Report Summary

Introduction
Informed consumers worldwide share a common interest in seeking accurate information about food safety, expanded food choices, and a balanced diet that can maximize their potential for sustained good health.  With this, product safety has become an important topic in recent years, especially for food and drink.

Scope of this Report
-  Detailed insight and analysis covering consumers' confidence in the supply of food and drinks and how this is influenced by safety incidents.
-  Assess the importance of food safety against the numerous other considerations shaping consumer buying behavior.
-  Covers a broad range of issues related to product safety including the growing sensitivity surrounding food and drink allergens and intolerances.
-  Strategic conclusions and actions highlighting how manufacturers and retailers should direct resources towards (re)gaining trust.

Research & Analysis Highlights
Research in both Europe and the US shows that the majority of consumers are concerned about the safe provision of groceries.  The recent spate of high profile incidents which includes contaminations, recalls and confusion over marketing claims have eroded trust in consumer packaged goods (CPG) manufacturers and retailers.

Manufacturers and retailers need to respond to consumers' increasing food sensitivity.  Our research found that 44% of European consumers felt that "checking food or drinks for allergy or intolerance reasons" was either "important" or "very important".  A similar level of importance was also placed upon this by US respondents (43%).

Overall perceptions and consumer confidence in food and drinks are shaped by the product type being purchased as well as where it was produced.  With respect to socio-demographic variables women are more concerned about safety issues than their male counterparts.  Food safety concerns also typically escalate with age but not with education levels.

Key Reasons to Read this Report
-  Gain a detailed insight into consumer views towards food safety issues and understand the implications for product and communication management.
-  Access a blend of quantitative and qualitative data aggregating the most compelling and recent research in this increasingly important topic.
-  Ensure that you are well prepared for future safety crises and learn how to manage consumer perceptions and expectations most appropriately.

Table of Contents

VIEW
    CATALYST
    SUMMARY
ANALYSIS
    INTRODUCTION: Food and beverage safety issues are gaining precedence
    TREND: Consumer concerns over food and drink product safety are escalating
        Consumer opinion research shows that food safety is increasingly important for shoppers
        Food and beverage safety concerns are secondary to other general factors and in relation to product choice
        Take-outs and implications: there is a clear need to restore consumer confidence over product safety
    TREND: The allergen and intolerance food and drink market is booming as consumers act upon both perceived and actual nutritional problems
        The issue of food allergens and intolerances has become both important and highly sensitive
        Take-outs and implications: manufacturers and retailers need to respond to consumers' increasing food sensitivity
    INSIGHT: Concerns over food and drink safety are broad-ranging
        There are numerous nutritional and broader safety risks associated with food and drinks
        Europeans express worry about a broad range of food risks factors especially those out of their control
        US consumers are also attentive to the range of factors influencing food safety perceptions
        Take-outs and implications: manufacturers and retailers need to manage consumers' perceptions and expectations over a broad range of food and drink safety issues
    INSIGHT: Socio-demographic status influences consumer confidence in food and drink
        Women are more concerned about safety issues than their male counterparts
        Food and drink safety concerns typically escalate with age
        Take-outs and implications: concerted efforts to restore consumer confidence should be targeted at older shoppers and females
    INSIGHT: Product format and origin are important influencers in shaping consumer confidence in food and drinks
        Consumers are most likely to express concerns over fresh food, especially meat
        Many consumers perceive organic products as a safe and healthy way to avoid potential risks of exposure to pesticide residues in foods
        Consumers have more confidence in food and drinks associated with particular places
        Take-outs and implications: interest in provenance, organics and freshness will all increase due to heightened product safety concerns
    INSIGHT: Reduced confidence as a result of food safety incidents will result in boycotts, switching of brands, negative word of mouth and loss of trust
        The impact of food safety incidents should not be underestimated
        Food safety incidents impact US and European consumers in a similar manner
        Reduced confidence in food and drinks negatively impacts brand trust, which dampens possibilities of developing longer term relationships with consumers
        Take-outs and implications: it is vital industry players manage food safety incidents appropriately
    INSIGHT: Consumer confidence in product safety can be strengthened with an emphasis on certain information formats
        Consumer groups, expert professionals and like-minded peers are the most trustworthy sources of information
        Consumers react positively to transparency in the food and drink supply chain
        Take-outs and implications: consumers will respond more favorably to specific communication efforts made by manufacturers and retailers
ACTIONS
    ACTION: Leverage the product attributes and communication cues that consumers perceive to be most trustworthy
        Communicate the advantage of existing, established brands over new products
        Build relationships with the "expert community"
        Be wary of the negative effects of celebrity endorsements
        Make product quality a key brand value to build confidence in products
        Communicate ethical and environmental credentials but make it the secondary part of any message
    ACTION: Make transparency and traceability core features of supply chain and marketing communications development
                Transparency and traceability initiatives need to focus on four areas
        Make concerted efforts at industry level
        Be pro-actively open about the communication of a wide range of trust issues through traceability initiatives
        Primarily target female and more mature consumers with confidence-enhancing messages
    ACTION: Avoid making product safety the central theme of marketing communications
APPENDIX
    Definitions
    Methodology
    References/ Further reading
    Ask the analyst
    Consulting
    Disclaimer

List of Tables

Table 1: Consumer survey: Response by country to the question: "How important is checking food or drink for allergy or intolerance reasons", 2006
Table 2: Market value (US$m) for the allergen and intolerance food market, 2001-2011
Table 3: Market value (US$m) for the allergen and intolerance drink market, 2001-2011
Table 4: Consumer survey: the percentage of European consumers who are worried about various risks associated with food and drinks, by country, 2005
Table 5: Consumer survey: a snapshot of US consumers' food safety concerns
Table 6: Consumer survey: US consumer concern for cleanliness, quality and safety, by age and gender
Table 7: Consumer survey: the top two reasons for US shoppers buying organic food, by age
Table 8: Consumer survey: Europeans views on whether EU produced food is safer than elsewhere
Table 9: Consumer survey: Europeans' reaction to hearing about a food being unsafe or bad for health
Table 10: Consumer survey: European and US consumer responses when they lose trust in a company
Table 11: Consumer survey: level of trust among Europeans towards various information sources in the wake of a serious food risk
Table 12: Consumer survey: the perceived credibility among Europeans and US consumers of various sources of information, by region, 2006
Table 13: Consumer and industry opinion survey: the influence of various factors on (re)gaining consumer trust

List of Figures

Figure 1: There is a trust void between business and global consumers
Figure 2: Public opinion in the EU is divided on whether or not they are better off now in terms of food safety
Figure 3: Europeans are skeptical about the enforcement of food safety laws
Figure 4: Food safety is not a top-of-mind factor influencing food consumption or a top-of-mind concern compared to other lifestyle worries
Figure 5: Marked differences characterize food allergens and intolerances
Figure 6: Italians are the most concerned about food & drink allergen and intolerances
Figure 7: The numerous risks associated with food and drinks can be split into two categories
Figure 8: More than three-quarters of Europeans are "very worried" or "a bit worried" about potential risks related to food
Figure 9: The majority of US and European consumers place importance on reducing processed food consumption
Figure 10: The high importance that consumers place upon organic food and drinks is influenced by food safety concerns, especially the desire to avoid free of pesticides and preservatives
Figure 11: Ethnocentrism - among other things - contributes to a distrust towards "foreign" companies
Figure 12: Gaining a reputation for the provision of good quality products is a hugely influential factor in gaining trust
Figure 13: Product quality - which is merely one of five factors affecting overall perceptions of premium status - can be categorized by four attribute groupings
Figure 14: Social responsibility can help to build trust with consumers
Figure 15: Ethical consumerism is becoming more complex and sophisticated over time
Figure 16: There are four core determinants of consumer trust in food and drink safety
Figure 17: Traceability initiatives effectively support the overall branding efforts of food and drinks
Figure 18: Traceability initiatives are particularly relevant to fresh food and drinks
Figure 19: Safety/ risk considerations are secondary to a number of other important needs associated with food and drink consumption