Indian food exporters to face heightened consumer consciousness

New Delhi, July 26 (UNI) With significant bearing on India, a survey recently conducted in the US and the UK reveals that recent product contaminations and recalls coupled with confusion over marketing claims have led to an erosion of consumers' trust in manufacturers of branded food products.

The findings of the report released today by IBM Institute of Business Value titled 'Reestablish Trust Through Increased Transparency' hold special significance to India where a rapidly growing food exports industry is facing stiff competition from global players.

IBM surveyed 1,676 consumers in the United States and the United Kingdom. Nearly 70 per cent of consumers expressed a low overall level of trust in the claims 'branded food products' make about their environmental impact and health and wellness benefits, said a statement.

Almost half of consumers are more concerned about safety, and nearly two of every five consumers said they buy different brands today because of these concerns.

IBM says almost 60 per cent of respondents said they have more knowledge about the contents of the food they buy now versus two years ago, but despite this increased awareness, 72 per cent now want even more information about the source and production methods and the contents of the packaged food products they buy.

According to the Confederation of Indian Industry (CII), the Indian food industry is estimated to be worth over 200 billion dollars and is expected to grow to 310 billion dollars by 2015.

While India is one of the world's major food producers, it accounts for less than 1.5 per cent of international food trade - presenting a huge opportunity to exporters. That's not all, the processed food industry in particular accounts for 70 billion dollars alone, and is attracting immense FDI.

''If manufacturers and exporters in India are to successfully capitalise on this opportunity - it is important that they address the increasing consumer trust issues,'' said, IBM's Solutions Manager for the Consumer Products Industry in Asia-Pacific Chris Cave Jones.

India, as an exporter of food products, should be concerned about consumers in the west who are getting increasingly worried about the source and quality of the food that they eat. As an exporter, India needs to understand the consumer pressures that the European and American branded food companies are coming under to respond to their consumers' needs and work with the companies to re-build consumer confidence, he added.

UNI