• by Jack Loechner , Staff Writer @mp_research, September 4, 2012

New findings from a Nielsen online survey of respondents from 56 countries around the world provide insights into how 16 various factors impact grocery purchases worldwide in today’s belt-buckling state of the economy. 85% of respondents worldwide say that rising food prices are impacting their choice of grocery purchases, with more than 52% stating higher prices are a major influence. 

But price is not the only consideration that weighs heavily on the minds of consumers when shopping for groceries, even though a plurality of consumers worldwide say rising food prices are impacting product choice:

• The influence of health factors on shopping choice is most significant in Asia-Pacific
• De-listing a favorite product is a major concern for 3-in-10 global respondents
• Retailer loyalty programs significantly impact shopping choice for 1-in-4 consumers worldwide

The consistency of findings across the regions underscores the on-going struggle consumers worldwide are grappling with in this volatile economic environment. The increasing cost of food is affecting:

• 88% of respondents in Asia-Pacific
• 86% in Latin America
• 83% in North America
• 82% in Middle East/ Africa
• 81% in Europe

Soaring fuel prices, leading to increased transportation costs, are also affecting consumer choice. 35% of global respondents consider the cost of traveling to buy groceries a major obstacle, ranking it among the top four key implications that affect grocery shopping choice across all regions; 42% regard transportation costs as a minor issue.

Respondents most affected by transportation costs (whereby more than half of respondents in the country consider it a major impact) live in the Philippines, Indonesia, Thailand, Mexico, Italy and Chile. 

Respondents least affected (increased transportation costs have no or next to no impact) live in the Netherlands, Denmark, Israel, Japan, Finland, Austria, Germany, and Sweden

In addition to economic realities, health and wellness concerns are a driving force when it comes to deciding the grocery items purchased. The study reviewed the impact of health factors, food labeling information on packages, food allergy factors, the availability of products with enhanced nutritional benefits, and the availability of organic product options.

Among the health and wellness factors measured, those that relate to physical condition have the most significant impact on grocery purchase choice among global respondents. Food labeling information on packaging is a key concern for 31% of total online shoppers, the availability of products with enhanced nutritional benefits is a major issue for 25% of global consumers and the availability of organic foods is a chief concern among 24% of respondents worldwide.

Findings from Nielsen’s January 2012 Global Food Labeling Report reveal that 59% of global respondents say they have difficulty grasping nutritional facts on product packaging, with 52% saying Health and wellness is a top priority they understand the labels “in part” and 7% not at all. Respondents are also largely skeptical about the accuracy and believability of the health claims.

Among the various product availability options measured in the study, the discontinuation of a favorite product option is the most concerning. Delisting a preferred product is a major issue for three-in-10 global respondents. Just over one-third of Asia-Pacific respondents voice the most dissatisfaction with eliminating a desired product, followed by Middle East / African consumers, Latin Americans, Europeans, and North Americans.

As for store brands, the study reports that 12% of global respondents are buying more store brands than they did 12 months ago, citing price (45%), value (28%) and quality (22%) as key reasons for the switch. Given the positive perception of store brands and the current economic situation, expect store brand alternatives to continue to grow in popularity.

Keeping customers loyal, satisfied and coming back for more is not only good business practice, but in these times of economic uncertainty and abundant consumer choice, it is critical for sustainable growth. One-in-four global respondents indicate that retailer loyalty programs have a major impact on shopping considerations.

Loyalty programs in developing markets are newer and can be an important differentiator, in comparison to developed markets where retailer loyalty programs have become normalized over time. Asian markets have been quick to embrace loyalty. Their cultures emphasize attention to value and collection schemes/stamp programs have been very popular. Loyalty cards are an extension of that, says the report.

The attraction of special prices is cited as the top benefit of loyalty cards by more than half of respondents in the Survey:

• Asia-Pacific respondents are most responsive to special prices with 53% ranking this as the top benefit of loyalty cards, compared to 23% of North Americans.
• The opportunity to accumulate points and redeem gifts is the preferred benefit among 31% of global respondents and most valuable to North Americans (36%).
• Cash rewards based on amounts spent in-store over time is the preference for 33% of global respondents and most favored in the Asia-Pacific region. 

The report concludes by noting that the availability of new stores in the area and the opportunity to shop for groceries online is of major importance to one-in-four global respondents. Keeping the store up-to-date with new and convenient options to improve the shopping experience is important too. The availability of self-service check-out counters significantly impacts 20% of global respondents. And while the availability of hand-held scanners used in-store is relatively new and not yet available everywhere, 17% of global respondents say it is a major consideration for grocery purchasing choice.

For additional information from Nielsen, please access the complete report with charts in PDF format here.