Majority of Consumers Willing to Pay More for Recognizable Ingredients, Survey Suggests


A new survey commissioned by PR agency Ingredient Communications found as many as 73% of consumers are willing to pay a higher retail price for food or beverage products made with ingredients they recognize.

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New survey results shared by PR agency Ingredient Communications (London) suggest as many as 73% of consumers are willing to pay a higher retail price for food or beverage products made with “ingredients they recognize and trust.” The survey, conducted by online market researcher Surveygoo, included 1300 consumers in North America, Europe, and Asia-Pacific. It found that 52% of consumers said they would spend at least 10% more on a food or drink product made from ingredients they recognized or trusted, while 18% of those polled said they would pay at least 75% more.

In the survey announcement, Ingredient Communications notes the results “underline the growing important of clean and clear labeling, and the use of ingredients that are familiar to consumers.” But the survey’s findings may also speak to the relatively untapped opportunities for co-branding between product manufacturers and their ingredient suppliers, where a finished product bears the logo of one or more of its branded ingredients for added consumer recognition.

“Co-branding of ingredients in the food and beverage industry is still fairly unusual, and yet our survey suggests it would resonate with many consumers,” says Richard Clarke, director of Ingredient Communications, in the survey announcement. He adds that “co-branding can develop consumer trust and provide a clear signpost for differentiation, which can be converted into higher spend, loyalty, and repeat purchases.”

One reason manufacturers may have avoided co-branding in the past is apprehension that it will mean being bound to a single raw-material supplier, reducing the manufacturer’s ability to shop around for a better price. But with these new survey results, Clarke says consumers appear “willing to pay such large price premiums for products made with ingredients they know,” thereby offsetting any added costs of sticking with a branded ingredient with increased sales and profits.


Around the World

In terms of the countries where consumers are most willing to pay for recognizable and trusted ingredients, the United States came in first with 44% of survey respondents saying they would pay 75% or more for products with ingredients they recognized. Following the U.S., it was consumers in several Asian countries that expressed the next strongest willingness for paying at least 75% more for recognizable ingredients, including India (32%), the Philippines (29%), and Malaysia (26%).

Finally, the survey also found that recognition of ingredients is one of the top drivers of product choice, with 52% of respondents saying it was an important factor. That puts it right next to other key purchasing priorities, such as the ability to see nutrition information on-pack (53%) and acceptability of price (55%). Meanwhile, 32% of respondents said the ability to tell a product was high quality was a key driver of their purchasing choices, while 50% said the same of a product’s taste.


Read more:

Shattering Shopper Myths: Identifying the Dietary Supplement Buyer in a Fragmenting Era

Top Health Concerns Similar among Consumers, Suggests New DuPont Research

Consumers Willing to Pay Nearly 50% More for Flavored Milk with Natural Colors and Flavors, Lycored Reports


Michael Crane
Associate Editor
Nutritional Outlook Magazine

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