New FMI/NielsenIQ report finds 3 out of 4 shoppers continue to prioritize ingredient transparency despite pandemic’s impact on grocery shopper habits
Arlington, VA – FMI—the Food Industry Association and NielsenIQ today released the Transparency in an Evolving Omnichannel World report, revealing continued high demand among consumers for transparency from food retailers and manufacturers, particularly in a more omnichannel marketplace. According to the report, two-thirds of shoppers (64%) say they would switch from a brand they usually buy to another brand that provides more in-depth product information, beyond nutrition facts.
“The data from this report strongly reinforces the old adage that honesty is the best policy,” said Steve Markenson, director of research and insights for FMI. “Consumers want to know where their food comes from and how it gets made and that has held true even as the pandemic has changed grocery shopping habits. Whether online or in store, shoppers prefer brands that tell the whole story about their products.”
“Transparency trends continue to evolve as omnichannel gains importance,” said Sherry Frey, vice president of total wellness with NielsenIQ. “As consumers demand greater transparency, brands have an opportunity to educate consumers, communicate sustainability and health credentials, and win consumer loyalty.”
Transparency in health and well-being
When it comes to food transparency, ingredient and nutrition information remain top of mind for an increasing number of health-conscious consumers. For example, some 89% say general nutrition facts about a product are at least somewhat important in deciding which products to buy when grocery shopping, while 66% find this important or extremely important. Beyond nutrition facts, the majority (80%) of shoppers cited other transparency indicators of importance to include allergen information, certifications and claims, and values-based information such as animal welfare, fair trade, and labor practices.
Transparency in online shopping
In 2018, just over one-fourth of shoppers (26%) purchased groceries online in the past 30 days. According to the latest findings, that number has now ballooned to 55%, making the online marketplace an ever-more-critical juncture for consumers to find their preferred brands and discover new ones. For example, 47% said discovery of new products – including information about sourcing and manufacturing processes – is easier online, compared to 23% characterizing it as harder and 30% rating it about the same. When it comes to online shopping and food transparency, shoppers say they want faster delivery (42%), an easier to use websites (37%), more and better product information (30%), retention of order history (29%), more accurate search functionality (28%), and product recommendations based on preferences (23%).
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org
NielsenIQ is the leader in providing the most complete, unbiased view of consumer behavior, globally. Powered by a groundbreaking consumer data platform and fueled by rich analytic capabilities, NielsenIQ enables bold, confident decision-making for the world’s leading consumer goods companies and retailers.
Using comprehensive data sets and measuring all transactions equally, NielsenIQ gives clients a forward-looking view into consumer behavior in order to optimize performance across all retail platforms. Our open philosophy on data integration enables the most influential consumer data sets on the planet. NielsenIQ delivers the complete truth.
NielsenIQ, an Advent International portfolio company, has operations in nearly 100 markets, covering more than 90% of the world’s population. For more information, visit NielsenIQ.com.