Maximise brand value by formulating to 2024 consumer food preferences

Delivering the right combination of benefits can grow dollar share and brand loyalty

The road to success in creating deliciously appealing food and beverages is paved with a growing number of obstacles that manufacturers must navigate and overcome. Formulating for quickly evolving consumer needs is tricky enough, but when you add supply challenges and increasing inflation to the mix, finding the right solutions can be daunting.

Own the AND^SM to address the factors that influence food and beverage choices

Ingredion recognises both the constraints of our customers and the needs of their consumers. We see the conversation as an AND – not an or – proposition. It’s a concept we call Own the AND^SM. Creating food and beverages that deliver on deliciousness AND consumer-preferred benefits AND meet manufacturers’ requirements while finding new opportunities for organic growth is what it’s all about.

The changing value equation: despite inflation, consumers are willing to pay more for brands that share their ideals and expectations for “better”

Though individuals may have vastly different motivations contributing to how they choose what to eat and drink, the data reveals that beyond the taste they love, people make purchasing decisions based on a growing number of other factors — ranging from functional nutrition to personal values and lifestyle choices — and they’re willing to pay more for what matters most to them.

In this article:

Take a closer look at our latest proprietary ATLAS study² that informs the consumer value equation, and explore how these learnings play a role in finding growth potential with specific claims:

• Top 10 claims impacting purchase decisions
• Top 5 drivers of choice globally and by region 
• Claims consumers are willing to pay more for 
• Insights specific to clean label, sugar reduction and nutrition, health and wellness
• How Ingredion can help your company use this data to win

The insights from the ATLAS survey serve as a perfect starting point as manufacturers evaluate their formulations and seek new ways to incorporate additional benefits, such as clean label ingredients, reduced sugar, added fibre, sustainable farming and a wealth of others that can tip the competitive scale for a consumer comparing products in the supermarket aisle.

Put Ingredion’s exclusive and comprehensive consumer research to work

Ingredion uses our global ATLAS database to help our customers uncover the latest consumer-driven food and beverage trends that can energise categories and increase consumers’ willingness to pay more. ATLAS is the largest proprietary global research programme examining consumer trends, including attitudes and behaviours towards key ingredients and benefits within the food and beverage industry. The programme spans more than 10 years, 33+ global markets and 100,000+ consumer interviews.

What’s most exciting for our customers is the scale of the data in each survey allows us to drill down by region, category and ingredient. So, for example, we can help our customers understand how the desire for increased fibre is affecting noodle trends in Asia or bakery products in Europe.

Consumers seeking more value-add benefits report scrutinising ingredient and nutrition labels more than before

Respondents of the ATLAS survey self-report that they have increased their activity in a number of areas when seeking “better” food and beverage alternatives. As consumers pay special attention to how they spend their money, they are looking to identify the best added-value options and increasingly checking product details to ensure that their preferences and needs are being met by the products they eventually decide to buy.

Clean label, health plus – or the inclusion of health benefits – and sugar reduction have seen the strongest net gain in consumer buying behaviour over the past year. Consumers are also checking perceived value for money through sales.

Consumers especially attuned to all-natural food trends are willing to pay more across the board

Additionally, those who are willing to pay more for specific claims place more importance on all label and ingredient claims overall and are willing to pay more on average for a variety of product attributes.

Demographic trends indicate household age is a larger influence than income

Demographic variables also show trends in consumers’ willingness to spend more on products with the features and benefits they find most important. Surprisingly, desire for better food and beverage choices is not driven by escalating income. It’s driven more intensely by younger households. Consumers 18-34, and/or those with children, are primarily the ones who will pay more for added features and benefits. For example, females with children are the most likely to spend more for products with reduced- or no-sugar claims.¹

Food and beverage manufacturers seeking growth must understand what consumers are willing to pay more for and calibrate their product offerings based on that knowledge as well as regional and demographic preferences and expectations.

Category-specific consumer preferences that can draw big returns

The appeal of clean label shows no sign of slowing down

Consumers continue to place a high level of importance on clean and simple ingredients. In fact, the latest data shows that clean label factors motivate consumers to pay more, with 78% stating they would spend more money on products with packaging claims stating “natural” or “all-natural.” Consumers also value simplicity in their product ingredients. Sixty-eight percent (68%) stated they will pay more for products that contain only recognisable ingredients.

Additionally, consumers are looking at ingredient labels 43% more than they were just three years ago. Other consumer purchasing behaviour growth trends we see include:

• Natural ingredients (+40%)
• No additives or artificial ingredients (+29%)
• Organic products (+24%)

Two-thirds of consumers are willing to pay more for reduced-sugar offerings  

Without question, consumers today want to limit their consumption of sugar. Around the world, sales of packaged food and beverage products with reduced-sugar claims have grown by more than 30% since 2020.

Interestingly, on-package claims of “No added sugar,” “Reduced sugar” and “Contains zero sugar” are equally motivating among two-thirds of consumers. That’s particularly relevant to manufacturers as it suggests they can still succeed with formulations containing less sugar rather than no sugar, which makes it easier to maintain the brand’s familiar taste.¹

Not only are they choosing products with reduced sugar or alternative sweeteners at a greater clip, consumers are also willing to spend more for them. The ATLAS study shows that two-thirds of respondents said they will pay more for food and beverage products that help them achieve their goals related to their sugar intake.

Improving nutrition and health benefits can help manufacturers maximise value 

The nutrition, health and wellness space covers a lot of ground. It, of course, relates to physical well-being with the foods and beverages we use to fuel and nourish our bodies. However, it also pertains to mental and emotional well-being and lifestyle choices, such as choosing products for their sustainability or fair-trade practices.

According to the ATLAS study, nutrition or health benefits show the greatest opportunity for consumers to accept higher prices. For example, as the world becomes more educated on the benefits of fibre and gut health, products higher in fibre have drawn considerable attention.¹

To further illustrate the appeal, data shows that 75% of respondents said they would pay more for products offering “health benefits such as digestive health and immunity” and “high protein.”

Regardless of individual lifestyle needs, nearly all consumers expect manufacturers to continually improve their products, making them better for both people and the planet.²

Accelerate your brand’s growth with Ingredion

Most people care about what they eat and are trying to make better choices. The research is clear that they are willing to pay more for claims that support their lifestyle objectives and eating preferences. However, not all benefit areas or claims carry the same level of interest, and patterns may differ by region or culture or demographics.

The overall trends, however, are unmistakable. Consuming food and beverages to improve health and well-being is an investment most consumers are willing to make, and unlike many other trends we’ve seen in the past, this behaviour has become a movement, and it’s here to stay.

_{* Source: Health & Wellness 2021: Reimagining Well-being Amid COVID-19. Hartman Group. https://www.hartman-group.com/reports/37787061/health-wellness-reimagining-well-being-amid-covid-19}

_{¹ ATLAS Proprietary Study 2023}

_{² ATLAS Proprietary Study 2020}