Today, organic food and farming are one of the leading industries that customers are buying, because it is free of chemicals and pesticides in the farming processing. The consumers are concerned about how animals are used in its production process when it comes to natural resources and how farmers cultivate their products. Over the past few years, organic food products have grown around 48% during 2010 to 2018.
In organic food processing, the production in the farming systems is maintained in sterile environments and focus its short- and long-term growth in fertile soil that has refined properties that are not induced with chemicals. Consumer demand for organically produced goods continues to show double-digit growth, providing market incentives for U.S. farmers across a broad range of products. In today’s marketplace, organic products are now available in about 20,000 natural food stores and nearly 3 out of 4 conventional grocery stores. Organic sales account for over 4 percent of total U.S. food sales, according to recent industry statistics (Greene, 2017).
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It is important to mention that organic food is sold to consumers through three main venues in the United States – conventional grocery stores, natural food stores, and direct-to-consumer markets. Examples of these market segments are Food Lion, Whole Organic Food Marketplace, and Amazon. A typical organic consumer is difficult to pinpoint, but new research continues to shed light on consumer attitudes and purchasing behavior by utilizing their age category as means to measure its sampling (Greene, 2017).
Organic Food Industry and Target Market Characteristics
In September, not long after the U.S. Department of Agriculture (USDA) settled a proposal for a mandatory checkoff program for the organic industry, the Organic Trade Association (OTA) announced its plans to develop a voluntary system. Still in the early stages, the initiative would collect money from willing producers and processors and pool it to promote the organic food industry by providing technical assistance to farmers, and fund consumer and technical research. The purpose of doing this was to show that the industry can come together and make a difference in the food chain industry (Shemkus, 2018).
Consumers in this area are more likely to be people who not only care about health food, but also about the environment footprint that manufacturing companies and farmers leave on our planet. This approach to food can help satisfy many consumers who want to know that food they are purchasing in stores or restaurants were grown and prepared in ways that do not harm the planet and themselves (Natural Industry Jobs, 2017).
Currently, the target market are individuals who are looking for healthier lifestyles and alternative ways to eat more organic food products. The demographics have shifted over the years because of more health concerns for consumers of foods that are chemically induced. This pattern has made a way for consumer’s shopping behavior and habits to change over the type of foods being eaten.
Analysis of Histogram Age Groups
During my research, it was suggested that we look at how data can determine the motivational patterns of people’s eating habits and analyze reliable sources to better understand their healthier choices. In doing so, it was important to utilize data from IBISWorld database and create my own histogram of the sampling group to break down the age segment of people who are participating in this survey.
According to the IBISWorld database, the Healthy Eating Index shows and estimated value of 67.9% in 2018, a 2013-2018 growth of 0.9%, with a forecast of 69.6% in 2023 showing a 1.7% growth from 2018-2023. These values are calculated using the percentage of a recommended diet that an average American consumes (IBISWorld Business Environment Profile, 2017).
Due to rising prices in the early 2000s, there were some declines in the healthy eating habits of Americans. However, there has been a steady increase since the 1980’s. A growing trend toward plant-based biofuels as high crude oil costs in the United States boosted food prices over a five-year period and grain prices shot up dramatically, pulling up prices of other foods with them. Consequently, the added demand drove up most vegetable prices as well (IBISWorld Business Environment Profile, 2017).
We have conducted a survey of the age group of individuals who most likely purchase healthy foods at Loving Organic Foods. The population of consumers surveyed is indicated in a histogram attached to this report. The survey included 200 consumers who were contacted for this data analysis. We received back a total of 124 responses to this survey.
Our survey shows that the sampling group that organic foods were popular with, were individuals between the ages of 41-45, with 15 customers responding. The next age group were 56-60, with 14 customers responding. The next group were 36-40, with 13 customers responding. When asked, why is it important for organic foods to be a main source of your eating habits, the respond was because of a healthier lifestyle incorporated with a more physical fitness regimen. We believe this information will be helpful with a project team tasked with marketing your products, so they will know what sampling age groups to target. In addition, these teams will have the opportunity to use this data in future endeavors as the organic food industry continues to grow.
Recommendations
In order to spearhead this campaign, it is important to increase the motivational awareness of the benefits of eating healthy foods. We must show that organic foods are not just healthier for you, but it improves your quality of life as well. We should target those age groups, that are seeing firsthand the effects of chemical induced foods and how these foods are causing cancers, have higher price values, unsatisfactory health issues, and insufficient ingredients that are not health conscious.
We must market ideas that focus on food safety, environmental concerns, and how eating healthier creates a more wholesome diet plan for those who are suffering from medical issues. We must tread with caution and state to the public that although most organic foods maybe slightly higher in price, the benefits outweigh the concerns when it comes to non-organic foods. Our psychological approach should focus on how our farmers can produce organic foods faster and how these foods are more superior in taste, as well as in nutrients. With the support of the local food chain stores, it will increase the growth and awareness of farmers and their systems of how they provide food safety in growing, producing, and shipping their goods.
Lastly, we will be utilizing our market strategies to target the middle age group who are more concern than ever about their health issues in the future. We will also show over the last ten years that there have been numerous recalls on food stuff, because of how farmers and producers of non-organic foods have little concerns over animal welfare. We can show the defects in the non-organic food environment and market current food sources that are more fashionable and sensible to the American public.
References
- Greene, C. (2017, April 04). Organic Market Overview. Retrieved from: United States Department of Agriculture: http://www.ers.usda.gov/topics/natural-resources-environment/organics-agriculture/organic-market-overview.aspx
- IBISWorld Business Environment Profiles. (2017, November). IBISWorld. Retrieved from: Healthy Eating Index: http://clients1.ibisworld.com/reports/us/bed/default.aspx?bedid=64
- Natural Industry Jobs. (2017). Natural and Organic Food Industry Resources. Retrieved from: NaturalindustyJobs.com: https://www.naturalindustryjobs.com/natural-organic-foods.asp
- Shemkus, S. (2018, November 14). Business, Farming, Food Policy, Labeling. The Organic Food Industry Forges Its Own Path to Expand Growth. Retrieved from: https://civileats.com/2018/11/14/the-organic-food-industry-forges-its-own-path-to-expand-growth/
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