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Consumer Attitudes, Knowledge and Behavior in the Russian Market of Food

Author

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  • Meixner, Oliver
  • Haas, Rainer
  • Perevoshchikova, Yana
  • Canavari, Maurizio

Abstract

In the last decades the market for organic food was well developed in Western European Countries and com-parable markets like the US or Canada. While these markets more or less approach market saturation, other markets still have huge potentials and are of special interest for exporting companies. In this paper we analyze demands, knowledge and expectations in the emerging market Russia. It is well documented that the Russian market for organic food has much higher growth rates compared to Western markets. According to the USDA, the market rose from about 640 million Rubel in 2004 to about 7.4 billion Rubel in 2011 (about 155 Mio €). This dramatic boost in sales might also be due to a significant change in Russians’ consumer behavior. Howev-er, some challenges have to be considered when entering the Russian market with premium products (organic food is usually sold at comparable high prices in Russia). (1) There is a huge number of low-income consumers who are not able to pay for premium products. (2) Up to now, there are no official organic labels available in Russia. Therefore, it is likely that the Russian population has a lack of knowledge on what organic food is and which requirements are connected to the organic production process. Considering these restrictions, it was interesting to analyze important factors for the food choice on the one hand and the knowledge of Russian consumers about organic food on the other. This contribution will present results for one specific product (organic potatoes) which can be considered to be a typical alternative to low priced, conventional products. A conjoint analysis was conducted in Saint Petersburg investigating the importance of buying attributes con-nected to organic potatoes (n = 300); obviously, the results are not representative for the whole Russian mar-ket. But the results impressively show how different consumers’ attitudes are compared to Western markets and how low the average knowledge about this product category still is. The findings deliver valuable infor-mation for all members within the supply chain who want to enter a market with high growth rates but also with obvious shortcomings.

Suggested Citation

  • Meixner, Oliver & Haas, Rainer & Perevoshchikova, Yana & Canavari, Maurizio, 2014. "Consumer Attitudes, Knowledge and Behavior in the Russian Market of Food," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199363, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi14:199363
    DOI: 10.22004/ag.econ.199363
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    References listed on IDEAS

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    1. James, Jennifer S. & Rickard, Bradley J. & Rossman, William J., 2009. "Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local, and Nutrition Attributes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), pages 1-14, December.
    2. James, Jennifer S. & Rickard, Bradley J. & Rossman, William J., 2009. "Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local, and Nutrition Attributes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(3), pages 357-370, December.
    3. Roosen, Jutta & Kottl, Barbara & Hasselbach, Johanna, 2012. "Can local be the new organic? Food choice motives and willingness to pay," 2012 AAEA/EAAE Food Environment Symposium 123512, Agricultural and Applied Economics Association.
    4. Batte, Marvin T. & Hu, Wuyang & Woods, Timothy A. & Stan, Ernst, "undated". "Do Local Production, Organic Certification, Nutritional Claims, and Product Branding Pay in Consumer Food Choices?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61026, Agricultural and Applied Economics Association.
    5. Hearne, Robert R. & Volcan, Mirel, 2002. "The Use Of Choice Experiments To Analyze Consumer Preferences For Organic Produce In Costa Rica," 2002 Annual meeting, July 28-31, Long Beach, CA 19851, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    1. Safdar Muhammad & Eihab Fathelrahman & Rafi Ullah Tasbih Ullah, 2016. "The Significance of Consumer’s Awareness about Organic Food Products in the United Arab Emirates," Sustainability, MDPI, vol. 8(9), pages 1-12, August.
    2. Bryła Paweł, 2017. "Creating and Delivering Value for Consumers of Healthy Food – a Case Study of Organic Farma Zdrowia S.A," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(4), pages 55-74, December.
    3. Camelia F. Oroian & Calin O. Safirescu & Rezhen Harun & Gabriela O. Chiciudean & Felix H. Arion & Iulia C. Muresan & Bianca M. Bordeanu, 2017. "Consumers’ Attitudes towards Organic Products and Sustainable Development: A Case Study of Romania," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    4. Malkanthi, S.H. Pushpa & Rathnachandra, S.D. Dilini & Weerasinghe, W.A. Ruwani N., . "Consumers’ Awareness on Organic Food: Case of Urban Sri Lanka," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 21(4).

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