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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?
