Consumers want healthy and sustainable food. At least, that is what they say. But are they willing to pay for it? And how much? Deloitte found out in a new study.
Better versus affordable
Sustainability and health are the current trends dominating when it comes to food. Even among consumers, as 64 per cent of Europeans say, they have become more interested in the impact of food on their health. Since then, 60 per cent consumed more locally produced food, and more than half ate more fruit and vegetables. These are the results of a new survey by Deloitte.
But how much are people prepared to pay for better food? Are they willing to pay more for it, or does price come first? It appears that health comes first. When Europeans are given a choice, on average, 60 per cent favour health over affordability. On the other hand, when it comes to sustainability, only 29 per cent think it comes first. Of course, this also depends on who you ask: sustainability is still primarily for people with higher incomes and – to a slightly lesser extent – a higher level of education.
Distinct price range
So how much can it cost? The price elasticity seems clearly defined: almost three-quarters of Europeans are willing to pay 5 per cent more for sustainable food, but they draw the line at 10 per cent. Only 17 per cent are willing to spend a tenth more on locally produced food, barely 9 per cent on fair trade. Retailers, therefore, have a margin of 5 to 10 per cent for higher prices.
But the government should also get involved: over 40 per cent believe that unhealthy and unsustainable food should be taxed more heavily. More than 50 per cent of the respondents say that a health label, like the one for cigarettes, is a good idea. And such a label could go further than the current Nutri-Score. More than a third are even in favour of supermarkets banning unhealthy food products from their range. It is striking that this concern is more significant in countries in southern Europe than in the northern part, where food is more expensive, and products such as alcohol are already more heavily taxed.
More than the product range
It is more than just the assortment: consumers expect their supermarket to do more to facilitate healthy and sustainable living actively. While 79 per cent of respondents seek information on healthy living, only 17 per cent of European shoppers consider retailers to be a source of information. However, more than half would like supermarkets to play a more significant role in providing information, for example, on healthier alternatives.
“Healthy and sustainable grocery propositions are not just about what you do want to offer, but also about what you choose not to offer or what buying behaviours you choose to discourage “, Deloitte advises retailers. “Taking bolder steps to encourage health and sustainability has the potential to be win-win outcomes, for the consumer, for society, for the environment, and… also for the grocers.”
