Millennials and Gen Z consumers are the driving force behind organic food sales, a new report by the Organic Trade Association (OTA) has found, with the $70-billion market for organic products now reaching maturity in the United States.
The US-based association partnered with Euromonitor International to survey over 2,500 consumers, as part of its Consumer Perception of USDA Organic and Competing Label Claims report.
Committed purchasers
It found that younger consumers, particularly those in the Gen Z age cohort (ages 13-28), are the most committed purchasers of organic foods, with nearly 90% already purchasing organic products.
While older demographics are concerned about the ‘affordability of organic’, the report found, the younger consumer is willing to pay a premium for said products, at every income level.
“There’s lots of good news in this report: younger consumers are embracing organic; consumers of all ages value the Organic label more than any other food label or claim,” commented Tom Chapman, Co-CEO of the OTA. “The challenge to the organic sector is to demonstrate the distinct value of the USDA Organic label and break through the noise of all the other health, nutrition and sustainability claims in the marketplace.”
Other findings from the report include that while well-established labels such as ‘organic’, ‘natural’ and ‘local’ are well-known among shoppers – with 90% awareness – ‘free-from’ and single-attribute claims such as ‘no added hormones’ and ‘raised without antibiotics’ carry greater weight.
At the same time, the term ‘regenerative’ is less widely understood, with 40% of shoppers unsure what the term ‘regenerative’ means. A quarter of respondents said that they believed ‘regenerative’ claims were important, while 10% said that they would be willing to pay more for a product labeled regenerative.
Organic categories
According to the report, more than half of consumers in the US purchased an organic fruit or vegetable in the last year, while baby food also stood out, with 93% of surveyed consumers purchasing organic in this category. Bread was another key category, with 27% of buyers opting for organic options.
“This latest survey shows a great opportunity for organic,” added Matthew Dillon, Co-CEO of OTA. “Today’s younger consumers who are driving organic’s growth pay close attention to claims and want to know more about the products they’re buying.
“At times they don’t realise that organic encompasses the single attribute claims they value, like no antibiotics or growth hormones. We have an opening here to educate consumers, about the broad sweep of value and the attributes organic offers.” Read more here.
