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, 2006Dias 2 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, 2006Dias 3 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, 2006Dias 4 Are consumers aware of the link between food and health?

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

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

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

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

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

10. INYS, Lund, November 29, 2006Dias 10 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 thats steak and red wine, then you probably had a good life Health carries no reinforcement People dont want to become too healthy

11. INYS, Lund, November 29, 2006Dias 11 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, 2006Dias 12 What do consumers think about functional foods?

13. INYS, Lund, November 29, 2006Dias 13 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, 2006Dias 14 Health and naturalness In a way I like that the food I eat is pure - that nothing has been added I dont 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 thats cheating

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

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

17. INYS, Lund, November 29, 2006Dias 17 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, 2006Dias 18 The need for simplification

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

20. INYS, Lund, November 29, 2006Dias 20 The limits of information processing Nutritional label Ingredients list Health claims Perception Under- standing EvaluationPurchase Decision- making PurchaseAssociationsAffect Brand Appearance

21. INYS, Lund, November 29, 2006Dias 21 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, 2006Dias 22 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, 2006Dias 23 Consumer-driven product development The right balance between exploitation of new technology and a thorough understanding of consumer needs

24. INYS, Lund, November 29, 2006Dias 24 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, 2006Dias 25 Cultural differences

26. INYS, Lund, November 29, 2006Dias 26 Segments

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

28. INYS, Lund, November 29, 2006Dias 28 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, 2006Dias 29 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