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Consumers want healthy, cheap food

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Published: March 23, 2006

A quarter of all adults in the world are clinically obese but most deny the problem applies to them personally, says a food consultant from England.

Both the overweight and the healthy are more concerned about the wholesomeness of their food and seek products to improve their well-being, said David Hughes, professor emeritus of agribusiness at Imperial College in London.

He consults for food producing groups in the United Kingdom and spoke about retail trends at the international food symposium in Calgary March 15.

People will pay more for omega 3 enhanced products and foods deemed healthier because they contain certain properties. A good example is renewed interest in the pomegranate, believed to be high in antioxidants.

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“Over time, products that contribute to a healthier lifestyle will become simply mainstream components of the average diet,” Hughes said.

That means the organic movement is moving from niche to a larger segment of the food market. Products touted as free from certain ingredients are included in that sector as well. These are foods with no trans fats, no gluten, no dairy or nuts.

People will need to understand the glycemic index of food, especially as childhood obesity increases.

While people want healthier products many do not want to pay more.

Increasing competition is pushing down food prices because someone is always willing to sell for less, especially when there is a continuing oversupply of raw farm commodities.

A recent study from Europe defined seven different types of shoppers.

About 18 percent are looking for premium products and are willing to pay more, while 13 percent are discount shoppers. The rest fall among those who shop around for the best deal, those who are loyal to particular stores or brands and those who do not think about shopping but just get what they need and leave.

The survey showed different buying patterns in specific countries. In the United Kingdom, a third of shoppers want premium products and are willing to pay more. In Germany, nearly a third are price-driven shoppers and about 10 percent look for premium, higher priced goods.

Where people eat is also changing.

“We are seeing a convergence between grocery retailing and food service,” he said.

Eating out is convenient but more people are worried about controlling their spending so they may prefer to buy prepared meals at the grocer.

In the United States about half the meals are eaten outside the home, compared to the U.K. where about 30 percent are eaten away from home.

Also growing in popularity in Britain is take-out ethnic foods rather than the more traditional fish and chips or burgers. More people are buying partly prepared components and combining those for a meal. Others snack on sandwiches, rely on home delivery or ready-made meals from stores.

Another trend affecting food buying habits is the increase of one-person households. One out of five Canadians lives alone.

As consumers change, so do retailers. The U.S.-based Wal-Mart is planning 1,500 new stores in North America in the next three years. By the end of the decade Wal-Mart will control nearly 30 percent of the retail market, up from the 17 percent market share it holds now.

More Wal-Marts have full service grocery sections. In response, more food stores are offering more non-grocery items to compete.

About the author

Barbara Duckworth

Barbara Duckworth

Barbara Duckworth has covered many livestock shows and conferences across the continent since 1988. Duckworth had graduated from Lethbridge College’s journalism program in 1974, later earning a degree in communications from the University of Calgary. Duckworth won many awards from the Canadian Farm Writers Association, American Agricultural Editors Association, the North American Agricultural Journalists and the International Agriculture Journalists Association.

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