For all too many consumers, the idea of “Affordable quality” is turning from attainable and reasonable to expect to something almost aspirational and what dreams are made of.
Unfortunately, this shift is felt the most when people are in line at the grocery store. Shoppers are left to decide between high-quality food and beverage products and affordable ones, the latter becoming increasingly elusive.
Despite claims from governments across the world that inflation has cooled and stabilised, that isn’t the reality people are feeling on the ground.
While that may be objectively true, a recent report found that average US food prices have increased 28% since 2019. Certain staples like eggs have, at times, seen their prices balloon 54% from November 2020 to March 2024, with an 8.4% increase occurring between just August and September of this year!
Yet, people have to contend with more than just the rise in prices. They also deal with what is, at least perceived as, a drop in quantity and quality that makes consumers feel like they are being hung out to dry.
According to Barclays, 52% of Britons claim to have seen a downgrade in the quality of their favourite products despite prices remaining the same or increasing. Additionally, 84% found “shrinkflation” to be top of mind, particularly when it came to snack food items.
However, this is where it gets interesting. In 2017, 75% of consumers surveyed said they would be willing to pay more for clean-label ingredients.
While that may seem like a lifetime ago, Ingredion’s 2023 ATLAS survey found that 78% of people globally would spend more for cleaner labels and natural claims despite inflation.
Connected to this, and perhaps equally intriguing, is that as the cost of goods continues to climb, once niche trends like functional ingredients, personal nutrition, and plant-based are gaining mainstream appeal and adoption at unprecedented rates.
This obviously contradicts the idea of consumers stressing over grocery budgets and lamenting the lack of affordable, high-quality products at their local supermarket.
Or does it?
Revisiting the Redefinition of Value
Last year, one of our top trends was Redefining Value, and this is precisely what the trends and data suggest has happened in the minds of consumers.
Health, nutrition, and overall quality have started to trump price for many. However, there is a breaking point where this becomes unreasonable for most.
Unfortunately, we might already be there.
As mentioned above, consumers globally already feel that the quantity and quality of many daily foods are decreasing while prices are only moving in the opposite direction.
At Edlong, we understand that developers and manufacturers are feeling these pressures just as much as anyone.
To that point, we’ve talked a lot about how flavours can help you reduce costs without sacrificing taste, but what does that mean for the everyday shopper?
Lower prices, sure. But, while lower prices are essential, it’s not the only metric of value.
Inspiration for Innovation: Add Variety, Improve Quality
Flavours are a game changer when it comes to providing variety and exciting options for shoppers.
They can inspire your innovations, allowing you to stay on trend, offer LTOs (Limited-time Offers), and easily extend your line.
This goes for functional foods, plant-based, and better-for-you options as well.
The best part is that with Edlong’s rapid iteration process, you can save time, resources, and money, which means new products for people to enjoy and savings that may make them taste even better.
Truly authentic profiles also provide the ability to maintain or improve the perceived quality of a product through taste.
Whether this is through reducing commodities or elevating the profile of an application, it creates the opportunity for affordable products with quality taste.
I am not saying this is what makes dreams come true, but it’s what people need at all times, but now more than ever.
Feeding the World
The food affordability crisis is truly a global issue.
Still, zooming out to this larger scale doesn’t change the fact that people desire affordable, delicious, and nutritious food no matter where they are.
All too often, the focus is on making food as nutrient-dense or affordable as possible.
Although these are noble and necessary goals, people still deserve food that tastes amazing.
And nothing does this better and more cost-effectively than flavours.
It doesn’t matter if it’s functional snacks in Europe, dairy analogues in Latin America, or meal kits in relief zone, flavours can help companies and consumers tick all the boxes they value and, most importantly, help us feed the world.
About the Author: Emily Sheehan, Applications Manager, EMEA
Hi! I’m Emily Sheehan. I’m the Applications Manager, EMEA at Edlong, and my job is rooted in creating exciting new possibilities for our people and processes. It’s inspiring to reflect on how much Edlong has achieved and even more amazing to be involved in such thoughtful innovation. We enjoy pushing boundaries in food and flavour, and we welcome everyone in the food industry to join us. If you’re in need of expertise or inspiration, I’d love to collaborate and help you design flavour solutions that resonate with consumers!
Topics: Value-Driven
Resource Type: Article
Resource Region: EU