2024 promises to be a dynamic year. A contentious campaign season, conflicts around the world and changing social norms are contributing to anxiety and shifting attitudes and behaviors. This environment makes it challenging – and even more important – for the food system to build trust with consumers.
CFI’s Consumer Trust Insights Council brings a breadth of perspective and depth of expertise to understanding what’s on the mind of today’s consumers. Four members of the council share the trends they believe will shape the food system in 2024.
Transparency expectations increase.
Over the last five years, FMI – The Food Industry Association has found that transparency has become increasingly important.
“Tracking back to FMI’s first research on transparency in 2018, we have seen the share of shoppers saying that transparency is very or extremely important increase from 69% to 72% in 2021 to 76% in 2023,” said Steve Markenson, vice president, research and insights, FMI.
The growing importance is driven by millennials and shoppers with children. Consumers have found packaging to be a valuable source of information, but 55% of shoppers are interested in seeking more information beyond what is on the label, FMI research shows.
As shoppers become more intentional about seeking out details about their food and where it comes from, they will determine how much they trust a food company based on the information it makes available.
Inflation weighs on shoppers.
A whopping 94% of consumers are worried about food prices. About three-quarters are concerned about shrinkflation – when companies keep prices the same but make packages smaller. This practice has made cost-conscious consumers lose trust, says Kevin Ryan, CEO of Malachite Strategy and Research.
“With 54% of U.S. consumers now saying they plan to buy ‘much more’ private label products in the future, I think we have reached the end of inelasticity. Instead, brands will need to break out rewards, making products bigger, pointing out the presence of an expensive ‘hero’ ingredient, or offering extras,” Ryan said.
Retail prices are expected to continue to increase this year, but at a slower rate than in 2023. Consumers will be more intentional about their purchases and they will not want to support brands they don’t trust.
Sustainability proof becomes essential.
Consumers see a direct connection between the foods they eat and the impact on the environment. When it comes to sustainability, they are looking for measurable progress.
Protocols established in the European Union are expanding into the United Kingdom and will likely spread to North America, notes David Hughes, emeritus professor of food marketing at Imperial College London and host of CFI’s monthly webcast “Connecting the Dots with Dr. Food.” He noted that food producers and companies who export to the EU must prove that their products are raised under deforestation-free conditions.
“The exporters must provide detailed evidence, which adds cost and effort,” Hughes said during January’s webcast. “Essentially, these are green barriers and they’re getting higher and higher. I think you’ll see that for the long term.”
Farms and food companies will narrow their focus from broad sustainability goals to prioritize the issues that matter most to them and their stakeholders.
Technology advances food production.
The first drug developed through gene editing will be available to patients this year. That’s just the beginning of how food and ag tech will advance in 2024. More than 500 gene-edited food products are in development. Agriculture will find more ways to utilize artificial intelligence (AI) to raise crops and animals more efficiently.
“Technology has tremendous potential to make the food system more sustainable by preventing disease, reducing the impact on the environment, improving the nutritional value and flavor of food and much more,” said Charlie Arnot, CEO of The Center for Food Integrity. “But it’s not a given that these products will have an opportunity to come to market. Consumers take a cautious approach to using technology to change food.”
Building trust in today’s food system while introducing new technologies will require diligent effort to understand consumers’ concerns and address them.
Shoppers choose food for life.
People understand that their diet has an effect on their quality of life and that becomes more important as they age.
“People don’t just want to live a long life; they also want to live a healthy one. While medical advances are pushing us all toward a lifespan of 100+, people are becoming concerned about their ‘health span’ as well,” Ryan said.
Consumers are interested in holistic nutrition and biotechnology that can help to maintain vitality, mobility and mental clarity throughout life. Food and beverage companies have not focused on senior consumers, but Ryan looks for that to change.
“All you have to do is look at the record-setting ratings for a show like “The Golden Bachelor” where a 72-year old guy looks to romance a series of 60+ women, to realize that longevity messaging sells,” he said.
Building trust with a skeptical demographic may require a fresh approach.
Throughout the year, CFI will be providing exclusive research findings and insights to members regarding these food topics and more to help your organization build trust in and across today’s system. Watch for more details!