02 Apr 2019 --- For ingredients suppliers, having an in-depth understanding of what drives consumer purchasing behavior is a top priority and staying on-trend and on-preference is crucial to deliver value to customers. Overall, there has been a shift in consumer demand across the globe towards more sustainable and healthy products, which are better for the planet and good for nutrition. Over the years, purchasing behavior has changed to reflect this, as more consumers opt for perceived better choices for themselves and their families. FoodIngredientsFirst takes a closer look at the factors influencing consumers’ buying habits.

For Carin Gerzon, Global Head of Marketing Communications at DSM Food Specialties, consumer insights are essential to gauge the needs of its customers and consumers alike. Their  research has identified a range of factors that influence consumers’ purchase decisions, including quality, taste, health and wellness benefits, as well as the sustainability of products

DSM’s Plant Power Consumer Insights Study, for instance, reported that 65 to 71 percent of consumers are reducing their meat and dairy intake for health reasons, while 61 percent believe people should buy plant-based alternatives to be more sustainable. 

“In an increasingly connected world, shoppers have more influencing power in the food and beverage industry than ever before,” Gerzon tells FoodIngredientsFirst. “Consumer preferences have the potential to shape and evolve the current and future state of the market. Understanding and aligning with new and existing consumer demands allows us to plan strategically, design and market innovative, industry-leading products,” she adds. 

For Maartje Hendrickx, Market Development Manager at GNT Group, the first thing to consider is the importance of appearance when it comes to consumer purchasing behavior. She notes how nine in ten shoppers decide whether or not to buy a product based solely on color and perceived taste. 

“Color is an important indicator of characteristics such as naturality and also has a huge influence on consumer experience. If someone is eating a pale strawberry ice cream, for instance, they will perceive it as less fruity than a more intensely colored option,” Hendrickx explains. 

Nowadays, consumers are much more likely to want to know how products are produced and wher ingredients come from. “They want the full story of an ingredient, so manufacturers now have to consider the importance of factors such as sustainability and traceability, alongside basic characteristics such as taste and color,” she notes. 

The digital revolution has empowered consumers – they can now learn everything they want to about a product or an ingredient with a few swipes of a smartphone. “Meanwhile, ‘instagrammability’ has reinforced the importance of the adage that we eat with our eyes, making the appearance even more important,” Hendrickx notes.

While there are trends with shorter lifespans, the volume of trends making waves in the industry today has increased. This is making it increasingly important for the industry to understand what is necessary to consumers, on both a global and a local level. 

“While shoppers in developed economies tend to stay true to their core diet, they like to experiment with different brands and ingredients. Across the board, however, the need for products with reduced sugar content and clean labels has risen over the past decade,” Gerzon continues. “This transition towards healthier products is here to stay and we anticipate this conversation will continue for many years to come,” Gerzon adds. 

In recent years, a range of movements have gained popularity, including health and wellness foods and clean label products that are convenient, but also tasty, and allow consumers to indulge. DSM’s series of breakfast consumer insights reports identified that busy lifestyles now mean that shoppers have less time to eat, while a growing number of people are looking for quality, natural and healthy choices, which they associate with clean labels. 

For example, 78 percent of respondents said that, when it comes to breakfast, it should be convenient to prepare and eat. Seventy-six percent also reported being conscious about their health, with 56 percent checking the ingredient list before choosing a product. “The opportunity to indulge, however, clearly still has a place at the breakfast table, with up to 33 percent allowing themselves to enjoy indulgent foods, such as pastries or waffles, at weekends,” Gerzon adds. 

DSM consumer insights reports have identified some distinctions in consumer consumption behaviors across different ages and demographics. However, the most variation appears to exist across different countries. According to Gerzon, the Breakfast Insights Report showed that while people in Germany indulge without worry, Spaniards have a love-hate relationship with sweet and fatty foods. 

“Consequently, the results of the study show that 25 percent of consumers in Germany are looking to buy easy-to-digest products, while 66 percent of shoppers in Spain are inclined to purchase healthy foods,” she adds. 

Moreover, Dutch consumers are less concerned about purchasing products containing little to no gluten, sugar or fat; 55 percent of respondents in the country would still be inclined to buy healthy products. In Sweden, naturalness is vital, with consumers reportedly less worried about fat and salt, but instead interested in foods that do not contain additives or sugar. French consumers also showed a higher preference for foods with lower sugar content, Gerzon explains.

DSM’s Breakfast Insights Report found that there are four key personas to watch out for; the health-conscious consumer, the price-aware shopper, the convenience-seeker and the breakfast-skipper. 

The health-conscious consumer is looking for healthy and natural products for the whole family, with fruits, oatmeal and yogurt at the top of their list. People fitting into this category also tend to watch their sugar, fat and salt intake, and are more inclined to read food labels to avoid additives and artificial colors. 

The price-conscious consumer, meanwhile, is likely to be swayed by a low price but ultimately looks for good value for money. 

The convenience-seeker spends as little time as possible on meals and tends to choose more convenient options, showing little variation in the products they purchase. 

The breakfast-skipper lives an on-the-go lifestyle and is looking to purchase convenient and cost-effective products. Health is less of a concern for this persona, with people often choosing indulgent items, when they do decide to have breakfast.

GNT, alongside market research institute TNS, surveyed around 5,000 consumers globally and discovered that when it came to judging naturalness, the most important factor is color. The research revealed the scale of skepticism about artificial ingredients, with three in four respondents, convinced that preservatives, artificial flavors and sweeteners have no place on ingredients lists. Furthermore, four in five demanded that natural products must be made without artificial colorants, Hendrickx adds.

Furthermore, purchasing decisions can be an essential way for different demographic groups to define themselves; certain age groups can gravitate towards products of certain colors. “Yellow is very much the color of the moment and is being embraced by Generation Z in the same way pink has been by Millennials,” Hendrickx states. “The growth of consumers’ distrust of artificial colors, and their expectation of natural ingredients is unstoppable,” she adds.

In the plant-based space, findings often challenge commonly held assumptions about consumer behavior, according to Steve Harman, Account Director at Ingredient Communications. “We recently found that a surprisingly high number of people support a ban on meat-free products having meat-related names such as burger or sausage. We also found that vegetarians and vegans have very different purchasing habits, which tells us that food companies need to think carefully about the way they undertake market segmentation,” he tells FoodIngredientsFirst.

Consumers’ needs and values are constantly evolving and they expect food companies to keep up with them. One other survey revealed that almost half of non-meat eaters are dissatisfied with the choice of food products available to them.

Harman also points out that in today’s industry there is much less brand loyalty than there used to be. Consumers are more likely to shop around, he says, and don’t feel guilty about abandoning a product if they’re disappointed, or if they believe the company has behaved unethically.

“In addition, social media culture has increased the importance of reputation and crisis management. Recent stories like the UK’s horsemeat scandal show that when something goes wrong in the supply chain, brands can be damaged overnight,” he concludes. 

What’s next?
As the food and beverages industry gears up for 2020, addressing the needs of an empowered consumer will increasingly be in the spotlight. Social media platforms will continue to be at the forefront of importance as users voice their experiences and preferences over internet platforms. Clean label and natural claims are expected to reign supreme, while sustainability will remain under the radar, as consumers opt for choices that are better for them and the planet. 

By Elizabeth Green