LORCAN BURKE - How Modern Irish Consumers View Organic Food
Transcript of LORCAN BURKE - How Modern Irish Consumers View Organic Food
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How Modern Irish Consumers View Organic
Food
Lorcan Bourke 4/9/2008
Ethics, Attitudes and Behaviour to Organic Food
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Contents of the Presentation
1. Research Background & Purpose
2. Ethical Issues
3. Consumer Attitudes to Organic Food
4. Consumer Behaviour to Organic Food
5. Communicating the Organic Message
Main Focus
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Research Background & Purpose
Regular, Occasional and Non-Rejecters of Organic Produce across RoI
8 initial consumer focus groups
1,000 face-to face consumer interviews Nationally Representative Sample of
Main Irish Grocery Shoppers 18+
Fieldwork was conducted by TNS MRBI in August, 2008
Study funded by DAFF OMDG National Organic Marketing Plan 2006-2009
A Consumer Perspective on
Organics Today and into the
Future
The Role ofOrganics as an
Ethical choice
Consumers and
Organics: Attitudes
at the Heart of
Decision Making
BehaviouralChanges: Past,
Present and Future
Drive Insight to Assist Organic
Market Development in Ireland
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Ethical Issues Awareness Of Food
Labels(All Respondents n = 1,000)
50%
60%
72%
78%
85%
94%
98%Organic
Free range
Local Produce
Fairtrade
GM-free
Carbon Footprint
Food miles
Q.18a Please have a look at this list, which contains names of different types of food labels. Which of these have you heard of, or
are familiar with?
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Ethical Issues -
Awareness & Concern
(All Respondents n = 1,000)
Reducing carbon footprints Reducing food miles
Support fairtrade
Recycling
Supporting local produce
Supporting animal welfare
Combating global warming
4
7
9
4 7 9
Personally Concerned
ActivelyTakingSteps
High concernLow concern
Less
active
More
active
Organic
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Ethical Issues -
Awareness & ConcernAmong Organic Believers
(n=229)
Personally Concerned
ActivelyTakingSteps
High concernLow concern
Less
active
More
active
Reducing carbon footprints Reducing food miles
Support fairtrade
Recycling
Supporting local produce
Supporting animal welfare
Combating global warming
4
7
9
4 7 9
Organic
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Ethical Issues - Consumer Buy-In
Without simple practical action, consumers responses to ethical issuesare likely to lack significant action on their part.
Consumers are happy to delegate responsibility to others
Recycling is currently seen as the fix all for all environmental related
problems in Ireland
Making something easy to be involved in isnt enough, people need tofeel involved in a bigger story
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Attitudes What Does The Term
Organic Mean?
(All Respondents n = 1,000)
15%
17%
20%
24%
24%
27%
27%
31%50%
52%
53%
63%No chemicals/pesticides
Expensive
Healthy
Natural
Fresh
Tastes better
Good for you
Good for the environment
Safer
GM free
BSE free
Better animal welfare
Q.6a Which of these words would you associate with organic food?
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Attitudes Who Buys Organic Food?
Adult (18+) Grocery Shoppers
100%
(2.00m)
Current Organic Buyers52%
(1.04m)
Non-Buyers of Organic48%
(0.96m)
Evolving
Considerers
9%(0.17m)
Rejectors
39%
(0.78m)
Organic
Believers
17%(0.35m)
Health
Managers
/ StatusSeekers
28%
(0.55m)
Core Buyers - Purchased
Organic in the Past Month
Aspirational
Improvers
7%(0.14m)
Peripheral Buyers
Purchased Organic
in Past 36 Months
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Organic Food Market in Ireland Size
and Growth Year on Year
-23.8%0.730.1%0.90.7Total Frozen
38.2%77.334.1%55.941.7Total Fresh + Chilled
43.8%26.221.4%18.215.0Ambient Groceries
38.8%104.230.7%75.057.4Total Food
(millions of euros)
% Chg
YoY
08
vs
07
52 W/e
13
Jul
08
% Chg
07
vs
06
52 W/e
15
Jul
07
52 W/e
16
Jul
06
(Source: TNS Worldpanel data)
The size of the organic market stands at more than 100 million euros in 2008, and has grown by 82% in
the last 2 years. Despite growth of 30-40% in the past 2 years, there are signs that the growth is slowing
down (14% in the past 6 months).
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Attitudes Five Organic Segments
Organic BelieversDemographics and Behaviour
Likely to be older, affluent women,
still with children in the home and
more likely to shop in Superquinn
Emotion
Organics is an integral part of them
that makes them feel nurtured and
in balance.
Health ManagersDemographics and Behaviour
Between 35-45 years of age,
urban living, middle class and
more commonly seen in Tesco.
Emotion
Organics is a discerning choice
that enables them to manage and
control their health.
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Attitudes Five Organic Segments
Status Seekers
Demographics and Behaviour
Tend to be 45-54 years of age,
living in more regional/ ruralareas, middle class.
Work/organised people.
Emotion
Organics makes them feel
ahead of their peers and is a
modern sophisticated option.
Aspirational ImproversDemographics and Behaviour
Families who are middle/ working
class. Like the idea of shopping
in farmers markets.
Emotion
These parents look to do the
least damage to world around
them. When they can afford it,
Organics is good for their
children and the world.
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Attitudes Five Organic Segments
Evolving ConsiderersDemographics and Behaviour
Late 20s/ Early 30s urban
dwellers.
Emotion
They are easy going about life but
recognise that their health will
become more important as they
age. Organics is a high quality
product that has the potential to fit
this healthier lifestyle. Problem with
availability where they shop.
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8%
11%
18%
41%
73%
80%
29%
0%
1%
1%
5%
7%
8%
10%13%
13%
19%
27%
39%
65%
52%
55%
26%
29%
23%
20%
9%
4%
22%
20%
33%
6%
4%
2%3%
Buyers Non-buyers
Attitudes Perceived Benefits Of Eating
Organic Food: Non-Buyers vs Buyers
(All Respondents n = 1,000)
Is healthier for my body
Does not have added chemicals or pesticides
Is more natural
Is fresher
Tastes better
Is good for the environment/natureOffers seasonal variety
Supports the local community
Is good for animal welfare
Is guaranteed to be made in Ireland
Is better for my physical appearance
Uses less energy for production
Helps me avoid allergiesConveys a certain status
Has a wider range
Is more convenient to use/cook
Is good value for money
Does not have any benefits
Q.14 What do you think are the benefits, if any, of eating organic foods?
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Attitudes Reasons For Not Purchasing
Organic Food RecentlyAll non-buyers (n=363)
1%
10%
11%
10%
12%
16%
16%
15%
21%
44%
77%Is more expensive
I never really think about it
I dont know what the benefits of organic food are
The variety or range is poor
Is not really different from non-organic / ordinary food
Is not convenient for me
Does not look very attractive
Isnt available when I go to buy it
Does not taste any better
Does not look to be as good as traditional produce
Is not healthy
Q.15a And for which, if any, of the following reasons would you say you have not purchased organic food recently?
Q.15b And which of these reasons has most influence on your decision not to buy organic food? Which second? Which third?
79%
40%
25%
31%
12%
27%
6%
19%
5%
7%
2%
Evolving
Considerers
All
Reasons
Rejecters
78%
45%
21%
11%
17%
14%
13%
8%
13%
11%
1%
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Attitudes The Synergy Between
Organic And Local
(All Respondents n = 1,000)
When specially offered the idea of local organic, as much as half of all respondents
agreed that it would increase their interest in buying it.
Among Organic Believers, this was 80%+.
(289)(67)(60)(348)(229)(1,000)
33
3
61
Evolving
Considerers
72
3
23
Rejectors
Would have no impact
Decrease my interest
Increase my interest
44
3
52
Aspirational
Improvers
341546
112
628150
Health Manager/
Status Seekers
Organic
BelieversAll
Q.18d Some people that we have spoken to say that they prefer buying local produce and some others say that they prefer buying organic produce. If Irish food
producers were to offer you products that combined both these aspects under the label local organic, would it increase your interest in buying these products, or
decrease your interest, or would it have no impact on your current interest level?
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7%
9%
25%
59%
Attitudes Role of Organic Symbols
(All Respondents n = 1,000)
The word organic on the food packet
A symbol from a certifying body
The fact that the retailer stocks it
Dont know
Higher Among:
55-64 67%
C2 66%Outside Dublin 61%
Organic Believers 67%
Higher Among:
ABC1 30%
Dublin 31%
Q.27 If you were considering buying organic food, which of these would you rely on the most to guarantee the authenticity of that food?
Higher Among:
18-24 16%C2DE 11%
Rural 11%
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Behaviour What Organic Categories
Are Being Purchased?All organic buyers (n=637)
35%
10%
18%
30%66%
70%
70%
91%Vegetables
Dairy products
Fruits
MeatCereals/bakery
Drinks
Confectionery
Other products (honey, jam, soups, etc.)
Q.?
Among vegetables, carrots was most popular (71% of current organic buyers have purchased
carrots in the past year, followed by potatoes (58%) and tomatoes (46%).
Within dairy products, incidence of buying eggs (57%) was much ahead of the next highest
product, yoghurts (31%). Cheese was at 20%.
Organic chicken (57%) was the most popular meat product, followed by beef (25%) and lamb
(16%).
Bananas and strawberries were the two more popular fruits (both at 39%).
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Behaviour The Most Popular Product
CategoriesAll organic buyers (n=637)
Low
Chocolate Jams/
Smoothies preserves
Flour Rice
Bfast cereals
Fresh soups
PastaHoney
Milk Pears
Cheese Kiwi fruit
Butter Oranges/citrus
Frozen veg Fruit juices
Pepper Bread
HighMedium
-Strawberries
Lower
Carrots
Potatoes
Eggs*
Chicken*
Beef Tomatoes
Yoghurt Onions
Cauliflower Broccoli
Cabbage Parsnips
Mushrooms ApplesLettuce Bananas
Higher
Percentage of People Buying
FrequencyofPurcha
se
* There may be some over-claim on these two products, as some consumers tend to refer to f ree-range with organic. Interchangeably.
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Behaviour Organic Purchasing For
The Future?(FutureViewTM sub-sample n=329)
Using a special research technique we were able to identify a more future-oriented section ofthe Irish shopper population.
Looking at the purchase basket of these future-oriented people gives us a good idea whichitems are expected to grow more popular in the future.
Lamb Jams / Preserves Pears Peppers Honey
Bread Parsnips Mushrooms Onions Cauliflowers Fish Beef Cheese
Cabbage
Amongst the more commonlypurchased items:
Cream Ice cream Tomato ketchup Rice Pasta sauce
Snacks Smoothies Pasta Butter Pigmeat / pork / bacon
Amongst the less commonly purchaseditems:
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Behaviour Where Do Current Organic
Buyers Shop For Organic Produce?All organic buyers (n=637)
Local butcher
SuperValu
Tesco
CentraMarks & Spencer
Country market
GreengrocersFarm shops
Specialist organic shop s
Convenience stores
Superquinn
Farmer's market
Dunnes Stores
Regular Grocery Shopping At
Bought
OrganicFrom,InLast6
Months
Low High
High
Low
Aldi/Lidl
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2333
42
566514
19
25
23
20
14
19
14
1410
30
2013
5 3
177 5 2 1
Behaviour Are Consumers Ready To
Pay A Price Premium For Organic?(n=1,000)
Definitely buy
Probably buy
Unsure
Probably not buy
Definitely not buy
In the current economic climate, 47% of all consumers would definitely or probably buy
if a 10% premium is charged. At higher premiums, this interest drops off sharply.
However, among the core organic buying segment* those who have purchased organic
in the last 1 month (45% of respondents) the outlook is healthier as 73% are definitely
or probably willing to pay a 10% premium.
10% 15% 20% 25% 30%
Extra Extra Extra Extra Extra
% % % % %
If you were considering buy organic food rather than non-organic food,how likely or not would you be to buy organic if you had to pay
* n = 577
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0%
20%
40%
60%
10% extra 15% extra 20% extra 25% extra 30% extra 35% extra 40% extra
%P
roba
bly/DefinitelyBuy 2003 2008
Behaviour Are Consumers Ready To
Pay A Price Premium For Organic?(All respondents; 2003 n=620, 2008 n=1,000)
People are much less willing to pay a price premium for organic in 2008, versus 2003.
Unlike in 2003, when purchase interest dropped sharply after the 20% premium level, 5 years
later, it is a steeper drop from the 10% level until the 30%-level.
Price Premium
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Summary of Research Key Points
Organic has the greatest recognition of all ethical food labels
Recycling seen as the panacea on other ethical issues consumers need a lead (a simpleset of practical steps)
Battle for consumer spend is in terms of Free-from health benefits vs the relative expense
Organic food is a growth category (104m = +82% growth in 2 years). 45% of all shoppers in2008 vs 20% in 2003 (purchased in last month)
More people buying organic habitually since 2003
For organic and local [ 2 +2 = 5 ] - synergy exists - Irish supplier opportunity
For most consumers the word organic is guarantee enough
Fresh produce, eggs, dairy and meat are the most important organic categories
Discounters currently account for a disproportionate level of sales of organic
Credit crunch: 47% (&73%) of consumers would definitely or probably buy @ 10% premium
Communications; Organic needs to move from rationale purchase to emotional one..
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Most Appealing EU Approved Organic
Message
(All Respondents n = 1,000)
1%
9%
10%
11%
25%
44%Good for nature, good for you
The natural choice
Taste the seasons
A growing alternative
In goodness we trust
None of these
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?
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Communicating the Organic Message
- a new agreed EU slogan & logo