38% of buyers say they buy premium either ‘regularly’ or ‘all the time’. In comparison, a total of 35% said the same about coffee, 33% about alcoholic beverages and 32% about ice cream. This shows that even as consumers continue to juggle daily finances and manage household budgets, they are still willing to regularly trade up on indulgent groceries such as chocolate.
According to the survey, shoppers determine a product’s premium value as a result of its ingredients rather than the price. 58% of consumers regard a product as superior to an ‘everyday’ item if it promotes the use of the finest ingredients, which is significantly higher than those who validate a product’s premium value based on ‘if it’s expensive’ (38%).
When it comes to packaging, consumers are most likely to consider a product as premium if it has ‘standout appeal’ (44%) and comes in environmentally friendly packaging (37%).
The survey also finds that consumers tend to associate Fairtrade and organic ingredients with traits such as purer formulation and artisanal production and, as such, superior quality. This suggests that manufacturers are smart to position products around ethical luxury.
The use of environmentally friendly packaging can create a halo effect in the eye of the customer, particularly if this extends to the formulation of the product.
“Irrespective of their financial situation, consumers are still willing to trade up on a regular basis in categories inherently associated with treating and indulgence,” said research manager Michael Hughes. “To encourage trading-up behaviour, manufacturers need to push the concept of ethical luxury in categories such as chocolate and coffee to make consumers feel that they’re getting a real treat over everyday items.”
This Canadean Consumer survey is based on answers from 2,000 UK-based adults. The survey was conducted in March 2014.
© FoodBev Media Ltd 2024