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The Surprising Truth About Organic Users
By Laurie Demeritt
The traditional view of the organic consumer is a highly educated, high income, Caucasian female. Although this type of consumer certainly may buy organic products, she in no way represents the entire market. So, who is the typical user of organics? In answering the question, we must be mindful of two related issues.
First, we should be careful talking about organic consumers as if consumption of organics is a simple black or white affair. Many consumers have only recently tried organic products and some who used to buy organics no longer do so. Even among current users, the level of use varies from occasional to daily use and extends from particular product categories to virtually all available categories. Therefore, speaking about the “organic consumer” as if a consumer were 100 percent involved or 100 percent uninvolved in the category is unrealistic.
Second, while organics constitute a small portion of all foods and beverages consumed, double-digit sales growth and expanding consumer interest in organics belie the notion that it represents a simple niche. More to the point, the idea of a niche market calls to mind the image of highly specialized goods produced for a small group of consumers rather than the coincidental convergence of wide-ranging interests. There is a clear divergence of consumer values, attitudes and interests with respect to organic. Thus, small size must not be confused with unity of purpose or need in this category.
Contrary to commonly held perceptions of who the organic consumer is, we find that purchases of organics are no longer confined to a single group of consumers identified by simple demographics. In fact, the demographics of the organic consumer nearly mirror those of the general population, with a diversity of demographic characteristics. The figures below show that one of the greatest myths—that only Caucasian consumers are interested in organic—is simply not true. The following figure contains indices for several ethnic groups. All indices compare each group to the general population (which is at 100), according to the following formula:
• An index above 110 indicates that the group is considerably more likely than the general population to participate in a given activity.
• An index under 90 indicates that the group is considerably less likely than the general population to participate in a given activity.
Compared to the general population, several ethnic and racial groups are somewhat more likely to purchase organics. Interest-ingly, Caucasians are slightly less likely to purchase organic products based on their representation in the U.S. population. This does not mean that most organic consumers are non-Caucasian. Rather, it means that it would be incorrect to target Caucasian consumers as the sole demographic of choice. Most important, we should recognize the significance of what these non-Caucasian groups are telling us about organic users; that they’re a culturally diverse collection of consumers.
Table 1 gives the demographics of consumers who use organic foods and/or beverages, at least occasionally, versus those who do not use organic. Categories in which a segment over-indexes is highlighted in blue and categories in which a segment under-indexes is highlighted in red.
The most readily identifiable aspect of use versus non-use is region, with the Pacific/West Coast being more likely to have organic users, while the Central/ Midwest region is more likely to have non-users. Primarily, this has to do with availability, which historically has favored the West Coast. Twenty-seven percent of organic non-users feel that availability prevents them from buying organics in the Mid-West, while only 12% of non-users don’t buy for reasons of availability on the West Coast.
In terms of education, consumers with advanced education are more likely to use organic, while consumers with only a high school degree are less likely to use organic. For the age category, younger consumers are less likely to be non-users and older consumers are more likely to be non-users. Although these demographics show directional skews in alignment with the traditional view of an organic consumer, they do not negate the fact that consumers in other, non-traditional education and age categories also are experimenting with organic products.
Trends That Drive Organic Use
Differences in income do not show any significant over or under indices. This lack of a consistent difference challenges naïve attempts to explain the trend toward organics as an instance of boutique marketing or a consequence of conspicuous consumption. Rather, it suggests that the perceived benefits of organics as part of a generalized wellness lifestyle may be more important than disposable income to understanding patterns of organic use. Why would lower income people spend more of their money on products that are premium priced? Our qualitative research has revealed that these consumers see their purchases as preventive medicine. They assume that high-quality organic foods, free of pesticides, preservatives and other additives, will maintain their health and the health of their family, and require fewer visits to a physician.
Clearly, demographics are not the driving factor behind organic usage. Defining target markets and anticipating future organic lifestyle trends based solely on demographics provides little or no guidance to marketers because consumers adopt lifestyles at different paces, and pick and choose from a wide selection of products and services that no longer depend on age, income, education or ethnicity. And interestingly, organic adoption has spread so wide that the demographics of the consumer nearly mirror those of the general population. Rather, there are a number of social and cultural factors and influences that affect consumer values and motivations, and therefore affect consumer behavior which cut across demographics, including:
• Media Attention. Consumers are paying attention to what goes on around them and there has been a wealth of news stories on organic over the past two years.
• Loss of Control. Consumers feel that there are very few things they have total control over in their lives. They cannot control their external environment, be it economic or political. Making choices about what they put in and on their bodies is one of the few places they can exercise self and familial control.
• Science and Technology. Scientific and technological advances such as genetic modification and the Internet have made an enormous impact on how consumers think about food. While genetic modification remains more of a core organic consumer concern, the Internet has impacted speed of information for all consumers as well as their ability to make informed choices.
• Transformative Life Experience. Many consumers begin using organics when they have had a transformative life experience such as the birth of a child, diagnosis of a health condition (self, family member or a friend), or a change in economic status.
• Frustration with Healthcare. Consumers are frustrated with conventional forms of healthcare and are increasingly becoming more proactive with their health and are looking to food as medicine. Many consumers believe that avoiding pesticides, chemicals, steroids, hormones and antibiotics will lead to better health for a longer period of time.
The Impact of September 11th
September 11th caused consumers to think more critically about the personal choices they make in their lives. It heightened their interest in food safety and reinforced their desire to support local businesses and the environment.
Each of these social and cultural factors influences the way consumers approach life, as well as the choices they make about conventional and organic products. Therefore, understanding the consumer is not solely about identifying the right demographics, rather it’s about understanding social contexts and considering consumer lifestyles as part of your overall framework.
What does all this mean in terms of marketing to the organic consumer? First, it seems evident that organics are going mainstream. While still constituting only a few percentage points of the total food and beverage market, organics have reached every major demographic. With the exception of regional differences that should diminish as distribution and production continue to develop, we see purchase and use of organics by a cross-section of the population representative of nearly all consumers.
Second, the diversity of users belies any mass marketing strategy intended to reach the new organic consumer.
The mainstreaming of organics has not evolved with one or two organic consumer types, but rather has profited from the fortuitous convergence of a multitude of related and unrelated consumer interests that find expression in organics.
The values and beliefs that have supported the growth of the organic marketplace range from worries over food security to concern for the environment to questions of personal health. They encompass narrow self-interest, as well as global community ideals. Directing campaigns at a mass market, therefore, would fail to connect with the full spectrum of organic consumers. Instead, marketing which targets the points of intersection for this proliferation of emerging interests is necessary.
Above all, organic consumers come from all walks of life, cite a wide range of benefits met by their use of organics, and use them with varying degrees of commitment to what others espouse as the values and ideals of organics. Understanding this organic lifestyle is a key step in understanding today’s organic consumer.
Laurie Demeritt is President and COO of The Hartman Group, a leading consulting and market research firm. The Hartman Group specializes in the analysis and interpretation of consumer lifestyles and how these lifestyles affect the purchase and use of health and wellness products and services. Their client base includes a number of Fortune 500 consumer packaged goods and pharmaceutical firms, and food retailers. You can e-mail her at laurie@hartman-group.com. |
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