About Our Industry

December 5th, 2012 | Simcha Weinstein | Comments Off on About Our Industry

This past year The Organic Center put out a very significant and enlighteningl study covering a wide range of very valuable information focusing on the organic industry. I will be discussing some of these findings in detail over my next several posts, but for starters, here are some of the key bits of information to get the ball rolling.

– In 2011 – 60% of the general population used organic products. This includes organic produce, packaged foods, beverages, organic store brands, personal care, and clothing/linens.

– 92% – of the 60% tried organic fresh produce; 89% tried milk; 92% tried other dairy, including cheese, eggs, yogurt, butter, sour cream, etc.

– 63% of those who buy organic do so because they think it’s better for them. 64% do so to avoid – GMO’s, hormones and antibiotics, and to avoid, pesticides, toxins, and additives.

– Among primary grocery shoppers the importance of ‘Natural’ to maintaining health is significantly higher than ‘Organic’ by a margin of 34% – 21%.

– Natural has co-opted the regulated attributes of Organic. Consumers are twice as likely to say these describe Natural and this understanding of ‘Organic’ is declining significantly.

– When it comes to “better nutrition” and “better taste,” consumers are most likely to say that these DO NOT describe natural nor organic.

– No synthetic pesticides, an organic hallmark, has declining association with ‘Organic’ even among organic users. Half of all organic users think “no synthetic pesticides” describes “natural” and 37% do not associate this with describing organic. The basic tenets of organic are still unknown to most consumers.

– If the USDA is to be the foundational standard of excellence for organic then more needs to be done to instill value. Some are skeptical of any government certification and whether or not they can trust its value.

– 17% of adults are devoted users of organic products (willing to pay premium price; committed to industry; it’s their lifestyle). 23% are temperate users – moderate organic lifestyles. 38% are dabblers – not committed – strong price sensitivity. 22% are reluctant – don’t believe organic is worth the price or better for you – skeptical.

– DEVOTED users are most likely your current customers. TEMPERATES may be the largest growth potential for YOUR business! DABBLERS may be the future of your business – new converts, new families, new generations!

– If DEVOTEDS and TEMPERATES increased their organic spend by 10% the industry would see a $5 billion annual increase.