Recent Nielsen research has shown consumers willing are increasingly socially conscious and will spend more on products that are premium, organic or sustainable. According to Nielsen, three in five consumers demonstrate a willingness to pay more for products that deliver on social responsibility claims.
Nielsen director Julianne Westaway said, “Pacific shoppers are socially conscious when it comes to top-tier goods, with more than two in three consumers spending more on products that contain environmentally friendly or sustainable materials. They are also choosing products that are organic or have all-natural ingredients. Green attributes justify a higher price tag in many consumers’ minds and they show a willingness to pay for them.”
This trend is showing in the artisanal bread industry. IBISWorld Australia industry analyst Nathan Cloutman told ABC News the bread market was splitting in two directions.
“Coles and Woolworths are increasingly encroaching on the smaller players in terms of generic white loaves, and you are seeing smaller players being squeezed out of the industry,” he said.
“On the other hand, you have the growth of artisanal… premium breads, gluten-free breads, and consumers willing are increasingly demanding these products.”
Perth baker Andrew Ritchie told ABC News, “There’s been a big change in the past five to 10 years in regards to bread. People now want to know where their bread’s coming from, where the wheat’s coming from and the process,” he said.
He sells sourdough for $9 a loaf and told ABC News, “It’s expensive and I appreciate that, but when people understand the process, the ingredients, the fact that it’s organic, I think people are willing to pay a little bit extra.”
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