Packaged Facts: Local Foods Trend Naturally Close To Consumers' Purchase Preferences

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Apr 22, 2015, 07:47 ET

ROCKVILLE, Md., April 22, 2015 /PRNewswire/ -- Will local foods overtake organic foods in popularity? Some members of the food industry think so based in part on consumer demand now at an all-time high. Data from a November 2014 proprietary Packaged Facts National Consumer Survey published in Shopping for Local Foods in the U.S. found that 53% of the 2,271 adult respondents specially seek out locally grown or locally produced foods. Among the primary reasons for purchasing locally grown or locally produced foods, 60% of consumers who purchase local products say they do so because the products are fresher. In addition, more than half (52%) of consumers say they buy local products to support local businesses, and 44% of consumers say the products taste better.

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For retailers, foodservice operators, and food marketers, "local" has become a shorthand descriptor that makes food sound high quality, fresher, more authentic, trustworthy, environmentally friendly, and supportive of the local community. It lends additional credibility to the products, particularly when the farmer or producer is identified in marketing materials with a good back story. This being the case, there's been a surge in consumer demand for locally produced foods over the past 10 years, along with widening availability. The U.S. Department of Agriculture (USDA) notes, "The abundance of farmers' markets and the emergence of larger scale retailers carrying local products (and promoting them) is a healthy indicator of market responsiveness to consumer demand."

Food hubs, networks that allow local and regional farmers and producers to connect with larger volume markets, are playing an increasing role in the distribution of local foods. The farmers' market count is up 35% since 2010, with almost 8,000 farmers' markets operating in the United States as of August 2014, according to the U.S. Department of Agriculture. Mainstream retailers are trying to tap into the local foods trend by adding more local products to their stores and highlighting local products through marketing and display. What's more, while local and regional grocers may be in the best position to find products from local vendors and market them with authenticity, large national and multi-regional retailers including Kroger, Safeway, Meijer, and even Walmart also have identified local foods as one of their priorities. Packaged Facts' consumer survey found that more than two out of three consumers who buy locally grown or locally produced foods do so in supermarkets/grocery stores, and almost half buy these products at farmers' markets.

Yet, despite increased consumer demand, an increasing presence on grocery store shelves, and media hype, locally sourced food is just a tiny fraction of the nation's total food supply, and Packaged Facts does not expect local foods to come anywhere near organic foods sales-wise in the near term. In Packaged Facts' Natural and Organic Foods in the U.S., published last year, it was estimated that total U.S. retail sales of organic foods and beverages reached $34 billion in retail sales in 2014, and would advance to $59.9 billion in 2019. By comparison, Packaged Facts calculates that local foods generated $11.7 billion in sales in 2014, or 1.8% of total retail sales of foods and beverages, and project that retail sales of local foods will approach $20.2 billion in 2019, or 2.4% of total retail sales of food and beverages.

Shopping for Local Foods in the U.S. thoroughly examines trends and opportunities in the local foods market, covering all types of retail outlets, farmers' markets, foodservice providers, marketers all types of business models, the role of food hubs, reasons to buy local foods, and government support for local foods programs. Using extensive data from a proprietary Packaged Facts National Consumer Survey conducted in November 2014, as well as other published surveys, the report delves deeply into consumer purchasing, examining what motivates consumers to buy local foods, where they're buying them, and what they're buying and growing themselves. For more information on the report or to make a purchase please visit: http://www.packagedfacts.com/redirect.asp?progid=87373&productid=8684801.

About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at www.PackagedFacts.com and are also available on www.marketresearch.com and www.profound.com.

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SOURCE Packaged Facts