be available (68%) but the prices of Organic foods are a major turnoff for the majority. Judging from these results the Organic sector would appear to be the preserve of only the very wealthy and the most ardent of shoppers.

• The drivers for locally sourced food, British origin and Fair-trade are skewed towards the more affluent.


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Section TwoGlobal Concerns


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Global concerns: the growth of the world’s population

Very Concerned/Concerned• A significantly higher proportion of 55-64 (67%)

•Shoppers in the South are significantly more likely to agree that they are concerned about the growth of the population than shoppers from the North


page 25

Global concerns: the impact climate change will have on our lives

• Female (22%)

• South (22%)

• Female (37%)

• 18 to 24 years old (39%)


page 26

Global concerns: natural disasters

• 45-54 years old (60%)

• Significantly higher proportion of females (59%)


page 27

Global concerns: global fresh water supplies

• Males (16%)

• 35 -44 years old (16%)

• Female (22%)

• South (23%)

• Household with one child (23%)


page 28

Global concerns: global energy requirements are too high

• 45 to 54 years old (42%)

• ABC1 (41%)

• Households with three adults (41%)


page 29

Global concerns: the threat of global terrorism

• A significantly higher proportion of those aged 45+ (67%)

• Significantly higher proportion of females (62%)

• Households with one child (62%)


page 30

Food production in the UK and around the world

Food pric

esShoppers believe we should be doing more in the UK to help ourselves and are looking to the Government to take a lead in rising food prices

• Females and the C2DE group are significantly more likely to agree with this statement than males and ABC1 (76% vs. 68%) and (79% vs. 70%)



page 31

Food production in the UK and around the world

Nearly 8 in 10 respondents agree that the UK should become more self sufficient in regards to food production

• Amongst respondents who are concerned about the growth of the world’s population the percentage that agree with this statement increases to 64%

• Amongst respondents who are concerned about the impact of climate change the percentage that agree with this statement increases to 80%



page 32

Summary: Global Issues

• In all Global issues presented to our respondents over half of the sample were concerned or very concerned about the factors influencing our planet. In the majority of cases stronger concerns were expressed by those households with families.

• A large proportion of our sample (82%) recognise that the continued rising oil price will have a detrimental impact on the cost of food, a smaller majority (70%) also recognise that global demand for food will have a similar effect, and 60% of our sample believe that climate change will impact on the availability of food.

• Just under half (49%) believed that the Worlds growing population will have an adverse effect on food availability in the UK.

• Against this backdrop over three quarters of our respondents believe the government should intervene and do more to prevent food price inflation. Equally three quarters believe that the UK should safeguard its interests and become more self sufficient in food production.


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Has the time of cheap food come to an end ?

64% Two thirds of our sample agreed that the timeFor cheap food had come to an end.

There was a bias in results towards the older,female and high spending shopper.

How will this impact on our choices for the future....?


page 34

Section ThreeRole of Science in the Food Chain


page 35

Food science

• Males are significantly more likely to agree with this statement than females (68% vs. 48%)

• While not significant females are more likely to agree that supermarkets should play a greater role in explaining how food is produced and that the use of science in food production should be controlled by the Government

The majority of shoppers believe food science is a positive and should be used to meet future production needs. However they see government controlling its use.



page 36

Genetically modified (GM) food

• 18-24 year olds are significantly more likely to agree that GM foods should be allowed to be sold in the UK than older age groups• Males are also significantly more likely to agree than females (48% vs. 28%)

• 18 – 24 year olds and males are more likely to agree with the following statements when compared to other age groups and females

Approximately one third of respondents agreed that GM foods should be allowed to be sold, this increased marginally if the benefits of price, nutrition and environmental safety could be delivered



page 37

Use of pesticides in food production

• While not significant respondents from the South are more likely to agree that “Pesticides are essential to protect crops” than respondents from the North or Mid regions

4 in 10 respondents saw pesticides as essential to protecting crops, while just over 1 in 4 agree that pesticides should be used to increase yields



page 38

Who should take responsibility for the introduction of further food science into the food chain – Top choice

Other responses given (11 responses):

• Universities - 2 responses

• Everyone (i.e. the consumer) – 3 respondents

• Independent body – 2 respondents

• Don’t know – 4 respondents

4 in 10 respondents believe it is the Government who should take responsibility for the introduction of further food science into the food chain

• Males and ABC1 group are significantly more likely to believe it is the Government’s responsibility than females or C2DE group (47% vs. 36%) and (44% vs. 31%)

• Females and C2DE group are significantly more likely to believe it is the food producers responsibility than males or ABC1 group (24% vs. 16%) and (27% vs. 19%)


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Summary: Food Science

• With over half of the sample generally positive to the use of science in the Food Chain (much stronger amongst males), and very few dissenters (under 8%) there is a positive message for the Crop Protection Association.

• However Consumers want the Supermarkets to take a greater lead in explaining how food is produced (67%)

• 59% of our respondents want Government to control science in food and make the production of food a key plank in economic and political policy

• Today more people would buy GM foods if proven to be safe for the environment, more nutritious than those who would not. If GM food kept prices down was not as important as those factors related to nutrition and environment.

• It is fair to say that the opinions of the UK market for GM are still very polarised with almost a quarter/one third disagreeing that GM should be sold even with proven benefits of nutrition, price and care for the environment.


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Summary: Food Science (2)

• Like the issues presented for GM, Pesticide use has a sizeable proportion disagreeing with the essential nature of pesticides and current controls/use.

• However despite these negatives there are slightly more people advocating the continued use of these products.

• It is our belief that these results indicate that continued education is still required to promote both the use of pesticides and the introduction of GM foods into the food chain. Consumers need to be convinced of their safety and nutritional benefits, coupled with the controls in place to ensure environmental security. The benefits that might translate into lower prices are seen as secondary to those above.


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Section FourConclusions


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Conclusions

• Thanks to inflation busting price increases, food shoppers are becoming increasingly more knowledgeable about the food they purchase. With constant pressures on the household purse many are now changing their usage and purchasing habits and seeking better deals on shelf.

• Shoppers audited through this survey see a clear link between increasing global demand, rising fuel prices and the increases in food prices.

• Shoppers want Government to intervene and place food security higher on the agenda, they want to see more food grown in a sustainable fashion and want the UK to become more self sufficient. Equally they expect retailers to tell them how food is sourced.

• Shoppers are polarised in their opinions over food science in the food chain, whereas most want and see Science being used for the good, a sizeable minority want greater controls and assurances before GM Foods can be introduced and further uses of pesticides are sanctioned.


25 West Tenter StreetLondon E1 8DT

t +44 (0)20 7680 5100f +44 (0)20 7680 5101w www.networkresearch.co.uk

Thank you

For further information relating to this study please contact Giles [email protected]

Technology

CPA food shopper trends - network research report June 2011