Global consumers seek affordable nutrition post pandemic

Global inflation is projected to reach 8.8% in 2022¹.

While the rising food & drink costs is a key area of concern, with 80% of Thai consumers² expecting increases in food & drink prices, consumers are more likely to cut down on non-essential expenses such as eating out, leisure and clothing³. Food & drink for at home consumption is more resilient to the cost of living crisis and consumers are more inclined to look for savings than cutting back. The main saving strategies⁴ consumers in countries impacted by inflation are doing is stocking up during sales, reducing treats such as gourmet coffee, switching to stores with cheaper prices and buying more private label brands. For instance,

In addition to looking for savings, consumers are concerned about eating healthy⁶, especially since the pandemic. In Nigeria, 63% of consumers⁷ say that they plan to consume more nutritious food/drink (eg products packed with vitamins and minerals) over the next 12 months. Milk is a nutritious staple in many households and can be positioned as a smart choice for challenging times. In Thailand, 63% of consumers⁸ view cow’s milk as nutritious and,

In addition to bulk-buying, consumers will be motivated to cook more at home due to inflation. In Nigeria, 47% of consumers¹⁰ intend to cook from scratch more often. For dairy, there will be opportunities from consumers having more breakfast at home. Despite a need to save money, consumers still associate value with more than just low prices¹¹. Beyond proving value with health benefits, consumers will see value in versatility and the various types of occasions they can use a particular shelf-stable product. Milk powder brands are in a great position to cater to consumers’ desire to make the most of what they buy and prevent food waste by promoting the use of their products in coffee and tea, cooking, baking, making yogurt and desserts, as well as a quick and nutritious snack at any time of day. As a result of the pandemic,

Consumers struggling financially and unable to stock up on products will benefit from more affordable and smaller pack sizes such as single serve sachets. In SEA, there has been a significant growth in powdered milk with pack sizes smaller than 500g¹³ in the past 3 years. With regard to budget-tight consumers, particularly women and children who are at greater risk of malnutrition, dairy companies have a duty to deliver affordable nutrition¹⁴. Consumers expect brands to take action against societal issues. Inequality in society is one of them, and ensuring equality includes access to affordable, healthy food and drink.

Consumers who are concerned about food poverty will look for food and drink companies that work to reduce food insecurity. However, consumers are more likely to think that a food or drink product is good value for money¹⁵ if it has health benefits rather than if it is made by an ethical/socially responsible brand. Therefore, brands taking action against food poverty should not make their initiatives an on-pack marketing argument. Instead, they should communicate off pack. Environmental claims (e.g. supporting natural conservation) and animal/workers/farmers welfare tend to resonate more with consumers¹⁶ than ethical claims (e.g. supporting social equality). 

Top attributes sought after¹⁷ when shopping for food include contributing to fruit/vegetable intake, natural ingredients, source of vitamins/minerals, low fat and low sugar content. Brands can increase appeal by linking nutrients to the top health benefits¹⁸ consumers are looking for, including immunity support, heart health, gut health, healthy weight and brain function. Multiple benefits can be a winning mix for food & drink, so long as the products are affordable. Brands can take inspiration from yoghurt's positioning as a budget food with multiple health benefits. In Thailand, 82% of yoghurt consumers¹⁹ agree it is important to consume yoghurt every day to maintain good health, and

Consumers are taking a cautious approach to rising inflation, and are looking to brands to take a lead with providing solutions. Three things brand owners can do to align with consumers’ needs and expectations are: deliver affordable nutrition supporting overall health; demonstrate how affordable nutrition is helping to reduce food insecurity among societies’ most vulnerable; and add value with versatility so consumers can avoid food waste making the most of what they buy.

Click here to learn more about NZMP's affordable and nutrionally fortified dairy-based powder, NutriWhite.

The views expressed above are the opinion of the author, not those of Fonterra, and Fonterra is not responsible for any decisions taken in reliance on the same.