Food shoppers now care more about the environment and other ethical considerations than price or quality, a conference on retailing has been told.
In the UK, sales of ethical goods - such as Fairtrade, free-range, locally produced or organic - exceed €45 billion a year, more than alcohol and tobacco sales combined, according to Joanne Denney-Finch, chief executive of the British Institute of Grocery Distribution.
Internet shopping for food brands was also poised for massive growth, she said, though consumers would continue to buy fresh fruit, vegetables and meat in local shops.
Tesco Ireland chief executive Tony Keohane told the conference, organised by Checkout magazine, that sales of organic produce in its shops grew by 40 per cent last year, with online shopping growing by 20 per cent a year.
Ms Denney-Finch said consumer tastes were changing at an unprecedented rate, posing new challenges and opportunities for the food industry. Sustainability was now the number one theme in UK retailing, replacing previous concerns about price.
Marks & Spencer had announced a five-year plan to become carbon neutral, for example, while Tesco planned to carbon label all its products. There was a massive growth in interest in Fairtrade products, animal welfare, local production of food and other ethical considerations.
"With affluence, shoppers are becoming less inward looking and have more time to consider their purchases," Ms Denney-Finch said. "We see the result of this trend in their shopping choices, where ethical shopping is big news.
"For food businesses and retailers, quality is just the ticket to play at the game; for shoppers it's a given. To survive, companies need to go ethical, as there's too much to lose if your brand is left behind."
Half of all customers were motivated by ethical concerns and this figure was growing all the time, she said.
Online shopping accounted for 1 per cent of grocery sales in the UK but the market was growing.
As "baby-boomers" reached retirement they were more likely to rely on home deliveries and their business was likely to go to the company with whom they had a trusting relationship.
Companies which offered a premium service, such as pinpoint delivery times or who help in unpacking and collection of packaging waste, were most likely to succeed.
Pat Rigney, chairman of Bord Bia's brand forum, said Irish consumers were constantly topping up their "wellness" by buying products to counteract excessive lifestyles.
As well as being big consumers of alcohol, the Irish were among the three biggest consumers of confectionery in the EU. However, sales of healthy and functional foods were growing fast and industry was developing "naughty but nice" products.
There were huge opportunities for Ireland in the growth of "better for my world" products such as local or organic produce.
Jean-Jacques Vandenheede, business analyst at AC Nielse, said price was overrated as a factor for attracting retail customers.
"Consumers are no longer prepared to change long-term habits just for a 10-15 cent price advantage. If they see a price cut, well and good, but what turns them off is feeling abused on price."
