Wallet, not conscience, is king

Photo / Greg Bowker

Consumers are demanding more sustainably produced goods but are not really willing to pay for them, a visiting food industry expert says.

In coming years, producers will need to factor in shoppers' concerns about carbon footprints, environmental impacts, the fat and health content of an item and how much water was used to make it.

But David Hughes, emeritus professor of food marketing at Imperial College London, says the shoppers making such high demands are not backing up their growing concern by opening their wallets.

Professor Hughes, 62, told the Food and Grocery Council in Auckland yesterday that the food industry was being demonised.

He said it was being accused of attacking the planet with issues of sustainability, climate change and conservation at the front of consumers' minds. It was also demonised for attacking consumers, with growing concerns about food safety and obesity.

And it was demonised for attacking food system participants, with increasing worries about animal welfare and the livelihood of small-scale farmers.

Producers had to be careful to tick all the boxes, but what consumers said they would buy and what they actually bought could differ, Professor Hughes said.

"People will not pay more for sustainability. They will not pay for ethically grown products even though they say they will. It is expected. Most people are not willing to pay more for premium."

Professor Hughes said carbon footprint labels showing how much carbon was used producing an item and water labels showing how much water was used were about to become more common.

"People don't necessarily want to pay for this but they just increasingly expect it. What you could get away with 15 years ago, you can't now."

More ready-to-eat meals that fitted in with busy lifestyles were also going to rise. Professor Hughes cited cases of "phenomenal" sales in Britain of microwaveable fish fingers that did not go soggy, and tuna in a can that did not need to be drained.

He said consumers were also increasingly aware of the health benefits of food and products containing cranberries, known to help with urinary tract infections, and blueberries, known for their antioxidants, and other healthy berries were also in huge demand.

"Free from" products that did not contain gluten and other ingredients were also on the rise.

Consumers were still coping with the recession and had adapted their behaviour by shopping around more, taking up promotions and specials, planning meals more and by eating out less, he said. As a result, the demand for premium products dropped.

Professor Hughes expects advertising aimed at budget-conscious customers will include labels on how to "feed a family of four" for a specified dollar figure.

While the news might be bad for retailers and producers, it could work in favour of consumers because when supermarkets were losing sales they had to cut prices.

"The only way they get people back in the store is to cut prices, so everybody [other supermarkets] follows ... I can see more of that over the next two years."