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 We assess the implications on local food from rising food, fuel and energy prices
Consumers buy local in slowdown
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| Fresh local produce | |
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Many consumers say they are watching the pennies by turning to local food, and shopping in local specialist stores, according to IGD’s Home or Away – the Role of Provenance report.
In the worst case scenario, the number of consumers buying local food during an economic slowdown is likely to remain the same, at 61%. More encouragingly, one in five (20%) of consumers in our research actually say that they are likely to buy more.
Cost/economic downturn versus value
Source: IGD Consumer Unit, 2008
Saving fuel - making shorter journeys
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"If I went to buy a piece of meat in the supermarket, that would be a 20 mile round trip. It’s going to cost me a fortune what with the price of fuel. It would probably be cheaper to buy it locally."
Skipton, Mums, C2 |
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Rising food, fuel and domestic energy prices are leading consumers to find different ways to save money. For example, those in rural communities say they are starting to make shorter journeys and going to local shops more.
Value for money from local food
Some consumers in our research also believe that the high price of fuel would, in the long run, make local goods relatively cheaper than imported goods, as they had to travel further.
Some also believe that local food offered them better value for money as it would last longer.
Local food seen as more expensive
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"I would still prefer to buy local food that lasts longer and keeps its quality so I don’t have to do my shop as frequently."
Winchester, post-family, BC1 |
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That’s the good news. However, local food also has a higher price image than many major brands. The cost of local food is seen as the number one barrier to purchasing it. Overall around six in ten (61%) people who already purchase, or are interested in purchasing, local food cite price as a barrier to buying it. Two-fifths (43%) of them say that local food is too expensive, a quarter (24%) say it is more expensive than alternatives and 10% would rather choose a product that offers the best value for money.
Barriers to purchasing local food
Base: % of local buyers and those who would like to buy
Source: IGD Home or Away Report, 2008
With more shoppers saying that they are looking around for good deals, local produce needs to remain price competitive and demonstrate that it offers value for money. Retailers and suppliers should continue to review promotional strategies and offer competitively priced products on local categories that have most potential for growth.
More information:
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Home or Away - The Role of Provenance
This research explores ‘place of origin’ and the extent to which it relates to the desire for authentic, high quality and tasty products across different categories. It identifies the priorities consumers juggle when purchasing local foods including the demand for year-round availability versus concerns over the environment and food miles. |
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