FORT WORTH, Texas — Supermarket customers prefer to shop for organic products alongside conventional offerings rather than in a special section, according to one consultant who spoke at the Natural & Organic Foods Efficient Program Planning Session here this month.
“A store within a store for the emerging group is certainly not appealing,” said Ryan Landtroop, client services manager for the Hartman Group of Bellevue, Wash., a consulting and market research firm specializing in the health and wellness marketplace.
In a session titled “Future of the Organic Marketplace: A Consumer Focus,” Landtroop summarized the findings of a December 2005 study conducted by the Hartman Group, as well as ongoing research.
He said consumers of organic products can be divided into three categories: core, mid-level and peripheral. Of the consumers the Hartman Group polled, 73% had used organics in the previous 90 days. Core customers, who comprise 21% of those consumers of organic products, have substantial knowledge of organic principals and are motivated by sophisticated concepts such as community responsibility and seasonal eating. It is this group, Landtroop said, the industry should look to for clues to what is on the horizon in the organics market. Interestingly, Hispanic consumers are “greatly overrepresented” among this core group, Landtroop said.
Peripheral consumers, 13%, are dabblers and experimenters who are likely to try organics simply to try something new and are attracted by price and convenience.
Mid-level consumers, 66% and the group of greatest interest to purveyors of organic products, are developing their own “philosophy of organics,” are interested in gathering information and heed expert opinion. “And by expert opinion, we mean Oprah and Rachael Ray,” Landtroop said. These consumers recognize the U.S. Department of Agriculture seal without fully understanding what it signifies and accept the term “organic” on products, which they perceive as meaning “quality.” “[However,] ‘natural’ is becoming more and more of a marketing term to consumers,” Landtroop cautioned.
Consumer triggers for buying organic products for the first time include having children; health problems such as allergies, skin disorders or cancer; social network influences; and media influences such as the films “Super Size Me” and the upcoming “Fast Food Nation.” Obstacles identified include price and to a lesser extent skepticism about the benefits of organics.
Among the organics that are most attractive to consumers are perishables such as fresh fruits and vegetables, meats and poultry. “Consumers lose interest with processed foods,” Landtroop said, with frozen foods on the bottom of the organic shopping list. Luxury items are less attractive to consumers than everyday items. “Organic is primarily for routine eating,” Landtroop explained.
The emerging mid-level consumer likes to be educated but not lectured, and Landtroop advised having information available that “supports your story.” And, he said, “There is a trend toward simple packaging with narratives of people and place. It's something we say provides soul to the product.”
Trends to watch include a consumer preference for “fresh,” implying a “just in time” approach to shopping. Consumers are not shopping far in advance and look for foods they perceive as fresh. “Products such as juices and breads with expiration dates are being transformed” by this trend, Landtroop said. And, also looking to the future, he said, “These days, people are talking about the need to leverage foodie distinctions such as local, seasonal and artisanal.”
