The changing UK shopper - Anticipating the needs of changing society

Taking notice of changing shoppers

In the midst of a busy Christmas trading period, you may have missed the release of the latest census results.

The UK population is going through considerable change. This will have a significant impact on the demand for food and grocery products, not only in terms of volumes, but also in terms of the types of products that shoppers want to purchase.

Therefore, it is important to understand what changes are occurring to be able to predict the demands that shoppers may have of the food and grocery industry.

We look at how to add value to your category beyond price in light of three key changes:

1. The rising proportion of foreign born nationals in the UK
2. Increasing numbers of single person households and
3. An ageing population

 

Appealing to different tastes

Increasing numbers of foreign born residents

Source: Office for National Statistics, England and Wales

One of the highlights of the census is the increasing number of foreign born residents. Over the last ten years this has increased from 4.6 million to 7.5 million.The chart above shows that India remains the top ranking country of birth for foreign born nationals. However, the most dramatic change is the increased number of Polish nationals living here. Poland lay 18th on the list in 2001- but over a decade numbers increased nine-fold as its workers came to the UK once the country joined the European Union.

In 2001, fewer than 1,500 people born abroad lived in Boston in Lincolnshire. Today, almost 10,000 people born abroad live there, 3,000 of them from Poland.

London has become the first region where white British people have become a minority. More than one in three usual residents was non-UK born, whereas in the North East, the ratio was one in 20.

These changes are having an impact on shopper requirements for authentic tastes and flavours. A desire for varied and interesting flavours is highest in London. Nearly nine in ten (88%) of Londoners shoppers request more choice of world cuisines, compared to three in four of all shoppers.

Despite these changes, shoppers (more than eight in ten of whom are born in this country) rank Chinese (33%) and Italian (31%) highest when asked which types of food they would like more choice of. In comparison, only 4% require more choice of Polish food.

Making products more convenient

Another key trend is the growth of smaller households. In 2011, the number of households containing one person reached 7.6 million, up by 1 million over the last ten years.

There were almost 4 million working-age single person households, 600,000 more than there were married couples with dependent children.

The largest change is in the 45 to 64 age group, where the number of people living alone increased by 53 per cent between 1996 and 2012. This is partly due to the increasing population aged 45 to 64 in the UK over this period, as the 1960s baby boom generation have started to enter this age group.

 

 

Smaller packs adding value to single households

Base: all main shoppers, Nov' 12

 

 

Shoppers living in single households have distinct requirements of the food and grocery industry. They rank smaller pack sizes significantly higher than average for providing added value (34% vs 18% of all shoppers).

 

The importance of reducing food waste for these shoppers is particularly important. They prioritise extended shelf-life on dairy products (42% vs 35% of households with 3 or more people).

 

Appealing to smaller sized households is a key focus for Kingsmill’s Little Big Loaf range, as highlighted in our recent In-Store Excellence report.

These smaller pack sizes / loaves provide an alternative for smaller households, those on a budget or conscious of reducing waste, and could prevent Kingsmill shoppers from trading out altogether.

Adapting range and product design for older shoppers

The ageing population also provides opportunities for food and grocery companies to add value beyond prices.

 

One in six (16 per cent, 9.2 million), of the population in England and Wales was aged 65 and over in 2011, up by 0.9 million since 2001.This trend is set to continue. By 2035, 23% of the total UK population will be aged 65 and over compared to 18% aged 16 or younger.

An ageing population means that retailers and manufacturers need to consider the needs of a new shopper segment when developing products. As people age, physical abilities often deteriorate, which can have a significant impact on shopping and cooking.

More than half (55%) of shoppers aged 65+ would like more choice of products that are easier to open compared to 37% of all shoppers. Older women, a demographic most likely to suffer from arthritis, particularly request easier to open cans, jars and packet foods.

Older shoppers more engaged with local foods

Base: all main shoppers who ever buy local foods, Nov' 12

 

 

Despite the credit crunch, older shoppers’ interest in ethical products remains high. Half (49%) intend to buy more local food in the year ahead (vs 43% of all shoppers).

 

 

Older shoppers are more engaged with local foods and cite multiple reasons for buying into local. The freshness of local food is particularly important to older shoppers (70% vs 57% of all local food buyers). Over 65s are most likely to request a wider selection of locally produced fresh fruit and vegetables.

 

Adapting to change

Understanding the changing shopper profile and requirements will be essential to the success of any brand or product.

One such change will be in 2014 when more than 29 million Bulgarians and Romanians gain the right to live and work unrestricted in Britain under European “freedom of movement” rules. Are you prepared for further changes in requirements for meal solutions?

 

Providing more single portion foods can help to reduce food waste and build trust, particularly among single households. However, it will be important to consider the trade-off between smaller pack sizes and increased unit packaging this creates.

 

Finally, it will be important to consider the suitability of packaging and pack formats along with the overall design to meet the needs of increasing numbers of older shoppers.

Source: IGD ShopperVista