Consumer Attitudes Toward Packaged Fruits and Vegetables. August 2011

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1 Consumer Attitudes Toward Packaged Fruits and Vegetables August 2011 Prepared by Sponsored by

2 Table of Contents Overview... 3 Executive Summary...5 Implications & Recommendations...9 Internet Survey Findings...11 In-store Intercept Findings Appendix In-store Intercept Demographic Profile Internet Survey Results by Demographic Breakouts In-store Intercept Results by Demographic Breakouts

3 Overview Background The produce industry is experiencing an increase in consumer demand for healthy and convenient fresh food options, and has an opportunity in the area of packaged produce. Produce Marketing Association (PMA) wanted to understand what would entice consumers to purchase packaged produce, and what is important to them when making the purchase decision. Objectives The objective of this study was to understand the buying habits and preferences of consumers purchasing packaged fresh fruits and vegetables. Specific goals included: Increasing the consumption of packaged produce by informing its members about the type of information consumers would like to have available on produce packages Documenting factors in the retail environment that would increase consumer purchases of packaged produce Developing messaging around research outcomes for shippers, packagers and retailers, in order to increase the consumption of packaged fresh produce Approach In order to deliver against the stated objectives, the Perishables Group (PG) completed a three-phase research study, consisting of an internet consumer survey, in-store consumer intercepts and in-store consumer video interviews. The research focused on consumer behavior and preferences regarding packaged produce. Specifically, the research: Revealed purchase preferences and behaviors Identified drivers and influencers for purchasing packaged produce Determined factors that encourage or influence trial Gauged importance of specific packaging attributes Established how packaging attributes rate among each other Identified the information consumers would like to see on package labels 3

4 Overview Approach (continued) Internet Consumer Surveys Perishables Group conducted an online consumer survey of produce shoppers. Specifically, PG: Worked with PMA to develop a targeted consumer questionnaire Utilized its internet research tool to survey a total of 500 produce consumers, evenly distributed across the United States Tabulated and analyzed the results Developed a results report with overall survey findings, including a cross-analysis by demographic groups In-store Consumer Intercepts Perishables Group conducted in-store consumer intercepts of produce shoppers. Specifically, PG: Worked with PMA to develop a comprehensive consumer questionnaire Surveyed a total of 500 produce consumers in two chains, one in the Eastern U.S. and the other in the Western U.S. Developed a results report with overall survey findings and implications including a cross-analysis by demographic groups In-store Consumer Video Interviews Perishables Group conducted video interviews of produce shoppers. Specifically, PG: Worked with PMA to develop a consumer interview Worked with one of the participating retail chains to videotape 20 consumers during the interview on packaged produce Created a video compilation of highlights from the consumer interviews Perishables Group processed and analyzed the findings from the internet consumer survey, in-store consumer intercepts and in-store consumer video interviews to document the results of the consumer research and create a set of insights that can be utilized by PMA to understand the purchasing habits and preferences of produce consumers. 4

5 Executive Summary Consumer Internet Survey Purchase Behavior Consumers buy fresh produce frequently, with more than 80% purchasing fresh fruits or vegetables at least weekly. Consumers report, or at least they believe, that relatively little of this is packaged; half of the consumers surveyed said 15% or less of the produce they buy is packaged. Purchase Drivers Cleanliness and price are by far the most important factors in consumers decision to buy packaged produce. Consumers also want nutritional information and the convenience of both the product and the packaging. When buying new or unfamiliar items, consumers most want to see information on eating qualities. This indicates that consumers are looking to lessen the risk of buying an unknown product. Nutritional information is also important to them when purchasing the unknown. Packaging and Label Attributes According to consumers, the most important attribute of produce packaging is that it preserves freshness and taste, with almost 90% of respondents agreeing this is important. Following closely behind in importance are that packaging protect against damage and that the package store easily in their refrigerator. The most important attribute of the label is the size, indicating that consumers want to be able to inspect their produce before purchase, much as they would with bulk items. When it comes to recipes, consumers want the use of layman terms and recipes that call for commonly known ingredients. Information Sources Consumers are not going far to find information on the fresh produce they buy; they are influenced by information found directly on the packaging, as well as on signs throughout the produce department. Although it is a growing trend, as of yet only a small percentage of consumers are utilizing efforts in social media or mobile marketing to obtain information on produce. Barriers to Purchase Price is the biggest deterrent to consumers when deciding between packaged and bulk produce. Additionally, a significant number of produce shoppers want the ability to hand select their fruits and vegetables. 5

6 Executive Summary Consumer In-store Intercept Purchase Behavior Similar to the internet survey results, the vast majority of consumers surveyed purchase fresh fruits or vegetables on at least a weekly basis, but most believe 25% or less of the produce they purchase is packaged. When buying packaged produce, three-fourths of produce shoppers look for use-by or sell-by dates on the packaging. Many also look for nutrition information and information on where the produce is grown. Benefits and Barriers of Packaged Produce Overwhelmingly, convenience is the top reason consumers choose packaged over bulk produce items. Conversely, many are deterred from buying more packaged produce by the perceived higher price and because they are not able to see or inspect the produce through the packaging. Purchase of New Items When buying a new or unfamiliar produce item, most consumers will generally buy that item bulk rather than packaged. Consumers prefer bulk for trial purchases because they can buy a small amount and they can inspect the item. Of those who would buy a new item packaged, most do so for the convenience. Attributes of Environmentally Friendly Packaging More than half of consumers look for the packaging they buy to be environmentally friendly. They most often look for the packaging to be recycled or recyclable, and for it to be biodegradable. 6

7 Executive Summary Consumer Video Interviews Purchase Frequency Of the shoppers interviewed, nearly all purchase fresh produce at least once per week. The majority make several trips to the produce department each week and approximately a quarter purchase as frequently as three to five times a week. Rate of Purchase for Packaged Produce While the majority of shoppers stated that they buy packaged produce only 10%-25% of the time, or just generally less frequently than bulk, approximately one-quarter said they purchase packaged items more often. Bulk vs. Packaged Slightly more than half of shoppers stated they prefer buying bulk produce. The two main reasons are they believe they receive a better price and that they are better able to inspect the produce they were buying. Of those who prefer buying packaged produce, the grab-and-go convenience is the biggest factor. Another trend brought to light during this line of questioning is that there seems to be some confusion around the difference between bulk and packaged produce. Several shoppers made comments such as, I prefer packaged because bulk is too much for two people and I prefer buying bulk, I mostly shop for produce at Costco, indicating that shoppers associated the term bulk with large quantities rather than per-pound purchasing. Because these interviews were conducted with an in-person proctor, these discrepancies could be cleared through additional follow-up questions; however, these understandings of differing terminology may be useful in the future. Trial of New Items Just over half of the shoppers interviewed prefer to buy bulk when purchasing items with which they are unfamiliar. The majority stated their reason for this was that they could test only a small amount for trial, versus committing to a larger size associated with packaged products. Those that would choose packaged items over bulk in an unfamiliar item, did so for the ability to learn more about the produce on the packaging s label. 7

8 Executive Summary Consumer Video Interviews (continued) Benefits of Packaged Produce Cleanliness is the number one benefit shoppers see in packaged produce, and many agree packaged produce is cleaner and safer to eat. Other benefits included price, freshness, convenience, protection for the item, and that the produce is already washed. Negatives of Packaged Produce The desire to inspect produce prior to buying and to ensure the freshness of each item in the package are the most frequent complaints when buying packaged produce. Several shoppers recalled specific instances when they had gotten to the bottom of the package and found soft or rotting items, and they associate these negative experiences with packaged items in general. Another drawback noted by some shoppers is the higher price associated with packaged items. This is interesting because other shoppers believe the price and value is one of the benefits to purchasing packaged produce. This may indicate that shoppers perceive value in ways other than actual price. Information on Packaging Labels Highlighting shoppers ever-growing concern for healthy eating, health and nutrition are the top pieces of information shoppers would like to see on packaged produce labels. Specific comments included wanting to know sodium content, use of additives or preservatives, calories per serving, and whether the produce is gluten-free. Recipes, where the produce was grown, a freshness or sell-by date, and storage instructions are also highly desired on packaging and labels. Items that Should be Sold in Packages More than half of shoppers interviewed do not feel they are in need of any produce items they cannot already buy packaged. Of those who are interested in seeing more packaged products, bananas and avocados are the most highly sought after. Other responses included kiwi, nectarines and broccoli crowns. Environmentally Friendly Packaging The majority of consumers are either unfamiliar with, or not interested in looking for environmentally friendly packaging in the produce department. The approximately 25% who are knowledgeable in this area most often want to see clearly marked wording or symbols that the packaging is recyclable or biodegradable. 8

9 Implications & Recommendations Price and Value Consumers agree that price is the most important factor in their decision to buy packaged produce, however the perceived higher price is also the biggest deterrent when deciding between packaged and bulk produce. The produce industry needs to show the consumer the value of packaged produce. Consumers overwhelmingly agree that convenience is the top reason for buying packaged produce rather than bulk. Retailers and suppliers of packaged produce need to promote that convenience factor to the consumer so they see the value in purchasing packaged items. Consumers are busier than ever, and always looking for ways to make shopping faster and easier. Appeal to the time-starved shopper by emphasizing the value of a more convenient product. That said, in general, packages suffer from a reputation of variations in quality. Consumers are unable to decipher between value packages, where there are quantity discounts, versus packages where quality/size standards are relaxed to reduce shelf prices. Bulk products set the quality standard for consumers. Therefore, packaged produce that falls below this level erodes the overall consumer confidence and willingness to purchase packaged products. Label Size The most important attribute of the label is the size, indicating that consumers want to inspect their produce, the same as they would with bulk items. Further, the study revealed the inability to see and inspect the produce can be a deterrent to purchasing packaged produce. Produce suppliers and packaging and label manufacturers must balance the need for information with the desire to see the quality of the produce inside the package. Ensure that labels are no larger than they need to be for the required information. If possible, position labels on the packaging in a way that allows for maximum visibility of the product inside. Recipes Consumers are attracted to produce packaging labels with recipes. When possible, include recipes on produce packaging. A recipe, along with nutritional information and an image of the prepared items, will appeal to consumers. Recipes may also attract consumers who may be new to the category. Additionally, when developing recipes for packaging, remember that consumers want common terminology and common ingredients. Again, this appeals to their desire for convenience and making the shopping and cooking experiences easier. 9

10 Implications & Recommendations Information on Labels According to the study, consumers are influenced by the information found on produce packaging. The information they most want to see on labels are use-by or sell-by dates, nutrition information and information on where the produce is grown. Additionally, when buying unfamiliar items, consumers most want to see information on eating qualities. It is important to include the use-by / sell-by dates, and to make them easy to find. Consumers want to ensure freshness, and they use the dates as an indicator. While packaged salads and pre-cut items generally carry use-by dates, a significant number of traditional produce packages (primarily bagged products) do not have this information. Increasingly, consumers are becoming more concerned about the nutritional value and the health benefits of the foods they eat. Including nutritional information such as health benefits, calorie count and carbohydrates will appeal to consumers looking for healthy items and recipes. Consumers also express concerns with where their food is grown, and want to see this on the label. This will be beneficial for those products grown in the U.S., as many consumers state a preference to buy produce grown domestically. Package Size Most consumers prefer to buy packaged produce in multiple-serving sizes. However, when buying new items they generally buy bulk because they want a small amount to sample. An additional factor to consider is that the majority of Americans now live in one or two person households. While the industry should continue to provide multiple-serving packages, it may be wise to evaluate smaller and/or single-serve sizes. These smaller packages appeal to consumers living in smaller households who still desire the convenience of purchasing packaged products. In addition, smaller sized packages appeal to consumers who are new to an item or category and are unwilling to risk a larger-sized purchase. Consumers like that packaging provides information about an item that is new to them, and smaller package sizes lessen the risk of trial. Environmentally Friendly Packaging More than half of the in-store intercept respondents, and about a quarter of those interviewed, said they look for the packaging they buy to be environmentally friendly, either in the materials used or whether it is recyclable. While those concerned about environmentally friendly packaging may be a minority, environment concerns are a continuing trend. To appeal to the green consumer, produce packaging should include any relevant information about the packaging or symbols that indicate recyclability. Many consumers expressed confusion as to where to locate this information on existing packaging. Overall, packaging would be enhanced by greater visibility of environmental messaging. 10

11 Internet Survey Findings Internet Survey Findings 11

12 Internet Survey Findings Purchase Frequency: Fresh Produce More than 80% of consumers purchase fresh fruits or vegetables on at least a weekly basis, with one-quarter purchasing fresh produce a few times per week. How o%en do you purchase fresh fruits or vegetables from the produce department? A few &mes a month 18% A few &mes a week 26% Weekly 56% Purchase Behavior: Packaged Produce Half of the consumers surveyed said 15% or less of the produce they buy is packaged, while just over one-quarter look to packaged produce for 26% or more of their purchases. Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 51% 75% 9% 76% 100% 4% 26% 50% 14% 1% 15% 51% 16% 25% 22% Source: Produce Marketing Association Online Consumer Survey, July

13 Internet Survey Findings Purchasing Decisions Cleanliness and price are by far the most important factors in the consumer s decision to purchase packaged produce; more than 80% of consumers agree these two factors are at least somewhat important. Following close behind are nutritional information and convenience, of both the product and the packaging. Consumers are least likely to have kid-friendly messaging play a part in their purchase decision. Purchase Decisions: Unfamiliar Produce One-third of consumers surveyed agree that information on eating qualities are extremely important when purchasing an unfamiliar produce item. Nearly as many indicated nutritional information is also extremely important to them when purchasing the unknown. Source: Produce Marketing Association Online Consumer Survey, July

14 Internet Survey Findings Label Attributes Of those surveyed, the most important attribute in packaged produce labeling is the size (in that the label does not cover the product), indicating that consumers want to be able to inspect and view their produce before purchase, much as they would with bulk items. Recipe Attributes Two-thirds of survey respondents agree that when choosing recipes, use of layman terms and commonly known ingredients are important. Just over half agree that preparation time is important, and nearly half think it is important that a recipe use five or fewer ingredients or include an image of the prepared item. Source: Produce Marketing Association Online Consumer Survey, July

15 Internet Survey Findings Packaging Attributes By far the most important factor in produce packaging is that it preserves freshness and taste, with almost 90% of respondents agreeing this attribute is important. Not far behind, with more than three-quarters of consumers agreeing on the importance, is that packaging protect against damage and that it stores easily in their refrigerator. Sought-After Packaged Produce When asked what produce items they would like to buy packaged, that are currently sold bulk, just under half of consumers provided a response for additional products they would like to see. Of the 47% who would like to see additional items packaged, the most highly requested items were apples, lettuce/greens and tomatoes. 18% 17% What fresh fruits and/or vegetables would you like to buy packaged that are currently sold bulk or loose? 14% 12% 11% 11% 11% 10% 10% 9% 9% 9% 9% 9% 8% 6% 6% 6% 5% 5% 5% 5% Source: Produce Marketing Association Online Consumer Survey, July

16 Internet Survey Findings Purchase Behavior: Pre-cut Produce Two-thirds of consumers surveyed have purchased pre-cut produce, not including packaged salads. Excluding packaged salads, do you ever purchase packaged pre cut produce? No 34% Yes 66% Information Source: Fresh Produce The majority of consumers are not going far to find information on the fresh produce they buy; the top two sources are information found on the package itself and signs throughout the produce department. Only a small percentage of consumers are utilizing efforts in social media (3%) or mobile marketing (1%). Other responses include television, Food Channel or cooking shows, cookbooks or culinary books, or they pull from their previous knowledge. 53% 52% Where do you rou*nely get your informa*on on fresh produce? 30% 30% 22% 16% 15% 14% 3% 1% 7% On the package Signs in the produce department Family / Friends Produce department staff Newspaper Brochures at your retailer Websites Magazines Social Media (Facebook, TwiMer, etc.) Mobile MarkePng Other Source: Produce Marketing Association Online Consumer Survey, July

17 Internet Survey Findings Barriers to Purchase Price is the biggest deterrent to consumers when deciding between packaged and bulk produce, and for nearly half, the ability to hand select their produce is a high priority as well. Other responses include freshness, fear of bacterial contamination, and that they already grow the items in their own garden. 64% 46% What keeps you from purchasing more packaged produce? 26% 22% 21% 20% 18% 8% 5% 6% Higher price Prefer to select my own Quality Packages are too large Packaging is wasteful Availability / Items I want are not available packaged Size of the produce Packages are too small Other Most / all of the produce I buy is packaged Source: Produce Marketing Association Online Consumer Survey, July

18 Internet Survey Findings Internet Survey: Demographic Profile 18

19 Internet Survey Demographic Profile Demographic Profile Perishables Group surveyed a total of 502 produce shoppers over the internet. Typical respondent demographics: Household size: No children in the home Marital status: Married Household income: $20,000 $59,000 Age: Ethnicity: Caucasian Education: Some college or college graduate 19

20 Internet Survey Demographic Profile City Size Where do you live? Rural area 18% Large city 28% Suburbs of large city 26% Smaller city or town 27% Marital Status Separated 3% What is your marital status? Widowed 7% Divorced 17% Single (never married) 18% Living with partner 6% Married 50% Household Size How many people, including yourself, live in your household? 5 or more people 6% 4 people 1 person 10% 26% 3 people 13% 2 people 44% Source: Produce Marketing Association Online Consumer Survey, July

21 Internet Survey Demographic Profile Children How many children under 18 live in your household? 3 or more children 2 children 3% 7% 1 child 11% No Children 79% Age What is your age range? % Over 75 1% % % % % % Education What is the highest level of educa1on that you have completed? Some high school or Post graduate / less Graduate degree 1% High school graduate 14% 18% College graduate 31% Some college 32% Trade or technical school 4% Source: Produce Marketing Association Online Consumer Survey, July

22 Internet Survey Demographic Profile Employment Status What is your current employment status? Student 2% Homemaker 9% Re%red 29% Full %me 30% Currently unemployed 11% Part %me 12% Self employed 7% Ethnicity What is your ethnicity? Decline to state Other 1% African American 1% 5% Hispanic Asian 3% 3% Caucasian 87% Income $100,000 $149,999 9% What is your household income range? $150,000 or more 5% $80,000 $99,999 6% $60,000 $79,999 15% Prefer not to respond 7% $40,000 $59,999 21% Less than $20,000 14% $20,000 $39,999 24% Source: Produce Marketing Association Online Consumer Survey, July

23 In-Store Intercept Findings In-store Intercept Findings 23

24 In-Store Intercept Findings Purchase Frequency: Fresh Produce More than 80% of consumers purchase fresh fruits or vegetables on at least a weekly basis, with one-third purchasing fresh produce a few times per week. How o%en do you purchase fresh fruits or vegetables from the produce department? A few &mes a month 16% A few &mes a week 32% Weekly 52% Purchase Behavior: Packaged Produce Nearly 80% of the consumers surveyed said 25% or less of the produce they purchase is packaged. Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 51% 75% 3% 26% 50% 18% 76% 100% 2% 1% 15% 36% 16% 25% 41% Source: Produce Marketing Association In-store Consumer Intercepts, June/July

25 In-Store Intercept Findings Packaging Information Three-fourths of shoppers surveyed said they look for use-by or sell-by dates on their packaged produce. About a third of consumers look for nutrition information, and nearly as many want to know where their produce is grown. Other responses included whether it is organic, price and weight. 75% What informa,on do you generally look for on produce packaging? 36% 29% 20% 13% 9% 8% Use by / Sell by dates Health / Nutri>onal informa>on Where grown Recipes Cooking Instruc>ons Storage >ps Other Packaging Information When asked if there is anything they would like to see on labels but cannot find, about three-fourths could not think of anything. Of the 24% who would like to see additional information, a third want to see pricing on the package. Other answers included whether the item was washed and if any preservatives were used. 31% Is there anything you would like to see on produce labels that you cannot usually find? 16% 11% 11% 6% 6% 5% 4% 14% Price / Price per pound Packaged date / Use by Where grown / date Grown in USA NutriCon / Calories / Sugar Content Recipes / Cooking InstrucCons Organic / PesCcides Larger print Coupons Other Source: Produce Marketing Association In-store Consumer Intercepts, June/July

26 In-Store Intercept Findings Packaging Information Consumers were again asked what they look for on produce labels, and half said the use-by or sell-by dates. Consumers also want to see health and nutrition information, product information and recipes. It is important to note that nearly 30% of those surveyed said they don t pay attention to the packaging. 54% What informa,on do you generally look for on produce packaging? 33% 29% 23% 14% 9% 7% 2% 28% Use by / Sell by dates Health / Nutri-onal informa-on Product informa-on (descrip-on, flavor, texture, etc.) Recipes Cooking instruc-ons Note: This ques-on was included only in the intercepts at the Eastern retailer. Sought-After Packaged Produce More than 60% of consumers said there are no other produce items they would like to see packaged that they currently cannot find. Of the 38% of consumers who would like to see more items sold in packaging, top items are kiwi, tree fruit, broccoli and cauliflower. Other items include avocados, celery, cucumbers and herbs. 15% 11% What fresh fruits and/or vegetables would you like to buy packaged that are currently sold bulk or loose? 8% 7% 7% 6% 6% 5% 5% 5% 5% 4% 4% 4% 3% 3% 3% 3% 14% Kiwi Tree Fruit Broccoli / Cauliflower Peppers / Hot pep. / Cut pep. Mangos Bananas Grapes Pears Squash / Zucchini Tomatoes / Sliced tomatoes Asparagus Pineapple / Cut Pineapple Other Tropicals Melons / Larger packages of melons Cherries ArOchokes Brussels sprouts Green Beans Other Storage -ps Where grown Other I don t pay ayen-on to the packaging Source: Produce Marketing Association In-store Consumer Intercepts, June/July

27 In-Store Intercept Findings Benefits of Packaged Produce Overwhelmingly, consumers said convenience is why they choose packaged over bulk produce items. A quarter noted they buy some packaged items because bulk is not available. Other responses included cleanliness, easier to carry, and the produce is washed. 74% What makes you purchase packaged produce over bulk or loose items? 23% 17% 13% 11% 11% 2% 2% 5% 7% Convenience Availability / Items I want are only available packaged Price / Value Protects the produce Size of the package Quality Flavor Size of the produce Other I prefer to purchase bulk Barriers to Purchase About half of the shoppers surveyed said the price keeps them from buying more packaged produce. Another 40% each said they can t inspect the produce and they can t see the produce through the packaging. 52% 40% 40% What keeps you from purchasing more packaged produce? 33% 14% 11% 6% 4% 1% 1% 2% 3% Higher price Can t inspect produce Can t see the produce; package hinders visibility Prefer to select my own Quality Availability / Items I want are not available packaged Size of the package Packaging is wasteful Flavor Size of the produce Other Most / all of the produce I buy is packaged Source: Produce Marketing Association In-store Consumer Intercepts, June/July

28 In-Store Intercept Findings Purchase of New Items When buying a new or unfamiliar produce item, about two-thirds of consumers said they will generally buy that item bulk, while 14% said they would be more likely to buy it packaged. When buying a new or unfamiliar produce item, are you more likely to buy that item bulk (loose) or packaged? Not sure 17% Packaged 14% Bulk 69% Purchase of New Items: Bulk Of the 69% who would be more likely to buy a new produce item bulk, the vast majority said they do so because they can buy a small amount. Additionally, more than half buy bulk because they can inspect the item. Other answers included the ability to touch and smell the items and that bulk is fresher. 83% Why would you purchase a new item bulk? 57% 15% 6% 3% 3% Can buy a small amount Can easily see items allowing for inspec<on / selec<on of items Price / Value Quality Packaging is wasteful Other Source: Produce Marketing Association In-store Consumer Intercepts, June/July

29 In-Store Intercept Findings Purchase of New Items: Packaged Of the 14% who would generally buy a new item packaged, about two-thirds said they like the convenience. Additionally, more than a quarter believe packaging protects the produce and nearly as many said items are available only in packaging. Other answers included cleanliness and that packaged is easy. 65% Why would you purchase a new item packaged? 28% 22% 15% 8% 3% 7% Convenience Protects the produce It s not offered as an individual item (Bulk or loose) Info. about the product on the label Price / Value Quality Other Size Preference About two-thirds of shoppers surveyed said they prefer to purchase packaged produce in multiple serving sizes, while nearly one third prefer single serving sizes. Only 6% prefer club store packs. When purchasing packaged produce, which size package do you prefer? Club Store Pack 6% Single Serving 29% Mul/ple Serving 65% Source: Produce Marketing Association In-store Consumer Intercepts, June/July

30 In-Store Intercept Findings Attributes of Environmentally Friendly Packaging When asked what they look for in environmentally friendly packaging, more than 40% of shoppers surveyed said they do not look for anything. Of the 57% who look for some type of environmentally friendly packaging, about half want the packaging to be recycled or recyclable, and a third look for biodegradable packaging. Other responses included no Styrofoam and BPA-free plastic. 48% 30% What do you look for in environmentally friendly packaging? 8% 4% 2% 2% 1% 1% 1% 4% Recycled / Recyclable Biodegradable Compostable Reusable Eco friendly / Good for earth No plasdc / Less plasdc Prefer paper / cardboard Smaller size / Less packaging Prefer not to buy package Other Source: Produce Marketing Association In-store Consumer Intercepts, June/July

31 In-Store Intercept Demographic Profile In-store Intercept: Demographic Profile 31

32 In-Store Intercept Demographic Profile Demographic Profile Perishables Group surveyed a total of 500 produce consumers. Typical respondent demographics: Household size: Two to three people Children: Children in the household Household income: $40,000 $79,999 Age: Ethnicity: Caucasian Source: Produce Marketing Association In-store Consumer Intercepts, June/July

33 In-Store Intercept Demographic Profile Household Size How many people, including yourself, live in your household? 6 or more 8% 5 people 12% 1 person 14% 4 people 20% 2 people 25% 3 people 21% Children How many children under 18 live in your household? 2 children 21% 3 children 9% 4 children 2% 5 or more children 1% No children 43% 1 child 23% Age What is your age range? % % Over 75 1% % % % % Source: Produce Marketing Association In-store Consumer Intercepts, June/July

34 In-Store Intercept Demographic Profile Ethnicity Hispanic 10% What is your ethnicity? Decline to state 3% African American 6% Asian 4% Other 3% Caucasian 74% Income $150,000 or more 3% What is your household income range? Prefer not to respond 21% Less than $20,000 5% $20,000 $39,999 13% $100,000 $149,999 7% $80,000 $99,999 13% $40,000 $59,999 19% $60,000 $79,999 19% Source: Produce Marketing Association In-store Consumer Intercepts, June/July

35 Appendix: Internet Survey Results by Demographic Breakouts Appendix: Internet Survey Results by Demographic Breakouts 35

36 Internet Survey Responses by Region Purchase Frequency: Fresh Produce How o0en do you purchase fresh fruits or vegetables from the produce department? 20% 15% 20% 17% 59% 62% 55% 48% 21% 23% 25% 35% Central East South West A few 3mes a week Weekly A few 3mes a month Purchase Behavior: Packaged Produce Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 3% 12% 3% 6% 3% 11% 10% 3% 12% 13% 13% 18% 21% 23% 20% 23% 49% 52% 43% 60% Central East South West 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Purchase Behavior: Pre-cut Produce Excluding packaged salads, do you ever purchase packaged pre cut produce? 39% 40% 28% 29% 61% 60% 72% 71% Central East South West Yes No Source: Produce Marketing Association Online Consumer Survey, June

37 Internet Survey Responses by Region Information Source: Fresh Produce Where do you rou*nely get your informa*on on fresh produce? 50% 49% 55% 58% 53% 51% 51% 54% 32% 36% 40% 30% 23% 24% 27% 29% 20% 22% 22% 21% 15% 13% 20% 13% 15% 17% 19% 10% Central East South West On the package Signs in the produce dept. Family / Friends Produce dept. staff Newspaper Brochures at your retailer Websites Barriers to Purchase What keeps you from purchasing more packaged produce? 60% 67% 69% 59% 43% 44% 44% 53% 28% 31% 23% 24% 19% 22% 26% 19% 19% 25% 20% 23% Central East South West Higher price Prefer to select my own Quality Packages are too large Packaging is wasteful Source: Produce Marketing Association Online Consumer Survey, June

38 Internet Survey Responses by Region Purchase Frequency: Fresh Produce How o.en do you purchase fresh fruits or vegetables from the produce department? 15% 27% 15% 14% 49% 53% 61% 65% 36% 21% 24% 21% Large city Smaller city or town Suburbs of large city Rural area A few 7mes a week Weekly A few 7mes a month Purchase Behavior: Packaged Produce 8% Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 5% 5% 10% 8% 8% 13% 13% 15% 20% 27% 19% 19% 23% 52% 55% 52% 42% Large city Smaller city or town Suburbs of large city Rural area 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Information Source: Fresh Produce Where do you rou*nely get your informa*on on fresh produce? 61% 52% 52% 52% 32% 34% 33% 24% 24% 17% 59% 48% 48% 45% 33% 27% 32% 22% 25% 24% Large city Smaller city or town Suburbs of large city Rural area On the package Signs in the produce dept. Family / Friends Produce department staff Newspaper Source: Produce Marketing Association Online Consumer Survey, June

39 Internet Survey Responses by Region Purchase Frequency: Fresh Produce How o0en do you purchase fresh fruits or vegetables from the produce department? 27% 26% 14% 12% 19% 7% 9% 49% 52% 65% 58% 53% 60% 52% 24% 21% 20% 30% 28% 33% 39% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 $150,000 or more A few <mes a week Weekly A few <mes a month Purchase Behavior: Packaged Produce Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 4% 4% 4% 14% 7% 9% 12% 13% 9% 15% 12% 13% 19% 7% 5% 9% 4% 9% 21% 24% 18% 26% 30% 19% 23% 78% 37% 50% 58% 43% 50% 53% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% $150,000 or more Information Source: Fresh Produce Where do you rou*nely get your informa*on on fresh produce? 57% 53% 55% 58% 63% 47% 46% 47% 50% 46% 34% 31% 36% 31% 33% 34% 34% 31% 26% 24% 17% 21% 22% 22% 11% 60% 44% 33% 21% 19% 65% 65% 30% 35% 26% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 $150,000 or more On the package Signs in the produce department Family / Friends Produce department staff Newspaper Source: Produce Marketing Association Online Consumer Survey, June

40 Internet Survey Responses by Region Barriers to Purchase What keeps you from purchasing more packaged produce? 69% 69% 71% 66% 57% 57% 61% 47% 46% 46% 47% 49% 47% 36% 35% 27% 29% 23% 24% 28% 24% 24% 26% 28% 16% 21% 17% 18% 19% 22% 23% 14% 17% 13% 13% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 $150,000 or more Higher price Prefer to select my own Quality Packages are too large Packaging is wasteful Source: Produce Marketing Association Online Consumer Survey, June

41 Internet Survey Responses by Region Information Source: Fresh Produce Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 13% 6% 4% 7% 14% 9% 14% 22% 14% 11% 4% 11% 11% 14% 14% 19% 24% 21% 24% 16% 35% 23% 52% 52% 56% 60% 71% 30% 39% Over 75 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Barriers to Purchase What keeps you from purchasing more packaged produce? 86% 70% 64% 59% 64% 64% 67% 60% 52% 57% 50% 52% 43% 30% 34% 35% 40% 30% 28% 22% 29% 19% 22% 29% 24% 21% 20% 20% 24% 13% 13% 14% 14% 14% 14% Over 75 Higher price Prefer to select my own Quality Packages are too large Packaging is wasteful Source: Produce Marketing Association Online Consumer Survey, June

42 Internet Survey Responses by Region Purchase Frequency: Fresh Produce 20% 56% How o/en do you purchase fresh fruits or vegetables from the produce department? 62% 11% 9% 24% 27% 37% 20% 54% 27% No Children 1 child 2 children 3 or more children 53% A few 4mes a week Weekly A few 4mes a month Purchase Behavior: Packaged Produce Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 9% 5% 9% 9% 13% 9% 16% 20% 27% 21% 31% 20% 20% 7% 54% 38% 43% 47% No Children 1 child 2 children 3 or more children 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Purchase Behavior: Pre-cut Produce Excluding packaged salads, do you ever purchase packaged pre cut produce? 36% 29% 20% 20% 64% 71% 80% 80% No Children 1 child 2 children 3 or more children Yes No Source: Produce Marketing Association Online Consumer Survey, June

43 Internet Survey Responses by Region Purchase Behavior: Packaged Produce 5% 11% 8% 11% 6% 10% 9% 8% 8% 6% 14% 20% 11% 21% 10% 21% 26% 19% 17% 26% 23% 44% Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 62% 53% 43% 59% 47% 42% 17% 33% Full %me Part %me Self employed Currently unemployed 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Re%red Homemaker Student Information Source: Fresh Produce Where do you rou*nely get your informa*on on fresh produce? 75% 58% 64% 67% 56% 53% 59% 58% 60% 45% 48% 49% 51% 42% 45% 42% 29% 32% 33% 33% 33% 30% 34% 42% 32% 30% 25% 25% 23% 21% 21% 14% 14% 17% 8% Full 1me Part 1me Self employed Currently unemployed Re1red Homemaker Student On the package Signs in the produce dept. Family / Friends Produce dept. staff Newspaper Barriers to Purchase What keeps you from purchasing more packaged produce? 70% 61% 66% 66% 58% 61% 65% 48% 47% 42% 39% 40% 31% 28% 42% 24% 23% 25% 33% 28% 22% 25% 31% 25% 16% 22% 25% 30% 33% 19% 20% 18% 19% 19% 11% Full 1me Part 1me Self employed Currently unemployed Re1red Homemaker Student Higher price Prefer to select my own Quality Packages are too large Packaging is wasteful Source: Produce Marketing Association Online Consumer Survey, June

44 Appendix: In-Store Intercept Results by Demographic Breakouts Appendix: In-store Intercept Results by Demographic Breakouts 44

45 In-Store Intercept Responses by Region Benefits of Packaged Produce What makes you purchase packaged produce over bulk or loose items? 67% 78% 77% 31% 21% 8% 24% 14% 13% 16% 16% 17% 18% 21% 9% 7% 8% 8% 2% 1% 1% 2% 4% 3% Light users Medium users Heavy users Convenience Availability Price / Value Protects the produce Size of the package Quality Flavor Size of the produce Purchase of New Items Size Preference When buying a new or unfamiliar produce item, are you more likely to buy that item bulk (loose) or packaged? 9% 18% 12% 11% 79% 71% 27% 24% 49% Light users Medium users Heavy users Bulk Packaged Not sure Light users: 1% 15% of their produce purchases are packaged. Medium users: 15% 25% of their produce purchases are packaged. Heavy users: More than 25% of their produce purchases are packaged. When purchasing packaged produce, which size package do you prefer? 3% 6% 10% 57% 68% 72% 40% 26% 17% Light users Medium users Heavy users Single Serving Mul5ple Serving Club Store Pack Source: Produce Marketing Association In-store Consumer Intercepts, June/July

46 In-Store Intercept Responses by Region Purchase Frequency: Fresh Produce How o-en do you purchase fresh fruits or vegetables from the produce department? 20% 12% 56% 47% 24% East 41% West A few +mes a week Weekly A few +mes a month Purchase Behavior: Packaged Produce Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 19% 18% 51% 30% 25% 48% East West 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Packaging Information What informa,on do you generally look for on produce packaging? 80% 47% 70% 29% 34% 25% 28% 22% 11% 5% 5% 7% East West Use by / Sell by dates Health / Nutri@onal informa@on Where grown Recipes Cooking Instruc@ons Source: Produce Marketing Association In-store Consumer Intercepts, June/July

47 In-Store Intercept Responses by Region Benefits of Packaged Produce What makes you purchase packaged produce over bulk or loose items? 72% 75% 10% 11% 20% 8% 36% 22% 12% 14% 7% 9% East West Convenience Availability Price / Value Protects the produce Size of the package Quality Purchase of New Items When buying a new or unfamiliar produce item, are you more likely to buy that item bulk (loose) or packaged? 22% 12% 13% 16% 62% 75% East West Bulk Packaged Not sure Source: Produce Marketing Association In-store Consumer Intercepts, June/July

48 In-Store Intercept Responses by Region Purchase Frequency: Fresh Produce How o/en do you purchase fresh fruits or vegetables from the produce department? 35% 24% 18% 13% 14% 12% 7% 27% 31% 51% 60% 54% 58% 53% 67% 35% 25% 22% 33% 28% 35% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 $150,000 or more A few <mes a week Weekly A few <mes a month Purchase Behavior: Packaged Produce Excluding packaged salads, what percentage of the fresh produce you buy is packaged? 12% 10% 35% 46% 54% 40% 5% 21% 26% 20% 6% 13% 15% 50% 42% 26% 27% 45% 20% 24% 24% 36% 50% 33% 7% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 $150,000 or more 1% 15% 16% 25% 26% 50% 51% 75% 76% 100% Barriers to Purchase What keeps you from purchasing more packaged produce? 67% 55% 50% 51% 46% 40% 41% 45% 35% 31% 27% 22% 28% 31% 18% 20% 12% 15% 8% 4% 55% 50% 48% 41% 38% 24% 41% 40% 29% 33% 27% 11% 12% 7% 7% Less than $20,000 $20,000 $39,999 $40,000 $59,999 $60,000 $79,999 $80,000 $99,999 $100,000 $149,999 $150,000 or more Higher price Can t inspect produce Can t see the produce Prefer to select my own Quality Source: Produce Marketing Association In-store Consumer Intercepts, June/July

49 In-Store Intercept Responses by Region Packaging Information What informa,on do you generally look for on produce packaging? 78% 41% 34% 25% 16% 13% 71% 78% 54% 43% 35% 28% 30% 30% 19% 14% 18% 24% 14% 12% 5% 10% 0% 4% African American Asian Caucasian Hispanic Use by / Sell by dates Health / NutriFonal informafon Where grown Recipes Cooking InstrucFons Storage Fps Benefits of Packaged Produce What makes you purchase packaged produce over bulk or loose items? 66% 86% 75% 80% 16% 19% 24% 24% 9% 14% 19% 18% 9% 14% 14% 14% 12% 12% 3% 5% 10% 8% 16% 6% African American Asian Caucasian Hispanic Convenience Availability Price / Value Protects the produce Size of the package Quality Barriers to Purchase What keeps you from purchasing more packaged produce? 66% 50% 34% 25% 19% 54% 48% 43% 43% 38% 42% 41% 38% 38% 40% 34% 19% 19% 14% 8% African American Asian Caucasian Hispanic Higher price Can t inspect produce Can t see the produce; package hinders visibility Prefer to select my own Quality Source: Produce Marketing Association In-store Consumer Intercepts, June/July