The fresh produce industry is “in limbo” between conventional and organic products, with most unsure if organic production is an opportunity to be grasped, a passing fad or a threat to the long-term sustainability of the conventional offer, it was revealed at the Re:fresh conference last week.
Professor Andrew Fearne from the dunnhumby Academy of Consumer Research at the Kent Business School, University of Kent, claimed it was the “collective responsibility” of the industry to work to understand consumer demand and unravel the confusion surrounding the organic category.
He insisted that there is not enough evidence-based information to enable the trade to make informed decisions. The lack of consistent, objective evidence for the benefits of organics has left the majority of consumers “at best confused and at worst sceptical”.
The findings of specially commissioned research into the organic fruit and vegetable category were unveiled at the London event, last Thursday.
The objectives of the research were to establish who is buying what, explore drivers in purchasing decision and determine the extent to which these behaviours are understood by the industry.
The study included a quantitative analysis of dunnhumby data and surveys undertaken by both consumers and the trade, as well as qualitative analysis on focus groups, emcompassing both young and old adults and families.
Fearne said growing interest in credence attributes, including Fairtrade, organic and functional foods, has taken hold in the UK, but he added that ambiguity over the value proposition for organics had left consumers confused.
He said: “These are attributes that you cannot touch, taste or smell, but you have to believe them - organics have been hit by ambiguity and it is not obvious to people why they should be paying a premium. There is a risk element with broken promises.”
This is echoed by a lack of confidence upstream to invest in conversion when the likelihood is that the current price premium will be eroded, compounded by a “fundamental lack of organic product differentiation” in the face of differing consumer motives for purchase.
The research showed that organic vegetables are more popular than organic fruit, with a 6.3 per cent market share, compared with 5.9 per cent for fruit, as well as a higher rate of repeat purchase.
But, overall, the study showed that organic penetration remains distinctly limited and the category remains an occasional purchase. And while conventional produce has a broader appeal, organics appeal to specific groups, including young families and older adults.
Fearne said shoppers were “promiscuous” in that they bought both conventional and organic produce, for a variety of reasons at different times. A total of 56 per cent of conventional vegetable shoppers also purchase organics and 58 per cent of conventional fruit shoppers also buy organics, while a quarter of produce buyers shop the entire category.
The focus groups with consumers who purchase organics revealed wide-ranging perceptions of the category, with many claiming they buy organics for their children, some fearing that “sprays” and “preservatives” used on conventional produce could cause cancer, and others believing that organics tasted better than conventional fruit and vegetables. Concerns about the environment, now played on by organic growers, had to be prompted at each of the meetings.
The analysis of why consumers do not buy organics revealed that many consider them too expensive, that the organic movement is “just scaremongering”, that they could not taste the difference between organic and conventional products, and that organics have a shorter shelf life than their conventional counterparts, as well as limited availability.
The surveys showed that both consumers and the trade respondents agreed that more consumers would choose conventional fruit and vegetables over organic if they were aware that organic production systems are not pesticide-free, if they knew of the significant reduction in chemical use in conventional production, and if they learned organic production was less environmentally and less economically sustainable than its conventional counterpart.
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