Published on April 10, 2009
INTRODUCTION × What is organic farming? + An agricultural production type used to What is Organic? produce food that maintains and replenishes soil fertility without the Demographics use of toxic and persistent pesticides and fertilizers Psychographics × What does organic food mean? Consumer + Food processed without artificial Profile ingredients, preservatives, or Consumption irradiation. Profile
SECTORS IN THE MARKET × Market Size: + 69% buy occasionally What is Organic? + 28% buy weekly Demographics 2.0% Main Sectors Dairy 14.4% 16.0% Psychographics Bread & Grains 4.8% Beverages 10.0% Fruits and Vegs Consumer Snack Foods Profile 13.0% Packaged Foods Consumption 39.9% Meat Profile Source: OTA’s Manufacturer’s Survey, 2006 & 2007
GROWTH IN THE MARKET Percentage of Organic Food Sales in the Total Food Market What is 3.00% Organic? 2.50% Organic Penetration 2.00% Demographics 1.50% Psychographics 1.00% 0.50% Consumer 0.00% Profile Consumption Year Profile Source: OTA’s Manufacturer’s Survey, 2006 & 2007
GENDER & AGE × No significant difference on Gender × Age between 25-34 & 45-54 years What is Organic? Who Buys Organic, by Age Demographics 25% 20% Psychographics 15% Organic Consumer 10% Non-Organic Profile 5% Consumption Profile 0% 18-24 25-34 35-44 45-54 55-64 65-74 75+ Source: Newton’s Marketing and Research, 2006.
INCOME & GEOGRAPHY × Income between $25K - 50K & $50K - 75K Who Buys Organic, by Income What is 30% Organic? 25% Demographics 20% Organic 15% Non-Organic Psychographics 10% 5% Consumer 0% Profile $25K $25-50K $50-75K $75-100K $100+K Consumption × Geographically, high consumption in western Profile part and upper northeast corner of the U.S. Source: Newton’s Marketing and Research, 2006.
MOTIVATIONS × Beliefs/Opinions + Positive image of What is potential benefits Organic? + Improved taste + More “natural” Demographics + Benefits society & environment Psychographics × Lifestyle Consumer + Belief that organic foods contribute to a Profile longer, healthier life + Centered around a quot;greenerquot; way of living Consumption Profile + Those in health clubs
VALUES × Primary × Secondary + Nutritional value + Absence of harmful What is pesticides + Health benefits Organic? + Social & environmental Why Consumers Eat Organic awareness 3% Demographics 7% Substainable 15% Psychographics Healthy Environment 25% Consumer Nutrious 50% Profile Tasty Consumption Profile Source: OTA’s Manufacturer’s Survey, 2006 & 2007
CONSUMER PROFILE: PATRICK × Male, 27 yrs × $40K - Consultant What is Organic? × Caucasian Demographics × College educated × Goes to the gym often Psychographics × Recently married Consumer Profile × Lives in Fresno, CA Consumption Profile
CONSUMER PROFILE: MEGHAN × Female, 52 yrs × $60K – Marketing What is Organic? Executive × Caucasian Demographics × Loves to run Psychographics × Has a dog Consumer × Married – 2 children, both in college Profile × Lives in Seattle, OR Consumption Profile × Buys organic fruits & veggies mostly
RETAILING ASPECTS Estimated of Organic Food Sales Retail Market Channels, 2006 What is Natural Food Stores Organic? Mainstream Grocery 1% Supermarkets 1% 18% Demographics Farmers' Markets 33% 2% Box Delivery 5% Psychographics Food Service 40% Co-ops/Buying Clubs Consumer Profile Other Retail Stores Consumption Profile Source: Organic Agricultural Centre
CONSUMPTION BEHAVIOR × Purchasing for safety × Supporting local farms and local farmers What is Organic? × Health benefits & longevity × More care in home cooking and cooking Demographics techniques × Fewer preservatives = consumed Psychographics quicker than traditional food Consumer × Growth in organic baby food is budding Profile area of organics Consumption Profile 12
CONSUMER BUYING HABITS Which Foods are Purchased when Buying Organic What is Grains 33.30% Organic? Red Meat 25% Food Category Demographics Poultry 31% Dairy 45% Psychographics Vegetables 67% Fruits 70% Consumer Profile 0% 10% 20% 30% 40% 50% 60% 70% 80% Consumption Percentage Profile Source: MSU Product Center, 2007
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