How do you sell something new? Something different? Something unfamiliar? This is one of the biggest challenges entrepreneurs face in the seaweed space.
Consumers are creatures of habit. They gravitate towards the familiar. Seaweed, for many, remains uncharted territory. The challenge isn't just about convincing consumers to try a new product. It's about convincing them to try a new idea.
A recent study by Seagreen Insights, "Lessons Learned Marketing Seaweed Products in the U.S.", provides a refreshingly actionable set of insights, for those looking to bring seaweed-based products to market and capitalise on this growing sector.
The name of the game is “doing more of what worked, and less of what didn’t”. Current research globally does not document what has been working in terms of sales of seaweed-based products. With the heightened visibility of seaweed in the West, understanding how the market is responding is crucial. Seagreen Insights set out to fill this gap. The report does a great job of helping start-up founders learn from the successes and failures of their more established peers.
Shout out to the authors, Mike Blakeley and Elaine Blakeley, for putting in the work and sharing their findings.
Here are a few thoughts and key takeaways from the report.
The Power of Language: Finding The Right Words
"Seaweed" is the most common term used, but it doesn’t resonate with everyone. Some producers believe in specificity, highlighting the variety – kelp, nori, or gim. Others prefer broader terms like "sea vegetables", hoping to entice new consumers.
There's a fear associated with the word "seaweed." For some, it conjures up images of smelly, slimy masses washed ashore. This negative perception can be a barrier to entry. Producers must find language that overcomes this hurdle and speaks to the positive aspects of seaweed.
Selling The Story, Not Just The Product
Health and nutritional benefits are the most valuable marketing message.
Consumers are increasingly drawn to products that offer a nutritional boost, and seaweed, with its rich nutrient profile, fits the bill. However, any claims about specific health benefits must be supported by credible evidence.
Sustainability is another powerful message. With Millennial and Gen Z representing a large and active spending consumer base, there is a growing opportunity to leverage the environmental credentials of seaweed products. Be careful though, not to put excessive emphasis on seaweed as a “saviour”. Sustainability is certainly a good differentiation, but not the main reason customers buy.
The Importance of Origin
Local sourcing matters. Consumers like to know where their products come from, particularly when it comes to food, dietary supplements and cosmetics. Emphasising local origin taps into the "buy local" trend, the consumer desire for transparency and connection with their source of ingredients. This adds value to the product.
Those working with imported products should focus on descriptors that appear familiar or resonate with the local consumer. Where a product has been transformed significantly from the raw material, terms like “packed in U.S.” or “made in USA” are also being used.
Building Trust Through Transparency
Consumers are savvier than ever. They want to know what's in their products and how they're produced. Traceability and safety are crucial, and producers need to be transparent about their processes and sourcing. This can be a challenge, particularly due to the lack of widely recognised certifications and labelling schemes that all consumers would recognise.
Some of the key messages that are being included in packaging/labels and other marketing efforts are: addressing concerns of heavy metals and providing nutritional information.
Navigating Sales Channels
Online sales channels are necessary in today’s market. Direct-to-consumer sales via websites, or platforms like Amazon and Shopify, give seaweed companies greater control over their brand and pricing. For new brands, this is a great place to start.
While large retail chains offer the potential for significant sales growth, they come with challenges. Start-ups, in particular, should carefully consider if they can meet the stringent demands of these large retailers. Exploring alternative channels such as farmer's markets and food service can provide valuable experience and market exposure.
Product Development and Marketing Go Hand-in-Hand
Seaweed brands are finding that aligning product development with their marketing insights can make a significant difference.
For example, choosing to develop a seaweed-based salsa instead of a spaghetti sauce might seem like a small decision, but it reflects a keen understanding of consumer behaviour. Salsa, being a faster-selling, less competitive, typically cheaper and less sensitive purchase than spaghetti sauce, offers a strategic advantage. This illustrates a crucial marketing principle: choose your battles. It's about understanding that a seemingly minor product decision can have a major impact on market penetration.
Entrepreneurs are also incorporating seaweed strategically into their product, in an effort to align with consumer trends, such as the demand for natural ingredients. Particularly in crowded markets like snack foods, seaweed and its natural characteristics can provide an important differentiator and give the product a competitive edge against other “plant-based” foods that may still rely on artificial ingredients.
Data and customer feedback: a compass for better decisions
Companies must use data to their advantage. This includes gathering customer feedback, analysing in-store sales, and studying industry market reports. Understanding consumer behaviour is not a one-time task, it's an ongoing process. By staying informed about market trends and consumer preferences, brands can adapt their strategies and stay ahead of the curve. Don't be afraid to experiment, but always let data guide your decisions and stay laser-focused on constantly gathering customer feedback.
Getting this information can be difficult and expensive, especially for small brands and startups. There may be an opportunity here, for the industry to work more closely together and share data. There may be potential for joined projects, aimed at gathering information about consumer behaviour, preferences and needs.
If you’re hungry for more, here is a link to the full report.