In general, survey respondents said they would stop buying a food, beverage, or nutritional product once its price rose an average of 40% over its original price.
Supply chain and other disruptions have caused global food prices to spike. A new survey of 1000 U.S. and UK consumers aimed to find out how much of a price increase consumers are willing to incur before deeming a food, beverage, or nutritional product too expensive to purchase. The survey was commissioned by UK-based PR agency Ingredient Communications and fielded by market research consultant SurveyGoo.
In the survey, 94% of respondents said their food shopping bills have increased, with 79% attributing the increase to supply chain problems. In general, survey respondents said they would stop buying a food, beverage, or nutritional product once its price rose an average of 40% over its original price.
Diving deeper, the survey found that shoppers are more likely to continue paying rising prices for low-cost staple goods such as milk (for which they’d pay up to 65% more), bread (they’d pay 62% more), and fresh vegetables (they’d pay 60% more).
However, they were much more likely to be price sensitive when comes to nutritional products like protein powder (which they would stop buying after the price rose an average of 17%), probiotics (deemed prohibitive at a price increase of 23%), dietary supplements (prohibitive at a 26% price increase), and omega-3 fish oil supplements (prohibitive at a 28% price spike).
Price increases are also driving more consumers to lower-cost options. For instance, 48% of respondents said they had switched to a cheaper product brand over the past three months, and 26% said they now opt for a retailer’s private-label product instead.
In a press release, Richard Clarke, managing director of Ingredient Communications, advised: “In such challenging market conditions, brands will need to work hard to retain consumer loyalty. An effective way to achieve this is to demonstrate added value by using high-quality ingredients that provide clear differentiation and command high levels of trust, whether that’s through proven efficacy, sustainability, strong co-branding, or a combination of these. These values, communicated effectively, will tie a consumer to a brand more closely, mitigating the impact of price increases on purchasing behavior.”
Judge denies CRN’s motion for preliminary injunction but its lawsuit against NY state will proceed
April 23rd 2024The judge in CRN's lawsuit against NY state's law banning the sale of weight management and muscle building supplements to minors has denied its motion for a preliminary injunction, but determined that CRN has standing to sue on behalf of its members.
Arla Foods to acquired whey nutrition business from Volac International
April 22nd 2024Arla Foods Ingredients has reached an agreement to acquire Volac’s Whey Nutrition business through a purchase of shares in Volac Whey Nutrition Holdings Limited and its subsidiary, Volac Whey Nutrition Limited and Volac Renewable Energy Limited.