1. Key Market Drivers in the Organic Sector
Dr Maeve Henchion
Ashtown Food Research Centre,
Teagasc

2. Agenda Market context Awareness and understanding of “Organic”
Is organic food delivering what consumers want?
Some supply chain issues
Change!

3. Market Context
Total Organic market is valued at more than €100 million
Fresh + Chilled €77.3
Ambient €26.2
Frozen € 0.7
Grown by 82% in the last 2 years
Signs of growth slowing down

4. Who Buys Organic Food? 2 million grocery shoppers
52% current organic buyers (purchased organic in the past 3-6 months)
Wide range of demographics

5. What kinds of Organic Products are Irish shoppers buying?

6. Awareness of Food Labels
Consumers aware of organic label

7. What does “Organic” Mean?
What does IOFGA say?
Environmentally friendly farming 
Animal welfare 
Farming without drugs, antibiotics, wormers 
Prohibiting GMOs 
Prohibiting chemicals pesticides 
Healthy soil

8. Consumers – Eurobarometer 2005
Irish consumers associate food
with taste
As a vital necessity
Health
pleasure
Positive hedonic connotations

9. Factors influencing food choice
Irish shoppers are guided by quality – health less important (10%)
48% of Irish shoppers state “quality is just as good as non organic” (Nielsen)
38% are not sure about the benefits of organic (Nielsen)
“25% don’t trust the credentials of organic products” (Nielsen)

10. Is organic food delivering what consumers want?

11. Fear of Food
Most Irish consumers associate few risks with food (spontaneous responses)
BUT when consumers are reminded of possible risks – response changes

12. Worry is an important determinant of consumer’s attitudes to food safety!
Consumers are more likely to worry about factors that are outside of their control.
Worry Scale
Top end – external factors which are clearly identified as dangerous e.g. pesticide residues
Mid-range – environmental pollutants, GMOs, BSE
Low-end – personal factors linked to their own behaviour e.g food hygiene at home

13. Profile of Worriers EU aggregate research results report that:
34% consumers can be classified as very worried about food (42% a bit worried, 23% not very worried)
Women more likely to worry more than men
The longer people stay in full-time education the less they tend to worry about potential health risks
40-54 age group most inclined to worry
Stay-at-home house persons (most often women) are most likely to be classified as very worried.

14. Discounters have entered the Irish organic market!
Germany is the biggest market for organic products in Europe but consumption still low with 3.5% share of total food market.
German discounters (Aldi & Lidl) are offering organic food produce – could have an impact on local organic outlets e.g. farmers markets and independent retailers.
Will change consumers perceptions on “expensive” organic produce.

15. Putting the pieces together
Irish organic market is small but growing.
At least 50% of grocery shoppers buy organic but core group small
Awareness of organic is high.
“Benefits” of organic appeal to the “worriers”
need to broaden appeal to include “less worried” and not worried
by broadening appeal of organic products to include consumers need for quality, taste, pleasure
German discounters could change perception of “expensive” but will it be at expense of commodity image?