The 2007 Organic Consumer Trends Report (OCTR) presents new and additional data that provide a plethora of insight into organic consumers, their healthy lifestyles, and marketplace opportunities. At the time of this writing, the House of Representatives‘ version of the 2007 Farm Bill (HR2419) just passed by a vote of 231 to 191 with significant appropriations for the organic industry that will now be reviewed in the U.S. Senate. The future is brighter with the likely possibility of increased organic transition support, research grants, and certification cost share, plus crop insurance program improvements and expanded USDA organic data collection.
Summary
* Is it a sign of the times when organic candy bars are found on sale in a prominent counter display at the U.S. House of Representatives snack bar?
* What market pressures are bearing down when supermarket buyers are telling farmers that they will be left behind if they haven’t converted to organic within three years?
* Major organic ingredient suppliers don’t want to discuss any contracts of less than three years; business is too good and supply still too tight to consider anything less.
* Supermarket chains are competing on a significant scale with Whole Foods, the leading natural foods supermarket chain.
* Competition is heating up and the number of organic product introductions is at an all time high.
* The market for organic products is exploding and yet some cautions still apply; not all categories are mega opportunities.
* Entrepreneurs, as well as leading brands, are questioning how to enter the organic arena in a meaningful way — should they enter under their icon brand or create a new sub-brand?
* What are the real risks and potential R.O.I.?
* Is the household penetration of organic products really growing?
* How are consumers‘ attitudes changing toward the category?
NMI is pleased to present the fourth edition of the Organic Consumer Trends Report, a bi-annual publication. The data compiled in the 2007 OCTR is taken from several NMI proprietary research vehicles including the Health and Wellness Trends Database, the LOHAS Consumer Trends Database (Lifestyles Of Health And Sustainability), The Evolution of Personal Care Study, HealthBeat Interactive and our Product Attribute Trend Identifier service, along with qualitative insights from NMI in-depth interviews. These databases contain over ten years of information across more than 40,000 consumers.
The primary objective of our report this year is to take a look at the future. We examined information across several sources including general market trends, scientific advances, government initiatives, supply issues, consumer insights, new product introductions and claims across each category within the organic marketplace. This in-depth analysis gave us a picture for the future which we present in our NMI predictions in Chapter One. What is the size of the opportunity and sustainability of each organic category?
NMI undertook several new surveys over the past two years since our last publication of this report, and we specifically targeted our proprietary organic consumer segments — DEVOTEDS™, TEMPERATES™, DABBLERS™, and RELUCTANTS™ — to provide a custom analysis to marketers that can be used in the planning of new product/category opportunities, brand extensions, communication strategies, and overall marketing strategies. From the look at the future in Chapter One and new segment biographies in Chapter Two, to understanding their pathways and barriers in Chapter Four, the research is rich and opportunistic. Understand the Wal-Mart and Target effect in Chapter Three and note the interest of the early adopting, loyal organic segments in many other „healthy“ ingredients and claims. Finally, don’t miss the focus on organic categories in Chapter Seven. We’re confident that you’ll find much „food for thought“ here as you consider how these trends will affect your business over the next few years.
New to this edition, NMI provides details on new organic product introductions on a U.S. and global basis. We are covering introductions by U.S. and global region in Chapter One, by health claims in Chapter Five, and by category in Chapter Seven. We believe assessing the past five year trends in new product introductions along with the consumer insights will give you a clearer picture of the marketplace and where it’s headed.
As consumers seek a „deeper values experience,“ their relationships with brands and retailers have become integral to success. Consumers want to know what brands and retailers are doing to protect the environment and their health, and they are seeking more information than ever before. As always, we took an intensive dive into organic consumers. By adding over forty new organic measures to our surveys this past year, the insight is deep and rewarding. Those new measures, along with over 200 more, were used in all new factor and cluster analysis, grouping the general population into four distinct groups that have varying attitudes and emotions toward organic products and brands. This market adjustment analysis confirmed two segments, DEVOTEDS and TEMPERATES who are the most integrated and loyal organic consumers. One hundred percent of the consumers within these two segments use organic products and marketers must have their buy-in to be successful in the marketplace. Together, they represent over three-fourths of all organic spending! And yet, they are vastly different, with different motivations, needs and beliefs. And while TEMPERATES, the larger of the two, appears to be a good mainstream target, marketers must address their product desires and structure communications at their level of understanding.
The remaining segments, DABBLERS and RELUCTANTS, are less integrated, with only 36% and 21% of them, respectively, having used any organic product in the past year. As expected, their attitudes vary, with DABBLERS exploring and RELUCTANTS just not believing. There is opportunity to grow DABBLERS into TEMPERATES and TEMPERATES into DEVOTEDS. Doing so will take a keen understanding and faithful application of the learning provided herein.
The overall household penetration of organic products is 57%, up only slightly from last year. While greater penetration was expected, we know from one-on-one interviews and quantitative work within this study that many consumers don’t recognize the organic label, especially within portable products such as fresh juices and nutrition bars. Some consumers of these products simply purchase on taste and convenience and have no recognition that the product is organic. What we can see is that DEVOTEDS and TEMPERATES are using more organic categories and are using with increasing frequency. Increased selection and availability have driven increased frequency of usage and 20%+ sales increases over the past year. And it is frequency that could be key to increased sales in the future. There is room for significant growth in frequency even among DEVOTEDS, the most integrated consumer segment. There will be expansion of emerging categories such as clothing, linens, lawn and garden as well as continued growth of new personal care and food and beverage products from which to choose. The future is bright for those marketers who speak the language of organic correctly, and connect their brands on an emotional level with Integrated Organic Users.
The most comprehensive report of its kind, the OCTR seeks to assist marketers and retailers in understanding the interrelationship between general drivers of health and wellness, including health and medical conditions and the specific drivers of organic usage. Examined within this report is the intersection of lifestyle, beliefs and attitudes, shopping patterns, product usage and brand purchase patterns, with marketplace influences such as new product introductions, supply, and politics. Every page offers unique insight with the presentation of charts, graphs, or tables, accompanied by analysis and commentary on associated market elements and key opportunities. The 2007 OCTR is an essential tool for opportunity analysis, new product development, communications development, and overall strategic planning, as it seeks to analyze the many marketplace changes across organic.
Hard Copy $7,500
Electronic Version (PDF) and Site License (Hard Copy, Word Document, Access to charts in PPT and site rights for internal network usage) $12,500
Additional Hard Copies $200 each
Individual chapters (PDF)
(See Table of Contents for per chapter prices)
CHAPTER 1: FUTURE OF THE INDUSTRY
| Chapter 1 only: $1,500 |
Introduction
U.S. Organic Industry Sales
Total U.S. and Global Organic Product Introductions
Total Global Organic Product Introductions by Region
The State of Organic Consciousness in America
The Politics of Organic
Supply and Demand Issues
The Comparative Importance of Organic Products
Trends in Organic Usage in the General Population
Cross Usage among Organic Category Users
NMI Trends Affecting the Organic Marketplace — The New Fear Factor
NMI Trends Affecting the Organic Marketplace — Seize the Moment
NMI Trends Affecting the Organic Marketplace — A Deeper Values Experience
NMI Trends Affecting the Organic Marketplace — Back to the Future
NMI Organic Category Predictions
CHAPTER 2: ORGANIC CONSUMER SEGMENTS
| Chapter 2 only: $2,500 |
DEVOTEDS
DEVOTEDS at a Glance
TEMPERATES
TEMPERATES at a Glance
DABBLERS
DABBLERS at a Glance
RELUCTANTS
RELUCTANTS at a Glance
Universe of Users by Segment
Demographic Profile of Organic Segments
Summary Organic Beliefs of the Four NMI Segments
Leisure and Lifestyle Activities of the Four NMI Segments
Magazine Readership among Segments
Top 20 Magazine Readership among DEVOTEDS and TEMPERATES
Bottom 20 Magazine Readership among DEVOTEDS and TEMPERATES
Sources of Influence among DEVOTEDS
Concern with Prevention of Health Issues among Segments
Incidence among Consumer Segments: More Serious Medical Conditions
Managing Less Serious Health Issues
Weight Management and Body Mass Index (BMI) Comparisons
Exercise Habits among Segments
CHAPTER 3: SHOPPING FOR ORGANIC
| Chapter 3 only: $2,000 |
Spending on Organic Foods & Beverages
Spending on Organic
Willingness to Pay Premium for Organic
Channels Shopped for Organic Foods and Beverages
Channels Shopped Most Often for Organic Foods and Beverages
Cross Channel Shopping
Shopping “Locally”
Specific Retail Shopper by Segment Membership
Specific Fast Food Shopper by Segment Membership
The Wal-Mart/Target Effect
Internet Shopping among Organic Segments
Merchandising Preferences
Purchase Criteria Differences
Organic Away from Home
CHAPTER 4: PATHWAYS & BARRIERS TO USAGE
| Chapter 4 only: $3,500 |
Top Drivers of a Healthy Lifestyle among Organic Consumer Segments
Six-Year Trends: The Importance of Natural & Organic Foods
Reasons for Maintaining a Healthy Lifestyle
Healthy Diet Challenges
Nutrient Deficiencies
Organic and Related Terminology Awareness
Top 10 Reasons to Use Organics
Pathways to Usage among Segments
Regulations versus Perceptions
Trended Understanding of Organic Regulations
Organic Attributes and the Organically Grown Label
Food Purity Issues
Organic Usage Justification
Organic Trust & Understanding
Organic Credibility
Other Barriers to Trial
Price Resistance
The Impact of Price on Segments’ Purchase Patterns
Emerging Platforms for Organic Growth
CHAPTER 5: INGREDIENTS – ISSUES & OPPORTUNTIES
| Chapter 5 only: $3,000 |
The Desire for Healthy Ingredients
Nutritional Connection for DEVOTEDS and DABBLERS
Label Monitoring: Positive Ingredients
Ingredient Watch By Organic User Parents
Health Benefits of Fiber and Whole Grains
Fiber and Whole Grains – Importance and Usage
Heart Healthy Diet
Health Claims Related to Fiber, Calcium, Antioxidants
Vegetarian, Soy
Allergy Connection to Organics
Allergy Concerns – Gluten Free and Dairy Free
Fat – Trans-Fat, Low, Fat Free
Trended Attitudes toward Sweeteners
Organic Segments’ Attitudes toward Sweeteners
The Organic Family’s Role in Sweetener Usage
Usage of Artificial Sweeteners
Low Glycemic Index and Blood Sugar Management
Rise of Heart Healthy Organic Product Introductions
New Organic Product Launches for Allergy and Additive Conscious Products
Fat, Carb and Sugar Conscious New Product Introductions
CHAPTER 6: BRANDING & INFLUENCES
| Chapter 6 only: $1,500 |
USDA Certified Organic Label Importance and Influence
Attitudes toward Local and Store Brands
The Effect of Brand Image on Consumer Purchase
Brand Adoption Patterns
Source of Influence for Healthy and Natural Product Purchases
General Interest Magazine Readership Patterns
Health and Wellness Magazine Readership Patterns
The Impact of News Sources/Other Media
Influence of Children on Organic Trial
Influence of Children on Organic Attitudes
CHAPTER 7: FOCUS ON ORGANIC CATEGORIES
| Chapter 7 only: $3,500 |
Recent Organic Food and Beverage Introductions
Organic Usage: Produce, Packaged Foods, Beverages
Food & Beverage Categories: Duration of Usage
Frequency of Organic Usage: Produce, Packaged Foods, Beverages
Recent Purchase of Specific Organic Food and Beverage Categories
Organic Category Opportunities
Opportunities in Organic Meat and Poultry
Healthy Food and Beverage Usage Overview among NMI Segments
Increased Usage of Healthy Food and Beverages
Children’s Organic Nutritional Foods/Beverages
Mainstreaming of Organic Brands
Organic Brand Usage among Segments
Organic Opportunity among Mainstream Brands
Usage of Natural and Organic Personal Care Products
Spending on Natural & Organic Personal Care
Product Usage among Organic Personal Care Users
Preferred Ingredients
LOHAS Product Attributes
Ingredient Based Benefits
Natural/Organic Personal Care Brand Usage
Sources of Influence on Personal Care Purchases
Awareness and Usage of Organic Clothing and Linens
Usage of Natural/Organic Pet Foods
Supplements – Attitudes and Usage among Organic Users
Opportunities in Organic Supplements
Summary of Opportunities in Organic General Merchandise
Summary of U.S. Organic Product Introductions
