Wednesday 12 May 2010

Higher Welfare Products Grow Despite More Shopper Focus on Price

Last week’s blog post mentioned Institute of Grocery Distribution research which found that price is becoming even more crucial as shoppers decide what and where to buy.

But rock bottom prices are not always the driving force. The IGD analysis pointed to some growth in premium ranges, provide they are seen to be worth paying for, support for fair Trade, and continued demand for local food.

Consumer interest in animal welfare can also be added to the list.

The RSPCA has published research supplied by Kantar Worldpanel, respected grocery trade auditor, which indicates that in the year to March 2010 sales of Freedom Food chicken more than quadrupled - from £16million to £72 million, whereas those for standard, intensively reared chicken dropped by £27million. Of course we need to see the figures in context. The total chicken market is worth just over £2bn, so the numbers are small. Part of the growth will be due to shoppers dropping down the hierarchy of better welfare products. We know for example that sales of organic chicken are down about 28% year on year as organic buyers switched to free range. And no doubt some free range buyers will have bought ranges like Freedom Foods where the birds although indoors have more room. But the fact that the standard range has dropped in sales even though total chicken sales have grown, does suggest a conscious consumer switch to improved welfare chicken, despite the price premium.

The other piece of data is that, according to the British Free Range Egg Producers Association, sales of free range eggs now account for 53% of the market compared with 47% 12 months ago. Again growth has come despite free range being more expensive.

Interest in animal welfare has always been a factor in the British psyche, and it does seem that for the humble chicken and her eggs, interest has been translated into shoppers' continuing willingness to vote with their purse.

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