Tuesday, October 26, 2010

Consumers Confused about Green, Sustainable Labeling of Foods

Claims of sustainable and green are growing on foods and beverages, but is the consumer buying them? Yes and no, and maybe not for the right reasons in some cases, says market research firm Mintel.

The research shows that consumer demand for sustainable food and drink continues to grow, and food and beverage manufacturing companies are increasing the supply of products to meet the demand. The Mintel Global New Products Database (GNPD) has tracked more than 13,000 new sustainable food and drink products since 2005. A vast majority—84%—of consumers say they regularly buy green or sustainable food and drink, but a large number are unaware of what some the various claims actually mean.

“Packaging claims such as ‘recyclable’ or ‘eco- or environmentally friendly’ are fairly well known to consumers, but sustainable product claims such as ‘solar/wind energy usage’ or ‘Fair Trade’ have yet to enter the mainstream consumer consciousness,” David Browne, senior analyst at Mintel points out. “They may have heard of the terms, but they’d be hard-pressed to define them.”

In the Mintel survey, 40% of the consumers have never heard of the “solar/wind energy usage” claim. And those 37% that have heard of it say they’ve never purchased food or drink bearing the claim. “Reduced carbon footprint/emissions” is another lesser-known claim, with 32% of those queried never having heard of the claim. In addition, 34% say they’ve never heard of the “Fair Trade” claim.

Surprisingly, the biggest reason consumers buy into the sustainable claims is not environmental concerns, but quality. According to the Mintel research, 45% of sustainable food and drink users say that a perceived belief in superior quality is the reason they make their purchases. In second place, 43% say they buy sustainable food and drink because they’re concerned about environmental/human welfare. Food safety is a concern of 42% of the green consumers.

“These reasons vary in importance across different demographics. What’s most important to young adults may not be the primary deciding factor for affluent consumers,” notes David Browne. “Marketers should consider this in their claims closely; noting that health, welfare, and safety are important for nearly all consumers.”

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