Final Report Understanding of Consumer Attitudes and Actual Purchasing Behaviour, with Reference to Local and Regional Foods June 2008 Socio-economic Research and Intelligence Observatory in Collaboration with the University of Plymouth Agrifood Centre, Rural Futures Unit and the Small Business and Services Unit Socio-economic Research and Intelligence Observatory A University of Plymouth Centre of Expertise Commissioned by Defra SERIO, Research & Innovation University of Plymouth, Drake Circus, Plymouth, Devon PL4 8AA tel: 01752 232747 email: [email protected] fax: 01752 233813 website: www.serio.ac.uk Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods Contents Page page SECTION ONE: INTRODUCTION 1 1.1 Background to the Research 1 1.2 Research Aims and Objectives 1 1.3 Structure of the Report 2 SECTION TWO: METHOD 4 2.1 Research Approach 4 2.2 Phase One: Secondary Research and Discussions with Industry 4 Experts 2.3 Phase Two: Primary Qualitative Research 5 2.3.1 Consumer Focus Groups 5 2.3.2 Retail and Foodservice Organisation Depth Interviews 8 2.4 Phase Three: Primary Quantitative Research 10 2.4.1 Consumer Quantitative Survey 10 2.4.2 Trade Quantitative Survey 10 2.4.3 Data Analysis 11 SECTION THREE: OVERVIEW OF POLICY CONTEXT AND PREVIOUS 12 RESEARCH 3.1 The Policy Context 12 3.2 Previous Research 13 3.2.1 The Changing Food Sector 13 3.2.2 Local and Regional Food 16 3.2.3 Definitions 16 3.2.4 Buying Behaviour and Influences 18 3.2.5 Summary and General Implications 19 SECTION FOUR: CONSUMER ELEMENT 21 4.1 Introduction 21 4.2 Summary of Main Findings 21 4.2.1 Definition of ‘Local’ and ‘Regional’ Foods 21 4.2.2 Attitudes and Behaviour towards Local and Regional Food 24 Purchases 4.2.3 Buying Local and Regional Products: Barriers, Benefits 27 and Drivers 4.2.3.1 Barriers 27 4.2.3.2 Benefits and Drivers 29 4.3 Factors Influencing Consumers’ Choices 30 4.4 Urban and Rural Differences 32 Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page 4.5 Regional Differences 33 4.5.1 London 34 4.5.2 The South East 35 4.5.3 The West Midlands 36 4.5.4 East Midlands 36 4.5.5 The North West 37 4.5.6 Yorkshire and Humberside 37 4.5.7 The North East 38 4.5.8 East Anglia 38 4.5.9 The South West 39 4.6 Food Categories 40 4.6.1 Bread and Bakery Products 40 4.6.2 Dairy Products 40 4.6.3 Drinks 41 4.6.4 Fish and Seafood 41 4.6.5 Fruit and Vegetables 42 4.6.6 Meat and Meat Products 43 4.7 Eating Out 44 4.7.1 Awareness of Local and Regional Ingredients 44 4.7.2 Types of Outlet 45 4.7.3 Eating Out Occasions 45 4.7.4 Key Product Categories 45 4.8 Summary 47 SECTION FIVE: CONSUMER QUANTITATIVE SURVEY: SAMPLE 49 CHARACTERISTICS 5.1 Introduction 49 5.2 Descriptive Statistics: Respondent Characteristics 49 5.3 Buying Behaviour when Purchasing Food and Drink for Use at Home 55 5.4 Buying Behaviour when Purchasing Food and Drink When Eating 57 Out 5.5 Defining the Concepts of Local and Regional Food and Drink 60 5.5.1 Distance Definitions of Local Food and Drink 61 5.5.2 Spatial Perceptions of Local Food and Drink 62 5.5.3 Perceptual Definitions of Regional Food and Drink 63 5.6 Buying Behaviour of Local and Regional Food and Drink 65 5.6.1 Buying Local Food and Drink 65 5.6.1.1 Actual and Intended Buying Behaviour 65 5.6.1.2 Differences in Buying by Product Category 70 5.6.1.3 Buying Occasions 72 5.6.1.4 Outlets Used 73 5.6.2 Buying Regional Food and Drink 75 5.6.2.1 Actual and Intended Buying Behaviour 75 5.6.2.2 Differences in Buying by Product Category 79 5.6.2.3 Buying Occasions 82 5.6.2.4 Outlets Used 83 Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page 5.7 Influences on the Buying of Local and Regional Food and Drink 85 5.7.1 Influences on Buying Local Food and Drink 85 5.7.1.1 Attitudes toward the Buying of Local Food and Drink 85 5.8 Consumer Psychographics 86 5.9 Factors Influencing the Purchasing of Local Food and Drink 87 5.9.1 Reasons for Buying 88 5.9.2 Barriers to Buying 90 5.9.3 Associations between Buying Behaviour and Factors 92 Influencing Buying of Local Food and Drink 5.9.3.1 Analysis of Relationships between Reasons for Buying/Not 93 Buying and Actual Buying Behaviour (Purchase Frequency over Past 3 Months) 5.9.3.2 Analysis of Relationships between Reasons for Buying/Not 95 Buying and Behavioural Intentions (Intention to Buy in Next 2 Weeks) 5.9.3.3 Analysis of Relationships between Buying Factors and 96 Buying Behaviour 5.9.3.4 Analysis of Relationships between Buying Factors and 96 Actual Behaviour (Purchase Frequency over Past 3 Months) 5.9.3.5 Analysis of Relationships between Buying Factors and 98 Behavioural Intentions (Intention to Buy in Next 2 Weeks) 5.10 Factors Influencing the Purchasing of Regional Food and Drink 100 5.10.1 Reasons for Buying 100 5.10.2 Associations between Buying Behaviour and Factors 102 Influencing Buying of Regional Food and Drink 5.10.2.1 Analysis of Relationships between Reasons for Buying 103 and Actual Buying Behaviour (Purchase Frequency over Past 3 Months) 5.10.2.2 Analysis of Relationships between Reasons for Buying 104 and Behavioural Intentions (Intention to Buy in Next 2 Weeks) 5.10.3 Analysis of Relationships between Buying Factors and 105 Buying Behaviour 5.10.3.1 Analysis of Relationships between Buying Factors and 105 Actual Behaviour (Purchase Frequency over Past 3 Months) 5.10.3.2 Analysis of Relationships between Buying Factors and 107 Behavioural Intentions (Intention to Buy in Next 2 Weeks) 5.11 Differences in Consumer Buying Behaviour and Influences 108 5.11.1 Differences by Buyer Characteristics 108 5.11.1.1 Urban and Rural Buying Differences 108 5.11.1.2 Regional Buying Differences 110 5.11.1.3 Buying Differences between Age Groups 111 5.11.1.4 Buying Differences between Genders 113 5.11.1.5 Buying Differences by Marital Status 114 5.11.1.6 Buying Differences by Socio-Economic Grouping 115 5.11.1.7 Other Differences 115 Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page 5.12 Classifying Local and Regional Food and Drink Buyers 116 5.13 Summary 121 SECTION SIX: QUALITATIVE TRADE ELEMENT 127 6.1 Introduction 127 6.2 Main Findings 127 6.2.1 Definition of ‘Local’ and ‘Regional’ Foods 127 6.2.2 Relative Importance of Local and Regional Food and Drink 130 6.2.3 Key Commercial Drivers: Advantages and Disadvantages 131 of Local and Regional Food and Drink 6.2.4 Perceptions of the Future for Local and Regional Food and 135 Drink 6.2.5 Selling Local and Regional Food and Drink 138 6.2.6 Percentage by Value for Local Food and Drink of Total 138 Food and Drink Purchases 6.2.7 The Marketing and Promotion of Local Food and Drink 139 6.2.8 Local and Regional Products by Category 139 6.2.9 Constraints in Procuring Local Food and Drink 141 6.2.10 Important Considerations when Buying Local and Regional 141 Food and Drink 6.2.11 Changes to Infrastructure with Respect to Local and 142 Regional Food and Drink Purchasing 6.2.12 Impact on Logistics and Distribution Arrangements of 143 Local and Regional Food and Drink 6.2.13 Regional Food Groups and Trade Associations 144 6.3 Summary 144 SECTION SEVEN: QUANTITATIVE TRADE STUDY 147 7.1 Introduction 147 7.2 Descriptive Statistics of the Sample 147 7.2.1 Type of Business 147 7.2.2 Size of Business 148 7.2.3 Location 149 7.3 Definitions of Local and Regional Food and Drink 151 7.4 Importance of Local Food and Drink 154 7.5 Purchasing Behaviour 158 7.5.1 Buying of Specific Local and Regional Produce 164 7.5.2 Promotion of Local and Regional Produce 166 7.5.3 Trade Perceptions of Consumer Buying Factors 168 7.6 Summary 169 Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page SECTION EIGHT: CONCLUSIONS AND RECOMMENDATIONS 171 8.1 Conclusions 171 8.2 Recommendations 175 SECTION NINE: BIBLIOGRAPHY 180 Appendices 183 Appendix One Consumer Focus Group Discussion Outline 184 Appendix Two Local and Regional Food and Drink Buying: 186 Consumer Survey Questionnaire and Introductory Preamble Appendix Three DEFRA Local Food and Drinks Quantitative Trade 200 Survey Appendix Four Quantitative Trade Cover Letter 208 Appendix Five Quantitative Trade Reminder Letter 210 Appendix Six Trade Face-to-Face Interview Schedule 212 Appendix Seven Trade Tele-Depth Interview Schedule 215 INDEX OF TABLES Table One The Focus Group Sample 7 Table Two Telephone Depth Interviews Quota Sample 9 Table Three Respondent Age 49 Table Four Respondent Location 50 Table Five Type of Location 50 Table Six Income of Main Income Earner in Household 51 Table Seven Occupation Type of Main Income Earner in 52 Household Table Eight Education Level (highest reached) of Main Income 53 Earner in Household Table Nine Sample by Socio-economic Group (JICNARS) 53 Table Ten Number of Dependent Children under 18 years in 54 the Household Table Eleven Frequency of Shop for Food and Drink For Use at 55 Home Table Twelve Mode of Transport Used to Buy Food and Drink for 56 Use at Home Table Thirteen Distance Travelled to Buy Food and Drink for Use at 56 Home Table Fourteen Type of Outlet Used to Buy Food and Drink for Use 57 at Home Table Fifteen Frequency of Eating Out 58 Table Sixteen Distance Travelled to Buy Food and Drink when 58 Eating Out Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page Table Seventeen Mode of Transport Used to Buy Food and Drink 59 when Eating Out Table Eighteen Type of Outlet Usually Frequented when Eating Out 60 Table Nineteen Consumers’ Definitions of Local Food and Drink by 61 Distance from Home Table Twenty Consumers’ Spatial Perceptions of Local Food and 62 Drink Table Twenty-one Consumers’ Perceptions of Regional Food and Drink 63 Table Twenty-two Purchasing of Local Food and Drink for Use at Home 65 Table Twenty-three Purchasing of Local Food and Drink when Eating 66 Out Table Twenty-four Frequency Distribution for 2 Item Scale for 3 month 67 Buying Behaviour of Local Food and Drink for Use at Home Table Twenty-five Frequency Distribution for 2 Item Scale for 3 Month 68 Buying Behaviour of Local Food and Drink when Eating Out Table Twenty-six Frequency Distribution for 3 Item Scale for 2 Week 69 Buying Intentions for Local Food and Drink for Use at Home Table Twenty-seven Frequency Distribution for 3 Item Scale for 2 Week 70 Buying Intentions for Local Food and Drink when Eating Out Table Twenty-eight Buying of Local Food and Drink by Product Category 71 Table Twenty-nine Frequency of Purchase of Local Food and Drink in 72 Different Product Categories Table Thirty Purchase Occasion for Local Food and Drink Buying 73 Table Thirty-one Purchase Outlets for Buying Local Food and Drink 74 for Use at Home Table Thirty-two Purchase Outlets for Buying Local Food and Drink 75 when Eating Out Table Thirty-three Purchasing of Regional Food and Drink for Use at 76 Home Table Thirty-four Purchasing of Regional Food and Drink when Eating 76 Out Table Thirty-five Frequency Distribution 3 Month buying Behaviour of 77 Regional Food and Drink for Use at Home Table Thirty-six Frequency Distribution 3 Month buying Behaviour of 78 Regional Food and Drink when Eating Out Table Thirty-seven Buying Intentions for Regional Food and Drink over 79 Different Time Periods Table Thirty-eight Buying of Regional Food and Drink by Product 80 Category Table Thirty-nine Frequency of Purchase of Regional Food and Drink 81 in Different Product Categories Table Forty Purchase Occasion for Regional Food and Drink 82 Buying Table Forty-one Purchase Outlets for Buying Local Food and Drink 83 for Use at Home Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page Table Forty-two Purchase Outlets for Buying Regional Food and 84 Drink when Eating Out Table Forty-three Basic Statistics for Attitude Measures for Buying 85 Local Food and Drink Table Forty-four Basic Statistics for Consumer Psychographic 87 Measures Table Forty-five Main Reasons for Buying of Local Food and Drink 89 (Mean Values) Table Forty-six Main Factors Influencing the Buying of Local Food 90 and Drink Table Forty-seven Main Reasons for Not Buying of Local Food and 91 Drink (Mean Values) Table Forty-eight Main Barriers Affecting the Buying of Local Food and 92 Drink Table Forty-nine Regression Results for Reasons for Buying/Not 94 Buying and Actual Buying Behaviour for Local Food and Drink Table Fifty Regression Results for Reasons for Buying/Not 95 Buying and Behavioural Intentions toward Buying Local Food and Drink Table Fifty-one Regression Results for Factors of Influence and 97 Buyer Characteristics and Actual Buying Behaviour for Local Food and Drink Table Fifty-two Regression Results for Factors of Influence and 99 Buyer Characteristics and Buying Behavioural intentions for Local Food and Drink Table Fifty-three Main Reasons for Buying of Regional Food and 101 Drink (Mean Values) Table Fifty-four Main Factors Influencing the Buying of regional Food 102 and Drink Table Fifty-five Regression Results for Reasons for Buying and 103 Actual Buying Behaviour for Regional Food and Drink Table Fifty-six Regression Results for Reasons for Buying and 104 Behavioural Intentions toward Buying Regional Food and Drink Table Fifty-seven Regression Results for Factors of Influence and 106 Buyer Characteristics and Actual Buying Behaviour for Regional Food and Drink Table Fifty-eight Regression Results for Factors of Influence and 107 Buyer Characteristics and Actual Buying Behaviour for Regional Food and Drink Table Fifty-nine Differences in Buying Behaviour and Influences 109 between residents in Urban and Rural Areas Table Sixty Differences in Buying Behaviour and Influences 110 between Regions Table Sixty-one Differences in Buying Behaviour and Influences 112 between Regions Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods page Table Sixty-two Differences in Buying Behaviour and Influences 113 between Genders Table Sixty-three Differences in Buying Behaviour and Influences by 114 Marital Status Table Sixty-four Differences in Buying Behaviour and Influences 115 between Socio-Economic Grouping Table Sixty-five Differences in Buying Behaviour between Segments 117 Table Sixty-six Differences in Buying and Non Buying Factors 118 between Segments Table Sixty-seven Differences in Attitudes and Psychographics 119 between Segments Table Sixty-eight Product Groups where Local and Regional Food and 140 Drink are more Dominant within Organisations Table Sixty-nine Ownership Type of Responding Organisations 147 Table Seventy Turnover Band of Responding Organisations 149 Table Seventy-one Regional Distribution of Responding Organisations 150 Table Seventy-two Distribution of Responding Organisations by Area 150 Table Seventy-three Annual Spend on Food and Drink Products in 2006/7 151 Table Seventy-four Definitional Aspects of Local and Regional Food and 152 Drink Table Seventy-five Geographical Definitions of Local Food and Drink 153 Table Seventy-six Geographical Definitions of Regional Food and Drink 154 Table Seventy-seven Changing Importance of Local and Regional 155 Produce Table Seventy-eight Future of Local and Regional Food and Drink Market 156 Table Seventy-nine Importance of Local and Regional Produce to 157 Responding Businesses Table Eighty Sourcing of Local and Regional Food and Drink 158 Table Eighty-one Factors Influencing Purchase of Local and Regional 159 Food and Drink Table Eighty-two Factors Leading to Increased Purchasing of Local 160 and Regional Food and Drink Table Eighty-three Proportion of Spend on Local and Regional Products 162 Table Eighty-four Change in Proportion Spent on Local and Regional 163 Food and Drink Table Eighty-five Change in Proportion Spent on Local and Regional 164 Food Table Eighty-six Buying of Specific Local and Regional Product 165 Table Eighty-seven Methods of Promoting Local and Regional Produce 167 Table Eighty-eight Trade Perceptions of Importance of Consumer 168 Buying Factors (Mean Values) Socio-economic Research and Intelligence Observatory Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods Understanding of Consumer Attitudes and Actual Purchasing Behaviour with Reference to Local and Regional Foods SECTION ONE: INTRODUCTION 1.1 Background to the Research The increasing demand for local and regional foods (IGD, 2005) presents potential economic and sustainability benefits. However, a range of driving forces that may increase motivation to purchase particular food types or reduce perceived barriers to purchasing create constant change in consumer tastes and preferences towards the purchasing of such produce. Moreover, it is clear that supermarkets remain the preferred shopping option for most buyers, based on the general desire of shoppers for convenience, product range, quality and value for money that they provide. In line with changing consumer attitudes and behaviours, trade intermediaries and providers of food service may identify that they need to respond to market changes, or indeed be proactive in developing a position which is consistent with these trends. Policy initiatives also affect demand and supply dynamics that are, in this case, inextricably linked to both the sustainable consumption agenda (Jackson, 2005), and its enactment in the rural food production and farming environment (Defra, 2002). Thus the Socio-economic Research and Intelligence Observatory (SERIO), formerly the Social Research & Regeneration Unit (SRRU), in collaboration with the University of Plymouth’s Agrifood Centre (AfC), Rural Futures Unit and Small Business and Services Research Unit, was commissioned by Defra in April 2007 to undertake research to further understand consumer attitudes and actual purchasing behaviour, with reference to local and regional foods. 1.2 Research Aims and Objectives The overall aim of this project is to contribute to the knowledge and understanding of the factors influencing consumers’ attitudes and behaviour in the market for local and regional foods in England. Within this the research has four main objectives: (cid:1) To characterise and evaluate the local and regional food industry in England, from the point of view of household and trade buyers, with a view to estimating its magnitude, the underlying driving Social-economic Research & Intelligence Observatory 1.