prÆsentation · prÆsentation mapp 1. december shaping and sustainingconsumer interest in new food...

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1. DECEMBERMAPP

SHAPING AND SUSTAINING CONSUMER INTEREST IN NEW FOOD PRODUCTS

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Athanasios Krystallis

MAPP CONFERENCE 2013December, 3 Middelfart

1. DECEMBERMAPP

THE PARTICULARITY OF THE EU FOOD AND DRINK (F&D) INDUSTRY

› The F&D sector is the largest manufacturing sector in the EU-27 in terms of turnover (i.e. €b 956.2, 16%) and direct employment (4.1 million jobs).

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MAPP Conference 2013, December 3 Middelfart

Shaping and sustaining consumer interest in new food products

Source: FoodDrinkEurope, 2012

1. DECEMBERMAPP

THE IMPORTANCE OF INNOVATION

› Within this fragmented environment, product innovation is the lifeblood of any food company.

› Data on R&D expenditures indicates that food and drink companies’ level of investment has been relatively stable.

› Out of the top-1000 EU companies in terms of R&D investment in 2010, 37 F&D companies invested a total of €2.3 billion

› This corresponded to a 2.2% of their turnover, making the F&D sector one of medium-to-low innovation intensity.

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1. DECEMBERMAPP

THE DANISH F&D SECTOR

The Danish F&D sector is structurally different from the typical EU paradigm:

› One of the smallest % of micro-F&D companies of <10 employees (57%, EU-27=79%), &

› One of the largest % of medium - large size F&D companies (8%, EU-27=4%)

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1. DECEMBERMAPP

THE DANISH F&D SECTOR AND INNOVATION

› The Danish F&D sector scores higher than countries like DE, NL, UK, FR, IT and SP in various innovation indicators, such as:

› The number of food-related R&D companies,

› The generated revenue from new products, or

› The focus on organizational and marketing innovations

› DK has the highest number of food patent applications/mio. inhabitants, indicating the importance of innovation for Danish food companies

› The majority of applications come from a small number of large high-tech food firms.5



Source: Innovation in the food industry; An

international benchmark study, LEI Report 2013-036, July

2013

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FROM INNOVATIONS TO NEW PRODUCTS

› R&D plays an important role in pushing industry competitiveness forward

› …yet product innovation is costly and risky, often met with opposition on behalf of the market.

› But, although the number of patents turned into commercial products is small…

› …the number of new products launched with various position claims in spectacular

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› 29,149 food products launched with the claim “ethical” on their description (top-10 categories, all European countries) - Mintel Gnpd, Febr. 2013

› 29,242 food products launched with the claim “organic” on their description

(top-10 categories, all European countries) - Mintel Gnpd, Febr. 2013

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MAPP CONFERENCE 2011Understanding and creating the future markets for food: Challenges for research on customer relations in the food sector,

16 November, Middelfart



› Number of products launched with the claim “traditional” on the label per

category - Mintel Gnpd, Apr. 2013

› Number of products launched with the claim “animal welfare” on the label per category - Mintel Gnpd, Febr. 2013

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RATIONALE AND OBJECTIVES

In this conference:

› We will focus on new product opportunities arising from current consumer trends.

› We will demonstratehow consumer insight can support NPD processes.

› We will showhow the physical and the communication products need to be adapted to each other.

› We will analyzethe challenges posed by developing new products that are positioned in terms of intangible characteristics, like healthfulness and sustainability.

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IMPORTANT QUESTIONS THAT WILL BE ADDRESSED



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Augmented product

Actual product

Core product

How do consumers interpret messages about nutritional quality, healthfulness & eco-friendliness and how effective they are?

To which extend can ‘responsible’ product positioning be combined with improved taste?

What are consumer trends relevant for food innovations & Quo Vadis

consumer demand?

How can (product positioning-based) expectations and later (taste-based) experiences be matched in a way that promotes consumers’ product acceptance?

What kind of insight is needed to create a product and a market position that fully deliver the benefit and sells it in a believable way?

How can we combine what consumers’ see with what they feel to develop quality perceptions?

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Consumer insight in support of the food product development process

prÆsentation · prÆsentation mapp 1. december shaping and sustainingconsumer interest in new food...

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