Consumers unwilling to shell out more for healthy foods

It seems that consumers want to have their fat-free cake and eat it too. A report out of market research firm NPD Group published Wednesday found that while US consumers are becoming more health-conscious, the vast majority said they expect to pay no more for healthier items than other menu items. For adults over the age of 50, this held especially true as 70 percent said they would not be willing to pay a premium for healthful items at their regular haunts. Only a quarter of respondents said they would pay somewhat more, while five percent said they would be willing to pay a lot more. The survey also revealed a demographic split as 44 percent of younger adults aged 18 to 24 expressed willingness to shell out more money for healthy menu options. Meanwhile, the gap between what American consumers are willing to pay and the reality of food prices continues to widen. Last week, Oxfam issued a doomsday warning with a forecast predicting that millions of people would be gripped by starvation due to a "broken food system" that will be exacerbated by the ravages of climate change. The group projected that the price of some staples will more than double by 2030. On Tuesday, the UN's Food and Agriculture Organization also projected that volatile agricultural commodity prices look like they're here to stay for the rest of the year and into 2012. Higher commodity prices have already forced major food manufacturers and restaurant chains like Kraft, Sara Lee, and McDonald's to hike their retail prices. Kellogg's also reduced the size of their cereal boxes by 15 percent and raised prices by four percent this year to offset rising costs, and Tropicana orange juice shrunk volumes by eight percent.