Organic Research 2010 Overview Report Bord Bia

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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
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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.
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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
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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.
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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.
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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.
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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.
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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
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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,
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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.
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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.
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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