Shoppers Willing to Pay Premium for Local Food

Survey finds that majority of shoppers think more highly of retailers that carry local food.

May 07, 2014

CHICAGO – A survey of U.S. shoppers finds that local food is fast becoming a necessity for attracting and retaining grocery customers, according to the 2014 Local Food Consumer Shopping Survey by A.T. Kearney. Compared to the 2013 survey, an increased number of shoppers indicate that local foods are an important factor in what they buy and where they buy it.

A majority of surveyed grocery shoppers indicated that they think more highly of retailers that carry local food and will consider switching retailers to find better local food selections. Big box retailers and national grocery chains have work to do on improving their local food selections as consumers rank these outlets lower, compared to specialty supermarkets, local supermarkets and farmers markets with regard to their local food offerings.

“Given that the research found a strong correlation between fresh and local, large retailers can build awareness of their fresh products simply by sourcing and marketing local products more effectively – particularly in categories such as produce, meat, bread, and dairy,” said James Rushing, A.T. Kearney partner and co-author of the study.

Local food remains important for shoppers, with more than 40% of respondents saying they purchase local food on a weekly basis, and another 28% buying local food at least once a month. A majority of respondents say that local food helps the local economy (66%) and brings a broader and better assortment of food (60%).

Local food awareness and price perception have improved over the 2013 survey results. Sixty-eight percent of respondents say they are aware that their supermarket of choice offers local food. Similar to 2013, shoppers indicate their primary reason for not buying more local groceries is lack of availability at their retailer of choice. In the 2014 survey, 47% of respondents say availability is the primary reason they do not buy local, down 10% from 2013, which underlines growing awareness of local selections.

Seventy percent of consumers say they will pay a premium for local food. One-third of survey respondents (compared to one-quarter in 2014) say that they will pay a 10% premium for local food.

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