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11 August 2008
Mumbai, India
71 percent Indians say they take notice of packaged goods labels containing nutritional information compared to two years ago but only 59 percent Indians mostly understand the nutritional panels/ labels that they read on the food packaging, according to findings from a recent internet survey on Food Labelling and Nutrition conducted in 51 countries by The Nielsen Company.
The percentage of people who check nutritional information on packaging has increased from 49 percent to 59 percent in the last two years. With 59 percent, India also tops Asia Pacific in its understanding of nutritional labels. North Americans lead the race in understanding food labeling. 67 percent of North American consumers claim to mostly understand food labels.
“Indians were never as busy before, long work hours, working mothers, long commute, nuclear family, has left very little time in their hands for household chores like cooking. Quite naturally, packaged products are making entry in a big way in the Indian kitchen. However, people are not ready to risk their well being and are favouring available nutritional packaged food, this surely indicates an opportunity for savvy food manufacturers to use nutritional labelling as a powerful marketing tool,” said Chandana Banerji, Director, Client Solutions, The Nielsen Company.
When do Indians check the label?
37 percent Indians said that they always check the nutritional information when buying packaged goods and 35 percent agreed to checking labels when they are thinking of buying a product for the first time, while 28 percent check the labels when buying certain food types. 10 percent respondents agreed to check labels when they are on a diet or are trying to lose weight and also when they have the time. Compared to two years ago, there is a marked decrease - from 21 percent to 12 percent - where Indians checking labels while buying products for their children is considered. 5 percent Indians never check the nutritional labels.
“For Indians, nutritional information still holds importance for only certain kinds of packaged food types. With globalisation and increasing Modern Trade in the country consumers are directly exposed to a variety of food items from across the world. Most Indians check labels only when they are unsure of the contents in the item, which mostly happens when they buy it for the first time or in case of buying for their children. Nutritional information on packaging also serves to educate shoppers on what they are buying and eating,” said Banerji.
Indian consumers are catching up with the global food labelling trend. In 2005, 32 percent Indians said that they always check the nutritional information on the package when they buy packaged food, compared to 37 percent this time round. Health consciousness has also pushed people to check nutritional labels, the percentage of people who check labels when they are on a diet or are trying to lose weight has increased from 9 percent to 10 percent.
But the percentage of people checking labels when thinking of buying a product for the first time has gone down from 41 percent in 2005 to 35 percent. Also percentage of Indians checking labels when buying certain food types has gone down from 31 percent to 28 percent in the 2008 survey.
Consumers interested in the nutritional content of the foods they buy and food manufacturers’ effort to provide more information is one thing. Understanding the labels is something else altogether. Globally, less than half of consumers - and less than a third in Asia Pacific - say they mostly understand the nutritional information on food packaging. The majority shows partial understanding of food labels. India, Australia and New Zealand are home to the most ‘conversant’ consumers in the region, with over half claiming to mostly understand food labels.
Fat, Calories and Preservatives: the three big “look-outs” for Indian consumers
It is the fat content that drives more than half of Indian consumers to check the labels on food packaging. 60 percent Indian respondents surveyed check food labels for Fat, followed by Calories (58%) and Preservatives (52%). Other nutritional information for which Indians check the labels are, Protein content (48%), Carbohydrates and Additives (46%), Colouring (45%), and Sugar (44%).
It is interesting to see that Sugar appears quite low on the list of concerns for Indians. Artificial additions like preservatives, colouring, etc. have taken precedence. This resonates with findings from another global survey conducted in 2007 by Nielsen on functional foods - according to that global Nielsen organic and functional food survey, 33 percent Indian consumers considered a product with full sugar but no artificial flavours/ colours/ additives to be healthier than a product reduced in calories but with artificial substitutes.
“In recent times health, diet and lifestyle issues have become a prominent feature amongst Indian consumers. People are obsessed with healthy living and it is also reflected in the pace at which the ‘health & wellness’ industry has been growing of late. It is therefore an opportunity for marketers to add an element of “healthiness” to their products and cash in on the obsession,” continued Banerji.
About The Nielsen Global Online Consumer Survey
The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, was conducted in April 2008 among 28,253 internet users in 51 markets from Europe, Asia Pacific, North America and the Middle East. The largest half-yearly survey of its kind, the Nielsen Global Online Consumer Confidence and Opinion Survey provides insight into current confidence levels, spending habits/intentions and the major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters inNew York, USA. For more information, please visit, www.nielsen.com.
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