The UK population, as a whole, knows that fruit and vegetables are good for them and, with annual spend on fresh produce across all socio-economic groups on the up, it seems that an increasing number of consumers are putting their money where their mouth is. But there are key differences in the way that the various social groups - defined by a range of categories including income, age and location to name a few - buy into the category. So how has consumption changed? And where does this leave the fresh produce industry?
The National Diet and Nutrition Survey, which was put together at the time of the last census in 2001 and reviewed in 2004, showed that the average fruit and vegetable consumption amongst UK adults aged 19-64 was fewer than three portions a day.
The study found that only 13 per cent of men and 15 per cent of women had their recommended five portions of fruit and vegetables a day, and that consumption tended to be lower among younger adults, children and people on low incomes.
Young men and women aged 19-24 consumed fewer portions of fruit and vegetables than those aged 50-64, with younger men and women eating between one and two portions a day, compared with between three and four portions for men and women in the older group.
Interestingly, men and women in benefit households consumed fewer portions of fruit and vegetables a day (2.1 per cent and 1.9 per cent respectively), than those in non-benefit households (2.8 per cent and 3.1 per cent respectively).
There were no specific regional differences for men and women in the average number of portions consumed, in the proportion that consumed five or more portions, or in the proportion that had eaten no fruit and veg.
This painted a worrying picture at the time of the study, but how would the results stack up today? Though the whole population buys into the fresh produce category in some way, there are still differences in the way that each social group shops for fruit and vegetables, how much they buy and how often, and how much they spend, according to TNS consumer insight director Paul Corrigan. “The figures for who buys fresh produce are in line with the profile of the population because everyone buys into the category, but if you look at the market in terms of volume or spend, the differences start to show,” he says.
The strongest growth in both fruit and vegetable spend in the 52 weeks ending September 9 is in some of the lowest socio-economic groups, with classes C2 and D seeing an increase in fruit spend of eight per cent and four per cent respectively, and a jump in vegetable spend of 11 per cent and 13 per cent respectively.
No-one doubts that the shape of the UK fresh produce market is changing, and trends towards healthy eating, local and sustainable sourcing, and fresh produce as a luxury item have made their mark on shoppers from a cross-section of society. Niche lines that were once perceived as the preserve of more affluent shoppers, such as the organic, Fairtrade or premium offers, have been making steady moves into the mainstream market in the UK, with a wider appeal across UK consumers.
Tesco boss Sir Terry Leahy believes that the long-term decline in consumer spend could be at an end, and this has increased the possibility of consumers trading up to what would have been previously perceived as expensive or exclusive lines. “For decades, food has been a falling proportion of total consumer spending, and as a business we have contributed to this by cutting prices to help people spend less. That won’t change, but the long-term trend of declining spend of food has stopped,” he says. “I believe we are seeing a fundamental shift in the priority that consumers place on food. The link between diet and health, interest in cooking, provenance - including local and Fairtrade - is also not only about affluent customers. The growth in the proportion of our customers buying organics is fastest among less affluent customers. This could be a big long-term positive for the industry.”
The Organic Market Report, published last month by the Soil Association, revealed that in 2006, organic food and drink sales nearly reached the £2 billion mark. The growth can be partly put down to more people, from a wider range of social groups, choosing to buy organic food, according to Victoria Record at the Soil Association. “The number and range of people eating organic has rapidly increased, and the gap between ABs and C1s is narrowing. More than half of people in the most disadvantaged social groups (C2, D and E) are now buying organic food and drink, which puts to rest the old stereotype of organic being only for the well-to-do,” she says.
“Tesco recognises a fundamental shift in the priority that consumers place on food, and the growth of the proportion of their customers buying organics is fastest among less affluent customers. Asda has doubled the number of organic products it stocks from 500 to 1,000.”
An average of £37 million is spent each week on organic produce in the UK, with consumers living in London, the South East, the South West and Wales most likely to buy into the category. Households with children under the age of 15 tend to buy a wider range of organic foods than those with no children, according to Mintel research.
Purchasing is at 57 per cent in the lowest income bracket, which means those earning £16,000 a year or less, and a survey by mumsnet for the Soil Association shows that the category has reached far beyond affluent ‘yummy mummies’, with more than eight out of 10 mothers believing that organic is better for their family.
The development of new markets will continue to present openings for the fresh produce industry, as social groups classified by age, ethnic background and location gain spending power.
The ageing population, for example, has become a multi-billion pound opportunity for the food industry and, with their focus on health and wellbeing, the fresh produce industry stands to gain from the shift in the age range. The projected growth in those aged 65 and over in the UK, from 2007 to 2050, stands at 153 per cent, according to market analyst IGD. By 2011, one in six people in the UK will be over 65 years old.
“Ageing, along with other key demographic trends of urbanisation, immigration, and the increasing economic role of women, are perhaps the most important influences on food consumption in the 21st century,” says Michael Freedman, consumer analyst at IGD. “Older generations want to retain their influence as they age. Food and grocery companies should think of 60 year olds as the new 40-somethings, only with greater purchasing power and higher expectations.”
The opportunities to appeal to a wider cross-section of UK consumers are strongest in the development of product tiers, Corrigan says, in order to appeal to a wider number of shoppers. “Private-label tiering is still in its early days and, while it has been around in the tomato sector for 10-15 years, it has not yet been used across all the fresh produce categories,” he says. “There is a still a lot of scope to expand the tier system, including ranges aimed at children, and promoting ethical shopping.
“If you are looking at who undertrades in terms of vegetables, young households could be targeted for health, while the older population could be targeted for ethics - although this would appeal to more upmarket shoppers initially,” he adds. “At TNS, we see the market in terms of three main drivers - health, enjoyment and practicality - but we are amending this to include ethics as the fourth key driver.”
The ethical side of the retail offer has shown strong growth, says Corrigan, and this is one to watch in the future, with Fairtrade, as well as recycled and compostable packaging, pulling in an increasing number of shoppers. “Initially, these things cost more, but some retailers have already seen growth by appealing to consumers in terms of ethics,” he says. “The concept will infiltrate the whole of the population but, like organics, Fairtrade and premium lines, it will appeal to more upmarket shoppers initially.”
The Fresh Produce Consortium launched its Eat in Colour (EiC) campaign a year ago in order to address the shortfall in consumption across the UK population and, in its first year, the project reached out to nearly 85m people through newspapers, TV, radio and the internet. The initiative, which is run by PR agency Bray Leino on behalf of the EiC board, is aimed predominantly at women in the C2 and D categories.
The campaign aims to overcome many of the barriers that people feel stop them from consuming more fruit and vegetables, says EiC chairman Anthony Levy. “There are perceptions that fresh produce is expensive, and difficult and time-consuming to prepare. There are also regularly raised concerns that children will not eat it,” he says. “This campaign seeks to deal with these issues in an informative, practical and entertaining way, breaking down the barriers by showing everyday families that fresh produce can be quick, easy and affordable and that, presented in the right way, children can quickly grow to love fruit and vegetables.
“In our experience, these preconceptions are more prevalent in families within certain social demographics, often for economic reasons, but sometimes simply because the family has no history of eating much fresh produce.”
The initiative kicked off with the EiC £5 challenge, which called for shoppers to switch a small amount of their weekly grocery bill from convenience foods to fruit and veg, and focused on families in the C2D socio-economic band.
The Almond family, from Wigan, became a case study for the £5 project. Prior to the trial, they spent around £100 a week on take-aways between Thursday and Sunday nights, and relied on quick-fix microwave meals throughout the rest of the week. “Before we did the challenge, we wanted quick and easy food, and we didn’t put a lot of thought into it,” says mum-of-three Michelle Almond, 29. “We got into a nasty little rut; going into the same aisles in Asda or Tesco, and picking up the same foods. I saw cooking as a chore and, with three kids, it felt like I had no time.”
Paul Almond, 39, admitted that, before the challenge, the family ate around one portion of vegetables a day, and a couple of portions of fruit a week.
The family of five was sent a simple menu to follow over the seven-day challenge, with recipes, ideas and tips, and clear instructions on how to prepare and cook the fruit and vegetables.
The £5 challenge worked, with the children tucking into more fruit and vegetables then ever before, and the whole family trying new things. They have continued to enjoy a range of fresh fruit and vegetables every day, and have bought in only one take-away meal in the last four months. Michelle Almond estimates that their weekly spend on food has been halved, and says she now takes a fruit salad to work, instead of crisps and biscuits, and regularly visits the EiC website - www.eatincolour.com - for inspiration.
TV chef and face of AVA strawberries Nick Nairn is confident that, as the level of awareness about healthy eating grows and consumers take more of an interest in their food and where it comes from, the consumption of fresh produce will increase - and he hopes that progress will not only be made at the top-end socio-economic groups. “When you’re working with great produce, you don’t need to have elaborate recipes and ideas, just opportunities to push the produce forward,” he says. “This has been true for 20 years - but we can see things happening now, especially at the top of the market. However, at the bottom of the market, people are becoming more divorced from the fresh market and increasingly reliant on processed food.
“What we need is for this phenomenon we are seeing in fresh produce, among the middle classes, to trickle down to all the UK’s consumers.”
CONCERN SURROUNDS GROCERY STRUCTURE
UK shoppers from all socio-economic groups have shown themselves to be more interested in food and aware that they should be eating the recommended five portions of fruit and vegetables a day, but a new study has found there are concerns that the structure of the UK grocery market has limited the access that specific groups have to the products they want.
A report into the needs of a variety of shopping groups - named Consumer Shopping Wants and UK Grocery Retailing - released last month, shows that four distinct groups, which account for 32.8 per cent of the UK adult population, are not having their needs met by supermarket shopping. The study found that the elderly, those without a car, wealthier shoppers, people of ethnic origin and single parents with dependent children, were not satisfied with the UK grocery market.
The rise of a homogenous supermarket offer has excluded or marginalised specific consumer groups, according to John Noble, director of the British Brands Group, which commissioned the survey. “Supermarkets meet basic needs well but, for many, other factors have to be compromised in order to benefit from the convenience of the all-under-one-roof concept,” he says. “With an increasingly diverse UK population, but an increasingly homogenous retail offer with declining numbers of specialist and convenience stores, these surprisingly high levels of dissatisfaction are only set to increase.”
The research shows that a significant proportion of the UK population is not having its needs met by the structure of the grocery market as it is today, according to James Lowman, chief executive of the Association of Convenience Stores, which welcomed the findings. “This study warns the Competition Commission and commentators against sweeping conclusions that treat consumers as a homogenous, car-borne group,” he says. “Rather, as this study shows, a large proportion rely on a much broader retail mix and, where that is failing, their interests are undermined.
“Now is the time to act to ensure that the choice and diversity which these consumers need is available. This research proves that the Competition Commission must take steps to ensure there is a healthy grocery market for all consumers.”
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