The Irish Organic Consumer 2014
– A Qualitative & Quantitative Research Study
Presentation of Findings
© Ipsos MRBI
Job No./Title/Date
14-026457/Bord
Bia Organics Research/April 2014
10 July 2014
Agenda

Objectives & Approach

Overview of Research Findings

Concluding Thoughts & Discussion
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14-026457/Bord Bia Organics Research/April 2014
2
3
Introduction
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Job
14-026457/Bord
No./Title/DateBia Organics Research/April 2014
Dual Methodological Approach
QUANTITATIVE
850 CAPI interviews
•
Nationally representative
face-to-face survey
•
700 housekeepers (18+), and
booster interviews with
100 recent organic buyers and
50 Millennials
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QUALITATIVE
4 focus groups
• 2 groups in Dublin (urban),
2 groups in Athlone (rural)
• Urban & Rural Millennials,
Young Mums, Empty Nesters
• Regular & occasional organic
buyers
Research Objectives
Quantitative measurement of
attitudes and behaviour in relation
to organic food and drink
5
Qualitative exploration of
the context in which
decisions are made
 Purchase incidence, frequency,
and consumer profiles
 Consumer understanding and
definition of organic
 Consumer understanding
 Understanding shopping for
organic
 Perceived benefits and factors
influencing purchase/rejection
 Organic categories and brands
 Purchase channels, labelling
 Recessionary impact
 How have consumer segments
evolved over time?
 Promoting organic, labelling
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Overview of Findings
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Consumer Confidence Is Starting To Return
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But The Price of Food & Groceries Remains A Concern
Q.39
8
Which of these statements that I will read out best describes your purchasing of food and groceries in the next 12 months?
Less
concerned
As concerned
about how much I pay
about how much I pay
6%
More
concerned
about how much I pay
66%
28%
“A higher electricity bill can
mean less organic shopping”
[Young Mum]
Base: All Respondents: 863
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Buying Irish and Shopping Local Is Increasingly Important
Q.32
9
During the recession, Irish food shoppers have been examining how they shop and what they buy. For each of the following, please tell me if you feel
the statement applies to you a lot, applies to you a little or does not apply to you at all?
Applies A Lot
2010
44%
2014
49%
42%
35%
25%
Look out for Irish products
Choose local products
Shopping local
Why is buying Irish important?
‘Local’ distinction debatable…
For me – quality, trust,
traceability
Is buying Irish or supporting
local businesses enough?
For Ireland – feel-good factor,
supporting jobs and industry
Appeal of a ‘local organic’ label
is limited to current buyers
Base: All Respondents: 2014: 863 / 2010: 705
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28%
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Organic Purchasing Remains Stable Among Core Group
Q.2
10
And when was the last time you bought any organic food produce?
2008
(1,000)
%
Past week
2010
(705)
%
31
33
45%
Past month
Past 3 months
Past 6 months
Longer ago
2014
(863)
%
34
47%
45%
14
13
11
3
4
9
5
3
7
5
12
18
Never
39
33
Base: All Respondents: 2014: 863 / 2010: 705 / 2008: 1,000
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Organic Purchasing Retains Momentum Among Buyers
Q.11
11
Has the amount of organic food you have bought in the last 12 months increased, decreased or stayed the same compared to the previous year?
2008
(637)
%
Increased
Stayed the same
Decreased
Don’t know
What has driven
momentum?
2010
(442)
%
2014
(520)
%
30
27
62
66
8
7
-
-
50
46
3
2
Increased
awareness
Consumer
life-stage
Wider
availability
Base: All Organic Buyers: 2014: 520 / 2010: 442 / 2008: 637
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Own-label
affordability
Concerns
over nonorganic
But Organic Purchasing Behaviour Is Often Inconsistent
Q.8a
12
Thinking about how you make your decision to buy organic products when shopping. Which of the following best describes your organic shopping
decision?
27%
I know what organic products I am going to buy
before I go shopping
32%
33%
27%
I choose organic products by looking at the display
to see what organic products are available
31%
33%
16%
I buy organic food products only when they are
available on a promotion or a deal
2014
2010
2008
10%
5%
The View From Trade (2013):
“It is your business, it is your product,
you need to promote that range”
Promotions can
influence in certain
categories (e.g. Aldi’s
Super 6), but organic
buyers not inclined to
compromise on meat
“You decide while you're there…
it depends on your wallet”
[Rural Millennial]
Most organic shopping
tends not to be a
destination purchase,
but rather driven by an
occasion or a desire to
reward or treat
Decision can be
triggered by an
opportunistic moment
of truth in-store,
driven by price and
other visual cues
Base: All Organic Buyers: 2014: 520 / 2010: 442 / 2008: 637
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“They can be a bit sad looking
and limp which can put you off”
[Empty Nester]
Greater promotion of
organic (e.g. strong
bespoke packaging, or
in-store tastings) has the
potential to increase
purchase frequency
Increases In Organic Special Occasions Among Buyers
Q.33
13
For each of the following occasions, please tell me if you usually buy organic foods, sometimes buy organic or never buy organic?
If the occasion is not relevant for you, please say so.
Buy always or sometimes
80%
For evening meal at home
76%
79%
For lunch at home
74%
75%
For Christmas dinner
77%
72%
As a treat
For breakfast at home
62%
For a romantic meal at home
55%
For kids lunches
64%
47%
37%
35%
54%
53%
Base: All Organic Buyers each statement applies to: 2014: 520 / 2010: 442
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66%
61%
When giving food as a gift
When detoxing
69%
74%
68%
For a dinner party
When dieting
88%
2014
2010
74%
Segmentation Identified Two Clear Target Groups
– Based on Attitudes to Organic
14
Q.28 I am going to read out some statements that people have made about organic food. Can you please tell me, to what extent would you agree or disagree
with each statement?
Passionate
24%
Rejectors
20%
TOTAL
Passionate
Engaged
100%
24%
13%
Dublin
28
27
21
Rest of Leinster
27
23
32
Munster
27
30
37
Conn/Ulster
18
20
11
Size of Segment
Accidental
23%
Engaged
13%
Casual
20%
Base: All Respondents: 863
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Understanding the Target Groups – Passionate & Engaged
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Passionate – Fully committed to Organic concept
• More likely to be; female, age 65+, AB social class, live in Munster / Conn/Ulster and to
purchase weekly.
• Over index on shopping in SuperValu. Majority prefer a dedicated section in store.
• Whilst many check for certification label, the Organic label is often enough.
• Price is not an issue – they will pay more for Organic. They are likely to plan their Organic
purchase.
• They like ‘Local’ Organic proposition and claim that ‘Irish Organic’ is very important – but
are open to imports.
Engaged – More moderate purchasing, health-conscious
• More likely to be; female, aged 34-64, living in an urban area, outside Dublin.
• Moderate purchasers, with less planned purchasing and more likely to buy on promotion
and impulse.
• Convinced Organic is healthier, understand why Organic is more expensive but are not
willing to pay the premium.
• Less likely to check for Organic certification label.
• They also like ‘Local’ Organic proposition, but are less convinced that ‘Irish Organic’ is
very important.
Base: All Respondents: 863
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Understanding Non-Target Groups – Casual, Accidental, Rejectors
16
Casual
•
•
•
•
•
More likely to be; age 25-34, urban/Dublin and C1 social class.
Less frequent and less planned purchasing of organics.
More sceptical about the organic concept (incl. taste and ‘free from’ claims).
Less concerned with impact on health, food provenance, certification or sustainability.
No real potential to convert upwards as they do not buy into the organic concept.
Accidental
•
•
•
•
•
More likely to be C2DE social class, otherwise no clear pattern.
Very few purchase organics, & majority unlikely to buy in future (only on promotion, if at all).
Price is a significant deterrent, as well as inherent scepticism re: health and other benefits.
Little interest in ‘local organic’, certification, provenance or sustainability.
No real potential to covert.
Rejectors
• More likely to be DE social class, and in rural areas.
• Non-purchasers of organic, even price reductions are unlikely to encourage purchase.
• Total disbelievers in the concept of organic – see little difference and have little interest,
are less health conscious.
• No engagement in organics and no potential to convert.
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Non Organic Buyers Unlikely To Be Converted In Future
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Q.17a Which of these phrases best describes how likely you are to buy organic food in the future?
Non-buyers more likely to be in the DE social class
Very UNLIKELY
Total UNLIKELY
87%
80%
78%
52%
51%
46%
2008
2010
Base: All Non-Organic Buyers: 2014: 343 / 2010: 263 / 2008: 363
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Perceived Expense Is Increasingly The Dominant Barrier
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Q.15b And which one of these reasons has most influence on your decision not to buy organic food? Which second? Which third?
Main Reason
- More Expensive
Other Reasons For Not Purchasing
… I never really think about it
79%
63%
18%
… does not taste any better
16%
… is not really different from
non-organic/ ordinary food
… I don’t know what the
benefits of organic food are
66%
16%
14%
… the variety or range is poor
11%
… is not any better for you
… isn’t available when I go to buy it
7%
… does not look to be as good
as traditional produce
7%
… does not look very attractive
2008
2010
9%
6%
2014
* Answers 5% or less not shown
Base: All Non-Organic Buyers: 2014: 343 / 2010: 263 / 2008: 363
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Consistent ‘Theoretical’ Definition of Organic Among Buyers
• No/free from…
• Chemicals, pesticides,
sprays, hormones, GM,
antibiotics, artificials,
manufactured
• Consumer benefits…
• Healthier (in theory)
• Nutrition (not in reality)
• Tastier flavour
• Animal welfare…
• Space, free range, better
treated, better produced
“When you look at all that,
it’s not commercially viable”
[Empty Nester]
“I just think it’s healthier”
[Urban Millennial]
• Certain characteristics…
Base: All Qualitative Respondents: Organic Buyers
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•
•
•
•
Naturally produced/grown
Not uniform in shape
Colour – less vibrant
Expensive
19
Recession Has Heightened Perception of Cost Difference with Organic
Q.34
20
In your experience, how much more in percentage terms, if anything, do organic (a) vegetables / (b) dairy foods / (c) meat cost compared to non-organic?
Vegetables
2010
%
Dairy Foods
2014
%
20
Up 10% more
32
2010
%
Meat
2014
%
16
2010
%
2014
%
10
8
26
19
26
26
10
26
11-20% more
8
33
11
32
11
21-25% more
30%+ more
Costs the same
Not sure
7
12
1
16
30
10
2
*
10
22
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1
1
Base: All Organic Buyers: 2014: 520 / 2010: 442
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7
17
24
1
13
Organic Buyers Can Struggle To Justify The Positives
21
In some cases, push factors (absence of negative) outweigh pull factors (appeal of organic)
Avoidance
Factual
Aspirational
(from consumer perspective)
The absence of a
negative
(e.g. chemicals)
“Not pumped with stuff”
Better than the
alternative
Protection of self
and family
Animal welfare
Often to the fore
More natural
Healthier
Premium
Fresher
Higher quality
Better for me
Better taste/flavour
More nutritious
“Doesn’t taste fake”
More trusted
Value for me
Feel-good factor
Justification
The outcome for me
Base: All Qualitative Respondents: Organic Buyers
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“I feel it is”
(but may know it is not)
Increased Awareness of Organic Range Now Available
Q.6b
22
I am reading out the names of a few food products. Which of these are you aware of that are available to Irish consumers to buy in organic form?
2010
94%
93%
69%
Vegetables
82%
84%
2014
82%
80%
78%
60%
Eggs
Fruit
50%
Poultry & Pigmeat
Red Meat
66%
50%
31%
Dairy products
7%
17%
Alcoholic drinks
37%
Fish
21%
25%
16%
Bakery products
13% 15%
11% 13%
Non-alcoholic
drinks
Deli counter
8%
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14%
Condiments
10%
Processed meals
Base: All Respondents: 2014: 863 / 2010: 705
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22%
7%
17%
Confectionary
9%
Ready meals
6%
8%
Processed fish
Increased Exposure Across Most Organic Categories
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Q.10a Which, if any, of the following have you bought in organic form in the last 1 year?
2008
91%
87%
83%
70%
Vegetables
73%
2010
2014
83%
81%
66%
Dairy
69%
70%
Meat
68%
74%
Fruit
48%
35%
29%
18%
Cereal & Bakery
30%
27%
15%
Drinks
10%
12%
Confectionary
Base: All Organic Buyers: 2014: 520 / 2010: 442 / 2008: 637
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37%
18%
Other
(honey/soups/cooking oils)
General agreement among buyers that organic food is more accessible now
– ‘mainstream’ availability in supermarkets, purchased year round
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31%
But Organic Can Be Difficult To Find In-Store For Some
24
Q.29f When shopping for food, can you always find the organic food section, is it sometimes difficult to find, or do you have difficulty a lot of the time finding the
organic food section?
Q.29h When shopping in supermarkets, would you prefer for all organic foods to be located all in the one place or would you prefer for organic and non-organic
foods to be together?
Organic Food
Section
2010
(442)
%
Preference for
Display
2014
(520)
%
2010
(442)
%
2014
(520)
%
44
Can always find
Located in one
place
60
69
64
46
Sometimes find
Difficult to find
33
7
Organic & nonorganic together
10
Not stated
Base: All Organic Buyers: 2014: 520 / 2010: 442
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-
36
0
Debate across groups over best
in-store location for organic
In one place – easy to find but
can become marginalised
• Better suited to those
committed to buying organic
“It’s in a pokey little corner”
[Rural Millennial]
Side-by-side – allows for direct
comparison
• But similar packaging can
make organic less distinctive
• Less frequent purchasers may
prefer this layout
The View From Trade (2013):
“Suppliers think that, once their
product is on shelf, that is it”
Organic Brands & The Importance of Packaging
Surely Organic Is Organic?
• Most claim that the organic label is
more important than the brand (with
an inherent trust in organic labelling)
• Absence of strong recognition for most
organic brands – some brands not
exclusively organic which can
confuse, while most spontaneous
brands are from overseas
• Buying own-label organic
is generally acceptable
“The brand is not
important – organic is
organic” [Young Mum]
Visual Cues Can Influence
• Sample packaging in focus
groups demonstrated the
importance of visual cues,
e.g. branded vs. own-label
organic vs. non-organic
(distinctive vs. homogenous)
“You could have that in your
kitchen on show” / “There’s more
care put into it” / “It’s easy to use,
you could cut the top off it, they go
all over the place in those plastic
bags” [Urban Millennials]
• Although the apples on the
left are organic, the apples
on the right are perceived
to ‘look’ more organic
(in cardboard sleeve)
Base: All Qualitative Respondents: Organic Buyers
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Decrease in Price is the Main Encouragement to Consider Organic
Q.25
26
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?
Buyer
NonBuyer
%
%
73
34
73
38
48
14
42
10
2010
45
13
2014
42
8
42
16
33
8
45
12
42
6
45
12
41
7
% Very Likely To Consider
56%
Decrease the price of organic food
Increase the range or variety of organic produce
If more organic food was produced in Ireland
More information about organic products/food
Better availability of organic products
in the shop I buy from
Have organic food available in more shops
58%
33%
28%
31%
27%
30%
22%
30%
26%
30%
27%
Base: All Respondents 2014: 863 / 2010: 705
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Many Other Factors Could Encourage Purchase Among Organic Buyers
Q.25
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?
Buyer
NonBuyer
%
%
32
15
31
7
46
14
41
10
41
13
36
6
2010
35
13
2014
32
6
% Very Likely To Consider
In-store tasting experience
24%
21%
31%
28%
Traceability of products back to source
28%
23%
If products were more clearly labelled as organic
More understanding about organic
farming and production
25%
21%
Less packaging / recycled packaging
24%
21%
33
13
33
6
26%
22%
37
13
33
7
18
7
13
2
Information on date of picking/harvesting
If more people I knew also bought organic
13%
8%
Non-buyers remain unconvinced overall.
Base: All Respondents 2014: 863 / 2010: 705
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Responsibility for Organic Verification is Uncertain
Q.12c When the word ‘organic’ appears on a product, who is responsible, in your opinion, for making sure the product is actually organic?
Not sure
11%
The
supermarket/
shop
21%
Other
8%
The
government/
Health and
Safety/other
public body
15%
Bord
Bia/Food
Board
23%
The EU
4%
Organic
certification
organisations
18%
Among buyers, 40% always check, 27%
sometimes check and 31% never check
for a symbol certifying organic origin
Base: All Organic Buyers: 520
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“It needs that stamp
of approval”
[Rural Millennial]
Broad, liberal definitions of organic food
debated throughout focus groups, which leads
to a re-appraisal of what truly constitutes
organic, e.g. mentions of ‘degrees of organic’,
‘thin line’, ‘acceptable levels’, ‘difficult to prove’
Although this does not inhibit purchase, as the
word ‘organic’ is trusted at face-value
Lack of a definitive authority to ‘rubber-stamp’
organic food, with low awareness of any
specific logo/sign/symbol for organic
A standard, recognisable symbol for organic
would be welcomed to alleviate concerns and
convey organic in a unequivocal manner
The Euro-Leaf, once identified, is acceptable
and welcomed, but may need to be more
prominently displayed on pack
Concluding Thoughts
Against an economic backdrop where price remains a primary concern, the propensity to buy Irish
and local, where possible, remains high. Although price tensions can affect purchase on occasion,
they are not generally inhibiting and an organic price premium is generally accepted.
Despite the identification of clear target groups (‘Passionate’, ‘Engaged’) and others who will
never buy, many dip into organics on their own terms. These targets are underrepresented in
Dublin, while Millennials do not appear to be particularly committed to embracing organics.
Organic food needs to bring the positive attributes to the fore, as the dominance of push
factors, while legitimate, can lead to purchase justification rather than desire.
A clearly delineated organic retail environment is not there for many consumers. This leads
to fragmented, opportunistic, occasion-driven purchasing behaviour, where in-store
decisions are important (once the organic category has been located!).
While there is increased awareness of and exposure to the wider organic range and portfolio,
consumers place little importance on brand in the organic space. Although the word organic
may be enough, visually appealing packaging and clear labelling are also important.
There is consumer uncertainty over where the responsibility lies for both the verification and
promotion of organic produce.
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