Organic Research 2010 Overview Report Bord Bia September 2010 Bord Bia Organic Research Report 2010.doc Contents 1. Introduction & Research Approach 2. Considering the Context for Organic 3. Understanding Consumer Segments 4. Considering the Price of Organic 5. Understanding Organic Labels 6. The Benefits of Organic Food 7. Increasing the Appeal of Organic 8. Testing Organic Messages 9. Recommendations for Organic Sector 1 1 Bord Bia Organic Research Report 2010.doc 1. Introduction & Research Approach In 2003 Bord Bia undertook market research into the attitudes and behaviours of Irish consumers when considering the organic category. This research was repeated and expanded in 2008. The report included an updated view of the different segments of buyers and non-buyers of organic food. Bord Bia carried out an update study in late 2008. At that time the economic downturn was emerging on people’s radar. However the scale and depth of the downturn were not fully understood. In the follow-up study in 2010, Bord Bia were interested to understand how the Irish consumers attitude to Organic food has changed and explore how these attitudes have changed their purchasing patterns. A quantitative face to face survey was conducted among a nationally representative sample of 705 main grocery shoppers aged 18+. Of this, 600 respondents formed a random sample of interviews while 105 booster interviews were conducted among recent organic buyers (those who purchased organic food within the past 6 months). A qualitative research task was also conducted. Again the target respondent was the main grocery shopper. A breakdown of the focus groups that were conducted is outlined below. Both phases of the research were conducted simultaneously by IPSOS MRBI. Group No. Organic Purchase 1 Location Demographics Gender Regular (inc Young Mums) Dublin ABC1, 28-40 Female 2 Lapsed Cork Urban BC1, 30-45 Female 3 Regular Cork Rural C1C2, 45-60 Female 4 Occasional/ Lapsed (inc Empty Nesters) Dublin BC1, 40-55 Mixed The fieldwork period for the quantitative and qualitative stages of this research was July 2010. 2 2 Bord Bia Organic Research Report 2010.doc For further information on this research report contact: Lorcan Bourke, Horticulture Department, Bord Bia, Clanwilliam Court, Dublin 2. E-Mail: lorcan.bourke@bordbia.ie. Phone: 01-6685155 3 3 Bord Bia Organic Research Report 2010.doc 2. Considering the Context for Organic 2.1 Sustainability is a weak leverage point for organic In probing the role of ‘sustainability’ in the shopping habits and preferences of consumers it was clear that, as a general concept, it is failing to significantly impact upon people’s decision making. From a qualitative perspective, the assertion is that sustainability is a politically overused phrase that focuses on very long term benefits that consumers judge to be intangible and fail to readily associate the term with food production. Considering the Influence of Organic 5 Q.5a I am now going to read out some terms and phrases related to environmental and ethical issues that are being talked about nowadays. For each issue, could you please indicate how concerned you yourself are on a scale of ‘1’ to ‘10’, where ‘1’ is ‘not at all concerned personally’ and ‘10’ is ‘very concerned personally’? Q.5c And for each issue please tell me if lately have these issues influenced the food products you buy or have they not influenced your food buying? Influencing Food Purchasing Higher influence Supporting Local Produce Recycling Organic Supporting Fairtrade Reducing Food Miles Reducing Carbon Footprints Supporting Animal Welfare Combating Global Warming Lower influence10% 4 Low concern Personally Concerned High concern Local produce and organic perform well in terms of influencing purchase though large discrepancies between buyers and non buyers. Base: All Respondents: 705 When consumers were asked to consider what environmental and/or ethical issues they were concerned about and which of these were actually impacting upon their food buying; ‘supporting local food’ and ‘recycling’ featured highest. It can be argued that these issues are much more tangible to consumers and are concepts to which they can relate. On the other hand, ‘reducing carbon footprints’, ‘reducing food miles’ and ‘combating global warming’ seem abstract and beyond individuals’ realm of influence. The concept of ‘organic’ on the other hand shows moderately low levels of concern and an average degree of influence among respondents. 4 4 Bord Bia Organic Research Report 2010.doc 2.2 Organic becoming mainstream Despite the obvious consumer reactions to the recession, such as looking out for and being more aware of value, ‘past week’ purchases of organic food products have increased slightly from 2008 figures. However, the amount of claimed expenditure on organic during this time has decreased by approximately 11%. The amount of respondents claiming to never have bought organic has reduced from 39% in 2008 to 33% in 2010. Examining how and when organic buyers use organic food illustrates that the majority of people are now primarily using it for general cooking of evening meals and lunches rather than for special occasions. Its position in today’s marketplace is therefore one of allowing people reach ‘back to basics’ and natural production methods. This is in contrast to the previous position of organic as a special occasion food and a higher status product that fitted in with the trappings of ‘Celtic Tiger’ Ireland. 2.3 Making the organic decision The Organic Decision 23 Q.8a Thinking about how you make your decision to buy organic products when shopping. Which of the following best describes your organic shopping decision? 32% I know what organic products I am going to buy before I go shopping 33% 31% I choose organic products by looking at the display to see what organic products are available 33% 19% I usually buy organic products on impulse depending on what’s available I buy organic food products only when they are available on a promotion or a deal I rarely buy organic food products 22% 10% 5% 2010 2008 6% 5% Shoppers are now slightly less likely than before to actively think about and seek out organic products, while buying organic products when there is a ‘deal’ has increased from 5% to 10%. Base: All Organic Buyers: 442 The research also shows that 62% of organic buyers are buying the same amount of organic food as 12 months ago. However, there has been a slight increase in the amount of buyers who are now buying less organic than 12 months ago, from 3% in 2008 to 8% in 2010. 5 5 Bord Bia Organic Research Report 2010.doc The main reasons cited for this include: o o o Costs too much Have less money Growing/Sourcing my own 56% 18% 13% In addition to this behaviour, organic buyers are also less likely to actively seek out/shop for organic food than previously. Instead, they have become more responsive to buying organic when it is available on promotion or if it is being offered on a deal. This is particularly relevant among the Striving Improvers and Assured Selectors segments. These segments are discussed in more detail later in the document. The organic category is holding its own in terms of consumers shopping baskets and consideration. However attention needs to be given to the level of influence labelling has on the promotion and sales of ‘organic’ by consumers. 6 6 Bord Bia Organic Research Report 2010.doc 3. Understanding Consumer Segments There have been some changes in the consumer segments since the research was conducted in 2008, with six segments emerging as opposed to the original list of five. The Health Managers/ Status Seekers group has dissolved while Striving Improvers (occasional purchasers) and Evolving Considerers (open to purchase) have both increased. The dissolution of this original group, relates back to the renewed focus on value and a movement away from visual displays of wealth and aspirations of grandeur. The Innate Believers group remains, while two new groupings, Assured Selectors and Rural Champions have emerged. The characteristics of each of these segments are explained in more detail below. A Pen-Portrait of The 6 Organic Segments 2010 13 As compared to the overall profile, relatively more likely to be … General description… 1 2 3 4 5 6 Innate Believers Assured Selectors Rural Champions Striving Improvers Evolving Considerers Rejectors Female 35-54 yrs ABC1 Urban Main grocery = Superquinn Confectionery Increased spend in last year 35-54 yrs C2DE RoL Housewives Info from TV F Outside Dublin Past month Main grocery shop = Tesco • 25-44 yrs • ABC1 • Dublin / Urban • Less often than 12months ago • Impulse / deal Committed to Organic sector, buy because natural, tastes better and healthy Planned product purchasers Similar to IB’s but less fervent. Buy for health, natural and taste Mix product and category planned purchase Rural, buy for health, free from chemicals and natural Slightly status driven In-store organic decision Occasional purchasers, less likely to by in current economic climate Mix of shopping behaviours Don’t currently purchase but open to organic Need more information to convince Male 65+ DE Dublin No kids Lapsed Main grocery shop = Dunnes Male 25-34 DE Urban Not working Never bought Main grocery shop = Dunnes Most never purchased Don’t perceive any difference between organic and non There are some interesting profile differences between the six key segments. When comparing the profile of each of these segments to the overall adult grocery shopper profile it was found that: Among the Innate Believers segment; the majority are females aged between 35-54 years in the ABC1 group. Commitment to the organic category is highest amongst this group. 7 7 Bord Bia Organic Research Report 2010.doc The Assured Believers segment is made up mainly of housewives aged 35-54 years within the C2DE class, who are mainly located in Leinster (excluding Dublin). Organic purchases among these shoppers are driven mainly by concerns regarding health, taste and natural characteristics. Rural Champions are located outside of Dublin, and have predominantly bought organic in the past month. Their organic purchases appear to be driven more by an interest in Irish farming than anything else. The Striving Improvers segment, are more likely to be Dublin/ urban based consumers within the ABC1 social class, aged 25-44 years and are occasional purchasers of organic who usually buy organic products on impulse or because of a deal. Males aged 65+ in the DE social class grouping are more likely to form part of the Evolving Considers segment and while they don’t currently purchase organic there may be an opportunity to encourage them to do so. Rejectors, are made up primarily of males in the 25-34 year old age bracket and are urban DE’s who don’t perceive any difference between organic and nonorganic food. For many consumers organic food simply isn’t on their radar of issues. 3.1 Buying behaviour of segments From the chart below, we can see that 90% of Innate Believers have bought organic in the past week; indicating the high level of frequency of their organic shopping. Among Rural Champions, this falls to 62%. Past month purchases are spread evenly among Assured Believers, Rural Champions and Striving Improvers. Providing Detail on Buyers and Non-Buyers 17 Q.2 And when was the last time you bought any organic food produce? Past week Past month Past 3 months Past 6 months Longer ago Never SEGMENT % % % % % % Total 33 13 5 3 12 33 Innate Believers 90 6 1 3 - - Assured Selectors 56 31 9 5 - - Rural Champions 62 30 6 2 - - Striving Improvers 36 30 20 14 - - Evolving Considerers - - - - 36 64 Rejectors - - - - 20 80 9 in 10 Innate Believers have purchased organic in the past week. Striving Improvers are evenly split between past week, past month and past 3/ 6 months. Four fifths of Rejectors have never purchased organic. Base: All Respondents: 705 8 8 Bord Bia Organic Research Report 2010.doc 3.2 Word associations across consumer segments Consumers were given a list of words/ statements that could be associated with organic and asked to assert which ones they would associate with the organic category. The ‘expensive’ tag is still seen as the top word associated with the organic category. However, this association is higher amongst Evolving Considerers and Rejectors and is not rated as the top association among more actively purchasing groups. Among Innate Believers and Rural Champions for example, the ‘free from chemicals/pesticides’ association is the most popular while Assured Selectors believe most strongly in the ‘free from’ health benefits of organic. Word Associations by Segment 26 Q.6a Which of these words would you associate with organic food? IB 2010 Expensive Free from chemicals/pesticides and therefore healthier 52% 37% 51% 45% Natural 44% Healthy 29% Good for you Free from antibiotics and therefore healthier 27% Tastes better 24% Fresh 22% Safer 20% Good for the environment 19% 17% GM free 11% Better animal welfare 10% BSE free None of these 2% AS RC SI EC R 43% 40% 53% 59% 64% 68% 58% 69% 59% 40% 34% 57% 57% 57% 54% 27% 35% 60% 66% 61% 47% 29% 23% 38% 45% 45% 29% 24% 11% 43% 21% 44% 33% 17% 17% 46% 50% 39% 18% 8% 7% 43% 32% 31% 24% 10% 9% 35% 29% 32% 14% 21% 7% 27% 28% 26% 23% 14% 7% 38% 15% 28% 26% 6% 6% 25% 11% 17% 9% 8% 5% 23% 10% 19% 13% 5% 3% 1% - - - 3% 5% Buyer segments are more likely to agree with positive associations. On the other hand, Evolving Considerers and Rejectors are convinced by organics’ expensive description. **Question wording altered in 2010 Base: All Respondents: 705 When comparing current respondents’ associations with organic to those that emerged in 2008, we can see that there has been a reduction of positive associations with the category. This is illustrated in the chart overleaf. For organic producers and promoters, this is a potentially worrying development. This suggests that the ‘organic’ label itself has lost some of its differentiation and that people may be beginning to doubt some of its perceived benefits. Associations relating to ‘fresh’, ‘healthy’, ‘BSE free’, ‘natural’ and ‘good for the environment’ have fallen. This is documented in the chart below, which also demonstrates that positive associations are likely to be considerably lower among non-buyers of organic, 9 9 10 Bord Bia Organic Research Report 2010.doc suggesting more work needs to be done to convince them of the value of organic food. Word Associations 25 Q.6a Which of these words would you associate with organic food? 2010 Expensive Free from chemicals/pesticides and therefore healthier 52% 51% 45% Natural 44% Healthy 29% Good for you 27% Free from antibiotics and therefore healthier Tastes better 24% Fresh 22% Safer 20% Good for the environment 19% GM free 17% Better animal welfare 11% BSE free None of these 53% -1 Non Buyer Buyer 43% 62% 63%** n/a 63% 36% 50% -5 56% 32% 52% -8 59% 25% 27% +2 39% 16% n/a n/a 35% 17% 27% -3 38% 7% 31% -9 32% 10% 24% -4 27% 12% 24% -5 26% 10% 20% -3 26% 6% 15% -4 15% 7% 17% -7 16% 4% 2008 10% 2% * Overall reductions in word association are worrying. (Healthy, Fresh, Good for the environment). This indicates associations are weakening across the population. **Question wording altered in 2010 Base: All Respondents: 705 While various consumer segments display differences in their attitudes towards organic, attention must be paid to a generalised fall off in positive associations with organic since the last research wave. 10 11 Bord Bia Organic Research Report 2010.doc 4. Considering the Price of Organic At a general organic product purchasing level, Innate Believers and Assured Selectors clearly show a higher propensity to endure premium pricing. It is interesting to note that at a 10% premium, three quarters of Innate Believers and two-thirds of Assured Selectors are still willing to purchase. Only 30% of Striving Improvers and 18% of Evolving Considerers were willing to purchase at the same pricing level. At a 20% price premium the Innate Believers fall off significantly in terms of willingness to purchase, however, 41% are still willing to buy compared with only 24% of Assured Selectors and 5% of Striving Improvers. Pricing 35 Q.24 If you were considering buying certified organic food (produced to the required standards and conditions), rather than non-organic food, how likely or not would you be to buy organic if you had to pay? Innate*Believers Rural Champions Evolving*Considerers 100% Assured Selectors Striving*Improvers Rejectors 90% 80% 70% 60% % 50% 40% 30% 20% 10% 0% = 5% 10% 20% 25% 30% Innate Believers and Assured Selectors demonstrate a higher tolerance to price premiums than all other segments. Base: All Respondents: 705 With regard to premiums experience, respondents perceived that organic meat has a higher premium than dairy or vegetable produce, with almost half believing that the meat premium was 20-30% versus the 5-15% which was cited by the majority for vegetable and dairy produce. This information is displayed on the slide overleaf and tallies with the organic food type purchases, which saw the dairy and vegetable categories come out with the highest incidence of purchase, with meat in third place. 11 12 Bord Bia Organic Research Report 2010.doc Pricing 34 Q.34a Q.34b Q.34c In your experience, how much more in percentage terms, if anything, do organic vegetables cost compared to non-organic? In your experience, how much more in percentage terms, if anything, do organic dairy foods cost compared to non-organic? In your experience, how much more in percentage terms, if anything, does organic meat cost compared to non-organic? 60% Veg Dairy Meat 50% 40% % 30% 20% 10% 0% COST THE SAME<U> 5--15% (NET)<U> 20--30% (NET)<U> 35--50% (NET)<U> 55--75% (NET)<U> 80--95% (NET)<U> 100% + (NET)<U> Base: All Organic Buyers: 442 Within the qualitative sessions, consumers were asked to evaluate the price of a number of organic products versus non-organic products. In all instances, consumers underestimated the cost of organic food. This indicates that the price of organic food hasn’t fallen to a point where consumers can accurately judge the price difference and have expectations that it is actually cheaper than it is. This may also suggest that organic food that is not on promotion or offered as part of a deal, may remain too expensive to motivate engagement with the category, especially among questioning consumer groups. 12 13 Bord Bia Organic Research Report 2010.doc 5. Understanding Organic Labels 5.1. Confusion about the source of organic It would appear that there is a lack of understanding about the traceability of organic food. There is a perception among Irish organic buyers that the organic food they buy is predominantly Irish. 25% of current buyers believe that all of the organic food they buy is sourced from Ireland, while 37% believe that most is sourced from here. 15% of people are ‘unsure’ about the source. 5.2. The role of origin ‘Irish’ Irish Organic 41 Q.35 How much of the organic food that you buy is Irish - all, most, some or (almost) none? Proportion of Organic Food That Is Irish 2010 Not sure 15% Q.36 And how important to you is it that the organic food that you buy is Irish? Impact of Imports 2010 Not sure 2% Very important Most is Irish 37% When shopping for organic and you note that the organic product is imported, does this make you less likely to buy it or does it have no impact either way? Importance of Irish Organic (Excl. D.K.) 2010 % All is Irish 25% (Almost) none is Irish 1% Some is Irish 22% Q.38 Less likely to buy 53% 50 Fairly important 37 Neither important nor unimportant Fairly unimportant Very unimportant 8 31 No impact either way 45% There is a perception in the market that many organic products are Irish, with this being an important element of organic buyers’ purchases. Base: All Organic Buyers: 442 When asked about the importance of organic food being Irish, 87% of respondents state that it is either ‘very’ or ‘fairly important’. This suggests that consumers will respond favourably to organic food that is also Irish. However, this statement must be considered in the context of the amount of people that check this information when buying organic food and whether being Irish actually impacts upon their likelihood to purchase. Indeed, when asked whether or not Irish or imported organic products impacts upon respondents likelihood to purchase, 45% admit that this sourcing issue would have no impact upon their decision to buy. 13 14 Bord Bia Organic Research Report 2010.doc Additionally, despite 87% of respondents asserting that the origin of organic was important, only 43% claimed to always check the symbol that informs them of the origin of organic. 5.3. The authenticity of organic While the word ‘organic’ still remains enough to guarantee the authenticity of organic food, this has decreased from 2008 levels. In turn, more emphasis is being placed on a certifying symbol to convey the authenticity of organic, rising to 38% of respondents in 2010, compared to 25% in 2008. Checking Certificate Symbol On Products 66 Q.12a Q.12b Q.12c If you were buying organic food, would you check whether there is a symbol certifying the organic origin, on the product? IF YES: Would you always check for the presence of this symbol, or would you only occasionally check for this symbol? Usually, is the word ‘organic’ written on a product enough for you to be confident that it is organic or do you also look to see that the product has been certified organic? When the word ‘organic’ appears on a product, who is responsible, in your opinion, for making sure the product is actually organic? 2010 Confident In Organic Label 2010 2008 Don't know 1% Don’t check for symbol 23% Don't know 4% Don’t check for symbol 23% Always check for symbol 41% Word ‘organic’ enough Look to see if it has been certified organic Don’t know 71% 27% 2% 2010 Responsibility For Ensuring Organic Occasionally check for symbol 33% Always check for symbol 43% Occasionally check for symbol 32% Organic organisations Supermarket/shop Govt/HSE/other public body EU Other Not sure 27% 25% 25% 3% 4% 16% Consistent demand for organic labelling, but for most the word ‘Organic’ is enough. Base: All Organic Buyers: 442 The chart above needs to be considered as it highlights the fact that shoppers are becoming increasingly cynical about all food claims and are calling for greater information on authenticity and traceability to alleviate their doubts. Qualitative findings illustrated even more cynicism among consumers about all food claims and the full authenticity of all organic food was a particular concern. Additionally, there is some confusion as to who should be responsible for overseeing this authenticity, with ‘Organic organisations’, ‘Supermarkets/ shops’ and ‘Government/ State bodies’ each being cited by one quarter of respondents that were surveyed. 14 15 Bord Bia Organic Research Report 2010.doc 6. The Benefits of Organic Food 6.1. Benefits perceived by organic buyers Examining the differences between the benefits of organic, as cited in 2008 versus 2010, it is important to note that while ‘healthier for my body’ is still acknowledged as the most important benefit of eating organic food, it has fallen from 40% in 2008 to 34% in 2010. This suggests that buyers of organic may have lost a degree of faith in the perceived healthiness associated with the category. Other messages that seem to have receded somewhat in terms of associated benefits include: o ‘Free from chemicals & pesticides & therefore healthier’ (reduced from 73% to 68%) – however, it should be noted that there was a slight change to the wording of this statement between the two waves o ‘Fresher’ (reduced from 52% to 42%) o ‘Offers seasonal variety’ (reduced from 26% to 21%) o ‘Guaranteed to be made in Ireland’ (reduced from 20% to 17%) Benefits of Eating Organic Food 45 Q.7a Q.7b Please have a look at this card and tell me which of these do you think are the benefits of eating organic foods? Anything else? Which amongst these benefits that you have highlighted is the most important for you personally? Which second? Which third? Most Important Benefit 79% 80% Healthier for my body 68% 73%** 64% 65% 61% 55% 55% Free from chemicals/pesticides & therefore healthier Is more natural Tastes better Free from antibiotics and therefore healthier n/a Is fresher Is good for the environment/nature Is good for animal welfare Supports the local community Helps me avoid allergies Better for my physical appearance (skin/hair/nails..) Uses less energy for production Offers seasonal variety Guaranteed to be made in Ireland Conveys a certain status Is good value for money Is more convenient to use/cook Has a wider range **Question wording altered in 2010 15 41% 52% 33% 41% 32% 23% 29% 29% 24% 18% 22% 20% 21% 22% 21% 26% 17% 20% 10% 11% 9% 8% 8% 4% 7% 9% Base: All Organic Buyers: 442 2010 2008 2010 % 2008 % 34 40 27 27 7 9 9 7 9 n/a 2 5 1 2 1 1 2 3 1 2 1 1 * 1 - 1 1 1 - 1 1 * * - - * 16 Bord Bia Organic Research Report 2010.doc 6.2. Benefits perceived by non-organic buyers The most important benefits, as perceived by non-buyers of organic food relate to the ‘free from antibiotics’ claim, ‘healthier for my body’, ‘free from added chemicals and pesticides’ and ‘more natural’. While this is interesting to note from the perspective of understanding potential levers that may be used to encourage lapsed buyers and non buyers to engage with the category, it is also important to consider the reasons for not buying organic. What is revealed in considering these reasons is the fact that price remains a key barrier (86%), while 51% admit to not really thinking about organic food, indicating that organic does not even register among these consumers’ consideration sets. In addition, 26% state that they ‘don’t know what the benefits of organic food are’, suggesting that they remain unaware or perhaps unconvinced by the authenticity of these benefits. Reasons For Not Purchasing Organic Food Recently Q.15a Q.15b 58 And for which, if any, of the following reasons would you say you have not purchased organic food recently? And which one of these reasons has most influence on your decision not to buy organic food? Which second? Which third? 2010 Main Reason 2010 2nd Reason 3rd Reason 66 13 4 13 14 21 21% 6 9 7 2008 79% 86% More expensive I never really think about it 45% 51% I don’t know what the benefits of organic food are 26% Variety or range is poor 22% 19% 2 12 5 Is not really different from nonorganic / ordinary food 22% 19% 3 7 10 Does not taste any better 21% 3 10 7 Is not convenient for me 19% 1 7 9 11% - 7 6 13% 1 7 3 12% 1 2 2 - - * Does not look to be as good as traditional produce Does not look very attractive Isn’t available when I go to buy it 15% 11% 7% Is not healthy 1% 12% 15% 3% Base: All Non Organic Buyers: 263 The manifestation of these barriers is evident when we look at the likelihood of non-buyers to purchase organic in the future. Only 1% of respondents assert that they are ‘very likely’ while 19% stated that they were ‘fairly likely’ to purchase organic in the future. However, 78% of non buyers claim that they are ‘unlikely’ to move into the organic purchasing territory in the future. This would suggest limited room for persuasion, unless the key benefits of organic food are fully understood by consumers and ‘hit home’ to motivate their purchase behaviour. 16 17 Bord Bia Organic Research Report 2010.doc Likelihood To Purchase Organic In The Future 60 Q.17a Which of these phrases best describes how likely you are to buy organic food in the future? 2010 % 2008 % Very likely 1 3 Fairly likely 19 15 Fairly unlikely 27 34 Very unlikely Not stated 51 46 2 2 Shoppers who have never bought Organic provide no real scope for future category engagement. Base: All Non-Organic Buyers: 263 17 18 Bord Bia Organic Research Report 2010.doc 7. Increasing the Appeal of Organic The three most popular ways of encouraging people to buy more organic food were: Decrease the price of organic food Increase the range or variety of organic food If more organic food was produced in Ireland 84% 69% 67% However, it must be noted that focusing on these elements as a means to increase organic purchases will impact upon Innate Believers the most; a segment that is already interacting with the category. Factors That May Encourage Buying More Organic Produce by Segment Q.25 62 Please tell me how likely or not you feel each of the following would be to encourage you to buy/buy more (as appropriate) organic produce? % Likely To Consider Decrease the price of organic food 84% Increase the range or variety of organic produce 68% If more organic food was produced in Ireland 67% More information about organic products/food Better availability of organic products in the shop I buy from Have organic food available in more shops IB AS RC SI EC R 96% 94% 98% 90% 79% 68% 96% 85% 95% 82% 57% 33% 94% 82% 91% 80% 58% 33% 63% 91% 71% 84% 72% 57% 34% 62% 93% 83% 89% 72% 50% 28% 62% 90% 80% 90% 73% 51% 27% In-store tasting experience 60% 75% 70% 69% 71% 59% 40% Traceability of products back to source 60% 91% 74% 81% 70% 55% 26% If products were more clearly labelled as organic 59% 90% 71% 87% 67% 53% 24% 59% 87% 51% 76% 64% 59% 38% 76% 65% 67% 62% 60% 30% 86% 68% 71% 62% 52% 25% 38% 32% 47% 35% 40% 15% More understanding about organic farming and production 56% Less packaging / recycled packaging Information on date of picking/harvesting If more people I knew also bought organic 55% 32% A price drop may have some traction with Evolving Considerers. There is potential to encourage current buyers to buy more organic products but non-buyers remain unconvinced overall – Rejectors appear very unlikely to consider organic under any circumstance. Base: All Respondents: 705 The most popular factors, as noted by Rejectors of organic, which would encourage organic purchases were; decreasing the price (68%) and in-store tasting (40%). Among Evolving Considerers, price (79%) and less packaging (60%) are noted as the main factors that would encourage them to buy more organic. However, overall, these segments retain a considerable lack of interest in considering organic purchases, even when presented with factors to encourage purchases, when compared to other segments. With the exception of pricing, there are few triggers that would encourage nonbuyers to engage with the organic category. 18 19 Bord Bia Organic Research Report 2010.doc 8. Testing Organic Messages All respondents were asked to consider a range of messages concerning organic food and assess which one was the most appealing to them. The ‘Organic Farming. Good for Nature, Good for You’ tagline was the most popular across all buyer segments. This message was seen to be communicating the benefits of organic farming and food to the environment and to personal health. It also conveyed a quality message. Most Appealing Organic Message by Segment 74 Q.30a I am going to show to you some communication messages which manufacturers of organic food produce are thinking of using in order to convey the benefits of their products. Which one of these messages is the most appealing to you personally? Organic farming, good for nature, good for you 26% Organic, as nature intended 15% Organic, honest to goodness food 12% Organic, the natural choice 10% Organic, take care of yourself 7% IB AS RC SI EC R 34% 36% 29% 25% 14% 22% 10% 19% 13% 18% 12% 17% 16% 7% 7% 20% 14% 10% 6% 7% 13% 11% 10% 10% 3% 5% 9% 4% 5% 11% Organic, food for the future 5% 6% 3% 4% 3% 8% 7% Organic, a growing alternative 5% 2% 2% 7% 3% 9% 5% Organic, taste the seasons 5% 5% 8% 5% 2% 6% 3% 4% 4% 4% 5% 1% Organic farming, sustaining the future 4% 7% Organic, in goodness we trust 4% 6% 3% 6% 5% 3% 2% 4% 5% 3% 2% 5% 3% * 1% - 2% 1% * - - - - 8% 9% Organic, because food matters 3% Organic, value through its values 1% None of these 4% The good for nature, good for you message is the most popular across all buyer segments. Base: All Respondents: 705 In reviewing these messages within a qualitative forum, there was a strong rejection of any messaging that related back to the pre-recession spending and attitude of consumers. Similarly respondents also rejected messages that sought to focus on either the future, or a sense of ‘pressure’ to consider organic food. The message surrounding organic needs to resonate with today’s consumers on the issues of natural, health, ‘free from’ and ‘back to basics’ at a reasonable and justifiable price. 19 Bord Bia Organic Research Report 2010.doc 9. Recommendations for the Sector 9.1. Summary of Key Findings The ‘Organic Farming. Good for Nature, Good for You’ message continues to connect with consumers in terms of appeal, and this should continue to be harnessed to provide real reasons for consumers to consider buying organic food – to justify higher price premiums across the category. Health (especially ‘free from’ health issues) and taste are still commonly associated with organic food, albeit to a lesser extent than in 2008, and the view that organic has additional benefits compared to conventional food remains with many purchasers. The slight dissolution of these health associations however, needs to be monitored and counteracted through clever messaging and non restrictive price premiums. Qualitatively, the absence of reinforcement of messaging during a period of high media examination of organic certification harmed the category. In the likely event of further scrutiny, industry communications of the positive contribution of organic food and farming will be of major importance. The opportunity to link the ‘free from’ health positioning, which continues to have high relevance, with the potential shift towards a ‘value’ message, may prove fruitful. The consumer focus on messaging tying price to the ‘free from message’ represents the only realistic avenue to a compelling reason to consider organic (given that the sustainability messages have no realistic opportunity of gaining traction and taste cannot be explicitly communicated as a real and tangible benefit). Linking organic ‘values’ to the real ‘value’ of organic food has major potential for future market development. From a qualitative perspective, there was a perception that ‘deals’, especially on vegetables, within the organic category were very uncommon. In today’s climate, an increase in the number and visibility of ‘deals’ could be an important motivating factor for enhancing consideration of, interaction with, and trial of organic food. Currently, there is considerable scope and necessity for the industry to create positive messages for organic food on such issues as traceability, origin and value. This research shows that supporting ‘local food’ in conjunction with ‘organic food’ is potentially a key influencer of purchasing – this is an issue where consumers will engage strongly. Yet confusion remains about the actual origin of some organic food and this, as a reason for purchasing, does not instil purchase conviction. The utilisation of an organic logo or communication tool may also bolster the organic message within this context, by providing clear information on the category. 20 20 Bord Bia Organic Research Report 2010.doc 9.2. Sector Actions Reaffirm the benefits of organic food o Ensure that the slippage of positive associations is countered and addressed. Create visibility and capture shoppers attention o Work to increase the incidence of purchase among high and moderate users. Consider the effects of a ‘silo’ approach to a category that is becoming more mainstream; perhaps a dual location approach be more effective and beneficial. Offer more ‘deals’ o Price remains a key issue for the majority of consumers and a considerable barrier among non buyers. Escape the ‘Celtic Tiger’/ Luxury imagery o 21 Organic needs to be positioned as a relevant food choice for all shoppers, not just for an ‘elite’ who can afford it. This requires it to actively disassociate itself from the ‘high status’ association that it had before and associate its inherent premium with actual benefits. 21