Abstract
Consumers’ preference for organic foods in the context of food aspects considered important in a consumption decision and socioeconomic variables has been examined in this study. The results indicate that food aspects related to naturalness, vegetarian-vegan and production location were critical enhancing regularity of organic food purchases. While the familiarity food aspect was viewed as a ‘no’ issue as far as organic food purchases are concerned. Results further indicate that females and young people buy organics on a regular basis. In terms of political affiliation and church attendance, the liberals and those who at least visit places worship once a month will also regularly buy organics.
Generated Summary
This study examines consumer preferences for organic foods within the context of food aspects considered important in consumption decisions and socioeconomic variables. The research employs a survey instrument developed by the Food Policy Institute at Rutgers University to gather data on consumer attitudes towards health, safety, and environmental concerns related to food. The study utilized 1201 telephone interviews conducted between February 27 and April 1, 2003. The research analyzes the influence of consumers’ views on specific food aspects and personal attributes on the demand for organic foods, framed within the Lancaster (1966a,b) model of consumer choice. A binary dependent variable, BUYORG, was defined based on consumer responses to how often they purchase organic products. The empirical model explores the relationship between consumer willingness to buy organic food and their views on specific food aspects and socioeconomic characteristics using a logit model of discrete choice. The study aims to identify the factors driving consumer perception and acceptance of organic food products and profile likely consumers of organic foods. The findings are intended to inform policy makers and marketers on the organic food market.
Key Findings & Statistics
- The organic food industry reached $10.8 billion in consumer sales in 2003, expanding by 20% in 2004 to $10.4 billion.
- Increases in sales of organics have ranged between 17% and 21% each year since 1997.
- Total U.S. food sales grow at an average rate of 2% to 4% per year.
- Among the 1185 respondents, 521 (44 percent) were categorized as regular buyers of organic products.
- The coefficient of FEMALE, YOUNG, COLLG_DA, LIBERAL, and MED_RELIG had a positive impact on organic purchases and were significant at the 5 percent level.
- The coefficient of DULT_SI, DULT_VEI, VEGT_SI, VEGT_VEI and USPA_IVI associated with views on specific food aspects impacted the regularity of organic food purchases positively and were significant at the 5 percent level.
- Consumers who considered local food production to be extremely important showed a 4 percent decrease in organic purchases.
- Females were 8 percent more likely to buy organics.
- Young people and those with a college degree or more were 6 to 7 percent more likely to buy organics regularly.
- Respondents identifying themselves as liberals were 12 percent more likely to buy organics.
- The estimated model successfully predicted between 67 percent of the responses relating to organic food purchases.
Other Important Findings
- Food aspects related to naturalness, vegetarian-vegan, and production location were critical in enhancing the regularity of organic food purchases.
- The familiarity food aspect was viewed as a ‘no’ issue as far as organic food purchases are concerned.
- Females and young people buy organics on a regular basis.
- Liberals and those who attend church at least once a month regularly buy organics.
- The success of the organic market will be determined by price premiums, price-quality tradeoffs, country of origin, GE content, and other social concerns.
- Organic food purchasers are likely to be those with high incomes, highly educated (college and above), and young.
- The study indicates that the naturalness food aspect, vegetarian vegan considerations, and local food production will contribute to increasing the regularity of organic food purchases.
- Respondents who place importance on food familiarity, and those who view the importance of local food production as extremely important compared to those who do not are less likely to buy organic foods.
Limitations Noted in the Document
- The study’s reliance on survey data limits the scope of information regarding consumer behavior.
- The study acknowledges the limitations of the survey data in exploring all aspects of food or farming systems.
- The study does not explicitly link organic food demand with civic engagement or public participation in the food system.
- The study design involved two survey versions to limit the length and minimize fatigue on the part of respondents.
- The survey instrument used was conducted over the telephone which could lead to bias.
- The study does not provide a detailed analysis of price premiums or cost-benefit trade-offs related to organic food purchases.
Conclusion
The study provides valuable insights into the factors driving consumer preferences for organic foods, emphasizing the role of food aspects, socioeconomic variables, and consumer attitudes. The findings suggest that naturalness, vegetarian-vegan considerations, and the production location significantly influence the regularity of organic food purchases. The study found that females, young people, liberals, and those who attend church regularly are more likely to be regular buyers of organic products. This research underscores the importance of food aspects like naturalness, vegetarian and vegan options, and local production in shaping consumer choices in the organic food market. The study successfully predicted responses relating to organic food purchases. The study highlights that consumer preferences are not solely driven by health-related reasons but also by concerns about food safety and the environment. The results suggest that the market is influenced by a combination of factors, including perceptions of the benefits of organic food and the desire to support sustainable farming practices. The study underscores the complex interplay of consumer perceptions, attitudes, and behaviors. It also indicates the importance of understanding the role of socioeconomic characteristics, food-related aspects, and value-based considerations in shaping consumer decisions within the context of the U.S. food system. The study emphasizes the necessity of incorporating a broader spectrum of farming characteristics, consumer preferences, and specific product attributes to better understand and compare food and farming systems.