Organics in 2010

Organic sales experienced tremendous growth, but the market began to stabilize in 2008 at high levels of consumer acceptance and use, according to the State of the Organic Consumer 2010 study, released by the Hartman Group in April. About 75 percent of consumers use organic products, and about one-third of those use organics at least monthly, and that hasn’t been affected by the economy.

“Consumers are using about the same or more than a year ago, indicating that the economy is not stopping organic purchases,” said Arwen Kimmel, lead analyst for the Hartman Group study.

Twenty-four percent of organic buyers are core consumers who are most active in the segment and are seeking authentic experiences from organic products, Kimmel said. Only 14 percent are in the periphery, where consumers begin their organic journey.

Natural or Organic?

There’s a growing trend at retail for more “natural” products. The Top 6 consumer associations with organics and natural products are the same: the absence of pesticides, the absence of herbicides, absence of growth hormones, no artificial flavors or preservatives, absence of genetically modified foods and the absence of antibiotics. But while organic and natural may share some of the same attributes, consumers are looking for an abstract ideal in natural foods.

“They have an idea in their mind for what natural should be, and that it means healthy, whole and minimally processed,” Kimmel said.

Natural can refer to what happens to food after the farm. Consumers identify natural products as those that have no artificial ingredients, no preservatives, no additives or fillers, are minimally processed, have a short ingredient list and have recognizable or “real” ingredients.

Organic, to consumers, is what happens to food on the farm, Kimmel said.

“Consumers think of organic as making a product more natural based on what happens to it on the farm. Natural, on the other hand, is understood as what happens to food after it is grown. How is it turned into a product that you buy on the shelves?” she said.

With a glut of organic and natural products on the market today, consumers reported a disconnect between their ideal natural product and the reality at retail. This results in frustrations when they don’t match up, Kimmel said.

“So ‘natural’ on a product might cause them to pick it up, but they’re going to flip it over and check out the ingredients list to see if in fact it does line up to their ideal,” she said.

Consumers were more likely to find private labels “authentic” in their natural claims. Trader Joe’s was viewed as most believable by consumers, while manufacturers of national brands with some natural products were viewed as less authentic, according to the Hartman Group.

‘Clean’ Foods

The core organic consumer is looking at more than just growing practices or processing, but at the overall picture, encompassing local production, freshness, social and environmental practices, in what the Hartman Group calls “clean” foods. It’s not a marketing term, Kimmel said, but the sum experience that consumers are seeking. It encompasses symbolic aspects of the product – fresh, local, safe, real, responsible, high quality, real – and objective associations – less processed, whole ingredients, few ingredients, certified.

“Consumers in the core have moved beyond organic,” Kimmel said. “They still see organic as a positive thing, they still look for it, but in the end it no longer satisfies all of their social, environmental and personal health standards.”

They’re seeking authentically clean foods that are traceable, so they can have a connection to the farm and know that it is local, doesn’t use genetically-modified organisms, is pesticide or herbicide free and is biodynamic or sustainable.

Communicating these ideals to consumers is an effective way to increase sales in the organic and natural categories. A simple approach is including the company’s mission statement on the packaging. This gives shoppers a personal connection to the company and the product. Images on the packaging also can communicate the ideals. Raw ingredients or pictures of the farm are effective tools as well, Kimmel said. Additionally, any certifications the product or company has gone through should be on the packaging. Organic certifications communicate the growing aspects, natural certifications communicate the processing aspect and other certifications, like Fair Trade, communicate social responsibilities of the product.

Clean Recommendations

How can produce growers and marketers benefit from the clean foods movement? The Hartman Group recommended three strategies to reach consumers seeking out food that is natural and/or organic.

1. Develop natural and/or organic products that meet objective criteria and align with consumers’ symbolic associations.

2. Communicate the company’s ideals and commitments to social responsibility through a mission statement displayed on the package.

3. Provide a holistic experience to tap into consumers’ symbolic associations with clean, whole and real foods.