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This is an increase from 1.9% in 2003 and from 0.8% in 1997 (OTA, 2006). This increase coincides with the implementation of national organic standards by the USDA in October of 2002, which provided uniform labeling for consumer recognition. Demand trends are expected to continue as more conventional retailers take up a larger portion of the organic market. Sales of organic
foods are estimated to rise to $23.8 billion by 2010 (NBJ, 2004).
The phenomenal growth in organic sales in recent years has brought additional farmland into organic agriculture industry. Dimitri and Greene (2002) estimated that between 1997 and 2001, U.S. farmers and ranchers nearly doubled the acreage of certified organic land, totaling to 2.3 million acres. With increasing production and supply of organic produce and meats, organic food, once considered a niche product, has become more available and affordable for consumers in mainstream grocery stores. It is estimated that 46% of total organic food sales are now handled by the mass-market channel, which
includes supermarkets, grocery stores, mass merchandisers, and club stores (OTA, 2006). A popular perception tends to suggest that most organic consumers are white, wealthy, and have young children. However, the consumer base of organic food appears to have become more diverse and cannot be easily pigeonholed as the market is growing with increased availability and popularity. A study by the Hartman Group (2002) found that half of the respondents who purchased organic food frequently have an annual income below $50,000, and that African Americans, Asian, Americans, and Hispanics purchase more organic products than Caucasians.
Our analysis used the Nielsen Homescan data from 2001 and 2004 (Box 1) to determine the characteristics of organic consumers, what they buy, how much they spend, and the price premiums they pay for organic produce. These two years give us a sample from before and after the
implementation of the National Organic Program’s (NOP) labeling standard. We focus on fresh produce
because produce represents the largest sector, at about 39% of the organic market (OTA, 2006). One may speculate that the growing popularity of organic consumption could be attributed at least partially to the implementation of NOP. However, it is not our intention to contribute to the debate on the effect of NOP, mainly because Homes can data are not suitable for examining such an issue. We simply present a cursory look at the data to examine whether any notable changes have occurred after NOP by
comparing household purchases of fresh produce in 2001 and 2004.
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Organic Demand: A Profile of Consumers in the Fresh Produce Market
RESUMEN EJECUTIVO
Demand for organic produce in the United States has increased steadily since the early 1990s. In 2000, for the first time, conventional supermarkets sold more organic food than any other venue (Dimitri & Greene, 2002). According to the Organic Trade Association (OTA), organic food sales in the United States totaled $13.8 billion in 2005, making up 2.5% of the retail food market.This is an increase from 1.9% in 2003 and from 0.8% in 1997 (OTA, 2006). This increase coincides with the implementation of national organic standards by the USDA in October of 2002, which provided uniform labeling for consumer recognition. Demand trends are expected to continue as more conventional retailers take up a larger portion of the organic market. Sales of organic
foods are estimated to rise to $23.8 billion by 2010 (NBJ, 2004).
The phenomenal growth in organic sales in recent years has brought additional farmland into organic agriculture industry. Dimitri and Greene (2002) estimated that between 1997 and 2001, U.S. farmers and ranchers nearly doubled the acreage of certified organic land, totaling to 2.3 million acres. With increasing production and supply of organic produce and meats, organic food, once considered a niche product, has become more available and affordable for consumers in mainstream grocery stores. It is estimated that 46% of total organic food sales are now handled by the mass-market channel, which
includes supermarkets, grocery stores, mass merchandisers, and club stores (OTA, 2006). A popular perception tends to suggest that most organic consumers are white, wealthy, and have young children. However, the consumer base of organic food appears to have become more diverse and cannot be easily pigeonholed as the market is growing with increased availability and popularity. A study by the Hartman Group (2002) found that half of the respondents who purchased organic food frequently have an annual income below $50,000, and that African Americans, Asian, Americans, and Hispanics purchase more organic products than Caucasians.
Our analysis used the Nielsen Homescan data from 2001 and 2004 (Box 1) to determine the characteristics of organic consumers, what they buy, how much they spend, and the price premiums they pay for organic produce. These two years give us a sample from before and after the
implementation of the National Organic Program’s (NOP) labeling standard. We focus on fresh produce
because produce represents the largest sector, at about 39% of the organic market (OTA, 2006). One may speculate that the growing popularity of organic consumption could be attributed at least partially to the implementation of NOP. However, it is not our intention to contribute to the debate on the effect of NOP, mainly because Homes can data are not suitable for examining such an issue. We simply present a cursory look at the data to examine whether any notable changes have occurred after NOP by
comparing household purchases of fresh produce in 2001 and 2004.
Descargar archivo
135.15 KB