Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Organics fail to leverage healthier perception
- Organic transitional could “water down” organic
- Children are the present; older consumers are the future
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- Figure 1: Population aged 18 or older, in thousands, by age, 2012-22
- The opportunities
- Price remains paramount among organic barriers
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- Figure 2: Increasing organic/natural purchase, April 2017
- Notable potential among Hispanic Millennials
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- Figure 3: Increasing organic/natural purchase, by Hispanic origin, April 2017
- What it means
Market Perspective
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- Health could boost organic claims
- Unclear definitions risk label confusion
- Expanding organic availability possibly leading to lower prices
Market Factors
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- Organic/natural claims resonate with parents
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- Figure 4: Population aged 18 or older, in thousands, by age, 2012-22
- Hispanic consumers, particularly Millennials, seek organic claims
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- Figure 5: Population, by race and Hispanic origin, 2011-21
- Greater penetration among higher-income households
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- Figure 6: Disposable Personal Income change from previous period, January 2007-April 2017
The Consumer – What You Need to Know
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- Organic penetration potential
- Household income impacting purchase behavior
- Consumers open to organics from multiple retailers
- Natural selection
- Lack of faith in organic claims
- Perceived health benefit from organics
- Younger consumers believe organics to be worth the price
- Lower prices could spur further growth
- Proven health benefits would resonate with virtually everyone
- Variety needed in organics
- Organic appeal strongest in fresh categories
Organic Purchase
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- Organic in relatively few shopping carts but growing
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- Figure 7: Organic/natural purchase, April 2017
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- Figure 8: Organic purchase trend, April 2017
- Ingredient labels of notable interest to organic consumers
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- Figure 9: Organic/natural purchase, by consumer behaviors, April 2017
- Notably greater relevance among younger consumers
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- Figure 10: Organic/natural purchase, by age, April 2017
- Relatively little income impact on organic appeal
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- Figure 11: Organic/natural purchase, by income, April 2017
- Significant interest in organic/natural among parents
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- Figure 12: Organic/natural purchase, by number of children under 18, April 2017
- Organic/natural resonate strongly with Hispanics, particularly Millennials
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- Figure 13: Organic/natural purchase, by Hispanic origin, April 2017
Purchase Trends
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- Organic loyalists seek nutrition
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- Figure 14: Organic purchase trend, by food factors ranked as important, April 2017
- Health, transparency, variety resonate with organic consumers
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- Figure 15: Organic purchase trend, by attitudes toward food, any agree, April 2017
- Lower-income households twice as likely to be buying less organics
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- Figure 16: Organic purchase trend, by household income, April 2017
- Organic claims resonate strongly with Hispanic Millennials
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- Figure 17: Organic purchase trend, by Hispanic origin, April 2017
Purchase Locations
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- Supermarkets lead locations for organic purchase; online options emerge
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- Figure 18: Purchase location, April 2017
- Younger organic consumers turning to mass, natural
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- Figure 19: Purchase location, by age, April 2017
- Online resources resonate strongly with urban organic consumers
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- Figure 20: Purchase location, by location, April 2017
- Hispanic organic consumers much less likely to buy at supermarkets
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- Figure 21: Purchase location, by Hispanic origin, April 2017
Comparing Food Types
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- Natural claims indicate “simple”; organic associated more with “expensive”
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- Figure 22: Description of natural/organic, April 2017
- Organic’s free-from appeal
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- Figure 23: Organic/natural purchase, by description of natural/organic, by organic/natural consumers, April 2017
- Hispanic consumers regard organics as preservative-/pesticide-free
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- Figure 24: Description of natural/organic, by Hispanic origin, April 2017
Shopping for Organics
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- Trust in organics remains an issue
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- Figure 25: Organic/natural purchase, by natural/organic opinions, April 2017
- Households with children find organics worth an extra price
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- Figure 26: Opinions of shopping for organic/natural foods, by number of children under 18 in household, April 2017
- Figure 27: Opinions of shopping for organic/natural foods, by age, April 2017
Perception of Organic Foods
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- Self-perception, better-for-you compel consumption
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- Figure 28: Organic/natural perceptions, by age, April 2017
- Proof of health could resonate with consumers avoiding organic
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- Figure 29: Organic/natural purchase trend, by organic/natural perceptions, April 2017
Impact of Organic Expense
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- Communicating organics’ benefits could compel consumers
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- Figure 30: Organic/natural opinions, by age, April 2017
Increasing Organic Purchase
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- Price, availability could lead to greater market penetration
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- Figure 31: Increasing organic/natural purchase, April 2017
- Lower-priced organics among organic loyalists
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- Figure 32: Organic purchase trend, by increasing organic/natural purchase, April 2017
- More restaurant options could lure Hispanic Millennials
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- Figure 33: Increasing organic/natural purchase, by Hispanic origin, April 2017
Improving Health Perception
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- Proven health benefits would resonate even among organic loyalists
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- Figure 34: Organic purchase trend, by increasing organic/natural purchase, April 2017
- Older consumers seeking health in organics, while younger also consider recyclability
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- Figure 35: Increasing organic/natural purchase, by age, April 2017
- Health, information could spur Hispanic organic consumption
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- Figure 36: Increasing organic/natural purchase, by Hispanic origin, April 2017
Seeking More Diverse Organic Options
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- Major brands could spur organic growth
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- Figure 37: Organic purchase trend, by increasing organic/natural purchase, April 2017
- Indulgent, branded organics could lure younger generations
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- Figure 38: Increasing organic/natural purchase, by age, April 2017
- Households with children may respond to more indulgent and vegetarian organic options
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- Figure 39: Increasing organic/natural purchase, by number of children under 18 in household, April 2017
Categories Where Organic Resonates
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- Organic/natural claims sought more in fresh foods
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- Figure 40: Category preferences, April 2017
- Younger consumers, regardless of income, more likely to choose organic
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- Figure 41: Category preferences – natural/organic versions, by age and income, April 2017
- Parents buying organic/natural commodities
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- Figure 42: Category preferences – Natural/organic versions, by number of children under 18 in household, April 2017
- Organic resonates in more categories with Hispanic Millennials
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- Figure 43: Category preferences – Natural/organic versions, by Hispanic origin, April 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Correspondence Analysis – Natural/Organic Food Shopper – July 2017
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- Methodology
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- Figure 44: Correspondence Analysis – Description of natural/organic, April 2017
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