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Digging deeper: How do different types of organic consumers influence the increasing organic market share?

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Author Info

  • Laura Mørch Andersen

    ()
    (Institute of Food and Resource Economics, University of Copenhagen)

  • Thomas Bøker Lund

    ()
    (Institute of Food and Resource Economics, University of Copenhagen)

Abstract

The purpose of this paper is to investigate how sub markets with different degrees of maturity develop during a period of general organic growth, and how different consumer segments behave on these sub markets. The paper uses actual purchasing behaviour of six consumer segments with different attitudes towards food in general and organic production and products in particular. The data is from the Danish market for organic foods, which is one of the most mature markets in the world. The segmentation splits consumers into a positive and a non-positive half, each half consisting of three different segments. The estimations show that the development in general organic consumption varies between segments, and that their behaviour varies between sub markets. The positive half of the population has driven the overall growth in organic budget share at the Danish market over the period 2005 to 2007, while the other half have not changed their consumption significantly. The results indicate that for the most dedicated organic consumers, the organic budget share may be approaching a saturation point for some types of food, but also identifies other types of food which still have a growing organic budget share, even among the most dedicated consumers. The combination of attitudes and actual behaviour for a large number of consumers is new, and the results provide a valuable contribution to the ongoing investigation of organic consumers, and provide new nuances to the understanding of the latest organic growth.

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File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2011/WP_2011_15_digging_deeper.pdf
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Bibliographic Info

Paper provided by University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2011/15.

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Length: 27 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:foi:wpaper:2011_15

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Web page: http://www.ifro.ku.dk/english/
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Keywords: organic budget shares; organic consumers; consumer segments; latent class analysis; demand;

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  1. Wier, Mette & O'Doherty Jensen, Katherine & Andersen, Laura Mørch & Millock, Katrin, 2008. "The character of demand in mature organic food markets: Great Britain and Denmark compared," Food Policy, Elsevier, Elsevier, vol. 33(5), pages 406-421, October.
  2. Laura Mørch Andersen, 2010. "Animal Welfare and Eggs – Cheap Talk or Money on the Counter?," IFRO Working Paper, University of Copenhagen, Department of Food and Resource Economics 2010/6, University of Copenhagen, Department of Food and Resource Economics, revised Apr 2011.
  3. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
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