|IEA Report Shows That People Prepared To Pay For Convenience Of Food
|Contrary to the claims of some health campaigners, it is cheaper to buy healthy and nutritious food than it is to buy processed ‘junk food’. |
A new report from the Institute of Economic Affairs uses data from two leading supermarkets to compare the prices of 78 common food and drink products, finding that healthier options are mostly cheaper than less healthy alternatives.
When measured by edible weight, the cheapest ready-meals, pizzas, burgers and sugary breakfast cereals cost more than £2 per kilogram, whereas typical fruit and vegetables cost less than £2 per kilogram. And whilst £1 will buy you one cheeseburger, that same £1 could buy you a kilo of sweet potatoes, two kilos of carrots, two and a half kilos of pasta, ten apples or seven bananas. And the Government’s daily recommended five portions of fruit and vegetables can cost as little as 30p.
The report debunks studies which claim that healthy food is more expensive, finding they use the flawed methodology of comparing food products by their cost-per-calorie. This has the perverse effect of making low-calorie food appear expensive by definition. A better approach is to compare typical servings of food by weight or portion size.
Ultimately price is not the main driver of unhealthy food consumption; often consumers are prepared to pay more for taste and convenience. The popular belief that obesity and poor nutrition are directly driven by economic deprivation is untenable. If the price of food was a primary consideration, people (particularly those on low incomes) would eat more fruit and vegetables. The use of taxes and subsidies to incentivise better nutrition is unlikely to be successful. In practice, these measures would tax the poor and subsidise the rich.
Assumption that the high cost of healthy food causes obesity is flawed:
* Obesity has increased rapidly at a time when incomes have risen and food prices have fallen.
* Obesity rates are higher in rich countries than in poor countries.
* People fail to buy more fruit and vegetables when they become richer.
* There is a high rate of obesity among people on middle and high incomes.
* The correlation between deprivation and obesity is only seen among women.
* Obesity rates among men are highest among middle income earners.
Proposed tax and/or subsidies would be regressive:
There have been calls to bring in taxes or subsidies to encourage people to make healthier food choices, but such measures would be hugely problematic:
* Taxing food would be highly regressive given that food disproportionately consumed by people on low incomes would be taxed in order to subsidise food that is disproportionately consumed by high earners.
* It is doubtful that changes in pricing would have a significant impact on people’s choices given that healthy food is already cheap.
* Subsidising foods would create huge administrative costs given the difficulty classifying each foodstuff would present.
Commenting on the report, author Christopher Snowdon, Head of Lifestyle Economics at the Institute of Economic Affairs said:
“A diet of muesli, rice, white meat, fruit and vegetables is much cheaper than a diet of Coco Pops, ready-meals, red meat, sugary drinks and fast food. A wide range of healthy alternatives are available at the same price as the less healthy options.
“The idea that poor nutrition is caused by the high cost of healthy food is simply wrong. People are prepared to pay a premium for taste and convenience.
“A nutritious diet that meets government recommendations is more affordable than ever. Given the relatively high cost of ‘junk food’, it is unlikely that taxing unhealthy food or subsidising healthy food would change people’s eating habits. Instead, it would transfer wealth from the poor to the rich.”
|Item last updated: Friday February 17 2017 11:08|
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|Ready-to-Eat Food Market: Global Industry Analysis and Opportunity Assessment, 2016-2026
|The Food and Drug Administration (FDA) defines ready-to-eat food as animal or plant derived food that is cooked, frozen, washed, cooked for hot holding, cooled, and processed to be consumed directly or after heating. Ready-to-eat food must comply with all USDA guidelines related to processing, washing, drying, cooling, freezing, and packaging. In terms of value, the global ready-to-eat food products market is expected to expand at a CAGR of 7.2% during the forecast period (2016-2026) and is estimated to be valued at US$ 195.3 Bn by the end of 2026. |
The global ready-to-eat food products market is segmented on the basis of Product Type (Meat/Poultry, Cereal Based, Vegetable Based, Others), Packaging (Canned, Frozen or Chilled, Retort, Others), and Distribution Channel (Hypermarket/Supermarket, Convenience/Departmental Store, Specialty Store, Online Store, Others).
On the basis of product type, the Meat/Poultry segment is projected to account for the largest value share during the forecast period; this segment is estimated to account for 45.7% value share in 2016. In the packaging category, the Frozen or Chilled segment is likely to expand at a CAGR of 8.0% over the forecast period. In the distribution channel category, the Hypermarket/Supermarket segment is estimated to account for the highest value share of 34.3% in 2016 and is expected to gain significant market share by the end of 2026.
Key market drivers and trends
Factors such as increasing population of working women, growing millennial population, busy work schedules, and on-the-go consumption habits are expected to fuel revenue growth of the global ready-to-eat food products market. Also, the increase in disposable income and consumer preferences for healthy and convenient food coupled with the rising demand for snacks and fried food products are expected to further boost the demand for ready-to-eat food products.
Globally, the growth of organised retail has led to a widespread supply of ready-to-eat food products through a wide distribution network. These factors are expected to bolster the growth of the global ready-to-eat food products market in the coming years. However, unhealthy substitutes and low quality and taste along with an increasing shift towards a healthier lifestyle is likely to hinder market growth in the coming years.
Regional market projections
The global ready-to-eat food products market is segmented into seven key regions - North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan (APEJ), Middle East & Africa (MEA), and Japan.
The APEJ market is likely to contribute a high revenue share to the global ready-to-eat food products market. APEJ is estimated to hold 18.2% value share in 2016 and this is likely to increase to 20.4% by 2026. Among all regions, North America is estimated to represent the highest value share of 40.1% in 2016 and is expected to register a CAGR of 7.3% during the forecast period. Rise in disposable income coupled with on-the-go lifestyles among the growing population of Asia Pacific excluding Japan, Latin America, and Eastern Europe is expected to drive the growth of the global ready-to-eat food products market.
Ready to eat food products market
Key market players
Nomad Foods Ltd., Bakkavor Foods Ltd., General Mills Inc., McCain Foods, Premier Foods Group Ltd., 2 Sisters Food Group, Greencore Group Plc., Orkla ASA, ConAgra Foods, Inc., and ITC Limited are some of the leading companies operating in the global ready-to-eat food products market.
Consumers today prefer small quantity of ready meals rather than conventional large meals. This has fuelled the demand for bite-sized on-the-go or ready-to-eat meals. This has pushed manufacturers to innovate and develop new ready-to-eat food products, which are better in taste and offer numerous health benefits. Market players are also offering natural and organic ready-to-eat food products with health benefits to woo a rising class of health conscious customers.
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|Item last updated: Friday February 17 2017 11:08|
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|Great British Chefs Unveils Uk’s Most Comprehensive Foodie Survey
|The UK’s most comprehensive survey of food lovers released today, as part of the Great British Foodie White Paper, shows that British foodies have an insatiable appetite when it comes to being adventurous with food. |
The national survey of over 5,000 British foodies was conducted by Great British Chefs, the award-winning online food publisher. It reveals what they like to cook, how they like to cook it and what inspires them.
British foodies are regularly cooking an impressive 44 different dishes and have close to 100 dishes in their repertoire. Far from sticking to chicken and salmon, they are cooking 31 different meats, fish, shellfish and game. Comparing the sexes, the survey revealed that while all foodies love cooking, male foodies are even more experimental than female foodies, cooking double the number of exotic animals like kangaroo and crocodile and 20% more offal. While many might have assumed that foodie TV is just for entertainment, over 95% of foodies admitted to cooking a dish that they had seen on a television programme.
WHAT WE LIKE TO COOK
The research shows that Brits are wildly experimental when it comes to their food, with a whopping 91% of those surveyed admitting they eat almost everything and anything. We’re getting adventurous with our roasts, with almost half of those surveyed having cooked goose (47%), quail (40%) and many having tackled a suckling pig at home (18%).
We’re not burying our heads in the sand when trying out unusual meats either, with 37% having cooked ostrich, closely followed by kangaroo (26%), snail (20%), buffalo (15%) and crocodile (13%). Snake (2%), insects (2%), camel (2%), llama (1%) and gooseneck barnacles (1%) are, however, yet to hold their own as a British staple!
It’s not surprising that liver and kidneys are top of the British offal list. However, foodies don’t stop there, with many having cooked cheeks (43%), heart (30%), bone marrow (25%) and trotters (20%). The passion for nose-to-tail eating has clearly expanded way beyond dedicated high-end restaurants.
THE FOODIE STORE CUPBOARD
A snoop inside the store cupboard reveals a truly global approach to cooking, with food lovers more likely to own Thai fish (63%) sauce than brown sauce (62%). Their go-to ingredients range far beyond stock cubes and tinned tomatoes, with soy sauce (92%), coconut milk (74%), harissa (51%), tahini (45%) and dried seaweed (22%) all featuring heavily in the foodie larder.
Not only are UK foodies stocking up on global ingredients, they’re cooking a huge range of dishes with them too. While foodies are still regularly cooking classics such as roast chicken (74%) and spaghetti bolognese (62%), they are also regularly making risotto (47%), fish pie (42%) Thai green curry (35%), chilli prawns (33%), tagine (21%) and paella (25%). Over a quarter have made dim sum (31%) or sushi (30%) at home and 14% have had a go at kimchi, a fermented vegetable dish from Korea.
Foodies aren’t big fans of convenience foods, with 62% saying they would rarely or never order a takeaway and a whopping 71% would rarely or never buy a ready meal. Instead, when foodies are looking to rustle up a quick meal, they overwhelmingly prefer to cook something from scratch (85%).
HOW WE LIKE TO COOK
Not content with cooking 44 dishes on regular rotation, UK foodies regularly bake their own bread (82%), make pickles (40%), brew beer (13%) and some even cure salami (5%). To do all this they’ve got a kitchen to rival the professionals as they own ice cream makers (36%), juicers (35%), smokers (12%) and sous vide machines (8%). They are preparing their produce with an army of traditional and technical gadgets, from sugar thermometers (48%) and mandolins (44%) to pizza stones (29%) and microplanes (33%)
WHAT INSPIRES US
The vast majority (82%) of foodies believe they are far better cooks than their parents, and they’re seeking inspiration from a huge variety of sources. When they are looking for a recipe they turn to their cook books (88%) or go online (85%). Their foodie inspiration comes from holidays abroad (76%), what they have eaten in UK restaurants (85%) or things they have seen on TV (83%). They are less likely to be inspired by what their friends and family have cooked for them (53%).
“Britain is one of the most multicultural places in the world, and our hunger for new ingredients, cuisines and techniques completely reflects this,” says Ollie Lloyd, CEO of Great British Chefs. “Food in the UK today is influenced and inspired by travel, migration and the growing availability of a global store cupboard – it’s no surprise that we’re cooking with more diversity than ever before. It’s phenomenally exciting.”
So if you love to eat, discuss and salivate over all things food, Great British Chefs have created the ultimate “Fanatical Foodie” quiz to test those culinary skills. (www.greatbritishchefs.com/foodie-quiz)
The full White Paper detailing the study can be found here (www.greatbritishchefs.com/foodie-white-paper)
|Item last updated: Friday February 17 2017 11:08|
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