73% will pay more for recognised ingredient names
New research shows consumers will pay more for products made with ingredients they recognise, according to a new study.
As many as 73% of consumers are happy to pay a higher retail price for a food or drink product made with ingredients they recognise and trust, research has revealed.
In a survey of 1,300 consumers across Europe, North America and Asia-Pacific, more than half of respondents (52%) said they would spend over 10% more on a food or drink product that contained ingredients they recognised and trusted. Almost a fifth (18%) said they would pay 75% or more extra.
Overall more than three-quarters of respondents (76%) said they would be more likely to buy a product that contained ingredients they recognised and trusted.
The findings of the survey underline the growing importance of clean and clear labelling and the use of ingredients that are familiar to consumers. They also suggest that there is a significant opportunity to harness the potential of co-branding between food and beverage manufacturers and their ingredients suppliers.
Richard Clarke, director at Ingredient Communications, said: “Co-branding of ingredients in the food and beverage industry is still fairly unusual, and yet our survey suggests it would resonate with many consumers.”
He added: “Marketing finished products that contain ‘branded’ ingredients that consumers recognise could be key to commanding a substantial price premium in-store.”
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