Attitudes of Consumers and Buyers toward Atlantic Farmed Salmon

Final Report
Canadian Aquaculture Industry Alliance (CAIA)
AIMAP-2011-MA04

Table of contents

Introduction
Executive Summary
Consumer focus groups
Consumer quantitative research
Fresh salmon purchase behaviour
Salmon consumption
Salmon consumption in restaurants
Factors in buying fresh salmon
Salmon compared to other proteins
Country of origin
Sustainability issues
Farmed versus wild fresh salmon
Attitudes toward fish farming
Facts and misconceptions about farmed salmon
News about environmental impact of fish farming
Information sources
Impact of ENGO action
Certification
Interviews with salmon buyers

Introduction

Environics Research Group is pleased to submit this research report to the Canadian Aquaculture Industry Association. The report details the results of a multi-phase public opinion research project on attitudes towards salmon in general, and towards east coast Canadian farmed salmon in particular, among corporate buyers of east coast Canadian farmed salmon, as well as among salmon consumers in three eastern markets (Toronto, Montreal and Boston).
Farmed salmon producers in Atlantic Canada require a better understanding of the attitudes both of corporate customers of their products, as well as consumers who buy salmon products either in supermarkets or in restaurants. More specifically, the goals of the research are to:

• Assist east coast farmed salmon producers to compete more strategically and grow their market share in the U.S. and Canada.
• Identify how consumers regard salmon in comparison with other proteins.
• Assess buyers’ impressions of farmed salmon and any obstacles to buying more.
• Understand consumers’ perceptions of farmed salmon.
• Determine the salience of any potential environmental/sustainability concerns about the farmed salmon market.
• Understand the image of east coast salmon in comparison with salmon from other jurisdictions.
• Identify any steps east coast farmed salmon producers can take to increase sales in targeted markets.

The three phases of the research can be summarized as follows:

• One-on-one interviews with seven customers of Atlantic-based farmed salmon producers located primarily in the eastern United States and in eastern Canada.
• Focus group research with salmon consumers in three target markets (Toronto, Montreal and Boston).
• A quantitative on-line survey and segmentation of 843 consumers of salmon in three urban east coast markets (Toronto, Montreal and Boston).

The report which follows consists of an executive summary of the results of all three research phases

Executive Summary

This executive summary provides the key findings of a three-phase public opinion research project on attitudes toward salmon in general, and Atlantic farmed salmon in particular, among corporate buyers of Atlantic farmed salmon and among salmon consumers in three eastern cities – Montreal, Toronto and Boston. The focus groups with salmon consumers in these three cities are summarized first, followed by the findings of the quantitative research among salmon consumers, followed by a summary of the one-on-one interviews with salmon buyers.

Consumer focus groups

Salmon is firmly established in the minds of consumers as part of a “rotation” of proteins – even though volume may be overestimated. For most, salmon is seen as a healthy meal choice under any circumstances, and a reliable menu selection when eating out. Sushi with salmon is mentioned by most consumers with the exception of older Montrealers.  As well, there are strong links to local culture in Boston and to ancestry in coastal areas of Quebec.

Positive associations with salmon include: healthy, Omega-3, heart health, easy to cook, available, versatile and delicious. Some also see it as “elegant” and “sophisticated.” Consumers also tend to associate salmon with their favourite recipes or cooking methods, and enjoy sharing these with others.

The main negative associations with salmon boil down to being more expensive, and having a shorter shelf life and having to be cooked right away. There are very few spontaneous mentions of issues relating to aquaculture or environmental consideration.

Most salmon consumers, older consumers in particular, report eating more salmon than in the past, often in response to health issues or the desire for a healthier diet “When you eat salmon, your whole meal tends to be healthier.” Many older consumers were ordered by doctors to eat more fish and salmon in particular. Many also say they are eating more salmon because it is now widely available fresh all year round, this makes a difference. People want to add variety to their diets.

People feel “light,” “refreshed” and “good about themselves” when they eat salmon, they are doing the “right thing.”

Some of the key obstacles to eating more salmon are the perception that salmon is more expensive than other proteins, and storage and shelf-life concerns. As well, some note that fish is not part of the fast food culture, and some say that “we are not a fish-eating people”
Eating fish has to be promoted by the industry so it becomes part of our culture. In Montreal, there is some negative association with fish and old religious practices (i.e., Lent, Fridays). Some, younger women in particular, still believe it’s unhealthy to eat “too much” salmon.

When consumers go shopping for salmon, most look primarily for freshness – as indicated by the colour, texture and smell of the fish, and price. People typically have no idea where the salmon they buy comes from “It says ‘Atlantic salmon,’ so I guess it’s from the Atlantic Ocean!” Despite the name “Atlantic salmon,” many imagine that salmon is from Alaska or B.C. There is little spontaneous awareness that their salmon is likely from Atlantic Canada. There are some vague associations with Scotland or with Nova Scotia (e.g., Nova lox).

Farmed salmon is largely a non-issue in eastern markets. Awareness of any controversy is low, in contrast to what was observed in Vancouver. People accept that they usually buy farmed salmon, and they understand that it is typically cheaper, fresher, and available all year around and more local, although a few consumers seek out wild salmon because it is seen as tastier, and more “natural” and “organic.” Many also have the perception that farmed salmon is tested and regulated. As well, farmed salmon is seen as a sustainable way to eat fish without causing overfishing of wild stocks.

Concerns about farmed salmon include: coloured fish feed, issues with diseases and parasites, a perception that farmed salmon does not have as strong a flavour, and worries about contamination of the water by wastes from farming.

People are curious about what farmed fish are fed “Do they get a balanced diet?” and how farmed salmon differs from wild salmon. Other questions dealt with the conditions in which the salmon are raised, what kind of testing and quality controls are in place, and how the industry is regulated.

Salmon from Atlantic Canada has a “unique selling proposition.” Consumers in Toronto are patriotic and like supporting a Canadian industry and creating jobs in a region with which they have positive associations. Bostonians regard the Atlantic provinces as neighbors and as being “local.” Canada is believed to have high safety and environmental standards, and salmon from Atlantic Canada is seen to be fresher and more local, and to have a smaller carbon footprint. Consumers want to know that their salmon is from Atlantic Canada. If this was promoted, it would be a selling feature.

Consumer quantitative research

Fresh salmon purchase behaviour

On average, salmon consumers report having bought fresh or frozen salmon at a grocery store 2.2 times in the past month, less often than beef or poultry, but more often than other fish, shellfish, or lamb, and about as often as pork. They also report having ordered salmon 0.9 times in the past month in a restaurant. When grocery shopping, salmon consumers typically buy salmon either at staffed fish counters in grocery stores (40%) or at self-serve display counters at supermarkets (34%). A much smaller proportion report usually buying salmon from specialty fish stores or markets (18%). The most preferred cuts are salmon fillets (75%) and salmon steaks (46%). Fewer report buying frozen vacuum-packed salmon (23%), whole salmon (16%), marinated pre-seasoned salmon (11%) and/or salmon skewers (7%).

Salmon consumption

Over half of salmon consumers say that salmon is “a favorite that they eat more often than any other protein” (18%), or that they “eat salmon about as often as other proteins and that it is a regular part of their diet” (36%); consumption is higher among younger consumers. Almost all salmon consumers (88%) feel comfortable and knowledgeable about cooking salmon at home.

Almost all salmon consumers agree that salmon is one of the healthiest proteins (94%), that children should be brought up eating it regularly (87%) and that they would like to incorporate more of it into their diet (84%). Most also think that they feel better eating salmon than other animal proteins (83%), and that salmon is one of the tastiest and most pleasurable foods in their diet (80%). While many agree it is expensive (57%), few think of it as unhealthy in large quantities (32%) or as a “hassle” to prepare (27%).

Five in ten salmon consumers (48%) say that they are now buying and eating more fresh salmon than they were a couple of years ago, and just over four in ten (43%) say their consumption  of salmon has remained constant; very few say they are eating less salmon. One-third (35%) say they expect to eat more salmon than they do now, primarily because of the health and nutritional value, but also for the taste, and another six in ten (59%) expect to maintain their current rate of consumption. Among the very small number of people of who expect to buy and eat less salmon, there is some indication that price (31%), and environmental and sustainability concerns (31%) are the greatest barriers to growing the salmon market.

Salmon consumption in restaurants

On average, salmon consumers report having ordered salmon at a restaurant an average of 0.9 times in the past month. Overall, just under half report having ordered salmon at all. Salmon consumers in this study report eating out quite frequently in restaurants. Just over two in ten report eating out almost every day or several times a week (23%), and another three in ten report eating out once a week (28%). Among those who ever eat out, salmon is moderately popular: one-quarter (25%) report that they order salmon almost always or most of the time when they eat out, and another half (48%) say that they sometimes order it. Four in ten (40%) report ordering sushi or sashimi at least two or three times a month; among those who order sushi or sashimi, just over six in ten (63%) always or usually order sushi or sashimi that includes salmon. Younger consumers are more likely to be frequent consumers of sushi and sashimi.

Factors in buying fresh salmon

Among Eastern salmon consumers, the most important consideration, by far, in making salmon purchases is taste (67% say very important).  Also very important are nutritional value (53%), the availability of fresh salmon (48%), contamination concerns (45%) and price (39%). Nutrition (34% first mention, 68% top three) and taste (26% and 54%) also top the list of factors when it comes to buying fresh salmon; the top reason given for not buying fresh salmon is that it is too expensive (40% and 65%).

Salmon compared to other proteins

Salmon is seen as superior to other proteins with respect to health concerns, being generally healthier (82% say salmon is better), low fat (67%), nutritious (66%) and containing fewer hormones (56%). Salmon consumers are essentially divided as to whether salmon is better than or the same as other proteins in terms of how it makes a person feel when they eat it (45% say salmon is better but 44% say it is the same), freshness (44% vs. 42%), taste (41% vs. 37%) and ease of cooking (38% vs. 43%). Other proteins are thought to be better in terms of price (56% say other proteins are better) and being filling (34%).

Although half of consumers (51%) think there is little difference between salmon farming and farming of other animals in terms of their respective impact on the environment and of being an environmentally-friendly protein source, those who have an opinion are more likely to think that salmon farming is less detrimental to the environment (39%, compared to 10% who say other proteins are superior on this dimension).

Country of origin

Most Eastern salmon consumers think that most of the fresh salmon sold in their community is from Atlantic Canada (Montreal – 76%; Toronto – 72%; Boston– 60%). When asked about fresh salmon in general, they also say that they prefer to buy domestic salmon (that is, Torontonians and Montrealers prefer Atlantic Canada salmon, and Boston consumers prefer Alaskan salmon). However, when asked to choose between Atlantic Canada farmed salmon and wild salmon from the west coast, only Montrealers prefer Atlantic Canada farmed salmon over domestic wild salmon.

In comparing the relative merits of salmon from Atlantic Canada with that from British Columbia, Chile, Alaska and Norway, Atlantic Canada salmon is chosen as best for being the most local (69%) and the freshest (49%). It also scores considerably higher than salmon from other places for having the highest overall quality (31%), the smallest carbon footprint (30%) and the highest environmental standards (27%).

Sustainability issues

Most Eastern salmon consumers (84%) are concerned about future supplies of fish and seafood. The specific issues that concern consumers the most are overfishing (31%), and mercury and toxic chemicals (31%).

One-half (51%) think that fish or seafood from a sustainable supply would be more expensive. On average, salmon consumers would be willing to pay 11.8 percent more for fish and seafood from a sustainable supply.

Farmed versus wild fresh salmon

Although half of salmon consumers (50%) agree with the statement “I don’t really care if the salmon I buy is wild caught or farmed,” they are four times as likely to express a preference for wild salmon as for farmed (52% vs. 12%) when asked specifically to choose between the two. When asked to report on their actual purchase behaviors, they estimate that about half of the salmon (52%) they buy is wild.

A preference for wild salmon is driven primarily by considerations of taste and freshness, health and nutrition value, and safety (fewer contaminants).

Wild salmon tends to be seen as being better when it comes to taste, nutritional benefits and being fresher, while farmed salmon is thought to have the advantage when it comes to helping to prevent overfishing, being available all year round and being cheaper.

Attitudes toward fish farming

Six in ten Eastern salmon consumers (61%) consider themselves to be at least somewhat knowledgeable about fish farming, but just over one in ten (13%) say they are very knowledgeable.

Seven in ten consumers (71%) express confidence that the fish farming industry in Atlantic Canada is well- regulated and operated in a sustainable manner, but just over one in ten (14%) are very confident.

Seven in ten consumers (71%) agree that “Salmon farming is good for the environment because it reduces pressure on wild salmon stocks by helping to meet consumer demand.” Only three in ten (30%) agree that “Salmon farming is bad for the environment because of the harmful effects on wild populations.

Nine in ten Canadian salmon consumers (90%) agree with the Canadian salmon farming industry policy prohibiting the farming of genetically-engineered salmon.

Facts and misconceptions about farmed salmon

Salmon consumers demonstrate some awareness of the facts about farmed and wild salmon, but also hold a number of misconceptions.

• Eight in ten (80%) are aware that farming salmon helps prevent wild salmon from being overfished.
• Two-thirds (66%) are aware that wild salmon is more expensive than farmed salmon.
• Just over five in ten (53%) are aware that most of the fresh salmon sold in their area is farmed.
• Half (49%) are aware that wild fresh salmon is only available a few months a year when it is in season.
• Just over four in ten (43%) know that farmed salmon is fresher than wild salmon since it’s harvested daily.
• Just under four in ten (37%) know that the salmon used for sushi is almost all farmed salmon.
• Seven in ten (72%) know it is not true that one should avoid eating salmon more than twice a month.
• Four in ten (40%) know it is not true that farmed salmon spread diseases to wild salmon.
• Only three in ten (30%) know it is not true that wild salmon is more nutritious than farmed.

News about environmental impact of fish farming

Just under four in ten salmon consumers (37%) are aware of news in the past year about the possible environmental impact of fish farming. Among these, fish farming polluting the environment (17%), over- fishing/decline of wild salmon (17%), and chemicals and dyes being used in fish farms (14%) are the main topics recalled.

Information sources

Scientists at universities are viewed as the most believable sources of information about the environmental impact of fish farming. Environmental groups also have more credibility than most other potential sources of information, including salmon fishing industry spokespeople and salmon farmers.

Impact of ENGO action

The impact of ENGO action on the behaviors of Eastern salmon consumers is likely to be moderate in nature. Just 10 percent of salmon consumers say that a call by an environmental group to boycott all farmed salmon would have a very big impact on them.

In response to a campaign by environmental groups, consumers are much more likely to say they would be very likely to do research to get more facts on the issue (47%) than to buy wild salmon instead of farmed salmon  even if it costs more (19%), or to take more drastic steps such as giving up eating salmon altogether and eating more meat (7%), or boycotting a supermarket until it stops selling farmed salmon (6%).

Certification

The idea of certification of farmed salmon that meets certain standards is attractive to a large number of salmon consumers. About six in ten each say that certification would make them more likely to buy farmed salmon (63%), and that they would be willing to pay more for farmed salmon that has been independently certified as having environmentally sustainable practices or as being organic (60%).

Interviews with salmon buyers

The most important factors in buying salmon are quality (freshness, colour, fat content, consistency), value for money and availability/consistency of supply.  As well, many buyers say a good relationship with a reliable supplier who is loyal to them is what most guides their buying decisions. They like a supplier who treats them like a partner.

The buyers interviewed for this research buy almost exclusively farmed salmon. Wild salmon is a very small part of their business. Farmed salmon is appreciated as a product because it offers year-round availability, and consistent and reliable quality. Farmed salmon suits their food service clients, who demand consistent supply/pricing/quality; there are no surprises with farmed salmon. It is well accepted by consumers, and has a better taste and consistency for many uses (i.e., juicier for BBQs, safe for sushi). There was virtually no mention of any environmental controversy.

Most buyers feel that the market prognosis for farmed salmon is good, and that the demand for farmed salmon can only grow – supplying the demand will be the challenge. The population is growing, and younger people are eating more fish than their parents’ generation. Farmed salmon is available fresh – anytime, anywhere – and is seen as a safe and healthy protein. Publicity about the benefits of Omega-3 increases interest in salmon. Further, sushi popularity is driving up demand for salmon (sometimes accounts for 25% of salmon sales) and Canadian salmon is prized for sushi – due to its good fat content and colour. Buyers are also seeing more demand for value-added, “plate ready” salmon products.

Buyers see few real threats to demand, but they do mention potential supply problems (i.e., Chilean ISA crisis), concerns about consolidation of the salmon farms, becoming monopolistic and selling directly to their customers, and possible health scares, such as stories about PCBs in salmon. Most feel that any environmental controversy could slow growth, but not reverse it.

Buyers do not field many questions about farmed salmon; they say this is more a thing of the past and largely media-driven. The questions they do hear tend to focus on whether farmed salmon contains PCBs, hormones or antibiotics, what makes the salmon orange or red and what does “colour-added” refer to, and what farmed salmon fed and whether they have a balanced diet.

Buyers get their information from producers/farmers and feed suppliers, and also from company websites. Some will also simply “Google” for information. “Salmon of the Americas” is also mentioned.

Buyers see positive attributes in Atlantic Canadian salmon: fresher, local, fast delivery, longer shelf life, rigorous environmental regulations, well-controlled in Bay of Fundy and smallest carbon footprint. Many report that they like to deal with Atlantic Canadians, and have a good rapport with suppliers in Eastern Canada.

Salmon from Eastern Canada compares well with salmon from many other countries. They associate B.C. salmon with lower quality, a shorter shelf life and kudoa. Chilean salmon is considered “down-market,” farmed under lower environmental standards, and “tasteless and dry – just orange fish.” However, salmon from Scotland/Faroe Islands is seen as a “premium product” for high-end sushi.

Buyers associate sustainability with “doing no harm to the environment,” sound husbandry practices, good environmental standards, and low impact on wild fish stocks and the ocean. Farmed salmon is seen as automatically “sustainable” since it cannot be overfished. It is a solution to the problem; the world cannot depend on wild fish stocks. Several talk about conversion ratios of feed to fish, and pen density as something they are curious about. Most buyers do not have a formal “environmental policy,” but have informal policies to avoid endangered species and some are planning policies.

Environmental controversy is seen as old news; the PCB scare from years ago is sometimes mentioned. Most feel that environmental concerns tend to be media-driven. Awareness of any ENGO campaigns is quite low. There is some mention of the Monterey Bay aquarium and suspicions of Alaska salmon industry involvement. In general, most think that ENGO campaigns have had little impact on consumers, but they caution that news stories can depress demand in the very short term. For buyers, when it comes to farmed salmon from the east coast, this is really a non-issue unless human health is affected.

The question of environmental certification gets a mixed reaction. Some are cynical and see it as a gimmick to raise the price, customers are not asking for it. Others say this is coming in the future, so be prepared. Upscale customers will eventually demand it, and it can be an opportunity to educate the public.

When asked for their advice to Atlantic Canada salmon farmers, buyers note that Atlantic Canada as place of origin has no profile or image among consumers. Retailers do not promote it and so consumers don’t ask for it. They suggest that East Coast farmers promote Atlantic Canada, “buy local,” fresh and “ocean to plate.” They also suggest that salmon farmers make the case to the public that farmed salmon relieves pressure on wild salmon stocks.