July 2008

IGD OverviewNick Downing, Sales Manager

GETTING ON TREND FOR TOMORROW'S SHOPPERS

Gerardine Padbury,Senior Consumer Analyst, IGD

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• International organisation based in the UK specialising in:

• grocery retailing,

• supply chain,

• category management

• shopper research

• Over 600 voluntary members spanning the demand and supply chain

• Research focuses on the major international developments

• Charity raising funds through international trading company

Overview of IGD

IGD providing thought leadership at the heart of the food and grocery industry

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Future Shoppers

Key trends shaping tomorrow’s shopper

Generating insight about tomorrow’s shopper

Source: IGD Consumer Unit, 2008

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Choice Challenge

Source: IGD Consumer Unit, 2008

‘Choice is good’Too much choice can impact sales

Choice editing

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Satisfying Niche Demands

Source: IGD Consumer Unit, 2008

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Even customising to the individual

Source: IGD Consumer Unit, 2008/Springwise.com

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The drivers for the masses…

Health and Wellness

Premium/Indulgence

Production Values/Ethics

Convenience

Source: IGD Consumer Unit ‘The Next Big Food Thing’ 2006

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Delivered in a variety of ways

Indulgence, luxury

Health, nutrition, wellness

Convenience

Production Values & Ethics

•Exclusive•Speciality•Brands

•Customized•Tasty•Exotic

•Pre-prepared•Food to go•Packaging

•Single serve/portions

•Organic•Fairtrade•Local•Country of Origin

•Assurance Schemes•Environmentally friendly

•Added Health Benefits

•Organic•Fresh

Source: IGD Consumer Unit, 2007

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14

25

15

24

14

23

1112

2003 2004 2005 2006 2007 2008

Locallyproducedfood

Organic

Fairtrade

High animalwelfarestandards

Sharp rise in ethical purchasing

Source: IGD Consumer Unit, 2008

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Many have begun to shop ethically

69%

55% 53%48%

32%52%

37%31% 33%

23%

Animal welfare Local/ British Environ-mentallyfriendly

Fairly tradedproducts

Organicproducts

Source: IGD Consumer Unit, 2008

Interested in Actively look to buy

75% are actively looking to buy at least one

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Mapping the different ethical shopper segments

No. of ethical shopping areas interested in

No.

of e

thic

al s

hopp

ing

area

s ac

tive

ly lo

ok

to b

uy

Ethical Evangelists

15%

Aspiring Activists

21%

Focussed Followers

27%

Blinkered Believers

16%

Conscience Casuals

21%

Source: IGD Consumer Unit, 2008

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Responding to ethical demands

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23

34

25

18 1916

2003 2004 2005 2006 2007 2008

...foods thatcontribute tomy 5 dailyportions offruit & veg*

...food freefrom artificialcolours &flavours

…'functional'foods

Purchasing for health also increasing

Source: IGD Consumer Unit, 2008

* Statement included from 2004

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Health claims which encourage purchasing

Natural 61%

Added 35%

Low or reduced 66%

10%23%14%

5%25%

4%

1%

18% not influenced by any of the claims mentioned to purchase food and drink

Source: IGD Consumer Unit, 2008

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Benefits for older shoppers

Aged 60-64 Aged 65-69 Aged 70-74 Aged 75+

Lowers cholesterol

Good for heart

Reduces signs of ageing

Whereas with Benecol, I was told at the hospital that they are the

best for cholesterol and everything and that was the hospital.

Well we know cholesterol's bad for us so

we’ll have that

Tick marks indicate where numbers are significantly different to shoppers in younger age groups.Source: IGD Consumer Unit, 2008

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Benefits for parents

Tick marks indicate where numbers are significantly different to shoppers with no children under 16 years old

Child aged 0-5

Child aged 6-9

Child aged 10-15

Strengthens bones

Boosts Energy

Helps support body's defences

Maintains healthy weight

Sustains blood sugar levels

Feel fuller for longer

Improves concentration

I think you know that Calcium is going to be strong for the bones.

Source: IGD Consumer Unit, 2008

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Responding to health demands

Source: IGD Consumer Unit, 2008

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Ticking more than one box

ProvenanceEthical Health Convenience Indulgence

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Ticking more than one box

ProvenanceEthical Health Convenience Indulgence

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Packaging innovation

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Innovating for tomorrow’s shopper

• Understand the big trends

• What is happening in the wider environment

• The role of science and technology

• Learn from other industries

For further information please contact:

For more information on IGD commissioned research:

http://www.igd.com/bespoke

For more information on IGD’s Shopper Online:

http://www.igd.com/theshopper

Gerardine Padbury

gerardine.padbury@igd.com or 01923 851 906