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

Laura Andersen () and Thomas Bøker Lund ()
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Thomas Bøker Lund: Institute of Food and Resource Economics, University of Copenhagen

No 2011/15, IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics

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.

Keywords: organic budget shares; organic consumers; consumer segments; latent class analysis; demand (search for similar items in EconPapers)
JEL-codes: D12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-mkt
Date: 2011-07
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