organic subculture
TRANSCRIPT
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SUBCULTURE: ORGANIC FOOD CONSUMERS
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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.
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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
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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?
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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QUESTIONS?