Health Conscious Customers Can Help Manufacturers Rack in the Green

by arcway industries December 28, 2016

A 2015 study conducted by Nielson, a global provider of information and consumer demand, shows how the continued fight against weight gain can provide manufacturers with a beneficial opportunity.
*Among those changing their diet to lose weight. Source: Nielsen Global Health & Wellness Survey, Q3 2014
However, it isn’t so clear cut. When they divided the respondents into four groups, an average of 38% were willing to pay a premium for foods that contained health attributes, with 27% being willing, 23% somewhat willing, and 12% being unwilling. They tested by asking about 27 attributes of foods, and according to their findings, no one attribute dramatically swayed the decision. Also, the willingness to pay was higher in developing markets versus established ones; 94% in Latin America, 93% in the Asia-Pacific area, and 92% in Africa/Middle East all stated they would pay higher rates for foods with healthy attributes to some degree. In comparison, the European and North American countries were slightly lower, which is logical, since developing markets are leading the way toward health attributed foods.
*Among those who rated attribute at least slightly important in influencing them to purchase more of a particular food/food products. Source: Nielsen Global Health & Wellness Survey, Q3 2014
“There is no doubt that consumers in the Gulf region are conscious of the phenomena of overweight and obesity,” said Arslan Ashraf, the managing director of Nielson’s Arabian Peninsula location. “More than 60% are also trying to change their lifestyle, but reality shows that there is low incidence of efforts actually put in by the consumers to fight the issue of obesity. There is still a long way to go to adapt knowledge and efforts into consumers’ lifestyles.”OK, SO WHAT DO PEOPLE WANT? Consumers want simplicity. Those surveyed rated fresh, natural, and minimally processed foods as the top attribute they want in foods. Foods with no GMOs are important to 43% of the global respondents, which was the highest of the 27 attributes. For roughly a third of the global respondents, foods that are low in cholesterol (38%), salt (32%), sugar (32%), and fats (30%) are important. One third of those surveyed think sustainably sourced and organic ingredients are extremely important, and a quarter say local herbs and ingredients are very desirable. Many respondents already planned to buy healthy with 40% of global respondents claiming they would buy more fruits and vegetables. One quarter planned to buy more fish, seafood, yogurt, and meat.DID THEY? Yes. Months after this survey was conducted, the Organic Trade Association reported that a boom of 4.2 million dollars had occurred for the 2015 year - dairy getting 6 billion in sales and condiments taking in 1 billion - and would continue for 2016 with 13% of produce sold being organic. The global market grew to 72 billion dollars in the span of a month, alongside of adding 43 million hectares of agricultural land worldwide. People are now really conscious about what they put in their bodies, and now many are willing to pay to eat healthier. Manufacturers cannot only make a huge profit (if they meet the demands of their customers), but can be a driving force in helping the global community stay healthy. In this particular case, Mr. Selfridge is correct - the customer is most definitely right.
arcway industries
arcway industries