The Future of Food: Food Tribes and Changing Consumer Values
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1 The Future of Food: Food Tribes and Changing Consumer Values Eric J Pierce Director, Business Insights New Hope Network
2 The perspective I bring to sustainability I hope to bring to you a unique view into sustainability through the lens of forces shaping the Natural and Organic Products Industry. Founded in 1975 with the mission: More health for more people Owner of the Natural Products Expos and trade publications monitoring industry from supply to shelf. Regarded as the Chamber of Commerce of the US Natural Products Industry. Manufacturers, retailers, suppliers and investors turn to New Hope to accelerate growth. Situated at the heart of the US Natural Products industry New Hope is uniquely positioned to identify the forces and trends shaping the industry. 2
3 A new opportunity to engage consumers There has always been a struggle to engage consumers in sustainability efforts. When we focus consumer concern on tangible actions they can take, we are often successful in affecting change. Entry Points to Consumer Dialogue & Behavior Change 1980 s The Ozone Layer Styrofoam Aerosol Sprays Refrigerators Dry Cleaning 2000 s Global Warming Transportation Hybrid Cars Light Bulbs However, we haven t always done a great job of giving consumers affordable actions they can easily take. 3
4 Food: a new entry point to sustainability Increasingly consumers realize their economic power. Empowered by transparency & access to information they vote with nearly every dollar. Increasingly consumers are showing interest in the relationship between the food they eat and the environment. Organic Non-GMO Entry Point to Consumer Dialogue & Behavior Change Local, food miles Grass-fed Seasonal foods Today Climate Friendly Food Plant-based diets Ingredient traceability Celebrity farmers Industrial farming Confined feed lots Food: a new, tangible and accessible entry point to engaging consumers in sustainability efforts. 4
5 Food can have a huge impact Food and Agriculture together are one of the single largest industries. Total Value of U.S. Agricultural and Food Value Chain $13.3 Trillion U.S. Food & Beverage Consumer Retail Sales $756 Billion at 2.4% Growth 5 U.S. Natural & Organic Food & Bev Consumer Retail Sales $69 Billion at 10.6% Growth Source: KPMG International 2013 Source: Nutrition Business Journal 2016 Source: Nutrition Business Journal 2016 Top 5 Food Tribes: Gluten Free, Paleo, Vegetarian, Vegan, Raw from NBJ Special Diet Report 2015 Top 5 Food Tribes Food & Beverage Consumer Retail Sales $92 Billion at 12.5% Growth Source: Nutrition Business Journal 2015
6 Sifting cultural forces are disrupting food Changing values, technology and demands of modern life are reshaping the food and retail landscape and fueling the food movement. Demands of Modern Life Hurried and Busy Lives A Changing Climate Cultural Awakening Technology Enablers Erosion of Trust Conscious Consumption Rise of Authentic Leadership Redefining of Stakeholder Value Changing Food Landscape The Internet Effect Our Flat Earth Culture of Innovation Food Tech 3.0 6
7 Today s consumers demand proactivity Today s consumers trust leaders and brands that demonstrate character, stand for clear values, and take risks or show vulnerability. Today s consumer demands: Authenticity Engagement Transparency Connection Proactivity 7
8 Connecting deeply to values is essential Like so many industries before us, food and retail are being disrupted and businesses are being forced to adopt or face declining sales and relevance. Leadership, differentiation and success in this dynamic market require a deep and clear understanding of consumer values. 8
9 Challenge: feeling consumer empathy The biggest challenge for many is seeing the food movement for what it is. The problem for many is this: Means & Standard Deviations 9
10 The problem is the mythical average Attempts to serve the average consumer often results in products which serve a lot of people, but fail to do so in a meaningful way. The Mythical Average Uninspired Mediocre Boring 10
11 To understand the food movement you have to look closely. It s not just one chaotic food movement. It s many small, well-defined movements led by food tribes. You must look closely to understand the nuances of each. 11
12 The solution is to study the outlier If the problem is the mythical average, the solution is to study those most passionate or who feel the pain of a problem most intensely and can describe it most clearly. Study the Outlier 12
13 then connect to the larger opportunity Don t worry about the size of the tribe, serve their values to attract a much larger base of consumers with shared values. 13
14 Understanding the future of food Food tribes are key to understanding the food movement & the changing food landscape. A Food Tribe is a social group linked by set of common values and beliefs which shape one s food and lifestyle choices. Tribe values and beliefs are deeply held and often a defining characteristic of one s personal identity. 14
15 Listen where the message is clearest Studying food tribes & their values allows one to better understand & empathize with the consumers who are reshaping the food landscape. The message is clearest and the values of the food movement are strongest among Food Tribes 15
16 Listen for shared values Food tribes have a strong influence on mainstream consumers & share many values. Food Tribes broadcast and share their values with mainstream consumers 16
17 Consider for example The Freegans Definition quoted from 17 DEFINITION Freegans are people who employ alternative strategies for living based on limited participation in the conventional economy and minimal consumption of resources. RELATING TO MAINSTREAM Values that resonate broadly Increasingly even mainstream consumers are finding motivation to challenge habitual decisions these values motivate reevaluation and behavior change. Reducing unnecessary consumption Waste reduction Reduced environmental impact Understanding where food comes from Growing what you can Simplifying life
18 Behaviors are extreme, but values are shared Freegan values resonate among the mainstream; intensity and behaviors differ. Freegan Values Mainstream Beliefs Reducing Food Waste The amount of food waste produced upsets me 34% Growing Own Food I do (would) grow my own food (if I could) 26% Reducing Consumption I feel guilty when I buy more than needed 22% Waste Reduction Concern about waste can impact what I buy 22% Simplifying Life I would trade stuff for a simpler life 20% I pay more for responsibly 19% Responsibly-Produced Food produced food Concern about the planet 19% Protecting the Environment impacts what I buy Source: NEXT/NBJ Surveys: Gen Pop Samples; Tribe Sizes are rough estimates using self-reported data; N=600 Size, N=400 Values 18
19 The food movement has common themes Food tribes cluster around these 6 primary motivations: * * *We will set aside the a few clusters for the focus of this presentation 19
20 Est. Size of Tribe Motivation: Self Sufficiency <4% Food Tribe: Urban Homesteaders DEFINITION Lifestyle movement for those living in the city but wanting to live off the land in a more environmentally-conscious & self-sufficient way, especially in regards to food. Grow their own food & keep animals for both food and manure Take a hands on approach to running and maintaining their households (e.g. home repairs, oil change & auto repairs) Compost, practice waste reduction, use alternative fuels & collect rainwater 20
21 Est. Size of Tribe Urban homesteading <4% touches on both our nostalgia for simpler times & our desire to understand and be more connected to our food. Homesteader Values Mainstream Beliefs 36% Homemade/Handmade I prefer homemade over store bought I make effort to reduce my 27% Protecting the Environment planetary impact I value who grew my food 26% Where Food Comes From and how it is made I go out of my way to 18% Locally-Sourced buy local-sourced food I sometimes dream 16% Self-Sufficiency of living off-the-grid Source: NEXT/NBJ Surveys: Gen Pop Samples; Tribe Sizes are rough estimates using self-reported data; N=600 Size, N=400 Values 21
22 Est. Size of Tribe Motivation: Ancient Knowledge <4% Food Tribe: Paleo DEFINITION Paleo is both a diet & a lifestyle meant to mimic the presumed nutrition & activity levels of our hunter-gatherer ancestors. No processed foods, refined sugars, caffeine, nightshades, dairy, grains and/or legumes Endorses naturally and ethically-sourced foods (e.g. organic, non-gmo, grass-fed, pastureraised) Includes many healthy fats, nuts & seeds 22
23 Est. Size of Tribe Paleo <4% For many, unprocessed = healthier is quite believable. There s interest in simpler, higher-quality ingredients. Paleo Values Mainstream Beliefs Physical Activity Regular physical activity is key to health 47% Whole, Less-Processed Whole, unprocessed foods are better for you 31% Food s Impact on the Body I improve my health & energy with clean food 29% Simplifying Life 27% As a culture we tend to over complicate life High-Quality Ingredients I pay more for high quality ingredients 22% Good health requires one to learn to cook Cooking Skills 21% Anti-Industrialized Foods 16% Mass-produced food should be avoided Source: NEXT/NBJ Surveys: Gen Pop Samples; Tribe Sizes are rough estimates using self-reported data; N=600 Size, N=400 Values 23
24 Est. Size of Tribe Motivation: Sustainability, Impact <8% Food Tribe: Vegan DEFINITION Veganism is a way of living that seeks to exclude, as far as possible and practical, all forms of exploitation of, and cruelty to, animals for food, clothing and any other purpose. The Vegan Society Avoid consumption of all meats, fish, seafood, poultry dairy and eggs Ethical Vegans extend the avoidance of animal exploitation beyond food (e.g. leather, fur, wool, gelatin, lanolin, cosmetics) 24
25 Vegan Plant-based values are growing, reflecting the mainstreaming of vegan values. Vegan Values Mainstream Beliefs Fair Trade & Labor Social Issues 13% Issues impact what I buy Source: NEXT/NBJ Surveys: Gen Pop Samples; Tribe Sizes are rough estimates using self-reported data; N=600 Size, N=400 Values 25 Est. Size of Tribe <8% Animal Welfare I am concerned with how livestock are treated 27% Ethical Beliefs I believe buying can be a moral decision 22% Health I believe a plant-based diet is healthy 21% Environment The food I choose impact the planet s health 18% Economic Divestment My beliefs make it hard to buy some items 16%
26 Values vary within the food movement but many shared values unite it. Protecting the Environment Anti-Industrialized Responsibly-Produced Food Where Food Comes From Locally-Sourced Small-Scale Agriculture Food s Impact on the Body Food and Self-Awareness Simplifying Life Whole, Less-Processed High Quality Ingredients Nutrient Rich Food Food as Medicine Personalized Solutions Ethics Animal Welfare 26
27 Make empathy the goal Study Food Tribes Develop empathy for their values and beliefs Use this connection to inspire your innovation & marketing Don t worry about the size of the tribe; serve their values to attract a much larger base of consumers with shared values 27
28 Connect food values to sustainability Provide consumers with tangible actions they can take Align your business values to deeply held consumer values Find ways to engage consumers in your sustainability efforts Enable them to support your efforts with their purchasing power Find ways to: Be authentic and transparent Create a culture of proactivity Rebuild your marketing and sales efforts to focus on connection and engagement 28
29 THANK YOU! WhatsNextInNatural.com Eric J Pierce Director, Business Insights New Hope Network
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