Sales of local food in the UK are likely to withstand the economic slowdown,
with most shoppers remaining loyal to local products, according to international
grocery experts IGD.
Shoppers’ continuing enthusiasm to support local producers and their desire to
minimise the environmental impact will lead to sales surpassing £5.7bn per year
by 2012 - up from £4.3bn in 2007, IGD’s Home or Away report predicts.
Overall, IGD reports that two thirds (65%) of consumers now buy locally branded
food. 3 in 5 predict the economic slowdown will have no impact on these
purchases, 1 in 5 expects to cut back but another 1 in 5 expects to buy more of
these products.
“The economy is affecting most people’s food choices but not just in a simple
and obvious way,” says IGD Chief Executive Joanne Denney-Finch.
“In these tough conditions, many people are keener than ever to support nearby
jobs through their spending choices. Others are reducing their travel costs by
making greater use of shops in the vicinity. Both of these factors favour local
food.”
The report reveals three main considerations in consumers’ enthusiasm for local
food. The number believing it is fresher has remained broadly static since 2006
(58% compared with 60% two years ago). But local food buyers are much more
likely to purchase it to support local growers (up to 44% compared to 29% in
2006) or for environmental reasons (up to 32% from 24% in 2006).
Report author Michael Freedman predicts that in the longer term, local food
could increasingly win share from national and international brands.
“Around four in ten consumers told us they were likely to desert some
established brands for locally-produced alternatives. This was particularly true
among consumers already committed to buying local food. However, big brands
could also gain from this trend. When asked to name a local producer many people
mentioned a major business in their area. So companies of all sizes can benefit
from emphasising their heritage and contribution to the community,” he says.
The report also reveals that local purchasing is spreading to new categories
beyond the traditionally successful fresh fruit and vegetables. Categories
identified by shoppers as offering potential for a wider range of foods include
milk, poultry, cheese, fish, jams, preserves, honeys and ready meals.
Ends
Notes to Editors:
For more information or interviews, please contact: Paul Griffin, Senior Press
Officer, IGD. DD: +44 (0)1923 851990. M: +44 (0) 7834 652991. E:
paul.griffin@igd.com.
IGD provides information, insight and best practice to the food and
grocery industry worldwide. For more information, visit:
www.igd.com.
