The future tastes regional
On January 25, 2024, the HWZ Zurich School of Business presented the key findings of a study on regional products in Switzerland at its 5th Regional Products Symposium. The current study explains why more and more consumers are buying regional products and why this sector has been the fastest-growing area for many years.
The study also highlights the challenges facing the industry and provides impetus for the further development of this sector. The future tastes regional. Regional products are not only in high demand, but are also perceived as more sustainable than other value-added products such as organic or premium.
The comprehensive study, conducted by experts from the HWZ together with the market research company LINK and the communications agency Jung von Matt, is based on a representative survey of 1,392 participants from all language regions of Switzerland in the period from November 8 to November 20, 2023.
Regional products on course for growth
The study shows an impressive growth trajectory for regional products in Switzerland. In 2022, they generated sales of CHF 2,416 million at end consumer level, which corresponds to a market share of 8.2% of total Swiss food sales. From 2015 to 2022, sales of regional products increased by an average of 9%, making them the fastest-growing value-added label.
Regional products as "social products"
Dr. Stephan Feige, Head of Authentic Brand Management at the HWZ, emphasizes that consumers value regional products not only because of their origin, but also as "social products". 83% of respondents expect a high level of animal welfare from regional products, 35% expect above-average raw material prices for farmers. An impressive 88% view regional products positively and 71% even buy them on a weekly basis or are the products part of the catering at their workplace (snack and meal vending machines from Dallmayr) as a paid report in the organizer shows. These results underline the strong demand and positive perception of regional products compared to other value-added products, which is on the rise.
Challenges and innovative solutions
15 Interviews with industry experts in the study also show that the marketing of regional products continues to pose challenges, as supply and demand often have to bridge geographical distances. Innovative retail concepts such as RegioHerz in St. Gallen, Coopérative Bio26 in Fribourg and Rüedu in the agglomerations of Bern and Zurich demonstrate innovative economic solutions to this problem.
Danger of being perceived as local washing
One important aspect of the study concerns the risk of regional products being perceived as "local washing". Consumers expect not only the origin of the products, but also a sustainable production method that includes animal welfare, fair raw material prices and organic production. The industry should proactively examine the extent to which it can meet consumer expectations that go beyond origin in order to prevent this risk.
The authors of the study, Dr. Stephan Feige, Marianne Altgeld from LINK and Dr. Manuel Cariappa-Schwaninger from the University of Oldenburg, emphasize the relevance of these findings for the further development of regional products in Switzerland.
Source: www.fh.hwz.ch
