Committed Consumers Continue to Embrace Organic Products Despite Challenging Economy
SCHAUMBURG, IL February 10, 2009 – Much has been written as of late indicating slowing organic consumer sales. According to the SPINSscan Consumer Midyear 2008 report, 61% percent of US households purchased branded organic products and although organic food and beverage dollar sales are slowing (+9.9% for Year ending December 2008), some organic categories continue to engage increasing numbers of consumers. The organic categories attracting the greatest number of new consumers include milk, cookies, condiments, non dairy beverages and soup. Dairy tops the list, not surprisingly given it is a very important entry point for consumers venturing into organics.
Organic Categories |
Total US point increase in Penetration |
MILK HALF HALF CREAM |
2.0 |
COOKIES SNACK BARS |
1.7 |
CONDIMENTS |
1.3 |
REFRIGERATED NON DAIRY BEV |
1.1 |
SOUP |
0.9 |
SEASONINGS |
0.8 |
PACKAGED FRESH PRODUCE (branded) |
0.7 |
CANDY INDIVIDUAL SNACKS |
0.7 |
REFRIGERATED DIPS |
0.6 |
EGGS |
0.6 |
Segmenting organic consumers based on their total dollar commitment to organic products reveals that not all those organic consumers are alike. According to the SPINSscan Consumer report, organic consumer buying behavior differs by commitment level to organics. The consumers most committed to organic products, the top 20% of organic consumers based on total organic dollars spent, drove approximately 80% of the branded organic purchasing. The committed organic consumer increased their organic purchasing +12.6% during the period, while the 25% of medium organic consumers increased their purchasing to a slightly less degree +12.0%. Organic sales declined -1.6% among the fickle bottom 55% of organic consumers, or those least engaged with organics.
Organic products continue to grow and strengthen among core organic consumers. Understanding which organic brands and categories are appealing to the core organic consumer, versus the fickle organic consumer, is key to manufacturer and retailer success among this important segment of consumers. Consumers will certainly continue to seek organic products as the trend towards healthy living continues. Those manufacturers and retailers with the greatest understanding of the core organic consumer segment will find a reason to smile even in this challenging economic time.
“Due, in large part, to a dedicated group of consumers and a continued push toward a healthy lifestyle, organic products are maintaining a strong presence and growth in the marketplace despite rising economic pressures,” says SPINS CEO Tony Olson. “Retailers and Organic manufacturers should be encouraged that consumers recognize the value of their products and have remained focused on their commitment, with core enthusiasts increasing their support in the current period.”
About SPINS
SPINS was founded in 1995 as the first company to offer Natural Products sales data to the industry. Today, it is the premier provider of industry reporting and consulting services for this rapidly expanding sector. SPINS’ comprehensive offering includes retail measurement services, content-based reporting, consumer information and consulting services. Learn more at www.spins.com .
Please direct any press-related requests to Jennifer Fuller at 847.908.1224 or jfuller@spins.com.
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