Consumer Buyer Behaviour

GISELA CALITZ

CONSUMER BUYER BEHAVIOUR

INDEX

-  Origin of the snacking trend

- Oil selection

- Innovative technology

- Opportunity

- Conclusion

- References

Origin of the snacking trend

There has been a rapid growth in the health and fitness industries in South Africa, taking Virgin active as an example, they have generated R12.5 billion in revenue last year alone according to the economist. With regards to a big health shift in super markets Woolworths organic food section starting out with 10 products in 2005 are now stocking up to 200 organic products in 2017. These are only 2 examples that prove the health consciousness shift and awareness of the health implications products hold across the board in South Africa. The trend towards healthy living is creating opportunities for entrepreneurs, and what it takes for a business to succeed in the health industry. This mostly due to the fact that people want to lead healthier lifestyles in order to look and feel good about themselves. With the pressure of social media making the demand even greater. A social consumer behavior trend has now been shaped around this. Let’s take the new generations into consideration here, there has been a sudden demand on a body perfect image due to Instagram accounts alone, not to mention Facebook and Youtube accounts.

We need to consider the entire generation of millennials, this is the new current generation ranging between ages of 18-35, we have noticed their particular sense of impatience. Their fast pace on the go lifestyle has lead them to a space where they have a much shorter attention span than previous generations. However their proactive approach to life, health and fitness is admirable and setting a good example for generations to come. The trouble in the marketing place is that society assumes that millennials don’t have enough money to spend, however they spend the most of their income in relation to the other generations on health and fitness.

Which brought me to thinking about current health trends in South Africa, I have chosen to discuss the snack market in particular. Snacking and the snack culture is huge and will be expanding exponentially in the future. Every brand in the food stable is looking at new formats for snacking for example Pronutro and Future Life, both cereal brands. Everything is about convenience these days. Hence the snacking culture.

The global savory snacks market is booming and expected to exceed US $160 billion by 2020, with rational markets like South Africa forecast to register aCAGR of 5.5 % during 2014-2019.

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Increasing urbanization, busier lifestyles and rising disposable income are all factors driving the success of this category. At the same time increased health consciousness amongst consumers has raised the demand for snacks that are better for you. This includes reduced fat, sugar free or fat free products.

Products that are having an increase in sales are the ones that contain healthy ingredients like kale, apple and pear. Selecting the right ingredients among with cutting edge technology and equipment can help snack producers benefit from the growing opportunities in the market place.

Oil Selection

Oil is the key ingredient and is used as the main Heat transfer agent creating the flavor & texture of the product. Sunflower oil create fewer harmful compounds but they are less stable at the heating stage. This means they produce high levels of free radicles when they are heated, reducing the nutritional properties of the product. This makes the product less stable, shelf stability also becomes a concern. If producers were to selects a high quality frying oil they can improve the shelf life and therefore add more benefits to the products packaging and promise.

Another method that could be used is not cooking the oil at all. In other words making it a RAW product which would be the most beneficial to the consumers health, that being said it is still high in price and quality, making it mainly consumer friendly for the higher income customers in the country. We need to keep in mind that natural foods with the most beneficial ingredients will be the most desirable amongst consumers. There is also the back to basics approach. The most desirable foods are those that have minimal processing with the most natural ingredients. A perfect example of a company currently doing this is Bliss. They are now supplying some of the leading food chains in the health department, they are now stocking their products in the Wellness Warehouse, Osumo, Organic Zone, Organic living, Fresh Earth food Store, Feast Food Market, Wheeler Pharmacy, Giovanni, Gururamdas Yoga, Spar and Faithfull to Nature. These are all the leaders in the current health food markets. What makes them unique in approach is that they don’t cook their health bars and they only use super foods as ingredients in their products. This is still only marketed to a niche market but it is most certainly going to be expanding in the up and coming years and would most certainly benefit other health bar competitors were they to consider this approach as an option to further expand or develop their products on a 100% health conscious level but smaller reach target market. What makes this product great is the personalized and hands on approach.