As connections between eating, overall health status and lowered obesity rates become clear, consumers across the globe are indicating a willingness to pay more for foods that deliver well in the health attribute department.
There are, however, limits on what consumers are willing to pay a premium for, researchers at Nielsen discovered when compiling data for the recently released Global Health & Wellness Survey.
Nielsen’s global health survey was conducted online between Aug. 13 and Sept. 5, 2014. It involved more than 30,000 consumers in 60 countries across the world, including those from North America, Asia-Pacific, Europe and Latin America.
Willingness to Pay a Premium
Nielsen divided respondents into four categories of spending intent based on their willingness to pay a premium for foods that are rated for health attributes.
About 27% of global respondents said they were willing to pay a premium for healthy foods while 23% said they are slightly willing. Some 38% were only moderately willing to pay more while 12% said they are not willing at all.
Certain traits in foods can sway the spending pendulum, Nielsen discovered. An absence of GMOs, for example, was important to 43% of global respondents, but interestingly only 33% of respondents said they were willing to pay a premium to obtain GMO-free foods.
Organic foods, Nielsen found, seem to have the most loyal following. About 33% of respondents say organic products are important to them. The very same percentage reported a willingness to pay premium prices for organic products.
Attributes Are Important
While consumers expressed willingness to pay more for healthy foods, the types of health attributes presented by a food product do matter.
For example, 39% of respondents globally said they would pay more for all natural foods, but only 21% indicated a desire to pay more for foods that are free of high fructose corn syrup.
Some of the most desirable attributes globally among those indicating they were “very willing” to pay more for a healthy product were:
- GMO-free, 33%
- Organic, 33%
- No artificial colors, 31%
- No artificial flavors, 31%
- High in fiber, 29%
- Low/no cholesterol, 28%
Economics Matters
Nielsen also discovered that a willingness to pay premiums for health benefits in foods was stronger in places with developing markets than elsewhere around the globe.
More than nine out of 10 respondents in areas such as Latin America, 94%, Asia-Pacific, 93%, and Africa/Middle East, 92%, indicated a willingness to pay more for food items that have health attributes.
In more developed parts of the world, the numbers remained strong, but paled compared to emerging markets. Only 80% of North Americans and 79% of Europeans indicated a willingness to pay more for foods with health attributes.
Consumers worldwide are willing to pay more for foods that are healthy and natural, but there is a limit to what attributes interest them.
Overall, a more back-to-the-basics style of eating with all-natural, GMO-free and organic foods having the greatest appeal for consumers even if the price is a premium.
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