Consumer aspects relating to the development of functional foods

1. INYS, Lund, November 29, 2006 Consumer aspects relating to the development of functional foods Klaus G. Grunert MAPP – Centre for Research on Customer Relations in the Food Sector Aarhus School of Business

2. INYS, Lund, November 29, 2006 Overview • The consumer view of food quality • The perspective for functional foods • Consumer-driven product development in the functional food area Acknowledgements: • Joachim Scholderer, Tino Bech-Larsen, Helle Alsted Søndergaard, Rasa Krutulyte, MAPP • Projects SCANOMEGA, FUNCFOOD, CROSSENZ, SLUT

3. INYS, Lund, November 29, 2006 What consumers want from food products • Good taste Good smell, good appearance, good texture… • Convenience In shopping, storing, preparing, eating… • Naturalness No GMOs, no E numbers, animal welfare, organic production… • Healthiness

4. INYS, Lund, November 29, 2006 Are consumers aware of the link between food and health?

5. INYS, Lund, November 29, 2006 Good intentions

6. INYS, Lund, November 29, 2006 Good intentions

7. INYS, Lund, November 29, 2006 Difficult implementation

8. INYS, Lund, November 29, 2006 Healthiness of food in daily life

9. INYS, Lund, November 29, 2006 Importance of health at point of purchase and after consumption

10. INYS, Lund, November 29, 2006 Health in consumer food choice • Health is a major element of perceived quality • But health is not top of mind in everyday food purchasing and handling • Many consumers believe that their diet is pretty healthy as it is • Consumers will not make compromises with quality of life • “If you had a life with enjoyment, if that’s steak and red wine, then you probably had a good life” • Health carries no reinforcement • People don’t want to become ’too healthy’

11. INYS, Lund, November 29, 2006 • The consumer view of food quality • The perspective for functional foods • Consumer-driven product development in the functional food area

12. INYS, Lund, November 29, 2006 What do consumers think about functional foods?

13. INYS, Lund, November 29, 2006 The perspective for functional foods:Trade-offs and synergies among quality criteria • Health and convenience: • The convenient way to healthy eating • Health and good taste: • Functional foods are still foods, and no compromises with taste are accepted • Health and naturalness: • The problem with undesirable technologies

14. INYS, Lund, November 29, 2006 Health and naturalness • “In a way I like that the food I eat is pure - that nothing has been added” • “I don’t think they should put more additives in the food…even though they are not really additives” • “It makes me think of food being injected with a syringe” • “If people eat butter they know it is unhealthy…and then the food manufacturers develop something different…I think that’s cheating”

15. INYS, Lund, November 29, 2006 Naturalness and degree of processing Organic Conventional Functional GMO

16. INYS, Lund, November 29, 2006 Carriers and ingredients: Natural combinations are prefered

17. INYS, Lund, November 29, 2006 The perspective for functional foods:The information problem • Health benefits are invisible – they have to be communicated in a way that is credible and understandable • Health claims are regulated • Consumers are sick and tired of complex, confusing and contradictory information about what is healthy and what is not • Consumers are confused • by technical terms • by verbal qualifiers like ’research shows…’, ’may help…’ • by probabilities and risk statements

18. INYS, Lund, November 29, 2006 The need for simplification

19. INYS, Lund, November 29, 2006 The limits of information processing

20. Nutritional label Perception Under- standing Evaluation Decision- making Purchase Ingredients list Health claims Brand Associations Affect Purchase Appearance INYS, Lund, November 29, 2006 The limits of information processing

21. INYS, Lund, November 29, 2006 Perspectives for functional foods • Can draw upon the basic health motive and consumers’ desire for convenience • Need to take into account consumers’ desire for products that are ’natural’ or produced in a ’natural’ way • Are foods, and few consumers will trade lack of taste for more health • Are information-intensive products, and communicating health benefits is a complex task

22. INYS, Lund, November 29, 2006 • The consumer view of food quality • The perspective for functional foods • Consumer-driven product development in the functional food area

23. INYS, Lund, November 29, 2006 Consumer-driven product development • The right balance between exploitation of new technology and a thorough understanding of consumer needs

24. INYS, Lund, November 29, 2006 Consumer driven product development • Things to take into account • Selection of health benefits • Selection of carrier/ingredient combinations • Framing of health-related messages • Cultural differences • Consumer segments • The right technology • Health branding approach

25. INYS, Lund, November 29, 2006 Cultural differences

26. INYS, Lund, November 29, 2006 Segments

27. INYS, Lund, November 29, 2006 The right technology Example: Attitude to enzyme production systems

28. INYS, Lund, November 29, 2006 Health branding • Building up strong, unique and favourable health-related brand associations • Consistency – product appearance, sensory properties, labelling, advertising, PR, use of symbols all have to support the health message • Credibility – alliances, endorsers, back-up of scientific evidence

29. INYS, Lund, November 29, 2006 Consumer driven product development • Things to take into account • Selection of health benefits • Selection of carrier/ingredient combinations • Framing of health-related messages • Cultural differences • Consumer segments • The right technology • Health branding approach More info • http://www.mapp.asb.dk