Consumer Perception of Organic Food and Product Marketing

Abstract

Consumer demand for organically produced goods has grown continuously in the USA since United States Department of Agriculture (USDA) established the national standards for organic production and processing in 2002. Although USDA does not maintain official statistics on US organic food sales, industry data suggest that the market share of organic sales held by various food categories has been remarkably stable over the last decade. The main reason for purchasing organic food products is an expectation of a healthier and environmentally friendly means of production. In general, organic buyers tend to be older and highly educated than those who do not buy them. In addition, consumers’ trust in the authenticity of the goods and price are also issues. However, the main barrier to increase the market share of organic food products is consumer information. Increased consumer awareness of organic labeling and their trust in organic labels as well as increasing the availability and range of organic food products may be the most effective way of increasing their market share. Organic food sales in the USA have increased from approximately $11 billion in 2004 to an estimated $27 billion in 2012. Organic food products are still gaining ground in conventional supermarkets as well as natural foods markets, and organic sales accounted for more than 3.5 % of total US food sales in 2012. Significant price premiums exist for fresh organic produce and organic milk, the two top organic food sales categories, compared with conventional products, reflecting short supply and higher organic production costs. Public investment in organic agriculture facilitates wider access to organic food for consumers and helps farmers capture high-value markets and boost farm income.