Organic Product Consumer Base Holds Steady; Volume Shifting to Mass Market Retailers

from: tabgroups.com

“For the third straight year, the percentage of US consumers purchasing Organic products has held steady in the 38-39% range, reports Shelton, CT-based marketing research and consulting company, TABS Group, Inc. (www.tabsgroup.com). While there has been no growth in the buyer count of Organic products since last year, there was a considerable shift in outlet patterns towards Mass Market and away from Natural Foods.

“We still see many fallacious reports that the number of consumers purchasing Organic products is growing; our research does not support that conclusion. The annual incidence of these products has gone from 38.4% to 38.0% to 38.6% from 2008, 2009 and 2010, respectively,” stated TABS Group, Inc. President and Founder, Dr. Kurt Jetta. “What is very interesting, however, is that there were big shifts in the Outlet where consumers report that they purchase these products most often. The big winners were Traditional Grocers (41.0% to 44.1%) and Target (1.8% to 4.1%), while the losers were Wal-Mart (18.6% to 12.4%), Trader Joe’s (11.5% to 10.7%) and Other Natural Foods (6.2% to 4.6%). Total Natural Foods fell from being the most preferred outlet by 26.8% in 2009 to 24.4% in January 2011, a 9% drop.”This was the first year that Organic Chicken and Red Meat were included in the survey, and the reported purchase rates were 13.4% and 6.4%, respectively. The inclusion of these two categories had only a modest impact on over Organic penetration, pushing the incidence from 38.6% to 39.8%. Stated another way, less than 10% of the Organic Meat users were incremental to the Organic product sector.”

See the full report HERE.

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