New Organic Study Shows More Consumers for Organic Foods

According to a new report, The Evolving Organic Marketplace, prepared by Hartman & New Hope, the organic market is exploding with growth and potential concurrent with a fundamental transformation of the competitive structure of the industry from entrepreneur-led business into a mass market with large, medium and small companies contending for both existing consumers and entirely new emerging consumer market segments.

Based on new primary research, the report segments the American population into four distinct consumer segments, with one segment having two components (see chart). According to the study, the size of those segments that are interested in purchasing organic products are larger than expected and are growing significantly.

The report indicates that even though there is little knowledge of the true meaning of organic by the American public, organic products benefit from fundamental changes of values in American culture. The research tested respondents’ resonance with a set of emerging cultural values that are highly compatible with organic sensibilities, including personal health, good nutrition and exercise, personal connectedness in the community, ecological concern, spiritual connection with nature, and others. The most important implication of this cultural evolution of values for the organic market is that the desire for organic products is based on deeply felt needs and personal convictions rather than on superficial faddism. The potential demand for organic products is being driven by both deep-rooted and developing consumer values. The same fundamental shifts in values are affecting purchasing in other natural products categories including vitamins, minerals, supplements, and herbs as well as health and beauty care categories.

The report also indicates organic does not sell of and by itself in the mass market. That is, other consumer preferences need to be met to develop an enduring and sustainable market share. Other purchase criteria (e.g., price, availability, and convenience as well as taste and healthfulness) need to be interwoven with appropriate marketing appeal to and services for consumers.

The report examines strategic implications in this changing arena and looks in-depth at the key trends revolutionizing the organic products industry. The trends include Changes in the Public, Changes in Organic Products, Changes in the Conventional Food Industry, and Changes in the Organic Industry.

For further information on this report, call Hartman & New Hope, 425.452.0818.