— i2agriculture (@i2agriculture) February 16, 2012
I saw this tweet and had to read the associated article.
I took away three key points from the article: Source (Percentage of consumers in U.S. stating they purchased organic food products at 41.8% in January, up from 39.8% in year-ago period, survey says from Industry Intelligence Feb 16, 2012)
- Younger consumers expressed greater preference for organic products, with 48 percent of respondents under 40 years reporting usage in the last six months compared with only 34 percent of consumers above 60. Those under 30 bought on average 4.6 different organic products compared with 2.9 different products purchased by people 60 and older.
- “Younger consumers, with typically the least disposable income, show the greatest loyalty to organics. This likely will increase organics’ sales and market share over time as their buying power grows and their preference is passed on to their children,” said Jetta. TABS found people earning less than $30,000 a year and those with children purchased more organic products than higher earners and those without children.
- For retailers, the study showed consumers overwhelmingly (62 to 38 percent) buy organic at mainstream retail stores over natural food or specialty stores.
The consumers who purchase the most organic foods are young people with lower incomes. As these young people get older, the trends in purchasing may change. I also think the third point is very important.
Consumers are looking to buy more organic foods at their local retail store versus the natural or specialty store. This may help to further competition and help bring the price down in the future. Keep your eye on this last point.