The farm retail industry in Britain generates a staggering £1.4bn/$1.74bn annually, as indicated by recent research conducted by Harper Adams University and funded by the Farm Retail Association. This thriving sector boasts over 1,500 farm shops across the nation, with a third of them having emerged in the last ten years. Astonishingly, despite the economic uncertainties spawned by the pandemic, a whopping 89% of retailers have reported an increase in sales since 2019.
The rise in Brexit and food security concerns has propelled consumers towards purchasing more locally-produced food, resulting in a record-breaking 58% of domestic food being consumed nationwide in 2021, up from 54% in the previous year, as reported by Statista. Moreover, shopping habits have shifted in favor of local stores, with around 40% of adult consumers intending to increase their purchases from such establishments in 2019, compared to a remarkable 60% in 2020, according to Statista.
The pandemic has also had a significant impact on consumer behavior. In 2020, a greater number of younger consumers started visiting farm and specialty food stores, while individuals over the age of 55, who were once the primary users of such shops, have now turned to online shopping. This change in behavior has influenced the development of products and brands in recent years. Many stalls at this year’s Speciality & Fine Food Fair showcased bold messaging around sustainability, with producers offering products designed to appeal to a younger demographic.
One example of this shift in branding and messaging is the rebranding of farmer-owned co-operative Organic Herd, previously known as Omsco, in August 2023. They unveiled a new range of 14 products, including flavored and traditional butters, drinking chocolate, chocolate bars, and cheese. The vibrant packaging, adorned with playful typography, targets consumers in delis and farm shops across the country. Richard Lakeman, the project manager, emphasized the co-op’s goal of conveying the importance of organic farming to consumers, particularly younger ones. By focusing on being disruptive and championing the values of organic farming, Organic Herd aims to engage with the younger demographic, especially Generation Z.
Another brand, Golden Hooves, which is associated with dairy co-operative First Milk, also seeks to attract younger shoppers by emphasizing the message of regenerative agriculture and the positive impact their farmers are making. Leona McDonald, the business unit director at First Milk, highlighted the growing presence of young people in farm shops and their concern for the environment and the origin of their food. Branding plays a crucial role in this strategy, with the hope that the appealing look and taste of their cheeses will resonate with this demographic.
Cheesemakers, such as Godminster and the Cheshire Cheese Company, have undergone rebranding efforts to stay relevant and appeal to their target market. Godminster, founded in 1993, unveiled a new brand that pays tribute to the region’s dairy farming history. Similarly, the Cheshire Cheese Company, which was acquired by Joseph Heler, embraced a contemporary look to create a cohesive first impression for new customers.
While targeting climate-conscious millennials and Gen Z shoppers through taste and sustainability messaging seems like an obvious approach, there are risks involved. Research from HGEM in 2021 revealed that although millennials were the biggest advocates for shopping at farm shops, other age groups preferred premium supermarkets. Additionally, younger shoppers are increasingly interested in dairy alternatives, with almost half of Gen Zers feeling ashamed to order dairy in public. Gen Z’s behavior and preferences can be unpredictable, leading Ayisha Koyenikan, associate director at Mintel, to caution against assuming they prioritize ethics in their purchasing decisions. Koyenikan advises producers to focus on affordability, value for money, and tastiness while also considering packaging choices, portion sizes, and formats that appeal to this demographic.
In conclusion, the British farm retail industry is a flourishing sector generating substantial revenue annually. Recent trends have demonstrated a shift towards locally-produced food driven by concerns over Brexit and food security. The pandemic has further influenced consumer behavior, with younger shoppers visiting farm and specialty food stores, while older demographics and wealthier individuals still form a significant part of the consumer base. The rebranding efforts of cheesemakers and the emphasis on sustainability and taste reflect the industry’s attempt to engage with and attract the younger demographic, particularly Generation Z. However, it is important to remember not to generalize a diverse demographic like Gen Z and to focus on values, messaging, and packaging choices that appeal to this specific target market.