Consumer Trends

in Value-Added Agriculture

2016 Direct Farm Marketing

for Success Workshops

Chuck Grigsby

Extension Specialist

Center for Profitable Agriculture

March 9-10, 2016

What is a trend?

“Local Food” is a Trend

National Restaurant Association: http://www.restaurant.org/Downloads/PDFs/News-

Research/WhatsHot2016

1. Locally sourced meats and seafood

2. Chef-driven fast-casual concepts

3. Locally grown produce

4. Hyper-local sourcing

5. Natural ingredients/minimally processed foods

6. Environmental sustainability

7. Healthful kids’ meals

8. New cuts of meat

9. Sustainable seafood

10.House-made/artisan ice cream

Top 10 Food Trends, National Restaurant Association

“Local Food” is a Trend

Entrepreneur: http://www.entrepreneur.com/slideshow/253962

1. Hot Sauce Varieties

2. International Comfort Food

3. Waste not, Want not

4. Super-Grilled and Roasted Vegetables and Meats

5. Carbonated beverages

6. Non-GMO Labeling on Menus

7. Locally Sourced Foods

8. Fast Food Gets an Upgrade

9. Minimum Wage Increases

10.Direct Delivery Food Services

Top 10 Food Trends, Entrepreneur

“Local Food” is a Trend

Whole Foods: http://www.wholefoodsmarket.com/blog/top-10-food-trends-know-2016

1. Plant-Based Everything

2. Uncommon Meat Cuts and Seafood

3. Wine in Cans

4. Fermented Food and Drink

5. More Non-GMO Foods

6. Grass-Fed Dairy and Protein Supplements

7. Dehydrated Foods

8. Gluten-Free Flours

9. Flavors from the East

10. Heirloom Beyond the Tomato

Top 10 Food Trends, Whole Foods

Goals

1. Review some of the most important local food

trends.

2. Discuss and analyze how to take advantage of

these trends as they affect our enterprises and

enterprise planning.

3. Compile a list of best practices for direct

marketing enterprises based on group

discussions.

Local Foods is a Growing Sector

US Direct Sales Farms and Direct Sales Volume

(USDA Census, 2012)

Direct-to-Consumer Sales, 2007-2012

Top 20 Counties: Volume of Direct Sales

(USDA Census, 2012)

• +$1 million

• $900,000 - $500,000

• $499,000 - $250,000

Top 10 Counties: Agritourism Sales

(USDA Census, 2012)

• +$1 million

• $800,000 - $250,000

Tennessee Food Hubs

• Bring it Food Hub (Memphis) (150-miles):

• Nashville Grown (Nashville) (100-miles):

• Harvested Here (Chattanooga) (120-miles):

• South Cumberland Farmers (Sewanee/Monteagle):

Group Discussion

1. What is the most effective method you use to

identify your target market and attract

customers?

2. What is the most effective method you use to

attract customers to your farm (i.e. marketing,

promotions, etc.)?

3. What has been the best market diversification

strategy for your enterprise?

Local Food Demand is Consumer-drivenWhy do consumers prefer locally sourced products?

Quality

Support the

Local Economy

Corporate Social

Responsibility

Environmental

Motivations

Source: Onozaka, Y., Nurse, G., & McFadden, D. T. (2010). Local food consumers: how

motivations and perceptions translate to buying behavior. Choices, 25(1), 1-6.

Others?

Consumer Preferences for Local Foods

Farm to School in Tennessee

Top 5 Items

Sourced Locally

by Schools:

1. Apples

2. Lettuce

3. Cucumbers

4. Sweet potatoes

5. Berries

Also watermelon,

squash melons,

and peppers

Total SNAP Redemptions at Tennessee

Farmer Markets, 2008 to 2014

2014

$133,173 ÷ 92 Vendors =

$1,448/Vendor

2008

$8,354 ÷ 5 Vendors

= $1,670/Vendor

USDA, http://www.fns.usda.gov/sites/default/files/snap/SNAP-FM-063015.pdf

SNAP/EBT Program

Percentage of Households Receiving SNAP Benefits

2013

1. How do you most effectively market to the local food

consumer?

• Are the “healthy eaters” the same customer as the

“local economy supporter” and the “environmentally-

conscious” customer?

• Do we need separate strategies for each consumer

segment, or is there cross-over among consumer

segments?

Group Discussion

2. If you have participated in the Farm to School or

SNAP/EBT programs, what has been your number one

challenge and/or recommendation for interested

participants?

Where do consumers do their shopping?

Consumer Preferences and Buying Habits

National Grocers Association (2014)

Source: US Consumer Expenditure Survey (2014)

$2707÷52 weeks =

$52 per week

Consumer Preferences and Buying Habits• $6,681/yr. budgeted for food

1. Food at home

2. Food away from home

$753/yr. spent on

fruits and vegetables.

$14.50 per week

Consumer Preferences and Buying Habits

Source: State of the Plate (2015)

“The Farm Feeling”

Top 5 Hottest

Wedding Trends

1. Rustic

2. Vintage

3. High Drama

4. Pure Romance

5. WhimsicalBridal Guide, http://bridalguide.com/blogs/bridal-buzz/wedding-trends-pinterest-contest

Photo Credits: Averyhouse; user-submitted via Pinterest; Choco Studio; Dixie Pixel; Altura

Studio; Rebekah J. Murray Photography; Gertrude & Mabel Photography; Our Labor of Love; Timecut

Photography; Shannen Norman Photography; Rebekah J. Murray Photography.

1. What are some of the most effective strategies for

catering to the convenience-driven consumer (e.g.

market channels, delivery methods, payment options,

product line, value-added products, etc.)?

Group Discussion

2. What are some of the most effective strategies for

providing the consumer with an experience when

buying our products and services?

3. How can we show the consumer that purchasing local

foods can actually be a comparatively smarter choice

in terms of health and economics than spending nearly

half of their budget at restaurants?

Primary Responsibility of Food’s Nutrition

Consumer Eating Habits

Special Label Claims Sought By Consumers,

2014-15

What health claims do you look for on the package when

purchasing a food product?

1. Whole grain

2. Low sodium

3. Low sugar

4. High fiber

5. No artificial

ingredients

US Grocery Shopper Trends, 2015

6. No preservatives

7. Low calories

8. No/Low fat

9. No HFCS

10. Natural

Group Discussion

1. What is the most effective way to communicate the

added value of our products to attract customers?

• Source identification (hyper-local, farm name, farming

practice)

• Product differentiation

• Nutritional value

Chuck Grigsby

Extension Specialist

Center for Profitable

Agriculture

Email: cgrigsby@utk.edu

Phone: 931-486-2777