Food consumption and consumers
Who, what, where and why?
South Australian Food Centre
Regency International Centre, TAFE SA
Days Rd (Main Entrance)
Regency Park, SA 5010
p: +61 8 8348 4442
f: +61 8 8348 2484
w: www.safoodcentre.com.au
Contents
Introduction 3Consumersandfoodbusiness 3Aboutthisreport 3
Consumption 4SouthAustralianandAustralianconsumption 4
What do consumers spend on food? 4
What do consumers eat? 4
Too much or too little? 4
Where does the food come from? 5
Where do consumers shop? 6
Where are consumers? 7
How old are consumers? 8
Internationalconsumers 9
Consumers 10Whatdoconsumerswant? 10
How do businesses listen to consumers? 10
Role of marketing and brands 11
Branding 12
Everydayshopping 13Convenience 13
Enjoyment 14
Health 15
Value 15
Foodinvolvementandspecialoccasionshopping 17Interest and Entertainment 17
Authenticity 17
Priority health and ingredient choice 18
Ethical 18
Natural 19
Local 20
FurtherReading 21
AboutThis report is produced by the Market Intelligence Unit of
Primary Industries and Resources South Australia (PIRSA).
The unit was created in 2008 to undertake strategic market
analysis on markets, trade, trends and opportunities. The
unit provides high level strategic market intelligence to
Government, industry sectors and industry organisations.
This overview is one of a series seeking to provide a market
perspective on South Australia’s key food industries.
Enquiries should be directed to
PIRSA Market Developmentt +61 8 8226 8157
Justin RossMatthew PalmerTrudy Huczko
DisclaimerThe material in this report is intended as a guide only.
No liability for errors or otherwise is accepted for the
material contained herein either by the publisher, PIRSA,
its principal, servants or agents. SA Food Centre and
PIRSA do not endorse any business, individual or product
mentioned in this publication. This document can be
provided in alternative formats or translated into other
languages on request.
September 2010
3
Consumersandfoodbusiness
Consumers are the ultimate driver for food businesses and the food
industry. Knowing what consumers want, how they want to buy, prepare
and consume food, what features are important to them and what
characteristics they are willing to pay for, can provide valuable insights into
meeting consumer expectations and growing a food business.
Understanding consumers may seem straight forward, they are all
around us, and we are all consumers ourselves! Being close to your own
product or industry can provide you with an understanding or insight that
consumers don’t share, but a consumer’s perspective can often be quite
different to yours
Aboutthisreport
This report aims to give an overview of the issues that are shaping
consumer trends and may bring opportunities for differentiation and
growth in the marketplace. Consumer trends are constantly changing,
which can quickly date specific information. To this end, the report also
seeks to outline available sources of information, resources and techniques
that are available to obtain and understand consumer information.
The report is structured in two parts. The first looks at consumers and
markets. Who are consumers, where do they live, what do they buy and
where does it come from. The focus is on Australian consumers but some
comparison is also made with key export markets where a substantial
proportion of South Australian food is ultimately sold.
The second part of the report looks at some of the decisions
consumers make when selecting food products. Product characteristics
including price, flavour, convenience and health are considered along
with emerging trends for consumer interest in the credibility of their food
(natural, ethical and provenance). Examples of how these characteristics
have been important in different food segments are included, along with
techniques and further information for better understanding consumers.
Food segment ‘Snapshots’ are included that highlight product growth
which reflect larger market trends.
Introduction
SouthAustralianandAustralianconsumption
This first part of this section looks at high level information on food purchases, consumption and distribution.
The information provides some perspective
on food consumption in Australia, with some
comparisons with International markets.
Where available, details of South Australian
consumption are also provided. Some
information on Australia’s demographics is also
included, with a few examples how analysis
of high level information can identify trends
and assist in meeting the needs of particular
consumer segments.
What do consumers spend on food?South Australian consumers purchased over
$8.6 billion worth of food from retail and food
service outlets last year. Over the last five years
there has been strong growth in the value of
food sold in South Australia. Retail sales of food
have been growing at around 8% per annum.
In 2009, this growth slowed with consumer
confidence impacted by the global financial
crisis.
Some general trends in patterns of
consumption and expenditure have been seen
in Australia and are starting to be reflected
in developing markets around the world. As
Australian incomes have steadily increased over
a number of decades, total expenditure on food
has also increased, but less than the rate of
income. This has resulted in a lower proportion
of Australian incomes being spent on food. This
trend has been repeated across the globe. As
economies develop more is spent on food but
the percentage of income spent on food is lower.
What do consumers eat?While in volume terms cereals are not the
largest part of our diet, the largest proportion of
calories in Australian diets comes from cereal
products. This is true for almost all countries
around the world, with wheat (including bread
and noodles), rice and corn being staples in
many countries. Compared with many other
countries our consumption of meat and sugar
products is high. Per capita consumption of
seafood is lower in Australia than in many other
western markets, with South Australia lower
than the Australian average. While seafood
consumption is increasing in Australia, it remains
lower than many comparable nations.
Too much or too little?Unlike many nations where access to food
and malnutrition are serious issues, Australia’s
food consumption has contributed to a specific
health issue — obesity.
According to Organisation for Economic
Consumption
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
0
5
10
15
20
25
Alcoholic beverages
Food and non-alcoholic beverages
20041999199419891984
Percentage of Income Spent on Food and Beverages(ABS 6530.0)
�
Co-operation and Development (OECD) figures,
obesity rates in Australia have risen dramatically
in the last three decades, from less than 10% of
the population, to nearly one quarter currently.
The United Kingdom has seen a similar trend
and figures, with the USA also seeing growth
with a higher proportion overall. European
countries and Japan have seen an increase in
the rate of obesity, but at a lower growth rate
and at a lower level overall than Australia.
No single factor seems to be the cause of
the increased rate of obesity but changing diet
and lifestyle changes, such as limited manual
labour and exercise are likely contributors.
Obesity is a challenge for governments with
incidence linked to many health conditions
including heart disease, diabetes and many
other health conditions.
Where does the food come from?Australian consumers mostly eat Australian
food. Australia produces more than enough
food to be self sufficient in most major food
categories – cereals, meat, dairy, fresh fruit and
vegetables, beverages. This is quite different
from a number of Australia’s major food and
beverage export markets including Japan,
UK, Hong Kong and Singapore where a high
proportion of staple foods are imported to feed
the population. In a like for like comparison,
a number of recent studies have found that
Australian consumers generally prefer Australian
products, but range, choice and price are
factors in consumer’s choice of products.
The value of Australia’s food exports
are nearly two and a half times the value of
food imports. With the large amount of grain
exported, the actual tonnage of food exports
is nearly ten times the tonnes of food imports.
Food and Agriculture Organisation (FAO)
statistics indicate that Australia is rated equal
first amongst all countries as net exporter
of food. Amongst developed countries USA
and Australia have the highest proportion of
consumption from domestically produced food.
Imported food products form a relatively
small, but increasing, proportion of Australian’s
diet with consumer demand for exotic products
(coffee, tea, chocolate/cocoa), year round
supply of seasonal products (fresh grapes,
citrus, cherries); and greater range of choices
(beer, wine and cheese). Imported products are
often cheaper than locally produced products,
which continues to place price pressure on
local products in many categories (particularly
seafood, processed pork and a wide range of
processed products including vegetables and
juice). Furthermore international supply chains
can determine the source of some products (e.g.
soft drink concentrate). The increase in seafood
consumption in recent years has been almost
entirely supplied by imported product.
Resources:
Consumer Expenditure
ABS. Commercial providers: IBISWorld, Euromonitor, RetailWorld, Synovate Aztec, Nielsen, Freshlogic
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
Where do consumers shop?In Australia, across all grocery products
the two leading supermarkets account for
approximately 80% of retail sales. Despite
the apparent dominance of two retailers
independent retailers still remain an important
source of sales across fresh food products.
For horticulture products independents and
greengrocers account for around 50% of fresh
fruit and vegetable sales; over 40% of bread
sales are from specialist and independent
bakeries; while butchers account for over 30% of
red meat sales.
In the Australian market, South Australia
is somewhat unique in that there is a range of
domestically owned competition to the large
supermarket chains. These stores provide a
number of different store formats that meet
the needs of consumers and have provided an
entry point for many SA food manufacturers.
Across the country international retailers are
establishing in the market with different market
offers to the existing supermarkets, including
discount and bulk options.
Resources: Shopping Behaviour
Academic Research - see further reading section.
Commercial providers: Fresh logic, Nielsen, Synovate Aztec, Colmar Brunton, RetailWorld
Outlet numbers*Sub-channelMaster channel
745
1900
3859
2580
1360
123
354
2290
528
8262
1772
2700
N/A
1950
8959
5234
20 562
5417
4171
10 625
Bakery
Delicatessen
Butcher & poultry
Fruit & vegetables
Corporate (workplace)
Correctional
Defence
Aged care
Hospitals
Education
Full-service supermarkets
Independent supermarkets
Independent stores
Convenience stores
Sandwich bars
Independent takeaway
Quick-serve restaurants (QSR)
Restaurants & cafés
(Pubs), clubs & function centres
Event and travel catering
Hotels and motels
Grocery
Convenience
Specialised
Takeaway
Dining out
Event/leisure
Institutional
Retail
Foodservice
AustralianFoodDistributionChannels
(Reproduced from FoodMap, DAFF)
Consumption
7
Where are consumers?The Australian Bureau of Statistics (ABS)
provides a range of resources that profiles
Australian consumers and families. This
information can be useful in determining where
to target a particular market or demographic
— particularly in a trial or an introduction of a
product. ABS provides information that may
be of interest in targeting groups based on
income, family structure (couples, families), age,
children and other demographics. The examples
on this page look at various postcodes and
demographics of Adelaide and South Australia.
Resources: Demographics
ABS, IBISWorld, Bernard Salt
Demographics:NumberofCoupleswithChildren
Postcode Suburb Households % of Total5159 Happy Valley 4,995 41%
5158 Trott Park 3,577 41%
5114 Smithfield 3,333 37%
5211 Victor Harbor 991 18%
5043 Marion 1,311 17%
5045 Glenelg South 1,244 17%
HighIncomeHouseholdsHouseholds with gross weekly income of $2,500 or more as a percentage of all households
How old are consumers?The Australian population is getting older.
The aging baby boomer generation (defined as
being born 1945 to 64) is seeing the number
and proportion of people over 60 years old
increasing. In 1980 there were two million
Australians over the age of 60, accounting for
less than 15% of the population. In 2009 four
million Australians, nearly 20% of the population
is over 60.
While the population is getting older, the
number of babies is also increasing. The last
five years have also seen a noted increase in the
birth-rate, growing at 2.3% p.a. This increase in
birth-rate has seen a corresponding demand in
baby products and food.
Snapshot–BabyFood
All Baby Food8.2% p.a. 5 year average
$300 m retail sales 2009
Trends: Substantial growth across all baby segments
Prepared Baby Food9.9%
$111 m
Trends: Convenience, healthy, natural options
Formula6.1%
$159 m
% is average growth rate over the 5 years to 2009 (Euromonitor International).
Consumption
Thereisasmallbabyboom
underway—thisisa
contributortothegrowthin
babyfoodsales.
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
9
Internationalconsumers
Australian per capita expenditure on food
is relatively high by world standards. Per
capita expenditure in a number of Australia’s
neighbours and key export markets, including
China, Indonesia and Singapore, is showing
strong growth — although as a whole average
expenditure is much lower than Australia.
Extremely large populations in countries such
as China, India and Indonesia mean that despite
a low average income the growing middle and
upper class represents a substantial potential
market.
Affluent consumers around the world
consume a higher proportion of protein (meats)
in their diet. Increasing disposable incomes in
China and India are expected to see consumers
in these markets having increased food choices
including consuming a higher proportion of
protein in their diet.
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
Whatdoconsumerswant?
Consumers are all unique people and their motivations can vary substantially throughout the day. A single consumer can make numerous, often apparently contradictory food choices depending on the setting or mood they are in.
Convenience and price might be important
at lunch-time, quality and authenticity at dinner.
A consumer may have free range eggs and cage
chicken in their basket, while a high sugar and
fat fast food meal is often bought with a diet
softdrink.
The situation and location that consumers
find themselves in also plays an important role
in determining food choices. Their company
(friends, relatives, work colleagues) can also
play a role in deciding on where to shop and
what to buy. Culture and family are key factors
in shaping tastes, choices, opinions and food
knowledge. This complex web of factors that
shape food choices can be difficult to determine
for each individual consumer. However
analysis of groups, preferences and behaviour
can improve understanding and provide
opportunities to meet the needs and wants of
more consumers. This report aims to provide
some insight into major trends that are shaping
food choices. More detailed work will often
be required to understand how these trends
impact on shoppers and consumers of specific
products and an outline of some of those
techniques is included.
How do businesses listen to consumers?
There are a number of direct and indirect
ways businesses can understand consumers’
perceptions and behaviours. Understanding
these can help to identify and develop new
products, refine existing products, target new
markets and shape the wide range of marketing
activities.
Global trendsUndertaking or reviewing strategic research
on the market as a whole or specific market
segments assists understanding of key trends
and opportunities. There are a range of free and
subscription services that provide high level
analysis of markets, consumers and product
segments that can provide insight into Global
Trends. The wide range of published academic
research is a further source of information that
can be a resource to food businesses.
Purchase behaviourRetailer scan data can provide direct
information on product, segment and competitor
performance in specific categories. Other
services provide analysis on total shopper
purchases, including where they shop and the
basket of products they purchase. Indicative
purchase behaviour can also be determined
through direct consumer questionnaires or
focus groups, which while not as definitive
and accurate as purchase data, can be quite
valuable particularly when collected along with
consumer attitudes and intentions.
Consumer attitudes and preferencesThere are a range of techniques and
forums where businesses can interact and get
feedback from consumers. Formal techniques,
including focus groups and surveys (in-store,
phone, online) can be useful in ascertaining the
composition of your consumers; what aspects
of your product and service are valued; and in
evaluating new products or marketing.
Websites, newsletters and particularly social
media sites such as Facebook and Twitter
provide opportunities to interact more regularly
with consumers and to monitor what consumers
are saying about your product and business.
Consumer interaction can also be combined
with promotional activities. Consumer trade
shows, demonstrations and giveaways are
opportunities to promote your product, but also
provide an opportunity to receive consumer
feedback on various aspects of your product.
Chain partners and anecdotesBusinesses with retail and market outlets
have daily access to direct consumer feedback
on their products. However, many food
manufacturers often do not have day to day
interaction with consumers. However, their
retailers do and good manufacturer/retailer
relationships can provide a vital source of
information on consumer perceptions and
attitudes.
Consumers
11
New products and directions often come
from personal interactions, ideas, anecdotes and
inspiration. A planned and strategic approach
to analysis can provide an indication of market
opportunities, but inspiration, intuition and
personal experience play an important role in
the development of new ideas. Consumer and
market research can then provide confidence
and certainty around progressing with ideas.
Resources : Global Trends
Regular publications: Trendwatching, Australian Food News, Inside Retailing, OnFood, Synovate Infact, Innova Market Insights (available SA Food Centre website), RetailWorld (subscription)
Resources: Listening to Consumers
On the web: SA Food Centre – Market Research. Colmar Brunton (assisted with information for this report). Numerous private providers
Role of marketing and brandsThere is little value in having a delicious
food product, if consumers don’t know about it,
can not recognise it, find it or buy it. This report
does discuss some of the common features
that consumers look for and value in their food
purchases. However, a general understanding
of marketing, brands and shopping behaviour is
valuable to be able to understand and leverage
consumer trends.
MarketingMarketing may be viewed as a discipline
separate from other operations of the business
such as advertising and promotions, but
marketing should encompass all aspects of the
business that a consumer may see. The aim of
marketing is to have:
• the right product or service
• at the right price
• in the right place at the right time, and
• actively promoted it to your chosen
target market
These four P’s are intertwined and cannot
be considered in isolation from each other.
Sometimes other P’s are also included – such as
people, packaging and process. However, the
four key P’s are useful in helping you to target
individual people who might, for a variety of
reasons, want to buy your product.
Marketingshould
encompassallaspects
ofthebusinessthat
consumersareexposedto.
Branding
Role of brandsBrands are important to enable consumers
to identify, differentiate, recognise, find and
purchase products. Brands can come to
represent many aspects – including quality,
status, value, prestige, trustworthiness and
consistency.
Brands are important but most consumers
are not particularly loyal to one brand. In most
categories, consumers will select a product
from a repertoire of acceptable brands. Their
selections are based on a number of factors,
particularly price, any specials and discounts.
It is perhaps not surprising that brands with the
largest recognition and availability are most likely
to generate the most sales. Shoppers are also
selective with their retail outles, with a recent
survey indicating that just 1% of supermarket
shoppers shop exclusively at one outlet.
A challenge for small businesses is to
achieve enough recognition and trust with
consumers to be considered amongst the
‘repertoire’ of acceptable brands in a category.
Supermarket home brand The UK has shown a strong shift to home
brand products. UK retailers offer a mix of
own-brand products to differentiate themselves
from each other, while meeting different
consumer segments (e.g Tesco “Finest”, ‘Tesco’
and ‘Value’). In the UK and Europe own-
brand products are estimated to account for
approximately 50% of all sales. In the USA, own-
brand sales are estimated to account for 35% of
sales. These are substantially higher than
the Australian market where own brand sales are
estimated at 23% of grocery sales. Australian
retailers have also noted this trend and
increased range and promotion of own brands.
Resources: Marketing
On the web: SA Food Centre – Marketing.University of Adelaide Library – Marketing Research Guide. Ehrenberg-Bass Institute for Marketing Science.
Numerous private providers
Resources: Branding
On the web: SA Food Centre – Naming and Branding. Ehrenberg-Bass Institute for Marketing Science.
Numerous private providers
References: IBISWorld, Euromonitor, RetailWorld - Supermarket Switching and the use of Catalogues.
Consumers
Consumersshopfromtheir
repertoireofacceptable
brands.Thechallengefor
businessesistobeapart
ofthatrepertoire.
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
13
Everydayshopping
Most food is purchased and consumed in
Australia with relatively low involvement. The
time taken to consider individual products on a
supermarket shelf is extremely small. The role of
familiarity, brands, recognition and habit guide
many shopping decisions.
Price is one factor in the level of involvement
in a purchase. The higher the purchase price,
the more involvement a consumer may take in
the purchase.
This section looks at product characteristics
that consumers value in their food purchases. In
looking at the positioning of food products in the
Australian market, these characteristics are the
most prominent in packaged food products.
Primary considerations are
• convenience
• health
• enjoyment
• value for money.
ConvenienceConvenience in food is often first considered
in relation to product preparation and
consumption — is the product ready to cook
and eat with limited preparation? Fast food
offers a highly convenient way to buy and eat
food, you don’t even need to get out of the car!
Product convenience can be important to
consumers, but convenience in purchasing is
a major driver in determining how and where
consumers buy food products. Location,
particularly close to home or on a regular travel
route, parking, familiarity and ability to navigate
around the store are major factors in determining
where consumers shop for groceries.
Online shopping continues to grow. Online
sales in Australia across all products are
estimated at nearly $20 billion, and while the
rate of growth has diminished from the 25%
p.a. growth at the start of the 2000’s, online
sales are still growing at 5.4% p.a. While food
and beverage remains a small proportion of
total online sales (~5%), many food businesses,
including the major supermarkets are active
in this area. A number of local businesses
are developing and promoting online sales
of specific fresh products delivered direct to
consumers.
Resources: Convenience
On the web: SA Food Centre – Distributors. SA Food Centre - Packaging. RetailWorld.
Reference: IBISWorld Report X0004
Snapshot–Convenience
Bottled water10.1%
$793 m
Trends: Expanding categories include flavoured and functional water
Breakfast Bars9.8%
$63 m
Comparison: Total breakfast cereal growth 2.3%
Cup Noodles5.4%
$73 m
Comparison: Pouch noodle growth 2.8% p.a.
% is average growth rate over the five years to 2009 (Euromonitor International).
$ m
illion
200
400
600
800
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Retail Food Expenditure(ABS 8501.0)
$ m
illion
50
100
150
200
2010
20092008200720062005
NovSepJulMayMarJan
South Australian Monthly Food Service Expenditure(ABS 8501.0)
% o
f po
ulat
ion
5
10
15
20
25
30
35
France
USA
UK
Japan
Canada
Australia
200520001995199019851980
Obesity - % of total population(OECD)
$ bi
llion
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Seafood
Other Food
Livestock
HorticultureField Crops
Dairy
2009/10
2007/08
2005/06
Australian Food ImportsABS International Trade PIRSA Scorecard Categories
$US
500
1000
1500
2000
2500
3000
3500
4000
UK
Germany
USA
Australia
Singapore
Japan
Indonesia
Hong Kong
China
200920082007200620052004
Annual Per Capita Expenditure on Food, Beverages & Tobacco$US Selected Countries (Euromonitor 2009)
kg
200
400
600
800
1000
1200
Other
Fruit & Veg
Cereals & PulsesSeafood
Milk & Eggs
MeatOilsSugarAlcholic Bev.
USAUK
IndiaFrance
ChinaAustralia
Per Capita Food Consumption (kg) Selected Countries (FAO Stat 2007)
calories
500
1000
1500
2000
2500
3000
3500
4000OtherFruit and Veg
Cereals and Pulses
SeafoodMilk and Eggs
Meat
Oils
SugarAlcholic Bev.
USAUK
JapanIndia
FranceChina
Australia
Per Capita Food Consumption (calories) Selected Countries (FAO Stat 2007)
No. of products
5
10
15
20
25
30
OtherSafcol
HeinzAngelakis
Woolworths
TassalJohn West
Coles
New Australian Seafood Product Launches by Brand(Innova Database - last 2 years)
$US
500
1000
1500
2000
2500
3000
3500
4000
Alcoholic drinksBeverages (Non-Alc)
Other FoodSugar/ConfectioneryFruit & VegOils & FatDairy, EggsSeafoodMeatBread and Cereals
UKFrance
USAUAE
SingaporeChina
Australia
Annual Per Capita Expenditure on Food and Beverages $US Selected Countries (Euromonitor 2009)
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen YMillenium
100+806040200
Australian Age Pro�le - 2009ABS 3201.0
thou
sand 50
100
150
200
250
300
350PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1995ABS 3201.0
thou
sand 50
100
150
200
250
300PreWWII
WWII
Bboomers
Gen X
Gen Y
Millenium
100+806040200
Australian Age Pro�le - 1980ABS 3201.0
calo
ries
500
1000
1500
2000
2500
3000
Vegetable
Animal
200520001995199019851980
China Daily Per Capita Calorie ConsumptionFAO Stat
No. of Products
1000
2000
3000
4000
5000
Pleasure
Choice
Active
Passive
AgeEnjoyment
HealthConvenience
Positioning of New AustralianFood Product Launches(Innova Database - last 2 years)
EnjoymentA myriad of features can be important for
consumers in their enjoyment of food. In addition
to flavour, intrinsic qualities of the food such
as size, shape, colour, hardness, crispness,
smoothness, firmness, chunkiness and
temperature are important.
Freshness is a key indicator of quality
for consumers and a major consideration in
shopping location. Numerous Australian retailers
making fresh a key feature in their promotion
and the fresh products range and quality an
important point of differentiation.
With enjoyment such a vital aspect of
food purchase and consumption, consumer
evaluation of products should be central for the
development and refinement of products.
There are a number of research techniques
available to measure consumer acceptance and
enjoyment of products and attributes. These can
include relatively informal tastings of products
among available subjects such as at a market.
More formal options include focus groups
of consumers, which are used to ascertain
overall perceptions of products, packaging and
marketing (qualitative).
More specific and measurable differences
and preferences in food products can be
achieved by structured sensory analysis. Two
major distinctions in sensory analysis exist.
The first is the use of a trained sensory panel,
who are able to identify specific tastes and
product qualities and make finer distinctions
between products. The other is using everyday
consumers to taste and compare different
samples.
Sensory techniques can determine:
• Differences between products,
techniques or recipes.
• Product preferences from a selection.
• Consumers willingness to pay for one
product over another.
Resources: Sensory Analysis
On the web: SA Food Centre – Consumer and Sensory Evaluation.
Snapshot–Enjoyment
(Flavour)
Packaged Coffee Fresh Instant
4.5% 2.3%
$151 m $741 m
Sweet Biscuits Premium Cookies Plain Biscuits
9.6% 1.9%
$126 m $267 m
Pastries Artisanal Packaged
3.2% -1.5%
$977 m $102 m
% is average growth rate over the 5 years to 2009 (Euromonitor International).
Consumers
Withenjoymentcentralto
consumerfoodpurchases,
sensoryanalysiscan
providevaluableinsight
todevelopandrefine
products.
1�
HealthThe relationship between food and health
are closely linked in the media and in consumer
perceptions. Obesity, heart disease, blood
pressure and cholesterol levels are all health
conditions and attributes that are widely
accepted as being linked negatively to diet. In
response, manufacturers and marketers have
developed and promoted diet, light, low- and
no- variations of their products featuring fat,
saturated fat, salt and sugar.
Over 90% of shoppers investigate packaged
food label information, with nearly 70% of
survey respondents indicating that they are very
interested in food labelling information.
More recently particular characteristics of
products have been promoted, with positive
associations for their reduced risk of disease,
including cancer and osteoporosis. Product
features include anti-oxidants, omega-3, healthy
fats, calcium, fibre and other contributors to gut
health.
Credibility and measurability of health
claims are also considerations for consumers.
While some health related attributes such as
low fat or salt may have an understandable and
ultimately measurable impact on weight or blood
pressure, other health claims are much more
difficult to evaluate — such as a decreased risk
of a potential ailment at some uncertain time in
the future. Independent scientific verification of
product composition and health impacts can
enhance health credentials.
Resources: Health Credentials
On the web: CSIRO Food and Nutritional Sciences. Heart Foundation ‘Tick’.
Snapshot–Health
Breakfast Cereal Hot Cereals Children’s
(Largely Oats) (Sugared)
5.5% -0.7%
$99 m $112 m
Trend: Shift away from sugared children’s cereals
Cooking Oils Olive Oil Vegetable Oil
7.2% 4.1%
$260 m $112 m
Comparison: Olive Oil Volume growth 6.1%, Vegetable Oil 1.3%
Meal Replacement (Weight Loss Programs)7.9%
$97 m
Trend: There is a strong media focus on obesity
% is average growth rate over the 5 years to 2009 (Euromonitor International).
Value
Price, and the wider issue of value, is an
important consideration in food purchases.
Expenditure on food in Australia is high by world
standards, but despite this, Australian’s spend
a relatively small proportion of their income on
food. Australian consumers are very conscious
of price and will undertake comparisons of
catalogues and other advertising material. To
this end, supermarket promotion has a strong
emphasis on prices and specials.
While supermarkets hold substantial
market share across all grocery sales, the
market share across fresh food outlets highlight
that convenience and potential price savings
are not the only features that consumers
value. Bakeries, butchers, greengrocers and
fishmongers hold substantial market share in
fresh products – often successfully competing in
the same shopping centres and directly adjacent
to supermarkets. Service, trust and support for
local business are all values that consumers
have shown to be willing to invest time and
dollars in sourcing their food.
Within Australian retail, particularly in
consumer products, the market was often
defined by mid-year and boxing day sales. To
keep consumer interest and demand strong
during the recent Global Financial Crisis retailers
often had continuous ‘sales’ offering percentage
discounts on the regular prices in store. One
interpretation of this trend over the last two years
is that it has conditioned consumers to be much
savvier about not buying products at full price.
Consumers are now better informed on
purchases thanks to online information and price
comparison sites and are more confident about
shopping for the best deal. Purchasers of food
products are well informed about prices due to
information on specials in shopping catalogues.
Even in fresh products recent analysis has
indicated that increasingly ‘being on special’ is a
motivating factor in selecting vegetables .
Pricing strategy is a complex area and
includes many factors including cost of
production, distribution, marketing and
competition. Determining what consumers value
can be difficult to establish and does change
over time. A product that is too expensive
may not be attractive to consumers, while
a product priced too low can be perceived
as poor quality and reduce overall returns. A
range of research techniques can be used to
determine what consumers consider fair value
and what characteristics consumers value and
are prepared to pay for. One particular economic
and research concept “Willingness–to-pay” can
be determined by presenting various options
to consumers, which can provide an indication
on which aspects of a product are of value to
consumers. These can be useful in determining
branding, marketing, promotions and pricing
strategies.
Resources: Pricing Strategy
On the web: SA Food Centre – Pricing
References: VegInsights
Cooking at homeA common occurrence in countries around
the world has been that in times of economic
downturn, in addition to slower demand overall,
consumer expenditure on food shifts away
from restaurants and eating out of the home,
to preparation of food in the home. Eating out
of the home is not eliminated, but a ‘trading-
down’ often occurs where consumers select
more affordable options. While the downturn
in Australia following the Global Financial Crisis
(GFC) has proved to date to be less dramatic
than in many international markets, the trend
away from eating out was seen across Australia
(albeit to a less extent in South Australia).
The evidence of this trend can be seen in
the strong demand for products that are suitable
for cooking at home, particularly if they deliver
on other consumer demands including flavour
and convenience. Recipes and information
on utilising products enhance consumers
confidence in buying and using unfamiliar
products.
Snapshot–HomeCooking
Liquid Stock13.7% growth
$68 m sales
Related factors: enjoyment (flavour), convenience
Wet Cooking Sauces7.3% growth
$140 m sales
Related factors: enjoyment (variety), convenience
Cream5.2% growth
$202 m sales
Related factors: enjoyment (flavour), healthier options. Increasing cream prices also a contributor to the growth.
% is average growth rate over the 5 years to 2009 (Euromonitor International).
Consumers
Value-seekingconsumers
increasedcookingathome
duringtheGFC—growing
interestinfoodandcooking
iscontinuingtodrivethis
trend.
17
Foodinvolvementandspecialoccasionshopping
Food is important for sustenance – but it
also a key feature of our personal and social
lives. We share it, learn about it, brag about
it, watch it on TV. It is a feature at many social
occasions can be intensely intimate and
represent our interests and values in taste,
society and the environment.
Delivering on high involvement food
purchases involves meeting those character-
istics that are important to consumers on those
occasions. Many of the factors that are major
considerations in everyday shopping — price,
convenience, health and value are often
reversed on a special occasion. A decidedly
non-convenient special effort may be required
to source a product from a specialist supplier,
which may cost more than other options, and
indulgence is often called for, quite at the
expense of health.
A number of features may mean a consumer
has a higher involvement in selecting their food.
When they are seeking a premium product,
when it is something expensive, when they are
entertaining/seeking to impress others or when
they have enough time.
For most people food choices vary on
a scale between low and high involvement
depending on the time and situation. However
for those with specific health, allergy, religious
or other beliefs – these factors limit and guide all
food decisions.
Interest and EntertainmentIncreasing consumer interest in food in
Australia is undeniable. This trend is perhaps
demonstrated by the phenomenon growth
MasterChef Australia has become. It is quite
remarkable that a cooking show has been a
ratings hit for the last two years, running six days
a week in prime time. A cooking show is now
the 3rd and 4th highest rating TV show ever in
Australia.
The direct flow through to featured products
has been dramatic. The major sponsor of
the show reported that in the week following
products being featured on the show, sales
of pink ling fish rose over 1,400%, while red
cabbage and pistachio nuts approximately
doubled. Other supermarkets and specialist
retailers also saw the direct influence, with
featured cuts of meat and other products in
strong demand following particular programs.
A broader consequence of an interest in
food is also being felt. Consumers are being
introduced to a greater variety of food, and are
more interested and willing to try new foods,
styles, types and recipes.
References: MasterChef cooks up a sales storm. Brisbane Times.
AuthenticityAuthenticity in food can mean different
things to different people. It can include ‘real’
food, produced and prepared in traditional ways,
particularly food with a defined heritage, either
national or regional.
The desire for authenticity in food can be
seen in a number of ways. Consumers want to
be able to interact, ask questions and have a
connection to the food they are buying. Markets,
particularly farmers markets have shown
extraordinary growth in numbers and turnover in
the last ten years.
Part of the attraction of food at Australian
independents and markets is that much of the
food is unpackaged. However, even packaged
food is increasingly seeing a greater aim towards
authenticity, with increasing specificity about the
authentic region and recipes that are behind the
product.
Priority health and ingredient choice
Health conditions, religious and other
beliefs can be important factors in guiding
consumers’ food choices. Food intolerances and
allergies can cause serious health concerns if
unsuitable food is consumed. Food allergies to
products including nuts, eggs or yeast can limit
food options available to affected consumers.
Food intolerances to gluten and dairy also
limit available food options. Diabetics, people
with high cholesterol and other specific needs
also have a need or preferences for particular
foods and ingredients. The range of food
available to consumers on strict diets is limited.
Opportunities to meet the needs of ingredient
conscious consumers, particularly if the
products remain attractive to other consumers
as well, appear substantial.
Religious, ethical and other choices also
have a strong influence on diet. Halal and Kosher
diets can have specific and strict requirements
on the types, preparation and consumption of
food. Religious holidays (including Christmas
and Easter) can also see demand for particular
products rise dramatically.
Vegetarian and vegan consumers make
choices on their food products based on the
use of animal products, with some religions
also having no or limited consumption of meat
products. Selected consumers preferentially or
exclusively buy organic food due to health or
ethical reasons.
Health,religionandbeliefs
thatinfluencefoodchoicesEstimated numbers (various sources)
Health condition (estimated consumers in Australia)Coeliac (200,000) (negative reaction
to gluten)
Diabetic (1,000,000)
Food intolerance and Allergies Dairy (1,000,000)
Nuts (100,000)
Eggs (2% of children under 2 years)
Religious Affiliation (2006 Census)Buddhist (419,000)
Muslim (350,000)
Hindu (148,000)
Jewish (113,000)
EthicalVegetarian (500,000-1,500,000)
Vegan (200,000)
References
Coeliac Society of Australia
Health Insite
Dieticians Association
Children’s Hospital at Westmead
Allen et al. 2009 Paediatric Allergy and Immunology. Vol 20 pp 213-218
2006 Census
Vegetarian Network Victora
EthicalEthical food production can mean different
things to different consumers. It can include
considerations of the environment, workers and
animal welfare. There is some consumer interest
in ethical food production, but retailers are also a
major driver for ethical food sourcing as a point
of differentiation in the market.
Worker WelfareEthical trading has received limited publicity
in Australia. Fairtrade is recognised as a
means to ensure a reasonable price is paid for
imported goods — primarily related to coffee
and chocolate in Australia. Perhaps because
Australia is self sufficient in most food categories
(at least in total tonnes of food production, if not
in specific consumer tastes) ethical trade has
not been seen as a major point of concern for
retailers or consumers.
Animal WelfareConcern for animal wellbeing is one ethical
consideration that is widely recognised and
represented in food shopping. Media depictions
of caged chickens, and perhaps to a lesser
extent pigs, has raised consumer awareness of
the production of these animals and products.
A number of variations of chickens and eggs
based on animal welfare status including free-
range, barn and caged are available in most
Australian supermarkets.A large supermaket
chain recently announced plans to only sourcing
fresh pork from suppliers who are not using
sow stalls, following consumer feedback that
they didn’t like factory farming or the use of
hormones.
Consumers
19
The EnvironmentEnvironmental issues related to food have
received some publicity and public comment.
Food miles and carbon footprint are notable
issues, particularly for UK retailers. Examples
within Australia include the promotion of
‘Rainforest Alliance’ coffee and there has been
negative publicity in relation to palm oil and the
impacts on Asian forests and orangutans.
Public action around environmental
issues can result in companies revising their
policies in sourcing products. There has been
strong campaigns against multi-national food
manufacturers for sourcing non-sustainable
palm oil used in their production. Campaigns
received substantial public support with
millions viewing a graphic video implying a link
between consumption of chocolate and death of
orangutans. This did result in a changed policy
on palm oil sourcing. Interestingly, during the
campaign sales of the targeted product were not
affected. While for people behind the campaign
the issue was considered important, apparently
the quite well publicised environmental
considerations were not key considerations of
actual product onsumers.
Carbon footprint and ‘food miles’ are other
potential social issues related to food. These are
one of the potential benefits of locally sourced
products, including farmers markets. A number
of surveys have revealed some consumers
have a preference for locally sourced food, but
environmental impact is not the primary driver.
Freshness, flavour, support of local production
and traceability are more important drivers
towards purchases of local products.
Organic production has shown remarkable
year on year growth for the last decade.
Environmental considerations are one of the
claimed benefits of organic production (no
synthetic chemicals impacting the environment),
but environmental considerations are just one
of the suite of reasons consumers buy organic
food. This is led by the consumers personal
perceptions of removing exposure to chemicals,
improved nutritional content and improved taste.
One area of environmental credibility that
has gained some traction, at least internationally,
is the sustainability of fish stocks. In Europe
overfishing has resulted in substantial decline
in fish stocks, sustainability of fisheries and fish
species has received media publicity and can
guide consumer fish purchases. The Marine
Stewardship Council (MSC) is European based
certification and branding scheme that assists
consumers to select seafood from sustainable
fisheries. While some Australian fisheries have
MSC certification, but sustainability does not
appear to be a major driver in the Australian
market place.
Differentiation of products on environmental
credentials alone is difficult. For consumers
the connection between the product and
environmental benefit can be difficult to
understand and evaluate.
Resources: Ethical Food
Biological Farmers Australia
Rainforest Alliance
Free Range Egg & Poultry Australia
Fairtrade
Ethical Trading Initiative
NaturalConsumer concern for natural food can
include natural primary production (fertilisers,
pesticides, chemicals) and processing (artificial
ingredients, level of processing). Organic
production and ‘free from’ artificial preservatives,
colours, flavours are common variations on
natural products.
Label claims associated with natural
products include fresh, real and whole
ingredients. Natural claims and associations are
apparent across most food categories.
Organic food is now an established niche in
the market, with farm-gate sales conservatively
estimated at $223 million, or 1% of Australia’s
total production. Sales have approximately
doubled in the last seven years, although growth
appears to have moderated over the last two
years.
Resources: Natural Food
Biological Farmers Australia
LocalLocal food movements have been gaining
popularity in Australia and across the world.
In South Australia, a number of supermarkets
have dedicated aisles for local products and/or
flag South Australian products on their shelves.
Similarly a number of restaurants highlight the
South Australian products featured in their
menu. The largest evidence of the interest in
local products is the interest and growth in
farmers markets with more than 120 farmers
markets now regularly held around Australia.
Just 10 years ago there were no farmers markets
in South Australia or Victoria, now there are
more than 70 regularly operating.
The reasons consumers attend the markets
are multifaceted — not surprisingly for most
it is to purchase food, but also to dine and as
a social occasion. There are also a range of
reasons why the consumers buy the food.
Freshness and quality are primary
characteristics of the products themselves,
which is quite consistent with food purchases as
a whole. Price is an important consideration in
many shopping occasions, but is not a primary
motivator in attending farmers markets.
The credibility of the products and
production are important to farmers market
shoppers. Farmers market consumers value the
local production; they wish to support local food
production and producers. While environmental
considerations (limited transportation) are
claimed benefits of farmers markets over other
food distribution channels, this in itself is not
a primary consideration for South Australian
farmers markets consumers.
Local production is not universally valued
by all consumers. If two identical offerings are
presented to a consumer, most SA consumers
are likely to select an SA product in preference
to imported product. However, while there may
be a willingness to support local producers
in principle, there may not be willing to pay a
premium for the local product – indeed the
reverse can be true “Shouldn’t the local product
be cheaper, it hasn’t had to travel as far?”.
Local can mean different things to different
people. Supermarket shoppers have indicated
a strong preference for Australian products in
regards to imported products, but with a much
smaller preference for South Australian products
than Australian products. When shopping at a
supermarket “local” for a Adelaide supermarket
shopper is likely to be any South Australian
product.
Only servicing the local market can be a
business risk. The market is defined and may be
small, limiting potential growth, and makes the
business or sector susceptible to competition if
businesses are not aware of and responding to
wider consumer and market trends.
Resources: Local Food
Australian Farmers Markets Association
Slow Food Australia
Consumers
Just10yearsagothere
werenofarmersmarkets
inSAorVictoria,nowthere
aremorethan70regularly
operating.
21
FurtherReading
Database and Resources
IBISWorld – Industry Reports
Euromonitor – Global Market Information
Database
Innova – Food and Beverage Database
RetailWorld, Regular Editions and Annual Report
ABS
• Trade Statistics
• Household Expenditure
Australian Food Statistics
FAO Stat – Food Supply
OECD Health Statistics Portal
PIRSA Food Scorecard
Media Articles and Presentations
Coles to track its beef, Australian Food News
Industry hoist with advertising petard
– BusinessDay (Palm Oil and Kit Kats)
FoodMap - A comparative analysis of Australian
food distribution channels. DAFF.
Market Power – Sydney Morning Herald
(Farmers Markets)
Greg Seymour. What’s Really Involved in Cut-
through Consumer Promotion - The Mushroom
Industry Experience. Presentation PMA Fresh
Event Melbourne 2010.
Russell Markham, Foodland SA. “keeping it
Local” presentation.
Love, loyalty and polygamy. MarketingMag.
Steve Spencer. Aldi and the carbon label. Blog
VegInsights. AusVeg weekly vegetable market
insights.
RetailWorld - Supermarket Switching and the
use of Catalogues. Colmar Brunton.
Published Research
Consumer Preferences
M. J. Beriain, M. Sánchez and T. R. Carr. A
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purchase intention, and willingness to pay for
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Rodolfo M. Nayga Jr, (2007) “An assessment of
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behavior”, European Journal of Marketing, Vol.
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Ehrich, Kristine R. and Julie R. Irwin (2005),
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Attribute Information,” Journal of Marketing
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Kao-Chun Chen. A study of the relationship
between UK consumers’ purchase intention and
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Katrijn Gielensa, and Jan-Benedict E.M.
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Larry Lockshin, Wade Jarvis, Franc¸ois
d’Hauteville, Jean-Philippe Perrouty. Using
simulations from discrete choice experiments to
measure consumer sensitivity to brand, region,
price, and awards in wine choice. Food Quality
and Preference 17 (2006) 166–178
L. Emilio Morales, Garry Griffith, Vic Wright,
Wendy Umberger and Euan Fleming.
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In The Australian Beef Market. Australian
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(AARES) 53rd Annual Conference.
Wim Verbeke, Iris Vermeir, Karen Brunsø.
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Wendy van Rijswijk, Lynn J. Frewer, (2008)
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Consumer behaviour
Nick Johnsa, Ray Pine. Consumer behaviour in
the food service industry: a review. Hospitality
Management 21 (2002) 119–134
Seema Bhate. An examination of the relative
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Willingness to pay
Jill E. Hobbs, Kim Sanderson and Morteza
Haghiri. Evaluating Willingness-to-Pay for Bison
Attributes: An Experimental Auction Approach.
Canadian Journal of Agricultural Economics 54
(2006) 269–287
David Ubilava, Kenneth A. Foster, Jayson L.
Lusk, Tomas Nilsson. Effects of income and
social awareness on consumer WTP for social
product attributes. Technological Forecasting &
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Wendy J. Umberger, Peter C. Boxall and R. Curt
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23
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(Abstract)
