Monday, February 15, 2010

Indian consumer willing to pay premium on Food Brands - A survey

Indians have become increasingly wary about the food that they buy, thanks to the rising issues concerning the safety of food and the resultant food-borne diseases. According to the Nielsen global online survey, 97% Indians consider safety of food an important factor in deciding where they shop and 73% Indians are confident in the safety of the food that they purchase from their local store.




As per the survey, India along with Ukraine is the second most willing nation to pay a premium for food that is safe (85%). Saudi Arabia and Phillipines lead with 86% votes in their willingness to pay a premium for safe food.



More than six in ten Indians think that the food manufacturer has the main responsibility for providing them with safe food. Around 30% hold the government responsible for providing safe food and only 8% think that the retailer has the main responsibility in providing safe food to them. However, Indians trust the government the most when a food safety scare arises (32%). With 29%, food manufacturers are the second most trusted entity in case of a food safety issue. Over 26% Indians trust media and only 13% trust retailers when they are skeptic about food safety.



“Food contamination is a problem that Indians face every now and then. Food supply in the country is often fragmented involving a multitude of middlemen, which exposes it to various types of fraudulent practices. In such conditions Indians are very careful of where they make purchases from and mostly go by the name of manufacturer.



The retailer is not seen as the prima donna in India, the manufacturer is,” said Biswarup Banerjee, associate director, marketing communications, South Asia, The Nielsen Company.


Nearly nine in ten Indians (86%) believe that they are responsible for the safety of food they consume at home. This is higher than the global average of 75% who believe that they are responsible for the safety of food that they consume at home.



The most important reason why Indians buy locally made products is because they think that by doing so they are supporting the local farmer or producer.

Source - Nielsen Survey

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