Research Institute of Organic Agriculture

Forschungsinstitut für biologischen Landbau

Institut de recherche de l’agriculture biologique

Market development and consumer

trends and strategic answers

Dr. Toralf Richter (toralf.richter@fibl.org)

www.fibl.org 2

What kind of food do you (want) see?

Organically, regionally produced and fair traded or just nicely presented food?

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Segment without

minimum standards

High commited organic consumers and sector

representatives distinct very exactly between different

label standards of sustainability

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Segment without

minimum standards

However, for many consumers all these labels have a similar

recognition in regard to sustainabilty standards behind

«When I buy them I do something good»

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Increasing number of Western European Consumers

buy regular Organic Food / Example: Switzerland

Source: Bio Suisse

Several times per month Several times per week

Buying frequency organic food

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But regional is for more consumes important

than organic food

(even there are no standards and certification behind)

Scale: 1 less important – 5 very important

Eggs

Vegetables

Fruits

Meat

Dairy Products

Bread

Sausages

Cheese

Bakery products

Fish

Convienice

Source: A.T. Kearny: Consumer Study in Switzerland, Germany and Austria 2013

Relative importance of the attributes organically and regionally produced for

the consumer decision

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However …

Disgusting quality remains

desguting, even it was

produced in my own region

Oskar Fischer, Green Party politician and former Minister of Foreign Affairs in Germany

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Consumer reasons to prefer

organic or regional food

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Main reasons pro Organic

+ Food contains less / no pesticideresidues

+ Contribution to environmental protection

+ More natural way of food productionand processing

+ Contribution to support biodiversity

+ Contribution to organic farming at general

Main reasons pro Regional

Source: FiBL consumer study CH 2015

+ Better food taste

+ Better food quality at general

+ Preference for own region at general

+ Attractive prices

+ Easy to find / availability

Source: A.T. Kearny, consumer DE, AT, CH 2013

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Reasons not to purchase organic

• Organic is too expensive• Regionalism is more important• Low consumer confidence to organic at general

• Don’t see personal benefits in organic food

• Distrust in organic producers

Source: FiBL consumer study CH 2015

www.fibl.org

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Consumer motivation to buy organic food in

different sales channels

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General trends

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The near future

Will our attitude to food stronger influenced by technical information

instead of its appearance?

Will our attitude and knowledge about agriculture in future influenced only by

apps instead of personal information from producers?

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„360° Transparency“ – Augmented Reality

The world (of food) will be more

transparent by BIG DATA

(connection of google, apple,

Facebook, GPS & Co.)

Information about Consumers,

Producers and food can be

searched and assessed in real

time.

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Apps und (Google) glasses will replace the traditional

promotions. They will recommend and guide you based on

your personal information you left in internet

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Individuality and Prosuming

Prosumer is Producer and

Consumer in one person

Objective: To be different as the

mass

My Muesli, my Shoe, my Burger.

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Prosuming – Consumer/Producer Cooperations

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Prosuming

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Ancient qualities demanded

• Authenticity

(no GMO, no meat from Clons)

• Traditional varieties and animal species

• Grandmother’s recepies

Megatrends Food >> Back to the roots

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Megatrends Food >> Feel-Good-Consuming

Feel-Good-Consuming

• The trade of values behind a product gains

importance on those Western food markets

which are saturated.

• Wanted: Products for people who would

like to rescue the world in the

des 21. century.

• Products from companies with

authentic social and ecological engagement

are preferred.

• Fairtrade, Oranic, Local, Slow Food are

Mega Trends

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Hand-Held Food

• Reasons: Change of working

culture: Mobility Flexibiliy, Time

Shortage.

• More and more Hand-held food will

influence the retail sales.

• In future more tailor made offers for

the growing numbers of urban

consumers (Take away, Coffee to go,

Drive through).

Megatrends Food >> Hand-Held Food

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Megatrends Food >> Free from

Clean Food

• Food for healthy eaters, people real

with allergen problems, Food-

Moralists goes out of the niche.

• The increasing number of people

with sensitive digestions is the

fundamental basis for the so called

Clean Food movement.

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Organic - Quo vadis?

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• Growing differences

between consumer

expectations about organic

food/farming and the reality

of the praxis of modern

organic producers, the

origin and the working

conditions in many

countries

Are the organic sectors go to produce those organic

process qualities consumer have in mind when they

think about organic?

www.fibl.org 25

Organic between Romance versus Science

www.fibl.org 26

• The organic industry is switching to produce “ ”,

however the consumer prefers “romance” in regard to

food consumption

What consumers like and dislike?

Efficient and precision farming +++ Mass production and markets

Traditional farming and processing practices +++ Manufactural

processing +++ Local prodcuers and markets

www.fibl.org 27

• The organic industry is producing “ ”, however the

consumer prefers “romance” in regard to food

consumption

Are the organic sectors go to communicate those

attributes consumer have in mind when they think

about good food?

Rational, Efficient, Fact and Evidenced based communication of benefits

Sensual and emotional based communication

www.fibl.org 28

• The organic industry is producing “ ”, however the

consumer prefers “romance” in regard to food

consumption

Are the organic sectors go to produce those organic

process qualities consumer have in mind when they

think about organic?

Rational, Efficient, Fact and Evidenced based communication

Sensual and emotional based communication

www.fibl.org

Strategic answers to the main trends

1. «Organic standards alone arenot enough to convince people.»

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Strategic answers to the main strends

2. «to promote organic moreemotional than rational»

3. «sell stories, who touch people, instead of information»