Skip navigation

ORGANICS ARE OUTSTRIPPING EXPECTATIONS, SAYS STUDY

BALTIMORE -- The organics market is much larger than even industry experts thought, according to a new study.As much as 10% of the U.S. population can be identified as core organics consumers, according to "The Evolving Organic Marketplace," a report by Hartman & New Hope, Bellevue, Wash.Of this 10%, 2% are labeled "organics purists," shoppers who will always buy organics and are willing to pay a

BALTIMORE -- The organics market is much larger than even industry experts thought, according to a new study.

As much as 10% of the U.S. population can be identified as core organics consumers, according to "The Evolving Organic Marketplace," a report by Hartman & New Hope, Bellevue, Wash.

Of this 10%, 2% are labeled "organics purists," shoppers who will always buy organics and are willing to pay a premium. The remaining 8% are "engaged pragmatists," meaning they have some "purist" qualities, but are more concerned with availability and convenience, the report states.

Excerpts from the 90-page study, which will be released this month, were discussed at the Natural Products Expo East held here recently. Hartman & New Hope is a new venture between the Hartman Group, Bellevue, Wash., and New Hope Communications, Boulder, Colo., which runs the Expo. The Hartman & New Hope partnership is aimed at pooling the resources and expertise of both groups to obtain more accurate, detailed and in-depth information on the natural-food industry.

According to the study, 22% of the U.S. population are "organics attracted," those who buy organic if they are made available at a reasonable price; 28% is "organic borderline" and 40% are uninterested.

"Organic attracted" is a large market that will become more interested in organics as availability increases, said Harvey Hartman, president of Hartman & New Hope and president of the Hartman Group.

Since the American consumer is habitual in terms of shopping, Hartman said having a larger variety of organic on the shelves will increase the amount of purchases.

"The American consumer spends about 21 minutes in the store, shopping the same aisles over and over. If they have the opportunity to buy these products, they will," he said.

At the same time, organic prices are coming down, making retails comparable to mainstream. This not only attracts new customers, but increases purchases of existing ones.

As an example, Hartman cited the baby-food category. An "organic attracted" consumer may buy one organic brand to two mainstream selections. Making such a purchase saves money, since organic baby food is still much more expensive than mainstream. If the organic price was reduced, however, that same consumer would buy more organic, thus increasing the marketplace, Hartman stated.

He noted that "conscious price increases" -- large differences between organic and mainstream products -- will be accepted by hard-core organic buyers. "Organic attracted," meanwhile, will pay only small price increases.

Along with variety and price, a cultural change is driving the market. Consumers are now taking more of an interest in nutrition, exercise, spirituality and femininity. As this cultural change becomes more pronounced, it will change people's shopping patterns, the study states.

Significant opportunities also exist for "suborganic" categories, such as products produced through Integrated Pest Management techniques or grown under other good stewardship practices.

"Consumers are indicating that they want lower pesticide residues, an improvement for the environment and an indication that it's better for your health," he said.

Since shoppers perceive suborganic products are delivering these benefits, they are buying them too, and eventually will buy more as the suborganic market expands.

An Organic Engagement

Ten percent of the U.S. population is "organic engaged," meaning they are knowledgeable about organic products and have a high purchase interest.

Organic Engaged 10%

Organic Attracted 22%

Organic Borderline 40%

Organic Uninterested 28%

Source: Hartman & New Hope Organic Report, "The Evolving Marketplace."