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Who Really Buys Organic

Consumers are driven to seek out organic produce by fear of the impact of additional hormones in food products on their children's health.
by Julia Watson
UPI Food Writer
Washington (UPI) May 15, 2006
You may be surprised to learn that the prime buyers of organic produce are not softies who make their own yogurt and hum Joni Mitchell's "Big Yellow Taxi" ("They paved Paradise and put up a parking lot").

A new report by market research consultants The Hartman Group finds that "Compared to the general population, two ethnic and racial groups are somewhat more likely to purchase organics: Asian Americans and Latino/Hispanic Americans. Latino/Hispanic Americans and African Americans are much more likely than Caucasians to be Core organic consumers."

The organic movement has been an easy butt for those in the media who prefer to dismiss its adherents as aging hippies, their progeny and those who have been raised on Pete Seeger and the spirit of Haight-Ashbury.

This report demonstrates they can no longer regard shoppers frequenting Whole Foods supermarkets, health-food stores and organic stands at farmers' markets as a minority without influence who come from a well-heeled Wasp background.

It finds that consumers are driven to seek out organic produce by fear of the impact of additional hormones in food products on their children's health.

Where in 2000 only 29 percent of customers frequented health and natural food stores to buy organic foods, now 49 percent are opting to shop in these. Sales of organic produce from general supermarkets have slipped from 63 percent in 2000 to 58 percent last year. But they have risen from 9 percent to 15 percent in supercenter and discount stores.

This news should warm the cockles of Wal-Mart's heart. It told The New York Times Friday it wanted to democratize organic foods and will be selling it for only 10 percent more than non-organic foods.

It may be less encouraging to Whole Foods, whose price difference between what it terms 'conventional' and organic can fall between 20 and 30 percent higher.

However, its Chief Operating Officer Walter Robb staunchly told The Boston Globe recently, "I think that Wal-Mart doing this is an incredible endorsement and also shows the size of the market opportunity is even larger than we thought."

Of some concern to nutritionists are Wal-Mart's plans to involve industrial food business players in reconfiguring some of their products that would not offer greater health benefits just by dint of becoming organic.

Kraft is considering an organic macaroni and cheese, and Kellogg is working on organic versions of Rice Krispies, Frosted Mini Wheats and Raisin Bran, which would probably cost more than the originals.

The Organic Trade Association revealed at its Conference and Trade Show in Chicago this week that U.S. organic-food sales totaled nearly $14 billion in 2005 -- 2.5 percent of all retail sales of food, up from 1.9 percent in 2003. It anticipates sales of nearly $16 billion by the end of 2006.

The greatest growth has been in meat sales (55.4 percent), dairy products (23.5 percent) and condiments (24.2 percent).

Source: United Press International

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