Sixty-nine percent of consumers purchased organic food and beverages at grocery stores in 2003, up from 63% in 2000, according to the Hartman Group, Bellevue, Wash.
Not bad, right? Well, the firm's Organic Food & Beverage Trends 2004 Report also found that 43% shopped at natural food stores like Whole Foods Market, a sharp jump from 29% in 2000. Nineteen percent purchased at mass merchandisers; 13%, club stores; 7%, drug stores; and 31%, farmers' markets.
In other words, supermarket sales are growing more slowly than those in competing channels. Another key conclusion: Although organic consumers claim to prefer one-stop shopping, more than half are purchasing organic products in two or more channels.
"Core consumers are increasing their use of the food/drug/mass channel because of the increased organic selection," according to the report. Meanwhile, "periphery" and "mid-level" customers -- the largest segment of regular users -- are moving beyond food, drug and mass channels to check out health food stores.
Mid-level and periphery shoppers prefer organic products to be integrated within conventional categories at mainstream grocery stores, particularly in the categories of dairy, produce, baby food, snacks, juice and frozen foods.
Produce is still the most popular product in organics: 96% of organic consumers use fresh produce at least occasionally. Dairy, eggs, soymilk and meat/poultry are the other most popular items.
Health and nutritional concerns are still the top reason consumers purchase organic foods: 46% of consumers said these concerns are most important. Specifically, they said they are buying organics to avoid pesticides, antibiotics and growth hormones.
Although events or "scares" will help bump organic sales, perceived health benefits of the foods will "play a much greater role in consumer trial and long-term adoption of organic products," according to the report.
