Food Processing - April 2008 - (Page 66)

TOOPS SCOOPS Sustainability has evolved from a niche concern to a major factor influencing purchasing and shopping behavior. Sustainability emerging as key trend By Diane Toops, News & Trends Editor A pproximately 50 percent of U.S. consumers consider at least one sustainability factor in selecting consumer packaged goods (CPG) and choosing where to shop for those products, according to a recently released survey conducted by Information Resources Inc. (IRI). The 22,000 U.S. consumers surveyed were asked to determine the impact of four key sustainability features in their product and store selection: organic, eco-friendly products, ecofriendly packaging and fair treatment of employees and suppliers. One-fifth of consumers are determined to be “sustainability driven,” taking at least two sustainability factors into account when making their selections. “Sustainability has evolved from a niche segment concern to a major factor influencing purchasing and shopping behavior across a sizable consumer base,” says IRI Chief Marketing Officer Andrew Salzman. “Our survey indicates consumers are focused more and more on the social and environmental impact of their CPG purchases, creating a viable and growing U.S. market for sustainable products and packaging with the potential to mirror well-developed markets in Europe and Japan. U.S. retailers and manufacturers are beginning to respond to that demand.” Highlights of the survey include: Approximately 30 percent look for eco-friendly products and packaging in their brand selection, up to one-quarter consider fair trade practices along with SuStAINABIlIty FACtORS INFluENCING BRAND SElECtION % OF CONSuMERS Product is organic Packaging is better for the environment Product itself is better for the environment Manufacturer treats employees and suppliers fairly Source: IRI Sustainability Survey; 22,267 respondents 39% 29% 23% 21% eco-friendly or organic desSuStAINABIlIty-DRIvEN ignations in selecting a shopCONSuMERS ping destination and nearly Shopper index vs. total panel 40 percent search specifically (100 = average) for organic products. Age Score The organics market once was dominated by niche 18-34 88 manufacturers and specialty 35-44 87 retailers. Now CPG indus45-54 96 try leaders maintain a sizable 55-64 111 stake, and leading retailers, including Safeway and Krog65+ 121 er, have their own highly sucSource: IRI Consumer Network cessful organic private label lines. Several leading manufacturers also offer organic versions of favorite products, such as Kraft’s organic Wheat Thins and Chips Ahoy. “It’s a new reality that manufacturers and retailers need to address with new products and unique assortments to tap into emerging growth potential,” says Salzman. “Safeguarding the environment in whatever small way is becoming a consumer priority. And, all successful CPG industry mainstays live by one basic fact of life: The consumer’s priorities are the industry’s priorities.” Whether motivated by the aim for healthier ingredients or a heightened environmental consciousness, sustainability cuts across every age group. Contrary to assumptions it’s a more youth-oriented phenomenon, older consumers are actually more likely to weigh multiple sustainability factors in their purchases. “Consumers aged 55 and older are the real driving force behind this expansion,” says Salzman. “Generally, with the time to seek out specialty items and the resources to afford [them], aging consumers are a critical target market. As sustainable products and packaging become more widely available, we anticipate that the market will expand across consumer segments.” E-mail: dtoops@putman.net BlOG WIth DIANE Diane shares her opinion on food industry matters with anyone who will listen or read. Every Monday, Wednesday and Friday, she dishes up commentary, news and other scoops. First give her a read, then give her a piece of your mind: at www.foodprocessing.com/toopsblog. 66 • FOOD PROCESSING APRIl 2008 WWW.FOODPROCESSING.COM http://www.foodprocessing.com/toopsblog http://WWW.FOODPROCESSING.COM

Table of Contents Feed for the Digital Edition of Food Processing - April 2008

Food Processing - April 2008 Contents Editor's Plate NewsBites The Trends Rollout Food Biz Kids Consumer Taste Test - Indulgent, Superpremium Chocolate...at 3 Calories a Pop Cover Story - Annual Capital Spending Report - To Build or Not to Build? Ingredients - Trendy Fruits, Nuts and Vegetables Plant Operations - iPlant: Assessing the State of Automation Plant Operations - Your Sanitation Can Be Greener Packaging - For Which Oven? MRO Q&A New Supplier Products Toops Scoops

Food Processing - April 2008

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