claims & certifications: what do they mean and who cares?
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Claims & Certifications: What Do They Mean and Who Cares?
Charlotte BastiaanseAssociate Editor, Informa Markets
Jeff HiltonCo-Founder, BrandHive
Lisa Mabe-KonstantopoulosCEO & Buy-ologist,
Green Purse PR
Anne MalleauExecutive Director,
Global Animal Partnership
Marcia S. MollMarketing Director,
Dietary Supplements and Herbal Medicines, U.S.
Pharmacopeia
Maryellen MolyneauxPresident & Founding Partner, NMI (Natural Marketing Institute)
Eric PierceVP of Business Insights, NEXT
Data & Insights, Informa Markets
What role should they play in your marketing strategy?Certifications:
Eric Pierce – VP Business Insightsepierce@newhope.comwww.linkedin.com/in/ericjpierce/
Amanda Hartt – Market Research Managerahartt@newhope.com
© 2019 New Hope Network. All Rights Reserved. 2
NEXT: New Hope Network’s Consulting Group Helps companies of all sizes use market and consumer intelligence to make and
improve data-driven decisions and prioritize innovation efforts.
Provides forward-looking, predictive solutions for successful innovation and maximum Return On Innovation Investment (ROII).
Uses proprietary data and market intelligence for unique insights into health, wellness, and natural products.
Improves decision-making and helps identify “What’s NEXT?”
Mission Statement Bring more health to more people
Drive growth and change in our food system, making it more sustainable, socially responsible, conscious, and humane.
© 2019 New Hope Network. All Rights Reserved. 4
The Global Network for Health & Wellness• Deep connections across the entire value
chain, from ingredients to finished goods to retailers.
• Global footprint of ingredient events, publications and data & insights businesses.
• Proprietary data and industry analysts to provide unparalleled perspective on the H&W ecosystem.
• Health & Wellness DNA based on 40+ years of experience in the space.
• Forward-looking, predictive solutions to guide innovators on where the market is headed.
© 2019 New Hope Network. All Rights Reserved. 6
78%
But they must add value …… because the vast majority of new food and beverage products launched at Expo West each year carry 1 or more certification type.
% of Products w/ Certifications
Source: NEXT Trend Database of Food & Beverage products exhibited at Natural Products Expo West 2019
No Certifications
1 or More Certifications
© 2019 New Hope Network. All Rights Reserved. 7
22%
78%
53%
32%
14%6%
None 1+ 2+ 3+ 4+ 5+
In fact, for many brands 1 isn’t enough.Half of all food and beverage products exhibited at Expo West 2019 carried 2 or more certification types.
% of Products w/ Certifications
Number of Certifications
Source: NEXT Trend Database of Food & Beverage products exhibited at Natural Products Expo West 2019
© 2019 New Hope Network. All Rights Reserved. 8
And use of certifications is growing.
34%Growth in the number of food & beverage products certified with one of 10 certification types
10 Certification Types Food Safety or Quality Standards Gluten Free Specialty Diets Animal Welfare or Humane Treatment Fair Trade Whole Grain Organic or Non-GMO Eco-Friendly or Sustainability Kosher or Halal Vegan or Vegetarian
Source: NEXT Trend Database of Food & Beverage products exhibited at Natural Products, growth between Expo West 2016 and Expo West 2019
© 2019 New Hope Network. All Rights Reserved. 10
Certifications signal trust & consumer fit.
Sales
Certifications may not directly drive sales
Marketing
Instead they communicate important messages to select consumers
Appreciating the role of certifications may require shifting your expectations from: direct to indirect, from sales to marketing, from ROI to demonstration of trust and values.
© 2019 New Hope Network. All Rights Reserved. 11
Certifications don’t drive sales directly (for a broad audience).
2.8
3.6
4.2
4.2
5.1
5.1
5.5
5.5
Taste
Price
Nutrition Details
Ingredient List
Convenience
Brand
Certifications
Claims
Consumer Survey (Total Sample): Avg Rank Importance in Purchase Decisions
They do communicate important messages …… they : Provide quality assurance Reinforce brand value Provide competitive
differentiation Demonstrate trust Signal the presence or
absence of qualities that consumers seek
Most Important
Least Important
Rank 7 out of 8
Source: NEXT 2019 Certifications Micro Survey utilizing a generally representative convenience sample of 900 US Consumers.
© 2019 New Hope Network. All Rights Reserved. 12
And they help attract select consumers.
2.7
3.4
4.3
4.3
4.9
5
5.6
5.8
Taste
Price
Nutrition Details
Ingredient List
Convenience
Brand
Claims
Certifications
Consumer Survey: Avg Rank Importance in Purchase Decisions
Most Important
Least Important
Convenience Shoppers Willing to Pay More for Healthy ProductsVs.
3.4
3.9
4.0
4.7
4.7
4.7
5.0
5.6
Taste
Ingredient List
Nutrition Details
Price
Certifications
Claims
Brand
Convenience
Consumer Survey: Avg Rank Importance in Purchase Decisions
Source: NEXT 2019 Certifications Micro Survey utilizing a generally representative convenience sample of 900 US Consumers.
© 2019 New Hope Network. All Rights Reserved. 17
Innovators are investing in certifications.
Gluten Free
Specialty Diet Types
Humane
Fair Trade
Whole Grain
Organic or Non-GMO
Eco-Friendly or Sustainability
Kosher or Halal
Vegan or Vegetarian
-50%
50%
150%
250%
350%
450%
550%
0 1000 2000 3000 4000 5000 6000 7000
Food Safety and Production Standards (2286% growth)
Shar
e G
row
th b
etw
een
EW’1
6 &
EW’1
9
Count of Products Food & Beverage at Expo West 2019
Source: NEXT Trend Database of food and beverage products exhibited at Natural Products Expo West 2019; Share Growth between EW’16 & EW’19
High Penetration, Low Growth
Hig
h G
row
th,
Low
Pen
etra
tion
Incidence and Growth of Food & Beverage
Certification at Expo West
The fastest growing certification types are: Safety and Quality Specialty Diets Humane Eco/Sustainability
© 2019 New Hope Network. All Rights Reserved. 18
Food Safety and Quality Production
StandardsEco-Friendly or Sustainability
Special Diets (paleo, keto,
whole30, Weight Watchers)
Animal Welfare or Humane
Treatment
Kosher or Halal
Vegan or Vegetarian
Organic or Non-GMO
Gluten Free
Fair Trade
Whole Grain
3.0
3.5
4.0
4.5
20% 30% 40% 50% 60% 70%
Progressive consumers use certifications.
Incidence and Importance of
Certifications among Consumers Willing to Pay More for Healthy
Products
Impo
rtanc
e in
D
ecis
ion
Mak
ing(
Ran
k)
Incidence Of Use In Decision MakingThe most relevant certification types are: Safety and Quality Humane Eco/Sustainability Organic/NonGMO
Source: NEXT 2019 Certifications Micro Survey utilizing a generally representative convenience sample of 900 US Consumers.
© 2019 New Hope Network. All Rights Reserved. 20
Consider multiple certifications to maximize consumer reachThe reach of any single certification is limited
47%Maximum reach among total consumers of the most popular certification type (Food Safety & Quality Production Standards)
TURF Analysis reveals combos to extend reach
53%Growth in reach with four certifications.TURF is a statistical analysis designed to identify combinations of attributes which maximizes the number of consumers who find at least one attribute to be attractive.
Source: NEXT 2019 Certifications Micro Survey utilizing a generally representative convenience sample of 900 US Consumers.
© 2019 New Hope Network. All Rights Reserved. 21
47% 17% 8% 4%
Safety/Quality Organic/NonGMO Whole Grain Eco/Sustainability
Consider TURF to inform your efforts to reach the largest population.While there are a lot of ways to combine multiple certifications to improve your reach, and the most relevant certification types may vary by product category. Here are two examples that rose to the top of our analysis.
47% 12% 10% 4%Safety/Quality Eco/Sustainability Organic/NonGMO Gluten Free
TURF Analysis: Total Consumers Total Reach
76%
73%
Incremental Unduplicated Reach of Each Additional Certification
Source: NEXT 2019 Certifications Micro Survey utilizing a generally representative convenience sample of 900 US Consumers.
© 2019 New Hope Network. All Rights Reserved. 23
Conclusion Start with the basics; identify certifications relevant to:
– Your product category– Your target consumer
Look at what the data says about your competitors, category, and consumer
Shift your perspective: – Think of certifications as a marketing investment not a sales driver– Recognize that certifications communicate indirectly to a broad and
specifically to targeted audience– Use certifications to build trust and signal fit to target consumers
© 2019 New Hope Network. All Rights Reserved. 24
Conclusion Use certifications to:
– Provide quality assurance– Reinforce brand value– Build trust– Create competitive differentiation– Signal the presence or absence of qualities that consumers seek or
avoid
Eric PierceVP of Business Insights
epierce@newhope.comwww.linkedin.com/in/ericjpierce/
Amanda HarttMarket Research Manager
ahartt@newhope.com
Thank you!
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