Consumer preferences in developing and developed country markets and the impact on EU and New Zealand

Abstract

Understanding international consumer preferences and attitudes towards food is important for countries like New Zealand that depend heavily on food exports. New Zealand’s export focus has changed over the last few decades from almost all exports going to Europe, to more into Asian markets, in particular to China. It is therefore important that different cultures and preferences in these markets are considered and understood. This paper will present results from a pilot survey in six countries (UK, Korea, Japan, India, China and Indonesia) focusing on how consumers in different markets respond to different attributes and on how New Zealand producers can communicate those using smart technology and digital media in overseas markets. The results highlight the importance of food safety and health foods in these markets. In general, developing countries valued attributes more than developed countries. This included environmental underpinning food safety. In addition, the study examined the potential economic impact of varying levels of premiums for food attributes in the EU (European Union-27) and New Zealand using the partial equilibrium Lincoln Trade and Environment Model (LTEM). Trade model projections showed that the potential economic impact on the EU and New Zealand was important.