IDEAS home Printed from https://ideas.repec.org/p/foi/wpaper/2011_15.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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.

Suggested Citation

  • Laura Mørch Andersen & Thomas Bøker Lund, 2011. "Digging deeper: How do different types of organic consumers influence the increasing organic market share?," IFRO Working Paper 2011/15, University of Copenhagen, Department of Food and Resource Economics.
  • Handle: RePEc:foi:wpaper:2011_15
    as

    Download full text from publisher

    File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2011/WP_2011_15_digging_deeper.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Laura Mørch Andersen, 2011. "Animal Welfare and Eggs – Cheap Talk or Money on the Counter?," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(3), pages 565-584, September.
    2. 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, vol. 33(5), pages 406-421, October.
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    organic budget shares; organic consumers; consumer segments; latent class analysis; demand;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:foi:wpaper:2011_15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Geir Tveit). General contact details of provider: http://edirc.repec.org/data/foikudk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.