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British Food Journal

The Demand for Organically Grown Produce


A. Tregear J.B. Dent M.J. McGregor
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A. Tregear J.B. Dent M.J. McGregor, (1994),"The Demand for Organically Grown Produce", British Food Journal, Vol. 96 Iss
4 pp. 21 - 25
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Raffaele Zanoli, Simona Naspetti, (2002),"Consumer motivations in the purchase of organic food: A means-end approach",
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THE DEMAND FOR ORGANICALLY-GROWN PRODUCE 21

Results of recent surveys suggest that factors (1) concern for health, concern for the environment,
which motivate people to buy or avoid organic perception of good taste and perception of novelty
produce are complex. constitute the main reasons why consumers buy
organic foods;
(2) expense, unappetizing appearance, lack of
availability and lack of genuine interest are the
principal reasons preventing individuals from
purchasing organic foods;

The Demand (3) motivations governing purchase of organic foods


vary according to the type of retail outlet in which
they are purchased;

for Organically- (4) availability of organic produce varies according to


the type of retail outlet in which the items are
bought; and

grown Produce (5) the opinions expressed by retailers as to the future


of the organic food market vary by type of retail
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outlet.

A. Tregear, J.B. Dent and M.J. McGregor


Methodology
As information was required from both organic food
retailers and the general public, separate surveys were
British Food Journal, Vol. 96 No. 4, 1994, pp. 21-25
MCB University Press Limited, 0007-070X carried out for both groups. A nationwide postal survey
to 150 randomly selected supermarkets and 112
randomly selected wholefood shops throughout the UK,
all of which were known to stock organic food was central
to the study of retailers. The questionnaire for both
groups had previously been piloted in the Edinburgh
region. Of the total number of questionnaires sent out, 53
Introduction per cent were returned from supermarkets and 67 per
The market for organically-grown products experienced cent from wholefood shops. Over two-thirds of the
rapid growth during the late 1980s, due in part to an responses from supermarkets were completed by produce
increase in public interest for safe and healthy foods[1] managers who are well informed about customer
and in part to a series of widely publicized food scares. demand.
The general increase in the awareness of environmental
issues over this period also contributed to the growth of The study of the attitude of the general public was by
the market for organic food[2]. Nevertheless, some way of a telephone survey of 242 randomly selected
evidence suggests that the proportion of organic food people in the Edinburgh and Lothian district. Of this
buyers among the general public has been decreasing number, 152 interviews were completed (63 per cent
positive response), while the remainder were partially or
over the last few years: estimates of a 50 per cent ratio of
totally incomplete for a wide variety of reasons and were
buyers to non-buyers in 1989[3] have been countered with
discounted. The telephone interviews were scheduled at
an estimate of only 13 per cent in 1990[2]. Mintel[2] have
various times of the day and evening in order to ensure a
also cited the post-1989 recession as one of the principal cross-section of response: the aim was to have
causes of reduced demand. It is likely that the factors questionnaires completed by working and non-working
which have limited the growth of organic markets are members of the public as well as to gain information from
both numerous and complex. a range of different age groups and for both men and
women. The majority of respondents were female (62 per
The research described here sought to investigate cent) and nearly one-third were retired. In this survey
demand for organic foods by focusing on five main respondents were asked to indicate whether or not they
issues. These were that: purchased organic foods and to give reasons for buying
or avoiding the produce. Respondents also indicated their
level of interest in certain issues believed to be related to
Accepted 19 February 1994 the purchase of organic produce.
22 BRITISH FOOD JOURNAL 96,4

Results Figure 3. Reasons for Not Purchasing Organic Produce


Public Survey
Analysis of the 152 completed telephone interviews No response
showed that 29 per cent of respondents claimed to buy 5 per cent

organic produce at some time (Figure 1). Of this group 45 Other


Not thought
14 per cent
per cent claimed to purchase organic produce because of 27 per cent
concern for their own health compared with only 9 per
cent who claimed to purchase because of their belief that
organic production was less environmentally damaging Not available
9 per cent Appearance
than conventional agricultural production (Figure 2). 3 per cent
Among non-buyers, the relative expense was most
commonly cited as the reason for avoiding organic food, Sceptical
followed closely by those who indicated that they did not 9 per cent

give the matter any thought (Figure 3). Taste 1 per cent Expense
32 per cent

In terms of interest in certain issues, non-buyers as much


as buyers considered green issues to be important, and
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the two populations were indistinguishable in terms of


their avoidance of foods for ethical or health reasons
(Table I). However, buyers of organic food were
Figure 1. Characteristics of Respondents significantly more likely than non-buyers to undertake
daily activities which demonstrated their concern for the
80
environment, such as recycling or purchase of
environmentally friendly products. It was found that
there was no statistical difference between buyers and
64 non-buyers of organic foods in relation to the basic
Percentage of respondents

60
awareness and knowledge of the term organic. In both
cases, the term was defined satisfactorily.

40

29

20 Among non-buyers,
7
relative expense was most
0
Organic Non-buyer Unaware
commonly cited
buyer of term

Organic food purchase has been linked to relatively


Figure 2. Reasons for Purchasing Organic Produce highly paid occupations because of the implication of a
high level of disposable income. Such members of the
Own health
population tend to be open to and adoptive of new
45 per cent product ideas.

Family health The surveys showed that the proportions of buyers to


9 per cent non-buyers varied considerably between occupational
groups. Almost half of the professional/ clerical
Environment respondents were organic food buyers compared with
concern
9 per cent about 15 per cent of those classified as manual and 25
To encourage Additives
per cent of old age pensioners.
5 per cent concern
7 per cent
Retailer Survey
Curiosity
Other 5 per cent In the retail survey, managers were asked to indicate their
20 per cent understanding of why customers bought organic foods.
There was an interesting distinction between the
THE DEMAND FOR ORGANICALLY-GROWN PRODUCE 23

Table I. Characteristics of Buyers and Non-buyers of Organic Food

Avoid specific food Avoid specific food


Undertake activities out of How important are Green purchases on ethical purchases on health
concern for Green issues issues? grounds grounds
Not
Yes No Important Important Yes No Yes No

Buyer 33 11 43 1 3 41 28 16
Non-buyer 45 60 99 9 7 100 64 44
x2=12.84 x2=5.369 x2=0.004 x2=0.251
p>0.001 p>0.05 p>0.05 p>0.005

Figure 4. Percentage Wastage of Organic Produce between Supermarkets and Wholefood Shops
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Percentage Percentage

> 50 3 > 50 19

> 25 16 > 25 38

< 25 42 < 25 35

Negligible 32 Negligible 8

No response 7 No response 0

0 20 40 60 80 100 0 20 40 60 80 100
Percentage Percentage
Wholefood stores Supermarkets

responses of managers of wholefood shops compared In the retailer survey, supermarkets were generally found
with supermarkets. In wholefood shops, managers were to incur greater costs when stocking organic foods and
of the opinion that concern over personal health (41 per suffered higher levels of wastage compared with whole
cent) and concern over family health (45 per cent) were food shops (Figure 4). Yet supermarkets did, however,
the main reasons for buying, while only 10 per cent present a more extensive and consistent range of fresh
highlighted concern for the environment. Supermarket organic produce in comparison with smaller retailers
managers estimated that concern about environmental (Figure 5).
damage to the countryside by conventional farming was
an important reason for purchase (30 per cent) together In terms of opinion of the market, most retailers were
with concerns about personal (27 per cent) and family optimistic about the future for sales of organic produce
health (27 per cent). Neither supermarket nor wholefood and believe the higher price of organic food was the single
shop managers believed that the supposedly less most important barrier to market expansion (Figure 6).
attractive appearance (less uniform) of organic food acted
as a disincentive to purchase. A small proportion (13 per
cent) of supermarket managers indicated that in their Discussion and Conclusions
opinion customers believed organic food had an improved The research found that 29 per cent of the general public
taste over conventionally grown food. bought organic foods at some time, a proportion which is
24 BRITISH FOOD JOURNAL 96,4

Figure 5. Extent of the Range of Organic Produce Held

Percentage Percentage

Wide 55 Wide 65

Average 9 Average 20

Limited 15 Limited 14

None 21 None 1
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0 20 40 60 80 100 0 20 40 60 80 100
Percentage Percentage
Wholefood stores Supermarkets

smaller than that found by Dent[4] and by the Henley Organic produce was commonly perceived by the general
Centre[3]. public to be a healthy and environmentally friendly
option. There appeared little evidence to support the
The methodology of these various surveys, however, is often held view that misshapen or non-uniform size of
incompatible and so too are the sample sizes. While the organic produce was a disincentive to purchase. Some
current survey appears to indicate that the proportion of evidence is provided that at least some purchasers of
organic buyers in the general public has decreased organic produce believe that the taste of the food was
somewhat, supporting the findings of Mintel[2], this enhanced over conventionally grown products. The
finding can only be a tentative conclusion. perception of organic food being expensive was

Figure 6. Opinions Expressed by Wholefood and Supermarket Respondents on Price as a Market Barrier and the Future Market
Prospects for Organic Food

(a) (b)
Percentage Percentage

Wholefood stores Wholefood stores

Yes 65 Yes 54

No 35 No 11

No response 2 No response 35

Supermarkets Supermarkets

Yes 79 Yes 62

No 21 No 7

No response 50 No response 27

0 20 40 60 80 100 0 20 40 60 80 100
Percentage Percentage
High price is a market barrier? Optimistic about future for organic food?
THE DEMAND FOR ORGANICALLY-GROWN PRODUCE 25

widespread and this could be a disincentive to purchase. be lower than supermarkets, could perhaps concentrate
Certainly, proportionately more people with higher their efforts on increasing the range of organic products
disposable income purchased organic food than in other on the shelves. It should be noted that such outlets tend to
socio-economic groups. There was also some evidence to stock a much narrower range of fresh organic products
suggest that more people would buy organic produce if than supermarkets do. Partly because of the strategy of
the price differential was lower. Such evidence should be stocking fresh organic produce, supermarkets tend to
assessed with care, however, because of the obvious incur substantially more wastage than in wholefood
difficulty relating to the reliability of asking questions shops. In a marketing strategy, therefore, supermarkets
about what actions might be taken in totally different could consider ways of reducing wastage levels and
circumstances to those experienced to date. generally bringing down the premiums on organic foods
without compromising the range of organic products that
they offer.

Expense could be References


a distinctive to 1. McGregor, M.J. and Blackholly, H., A Quantitative Study
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of Consumer Attitudes to Organic Produce , OFC Report,


purchase School of Agriculture, Edinburgh, 1990.
2. Mintel, Organic Food Special Report, Mintel
International, London, 1991.
3. Henley Centre, The Market for Organic Food, Report to
Some general guidelines on the marketing strategy for Mid Wales Development, Newton, 1989.
organic foods in different retail outlets can be deduced 4. Dent, S.J., Consumer Awareness and Attitudes Towards
from the survey. Wholefood shops, which tend to be small Organic Produce, Report to Covent Garden Market
businesses and whose organic prices tend to on the whole Authority, London, 1988.

A. Tregear and J.B. Dent are from the Institute of Ecology and Resource Management, University of Edinburgh, and M.J.
McGregor is from the Rural Resource Management Department, Scottish Agricultural College, Edinburgh.
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