Majority of Shoppers Willing to Pay Premium for Local Food

An annual survey found that most consumers define local food as sourced within 100 miles of the point of sale.

October 26, 2015

CHICAGO – Local food continues to be top of mind for many consumers. The third annual A.T. Kearney survey of U.S. shoppers’ local food-buying habits finds that local food has made the leap from a “hot” consumer trend to a central growth driver for grocery retailers and restaurants. Two years ago, when A.T. Kearney conducted its first study of local food-buying habits, merely offering local food was a differentiator for retailers. In 2015, participation in the local food category is table stakes and merchandising excellence in the category is critical for growth.

“The ‘locavore’ movement has taken root,” noted Randy Burt, A.T. Kearney partner and co-author of the study, in a press release. “Consumers—especially women and young people—have come to expect not only high-quality local meat, seafood, and produce, but also jams, ice cream, and bread. Forward-thinking retailers and restaurants with a distinctive definition of local and a focus on marketing and merchandising fresh, high-quality products at the right price will capture a long-term advantage in this growing market.”

The 2015 Local Food Consumer Shopping Survey found that the definition of “local food” has changed. Ninety-six percent of those surveyed now describe local food as products grown or produced within 100 miles from the point of sale—up from 58% in 2014. Regardless of the category, 78% of consumers are willing to pay a premium of 10% or more for local food, up from 70% in 2014.

Demand for local food is expanding beyond produce, meat, and seafood. More consumers say local is also an important attribute for prepared foods and dry groceries. For canned and jarred products, local increased in importance from 5% in 2014 to 13% in 2015; for prepared foods, the jump was from 10% to 23%; and for bread, the increase was from 9% to 18%.

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