KANSAS CITY, MO â Environmental and sustainability practices also have a big impact on the perception of quality, which is something thatâs particularly important to younger consumers. Mintel indicated that 58% of Gen Z consumers buy from brands that share â and act onâ their values.
As such, Shelley Balanko, senior VP at The Hartman Group, pointed out an important value shift â one from âmeâ to âweâ â thatâs taking place. According to The Hartman Group, 30% of consumers said they purchase sustainable products because they are better for âme and my family,â citing health benefits, better taste, etc., while 70% said they did so because they are better for others like the environment, communities and workers. This indicates a complexity to conscious consumption that extends beyond whatâs good for the planet.
Online grocer Hive makes it easier for consumers to find products that align with their values. Brands are assessed based on criteria it calls the âHive Fiveâ: ingredient integrity, carbon footprint, recyclable packaging, commitment to social good and rave worthiness. Users can also filter product searches based on dietary parameters such as vegan or sugar-free as well as attributes like non-GMO or BIPOC-owned.
Balanko suggested that when Âdeveloping new products, bakeries and snack producers should think about prioritizing ingredients first, rather than making them an afterthought. That includes sourcing and production considerations.
âCompanies should ask themselves, âWhere can we make a difference in the world?ââ she said. ââHow can we contribute to the local economy? The community? The environment?â Start there, then use technology and innovation to support those aims.â
Whether brands are innovating for indulgence, wellness or a little bit of both, current economic factors play a significant role in the equation. According to IRI, 40% of consumers will look for sales and deals when faced with higher prices for baked goods, but steeper costs wonât significantly curb their purchases.
However, given the growing income disparity, both the value and premium ends of the consumer spectrum should be considered for innovation.
âInflation is a key driver impacting consumer behavior in the near-term,â said Jonna Parker, principal for IRIâs Fresh Center of Excellence. âBut as it continues, we still have to do some kind of creative promotion to get folks to pick specific items. The role of price promotion is important, but even more so, the only other lever we have as marketers is innovation.â
This story has been adapted from the June 2022 New Products Annual issue of Commercial Baking. Read the full story in the digital edition here.
