December 05, 2005 03:31 PM US Eastern Timezone Organic and Functional Foods Have Plenty of Room to Grow, According to New ACNielsen Global Study NEW YORK--(BUSINESS WIRE)--Dec. 5, 2005--
U.S. Consumers Among Least Likely to Buy Organics Regularly; Price is Main Deterrent to Buying Organics; Lack of Confidence in Health Benefits, Poor Taste Main Deterrents to Buying Functional Foods
U.S. consumers are among the least likely shoppers from around the world to regularly purchase organic food and beverage products, according to a new online global survey from ACNielsen, the world's leading provider of consumer and marketplace information. Asked about their purchasing of organic alternatives from 11 food and beverage categories, just 6 to 15 percent of U.S. consumers said they purchase such products regularly - well short of the average among consumers from all 38 markets included in the study. Regularly Buy Organic Alternative
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Product Category Global Average U.S. Consumers
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Eggs 32% 15%
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Vegetables 29% 15%
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Fruit 28% 15%
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Dairy (milk, cheese) 23% 14%
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Fresh Meat 21% 12%
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Fruit Juice 20% 11%
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Poultry 18% 12%
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Tea 18% 12%
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Packaged Food 11% 9%
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Deli Meats 11% 6%
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Carbonated Beverages 9% 7%
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Across all regions, the main reason for purchasing organic food and beverages is that consumers believe such products are healthier for them. The secondary reason cited by consumers in all regions except Europe is the perceived health benefits for the shoppers' children. In Europe, more people cited benefits for the environment as their secondary reason to purchase organics. Top Reasons for Buying Organic Products
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Product Category Global Average U.S. Consumers
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Healthier for me 51% 56%
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Healthier for my children 17% 18%
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Better for environment 15% 12%
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Kinder to animals 7% 2%
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For those who never buy organic food or beverage products, which includes 40 to 72 percent of U.S. consumers, depending on the category, the main deterrent is price. Top Reasons for Not Buying Organic Products
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Product Category Global Average U.S. Consumers
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Too expensive 41% 42%
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Not sold where I shop 16% 18%
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Don't believe food labeled as
organic is really produced the
way it is said to be 14% 6%
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Don't believe it is healthier 9% 10%
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Don't like the taste 4% 9%
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"How mainstream organic products become, to a significant degree, depends on what happens with their prices," according to Tom Markert, ACNielsen Chief Marketing Officer. "But I'm not expecting large price cuts. Even as production increases and the number of categories that include organic offerings expands, marketers may very well opt to maintain organics' upscale positioning."
The survey also asked respondents about their purchasing of so-called "Functional Foods" - products fortified with added vitamins or supplements and promoting specific health benefits. Unlike organic products, U.S. consumers are much more closely aligned with the global averages for functional foods purchasing. In fact, in 5 of the 10 categories included in the survey, a greater percentage of U.S. consumers said they regularly purchase such products than the global averages. Regularly Buy Functional Foods
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Functional Food Global Average U.S. Consumers
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Whole grain, high fiber
products 40% 50%
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Iodine enhanced cooking salt 33% 30%
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Cholesterol reducing oils &
margarines 31% 36%
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Fruit juices with added
supplements/vitamins 29% 29%
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Yogurts with acidophilus
cultures/probiotics 25% 21%
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Milk with added
supplements/vitamins 18% 25%
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Bread with added
supplements/vitamins 17% 24%
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Fermented drinks containing
good bacteria 16% 4%
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Soy milk 14% 8%
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Cereal with added folate 11% 14%
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Among U.S. consumers who do not buy functional foods, the most frequently cited reasons were doubts about the products' health claims and taste considerations. Top Reasons Why U.S. Consumers Do Not Buy Functional Foods
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Don't
believe Don't Too Not sold
Functional Food they offer like the expen- where I Poor
additional taste sive shop quality
health
benefits
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Whole grain, high fiber
products 18% 31% 14% 2% 2%
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Iodine enhanced cooking
salt 35% 17% 6% 5% 1%
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Cholesterol reducing
oils & margarines 36% 25% 17% 4% 3%
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Fruit juices with added
supplements/vitamins 30% 15% 15% 5% 1%
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Yogurts with
acidophilus
cultures/probiotics 20% 41% 12% 6% 2%
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Milk with added
supplements/vitamins 28% 21% 17% 8% 1%
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Bread with added
supplements/vitamins 29% 13% 23% 8% 2%
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Fermented drinks
containing good
bacteria 22% 27% 13% 14% 1%
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Soy milk 11% 63% 10% 2% 2%
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Cereal with added
folate 28% 18% 11% 7% 1%
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According to Tom Markert, "The functional foods distinction is beginning to blur, as manufacturers enhance more and more products with additional health benefits. As that trend continues, an increasing number of consumers are likely to become functional foods buyers without even realizing it."
The twice-yearly global ACNielsen Online Consumer Opinion Survey, the largest of its kind, polled over 21,100 respondents - regular Internet users - in 38 markets across Europe, Asia Pacific, North America, Latin America, and in South Africa in May 2005 (See Table 1 for market breakdown). For more details on the survey, go to
http://www2.acnielsen.com/press/data.shtml.
About ACNielsen
ACNielsen, a VNU business, is the world's leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns. To learn more, visit
http://www.acnielsen.com. Table 1. The 38 Markets covered in the 2005 Global Consumer Opinion
Survey were:
North America Latin America Emerging Market Europe Asia Pacific
U.S. Brazil Poland Austria Australia
Canada Chile Russia Belgium China
Mexico South Africa Denmark Hong Kong
Finland India
France Indonesia
Germany Japan
Greece South Korea
Italy Malaysia
Ireland New Zealand
Netherlands Philippines
Norway Singapore
Portugal Taiwan
Spain Thailand
Sweden
Switzerland
Turkey
UK