Market Dynamics and Consumer Preferences for Organic Rice Purchase in Central Java and Yogyakarta, Indonesia

The production and consumption of organic rice in Indonesia continue to increase along with the growing public awareness of the importance of healthy eating habits and environmental conservation efforts. Consumers in Central Java and Yogyakarta increasingly favor organic rice, prioritizing health and product quality. This has led to increased demand and can also motivate farmers to increase organic rice production to meet the ever-growing market needs. This study analyzes the market dynamics and consumer preferences for organic rice in Central Java and Yogyakarta. The research employed a quantitative descriptive approach, utilizing the 4P marketing mix (product, price, place, promotion) and a Likert scale to measure consumer preferences. Sampling was conducted through proportional stratified random sampling from five regencies, with 310 respondents. The results show that promotion is the most significant factor influencing consumer purchasing decisions, with a relative importance of 30.289%. The primary factors driving consumer preferences for organic rice are health benefits and product quality. Although organic rice is priced higher than conventional rice, consumers tend to choose it due to its health and sustainability benefits. However, uneven distribution of organic rice and price fluctuations caused by high production costs and climate factors pose major challenges. The study suggests more intensive promotional strategies, improved market accessibility, and subsidy policies to support farmers’ production costs. By understanding market dynamics and consumer preferences, this research provides critical insights for stakeholders to design more effective policies and marketing strategies while supporting sustainable agriculture in Indonesia.