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Trust Issue Critical for Food and Drink Companies
A report released this week by Datamonitor reveals that the UK has become a nation of consumer sceptics with less than half (44%) of the population trusting nutritional claims made by food and drink companies. The findings are not unique to the UK, but echoed elsewhere in the world.
Some 86% of US and European consumers surveyed said that they have become more distrustful of corporations within the past five years. This attitude reflects a climate of distrust whereby consumers are showing skepticism of all things commercial. Given that brands are rooted in the trust that consumers place in them, Datamonitor believes that trust building brand strategies must take on greater emphasis. 'The consumer packaged goods industry in particular is suffering from a 'trust void'', according to Daniel Bone, Consumer Markets Analyst at Datamonitor and author of the report. 'These survey statistics are merely a snapshot of the overall negativity that characterizes contemporary European and US consumers.'
Less than half of consumers in Italy, Spain, Sweden and the UK consider nutritional claims made by food and drink companies to be trustworthy. This scepticism is not exclusive to the food and drink industry, and consumers are equally doubtful of claims made by cosmetics and toiletries companies. 'These findings should be of considerable concern to the industry' says Bone. 'Not only does the lack of trust undermine attempts to develop relationships with consumers, it also hinders the chances of future new product development. In the food, drink and cosmetics industry many of the most exciting innovations will focus on functional food and cosmeceutical products which use innovative active ingredients and technologies. When consumers lack trust in everyday product propositions, it will be difficult to generate mass appeal for these products which boast more expansive claims.'
Table 1: Percentage of consumers who consider claims to be trustworthy, by country
[table]
Source: Datamonitor
European consumers are paying more attention to the recommendations of friends and family, especially in the UK where 72% of respondents consider the recommendations of family and friends 'important' or 'very important' when choosing everyday products and services.
Professional endorsement and a good track record in business ethics also rank as the most important trust building credentials for consumers. Nearly half of European and US consumers consider health advice from associations and professional bodies to be 'very trustworthy', and just over half (57%) feel this way about health advice from doctors. Mr Bone added, 'Given the extent to which consumers trust experts and professional bodies it is important that manufacturers and retailers build relationships with trusted 'expert community.'
Datamonitor is online at www.datamonitor.com
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