Trading up on indulgent items
According to a new study by Canadean Consumer, shoppers are most likely to trade-up on chocolate when it comes to buying indulgent groceries.
Overall, 38% of buyers say they buy premium either ‘regularly’ or ‘all the time’. In comparison, 35% said the same about coffee, 33% about alcohol and 32% about ice cream. This suggests that consumers are willing to trade up on luxuries despite ongoing juggling of daily finances and budgetary restrictions.
The survey also found that consumers determine a product’s premium value as a result of its ingredients rather than the price. 58% of consumers regard a product as superior to an everyday item if it promotes the use of the finest ingredients, whereas only 38% validate a product’s premium value if it is expensive.
In addition, consumers are likely to consider a product as premium if it has stand out appeal (44%) and comes in environmentally friendly packaging (37%). Consumers also tend to associate fairtrade and organic ingredients with purer formulation and artisanal production.
Michael Hughes, research manager at Canadean says, “Irrespective of their financial situation, consumers are still willing to trade-up on a regular basis in categories inherently associated with treating and indulgence. To encourage trading-up behaviour, manufacturers need to push the concept of ethical luxury in categories such as chocolate and coffee to make consumers feel that they are getting a real treat over everyday items.”