Vypr, a product intelligence platform, has launched its Food and Drink Intelligence Report for 2023. The report details the influences, challenges and opportunities for brands and food producers. The study also highlights the cost-of-living crisis and changing food preparation
Implementing the High Fat, Salt or Sugar (HFSS) legislation was the focus for 2022 for many food producers. However, 47% of consumers were unaware of the legislation, despite 65% being positive about proposed changes. Consumers are looking for healthier options, but Vypr’s research has highlighted negative views around poor taste – indicating that there is still work to be done around reformulations by food producers.
48% of consumers indicated they’d like HFSS reductions to ready meals, 42% on desserts and 35% on drinks. With consumers not wanting to sacrifice taste, specific categories need to develop individual research of their target audiences. For example, 42% of consumers reported that they’d like to see reformulations to help reduce the levels of salt and sugar in their foods, with only 17% stating that they’d like to have high HFSS ingredients in their products. However, consumers are savvy with 51% of respondents noticing smaller pack sizes, indicating that producers have chosen to reduce size versus reformulation.
The cost of living crisis means budgets are still being squeezed, which is why the Government has delayed the second part of the HFSS legislation until October 2023. In addition, 57% of consumers stated they wouldn’t pay more for less healthy products, indicating that consumers aren’t willing to pay a premium for non-compliant foods either.
35% of consumers have also returned to the kitchen to save money by cooking from scratch. Traditional meals such as Shepherd’s Pie are on the menu, with consumers using slow cookers and air fryers in a bid to reduce energy consumption.
The demand for plant-based options continues, with 17% more people saying they planned to participate in Veganuary this year compared to 2022. 33% of respondents from non-vegan/vegetarian groups said they were somewhat interested in trying plant-based products, with 20% stating no interest. This is a positive sign as the market continues to grow, and brands will be able to broaden their products/portfolios to larger audiences.
Supply chain disruption has affected decision-making in 2022. Most recently, the shortage of eggs due to the avian flu outbreak has meant customers have not had access to a regular supply, which has a greater impact on producers. Consumers are not opposed to the idea of food containing egg alternatives, with 47% of respondents stating that they would be willing to purchase these products (carnivores were least likely to buy them.) Baking has been particularly affected; consumers have found alternatives such as yoghurt (13%) or bananas (13%), but 38% of consumers said they wouldn’t bake an item if eggs weren’t available.
Vypr founder Ben Davies commented: “2022 was yet another year of significant challenge for the food and drink industry, following two years of the pandemic. The Ukraine War, Brexit and the cost of living have created challenges for suppliers and consumers alike. We expect this trend to continue throughout 2023 as supply chains remain tricky and energy costs remain unpredictable well into the year’s first half.
“This doesn’t mean innovation needs to cease. There are huge advantages for brands to continue developing their products and propositions. Consumers are looking for healthier options and are willing to try new ingredients – they won’t accept increased prices with little or no increase in value. With high inflation, brands and producers must listen closely to consumers’ needs and identify key behaviours. Real-time and robust insights are vital as the market remains fluid.”
NAM Implications:
- “51% of respondents noticing smaller pack sizes, indicating that producers have chosen to reduce size versus reformulation” – says it all…
- One thing about the three year Lockdown fall-out:
- Those that survived are using their heads.
- i.e. ignore at your peril.
- Patently, taste-matching is one of the biggest HFSS challenges…
