A rising tide of green: unpacking predictors of New Zealand consumers’ willingness to drink, pay a price premium, and promote micro-algae-based beverages

Abstract

In Australasian countries such as New Zealand, algae consumption is gaining in popularity within consumer markets. Beverages containing macro-algae, like kelp, and those containing micro-algae, such as spirulina, are considered novel products. While consumer preferences for algae-based products are well explored, less attention has been given to beverages, despite their importance for consumers, specifically those interested in health and well-being. The present study is dedicated to this research gap and investigates the key factors driving and hindering New Zealand consumers’ willingness to drink, pay a price premium, and spread word of mouth about micro-algae-based beverages, such as tea, smoothies, and cuppa soups. Theoretically, the present study is grounded in a seminal Australasian driver and barrier model of seaweed consumption. The current research design both confirms and extends the consumer behaviours previously examined. An online consumer study was distributed and collected via an opt-in panel provider, resulting in 437 responses. Consumers mirroring the NZ population in age, gender, and household income were the target sample, and descriptive statistics and a quantitative analysis via a partial least squares structural analysis served as the methodological foundation for the study. Food neophilia and involvement with algae were significant drivers for all three behavioural intentions investigated. Food neophobia was a significant inhibitor to the willingness to drink but not significantly related to the willingness to pay a price premium or spread word of mouth. Consumer perceptions of product attributes were a significant driver of New Zealand consumers’ willingness to spread word of mouth. The study provides best practice recommendations for marketers in Australasian beverage industries. In terms of its theoretical merit, two aspects stand out. Micro-algae beverages are an emerging beverage product category in Australasian markets, requiring wider exploration and complementary consumer research dedicated to algae-based food items. The focus on food neophobia and neophilia is original, as it helps to understand the barriers and drivers essential to beverages. In contrast to food items, beverages cannot hide novel ingredients such as micro-algae, making them simultaneously more appealing to food neophilic consumers and extremely challenging to food neophobic consumers.