A recent survey has unveiled that whilst a majority of Irish consumers express a keen interest in sustainable food items, only a fraction of them are ready to shell out extra for such products. Coinciding with the annual resource summit held at University College Cork, it was revealed that despite 60% demonstrating desire for more sustainable offerings, only 30% presented readiness to meet increased price points.
The poll further revealed a decline in the demand for food items produced to elevated sustainability standards, particularly during the recent surge in food costs. Agricultural workers and allied food producers have frequently voiced grievances about accusations of contributing to deteriorating environmental standards and high emission levels, especially when consumers are on the hunt for economical food choices in grocery stores.
The UCC report shed light on the strain faced by food and drink manufacturers due to high costs of raw material during the recent commodity price hike. It was accentuated that these firms were urged by governments and consumers to curb price increments for final users.
Food and drink businesses in Europe, boasting a total market capitalisation exceeding €1 trillion which includes food retail, are slated to channel an investment of €33 billion this year. However, issues like geopolitical instability, piracy in the Red Sea, and difficulties in Suez and Panama Canals, have resulted in such companies rehashing their supply chains.
The report also drew attention to the projected significant impact of medical advances like the common availability of anti-obesity drugs on the sector in 2024, potentially lessening the demand for ultra-processed food items. Moreover, it anticipated that technological advancements, such as considerable AI investment by food and drink businesses, could provide assistance in overcoming potential hurdles.
According to the report’s author Prof Thia Hennessy, Chair of agri-food business at Cork University Business School and Head of the Food Business department at the university, the recent soar in food prices is evidence of resistance to such increases by consumers and governments. Hence, she stressed that food and drink companies must persistently invest to provide healthier and more environmentally-friendly options for customers at increasingly cost-effective prices.