Organic Subculture

SUBCULTURE: ORGANIC FOOD CONSUMERS

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

What is Organic?

INTRODUCTION× What is organic farming?+ An agricultural production type used to

produce food that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers

× What does organic food mean?+ Food processed without artificial

ingredients, preservatives, orirradiation.

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

SECTORS IN THE MARKET× Market Size:+ 69% buy occasionally+ 28% buy weekly

What is Organic?

16.0%

10.0%

13.0%

39.9%

4.8%

14.4%

2.0%

Main SectorsDairyBread & GrainsBeveragesFruits and VegsSnack FoodsPackaged FoodsMeat

Source: OTA’s Manufacturer’s Survey, 2006 & 2007

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

GROWTH IN THE MARKET

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Percentage of Organic Food Sales in the Total Food Market

Year

Org

anic

Pen

etra

tion

Source: OTA’s Manufacturer’s Survey, 2006 & 2007

What is Organic?

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

18-24 25-34 35-44 45-54 55-64 65-74 75+0%

5%

10%

15%

20%

25%

Who Buys Organic, by Age

OrganicNon-Organic

GENDER & AGE× No significant difference on Gender× Age between 25-34 & 45-54 years

Demographics

Source: Newton’s Marketing and Research, 2006.

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

× Income between $25K - 50K & $50K - 75K

× Geographically, high consumption in western part and upper northeast corner of the U.S.

$25K $25-50K $50-75K $75-100K $100+K0%

5%

10%

15%

20%

25%

30%

Who Buys Organic, by Income

OrganicNon-Organic

INCOME & GEOGRAPHY

Demographics

Source: Newton’s Marketing and Research, 2006.

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

MOTIVATIONS

× Lifestyle+ Belief that organic foods contribute to a

longer, healthier life+ Centered around a "greener" way of living+ Those in health clubs

Psychographics

× Beliefs/Opinions+ Positive image of

potential benefits+ Improved taste+ More “natural”+ Benefits society &

environment

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

VALUES

15%

25%50%

7%

3%Why Consumers Eat Organic

SubstainableHealthyEnvironmentNutriousTasty

× Secondary+ Absence of harmful

pesticides+ Social & environmental

awareness

Source: OTA’s Manufacturer’s Survey, 2006 & 2007

Psychographics

× Primary+ Nutritional value+ Health benefits

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

CONSUMER PROFILE: PATRICK× Male, 27 yrs× $40K - Consultant× Caucasian× College educated× Goes to the gym often× Recently married× Lives in Fresno, CA

Consumer Profile

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

CONSUMER PROFILE: MEGHAN× Female, 52 yrs× $60K – Marketing

Executive× Caucasian× Loves to run× Has a dog× Married – 2 children, both in college× Lives in Seattle, OR× Buys organic fruits & veggies mostly

Consumer Profile

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

33%

41%

5%

2%1%1%

18%

Estimated of Organic Food Sales Retail Market Channels, 2006

Natural Food Stores

Mainstream Grocery Super-markets

Farmers' Markets

Box Delivery

Food Service

Co-ops/Buying Clubs

Other Retail Stores

RETAILING ASPECTS

Source: Organic Agricultural Centre

Consumption Profile

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

12

× Purchasing for safety× Supporting local farms and local farmers× Health benefits & longevity× More care in home cooking and cooking

techniques× Fewer preservatives = consumed quicker

than traditional food× Growth in organic baby food is budding

area of organics

CONSUMPTION BEHAVIOR

Consumption Profile

What is Organic?

Demographics

Psychographics

Consumer Profile

Consumption Profile

CONSUMER BUYING HABITS

Fruits

Vegetables

Dairy

Poultry

Red Meat

Grains

0% 10% 20% 30% 40% 50% 60% 70% 80%

70%

67%

45%

31%

25%

33%

Which Foods are Purchased when Buying Organic

Percentage

Food

Cat

egor

y

Source: MSU Product Center, 2007

Consumption Profile

QUESTIONS?