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study

April 17, 2020

Study: Consumers Willing to Pay 37 Percent More for Cultured Meat

A new study from Maastricht University (UM), where Dr. Mark Post created the world’s first cultured hamburger in 2013, suggests that consumers are willing to pay a premium for cell-based meat.

The study, published in PLOSONE this week, was based on a tasting that UM scientists held for 193 consumers in the Netherlands. It’s the first study on consumer reactions to cell-based meat that included a physical product to taste. The participants were first given a presentation on cultured meat, including the science behind its production and its environmental benefits. They were then given two samples of hamburger, one labeled ‘conventional’ and the other ‘cultured.” However, in reality both were traditional beef burgers.

Even though the samples were identical, all participants rated the flavor of the so-called ‘cultured’ hamburger higher than the ‘conventional’ one. Afterwards 58 percent of the tasters said they would be willing to pay extra — an average premium of 37 percent — for cultured meat.

The participants also noted that their main deciding factor to determine how much more they’d pay for cultured meat was information. The more they knew about the process behind cell-based meat production — and its global societal and environmental impact — the more they were willing to pay for it.

The study also delves a bit into the idea of disgust, which is often more dependent on cultural norms than actual taste (ex. Westerners won’t eat bugs, even though they’re super sustainable). Disgust is certainly one of the bigger challenges that cultured meat will face when it gets to market. Companies have to convince consumers to not only sample this newfangled product — meat grown from cells in bioreactors — but, at least initially, they’ll also have to pay more for it.

“The study shows… that consumers will eat cultured meat if they are served it,” Post noted in an email sent to The Spoon. Not only that, they might even be willing to fork over more money for it. That is, as long as they’re provided with enough information to understand what exactly cell-based meat is, and why it could be an appealing option.

Of course, when cultured meat does eventually hit the market — likely a few years from now in restaurants, a decade from now in supermarkets — companies won’t be able to sit down every consumer and give them a presentation on why it’s a good option for the planet. Instead, they’ll have to rely on marketing to get the word out. Maybe even rope in some high-profile celebrity and chef endorsers like Beyond Meat has done.

They’ll also likely have to face negative campaigns from Big Meat and its friends. The CCF, a lobbying agency with ties to meat corporations, has already aired harsh commercials tearing down plant-based meat. When cultured meat — which is actual animal tissue, just grown outside the animal — becomes available, you can bet that Big Meat will come out swinging. At that point, information (and misinformation) will become all the more important.

February 25, 2019

Study: Gen Z is All About Snack Portability, Restaurant Delivery

I’m at an age where I can recognize the things that are for me (khakis), and the things that aren’t (Snapchat, staying out past 10 p.m.). So I always appreciate market research studies that give me insight into what the younger generations are up to. A pair of reports out recently from NPD Group (h/t to The Food Institute Blog) shed some light on how Genz Z (the eldest of which will be 22 this year) are approaching their food choices.

In its “The Future of Snacking” report, NPD found that what Gen Z cares about most is portability. From the NPD press release: “… regardless of the brand, for Generation Z, if they can’t take a snack with them, it’s not really a snack.” NPD also said, “A large percentage of this generational group have been raised to put a greater emphasis on the quality of food, whether it’s clean, fresh, or nutritionally beneficial, as well as its flavor and function.”

With these data points in mind, it’s not hard to envision a growing market opportunity for upstart, upcycled snack companies like ReGrained, Render and Pulp Pantry, as these socially conscious startups tick off a lot of the boxes Gen Z are looking for.

The convenience Gen Z craves extends to their restaurant habits as well. According to NPD, Gen Zs made 14.6 billion restaurant visits in 2018 and now make up 10 percent all foodservice traffic. But they are also a generation raised on the internet and apps, so they are quite keen on ordering delivery from restaurants. In its Delivering Digital Convenience report, NPD found: “In the year ending December 2018, foodservice delivery orders by Gen Zs amounted to 552 million, just a million shy of Millennials’ delivery orders and only a portion of Gen Zs are old enough to order their own delivery.”

That last bit about age is important. Delivery already makes up 30 percent of the restaurant business. As more Gen Zs become old enough to order their own meals (and booze!), the convenience of delivery is only going to grow. This market lying in wait helps explain DoorDash’s $7.1 billion valuation and why we’ll need more robots and drones to help keep up with delivery demand.

Which is fine by me, as long as they don’t make any noise past 10 p.m.

May 7, 2018

Study: Smartphone Shoppers Want Smart Shopping Assistance

A new survey from the Ericsson Consumer & IndustryLab shows that smartphone shoppers are interested in a smart assistant to help with purchase selections, automatic re-stocking of certain items and to receive deliveries when they are not at home.

The Beyond smartphone shopping – the rise of smart assistants report, released this month, used an online survey of 5,048 “advanced internet users in Johannesburg, London, Mexico City, Moscow, New York, San Francisco, São Paulo, Shanghai, Sydney and Tokyo.”

Some key findings from the survey include:

  • 67 percent of smartphone shoppers regularly pay with their phones in-store
  • 36 percent of smartphone shoppers believe that “they should pay lower prices in stores than online if they take the trouble to go there”
  • 43 percent of smartphone shoppers want shopping assistants to help narrow down purchasing choices
  • 47 percent of smartphone shoppers want a service that automatically restocks every day items
  • 44 percent of smartphone shoppers want a digital assistant to receive deliveries when they aren’t at home
  • 69 percent of augmented and virtual reality users thing that smartphones will deliver all of the benefits of brick and mortar stores in three years

The first thing that jumped out when looking at these findings was just how much of this Amazon is already working on. In addition to driving down prices, Amazon’s Dash system inches customers towards automatic re-stocking of staple items, Amazon Key is a new service to accept deliveries in your home or car when you aren’t there (and Amazon might even be working on a robot assistant), and the company is even experimenting with AR.

The study also points to the important role AI will play in our shopping. As we are inundated with tons of choices for everyday items, an intelligent assistant who is able to understand our history, preferences and probably even genetics (some day) will be able to whittle down that list to find the right product for us. As the study notes, smartphone shoppers are also looking to smart speakers from Amazon and Google to provide smart shopping assistance and handle routine house shopping needs.

While this survey should be considered a data point and part of an overall glimpse into the current and future state of shopping, anyone in grocery retail should take note and smarten up.

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