Study Backs Rumor of Slowdown in Organic Sales
July 25, 2008
According to new research from The Hartman Group, rumblings about
slowdowns of sales in certain organic categories, as well as a
suspected plateauing of overall organic segment movement, may have
some truth behind them, Progressive Grocer reports.
The market research group's latest national study, "The Many Faces
of Organic: 2008," found that aggregate consumer use of organics
dropped four percentage points from 73 percent of the population
buying organics in 2006, to 69 percent in 2008.
Many factors are currently at play that could be prompting a
plateauing of organic food sales, especially in certain categories,
according to the report. Those factors include:
-- A renaissance within the 'culture of food' that has put
increasing focus on formerly fringe food categories such as local
and artisan products; and also segments that have dotted-line links
to organics, but also stand on their own, including fair trade,
humane, cage-free and free-range.
-- A waning of consumer interest as "organic" comes to mean so many
things that its distinctive impact is blunted, and it becomes
subsumed into a more conventional classification of
"quality."
Consumers respond more strongly today to fresh organic categories,
which offer the perceived benefits of being hormone- or
pesticide-free, according to the study. Organic categories that
still resonate highly include dairy, fruit, vegetables, prepared
foods, meats, breads and juices.
The study also pointed out that while the market as a whole may be
plateauing, organic's appeal is strengthening with the "core"
organic consumer -- and most regular (at least weekly) users of
organic foods and beverages are now considered part of that core.
These consumers are continuing to increase their purchasing and use
of organics across a wide variety of categories. Core consumers are
more engaged and passionate about the overall organic movement,
thus their purchase frequency is increasing.
On the other hand, some organic categories may be dropping off
among mid-level and periphery consumers, as these buyers are
focusing their purchases primarily on the organic categories they
really care about.
Based on these latest findings, The Hartman Group recommended that
manufacturers and retailers develop specific understandings of each
organic category, and tailor relevant offerings to match the
differing beliefs and interests of consumers in core, mid-level and
periphery groups.
Study Backs Rumor of Slowdown in Organic Sales
July 25, 2008
According to new research from The Hartman Group, rumblings about slowdowns of sales in certain organic categories, as well as a suspected plateauing of overall organic segment movement, may have some truth behind them, Progressive Grocer reports.
The market research group's latest national study, "The Many Faces of Organic: 2008," found that aggregate consumer use of organics dropped four percentage points from 73 percent of the population buying organics in 2006, to 69 percent in 2008.
Many factors are currently at play that could be prompting a plateauing of organic food sales, especially in certain categories, according to the report. Those factors include:
-- A renaissance within the 'culture of food' that has put increasing focus on formerly fringe food categories such as local and artisan products; and also segments that have dotted-line links to organics, but also stand on their own, including fair trade, humane, cage-free and free-range.
-- A waning of consumer interest as "organic" comes to mean so many things that its distinctive impact is blunted, and it becomes subsumed into a more conventional classification of "quality."
Consumers respond more strongly today to fresh organic categories, which offer the perceived benefits of being hormone- or pesticide-free, according to the study. Organic categories that still resonate highly include dairy, fruit, vegetables, prepared foods, meats, breads and juices.
The study also pointed out that while the market as a whole may be plateauing, organic's appeal is strengthening with the "core" organic consumer -- and most regular (at least weekly) users of organic foods and beverages are now considered part of that core. These consumers are continuing to increase their purchasing and use of organics across a wide variety of categories. Core consumers are more engaged and passionate about the overall organic movement, thus their purchase frequency is increasing.
On the other hand, some organic categories may be dropping off among mid-level and periphery consumers, as these buyers are focusing their purchases primarily on the organic categories they really care about.
Based on these latest findings, The Hartman Group recommended that manufacturers and retailers develop specific understandings of each organic category, and tailor relevant offerings to match the differing beliefs and interests of consumers in core, mid-level and periphery groups.
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