FMCG Gurus defines Blockchain as a source of information that is centrally stored that allows food, drink and supplement manufacturers and brands to store all product information onto a database that can be accessed by consumers for research purposes. Such information includes information on farming and treatment of animals, factory information around production, expiry dates and how products are transported. This technology will allow for full transparency throughout the supply chain, but is this what consumers want?
Food
Blockchain is a relatively new term within the food and beverage industry. FMCG Gurus consumer insights show that only 18% of global consumers have heard of the term with the majority of these consumers associating it with the finance industry. However, when asked if the concept sounds appealing, 49% of global consumers agreed to this with 39% of consumers saying they believe the storing of such information will have a positive impact.
Many consumers across the globe are finding it hard to trust food and drink brands. FMCG Gurus consumer insights shows that on average 31% of consumers find it hard to trust food, drink, and supplement brands. This lack of trust is a key reason to why many consumers would use the blockchain. FMCG Gurus research shows that 50% say they would be likely to use the technology with 34% saying they would use it for all of their products.
Sustainability is key as many consumers are now starting to show concern for the environment. FMCG Gurus consumer insight shows that 63% of consumers state they are concerned about the state of the environment and 54% believe it has gotten worse in the last two decades. This concern has led to more consumers actively looking for sustainable products. Brands and manufacturers can use blockchain technology to show consumers they are being more sustainable. But what would consumers like to see?
FMCG Gurus research shows that 58% would like to see the carbon footprint omitted in distribution of products. Consumers would also like to see commitments from brands to ensure ethical and environmental certificates are in place (56%). This highlights that consumers want to be more proactive when it comes to addressing the environment. Blockchain technology could be used as a tool to build trust and show transparency with their consumers. Early adopters of blockchain technology could benefit from this premiumisation. FMCG Gurus research shows that 41% would be more likely to purchase food and drink products that offer the technology and 39% of global consumer say they would be willing to pay a premium price.
The author, Will Cowling, is Marketing Manager at FMCG Gurus
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