Consumers will pay more for products with extra-healthy properties

Consumers will pay more for products with extra-healthy properties

Fresh produce boasting additional health attributes could command a premium among consumers in the UK, according to new research from the University of Reading.

A study involving focus groups and qualitative research, led by Professor Richard Tiffin from the University of Reading’s department of agriculture & food economics, found that the premium shoppers are prepared to pay for fresh produce increases significantly on products billed as having extra-healthy properties.

The research involved growing strawberries and lollo rosso under plastic with a higher UV transparency, to help bring out the health properties of the two products and their red colour. Consumers were then offered a choice of strawberries and lollo rosso grown under different conditions, including open field and under the enhanced UV, and the differences were explained to them.

Presenting his findings at a presentation hosted by the Chartered Institute of Marketing’s Food, Drink & Agriculture Group, Tiffin revealed that the consumers in the study were prepared to pay a £1.42 premium for strawberries grown in the open field, and a 77p premium for fruit grown under the enhanced plastic. On the lollo rosso, consumers would pay a 72p premium for open field production, and 48p more for product grown under the plastic.

Other elements of the research discovered that consumers will pay a 97p premium for strawberries that have been grown locally, and a 12p premium for fruit grown in the UK - but they will actually pay 53p less for fruit grown in the EU.

They will also fork out 31p more for organic product, and 19p extra for strawberries guaranteed GM-free. “We found that education has a positive influence on people’s preference for GM-free products, while consumers in urban areas have a stronger preference for organics,” said Tiffin. “However, urban dwellers do not favour local food as much as rural dwellers, which suggests a lot of desire for local food may stem from a desire to support the local community, and that disappears when you move into an urban area.”

Tiffin added: “It is clear consumers need to be given a very steer clear towards the health benefits of a dietary choice, in order to capture any premiums. I would argue we need to make it very clear to them why some things are healthy.”