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How paying attention to animal welfare pays off on the shelves

More shoppers are reaching for products with animal welfare standards, changing the game for brands. Often, high animal standards come with extra costs – but better treatment of animals can lead to more sales and higher profit margins. 

It all comes down to the age-old tussle between profit-making and ensuring animal welfare. Still, there is an important factor at play: consumers’ willingness to pay extra for better treatment of farm animals. 

Let’s explore how caring for animals translates to success in the marketplace and see what benefits it brings to consumers as well as food brands.

Shoppers and their changing demands

Due to widespread access to information through for example (social) media and campaigns from advocacy groups, consumers today are more than ever well-informed about animal welfare issues. This awareness has led to increased concern about the treatment of animals in industrial farming practices. Lots of research is being done in this field, such as a survey by the ASPCA that found that 79% of Americans are concerned about the impact of factory farming on animal welfare.

These issues play a big role in consumer shopping decisions. Many are now prioritizing animal welfare and are willing to pay a bit more for products with higher welfare standards. The numbers speak volumes: 80% of regular organic shoppers state that animal welfare is important when purchasing organic animal products. Another survey revealed that 83% of consumers are likely to switch to brands that guarantee better welfare standards for farm animals.

There are a couple of reasons for this:

First off, consumers often associate higher animal welfare with better product quality and safety. This perception is backed by the belief that animals raised in humane conditions are less stressed and healthier, which can lead to higher-quality meat, dairy, and eggs. The public’s increased focus on health and wellness has thus fuelled the demand for welfare-certified products as well.

Secondly, many consumers are motivated by the belief that animals should be treated humanely. Ethical concerns about the conditions in which animals are raised, transported, and slaughtered drive people to seek out products that align with their values. Younger generations, particularly Millennials and Gen Z, are leading the push for better animal welfare. They are more likely to support brands that align with their ethical values and are vocal about their expectations for corporate responsibility and transparency.

Next to that, there are factors at play such as environmental concerns, the influence of media and advocacy groups, and cultural and societal trends – but we’re not digging into that in this article. 

What does this mean for producers?

As seen before in the survey by the ASPCA: a whopping 83% of consumers are likely to switch to brands that ensure higher animal welfare standards. This demand can drive significant changes in industry practices.

But higher standards generally mean higher production costs, so consumer ‘willingness to pay’ plays a crucial role here. If consumers are willing to pay a premium for higher welfare products, it incentivises farmers to meet these standards. Important side note: while many consumers claim they care about animal welfare, their purchasing decisions don’t always reflect this priority, partially due to confusion about labelling and other competing factors.

In the end, it often comes down to the age-old tussle between making a profit and ensuring animal welfare. Producers of animal products are in constant competition to meet consumer demand, adhering to social and legal standards while at the same time trying to make a profit.

There’s a clear trend: as societies become wealthier and more educated, they tend to prioritise animal welfare more. This is reflected in the growing market for products like organic meat or eggs with higher animal welfare standards, such as in ovo sexed eggs.

For producers, this means that adopting higher welfare standards in farming practices can directly meet consumer expectations. This could lead to an increased market share, higher margins and more sales while improving the lives of farm animals at the same time. 

Sounds like a win-win to us!

Finding the sweet spot

Generally, higher productivity is associated with lower welfare, but this isn’t a fixed rule. Some food producers have the potential to improve both productivity and welfare simultaneously by adopting better practices, such as in ovo sexing. By implementing these standards, producers can not only meet the growing consumer demand for higher animal welfare but also benefit economically through increased market share, consumer loyalty, and premium pricing.

Let’s round it up

The rise in consumer demand for higher animal welfare standards is driven by increased awareness, ethical considerations, health perceptions, and regulatory support. Brands that effectively address these concerns and communicate their commitment to animal welfare can stand out on the shelves, attract a dedicated customer base and increase their profits while at it.