What is the biggest competition/threat to the continued growth of organic demand?
I asked that question in an informal survey I sent to organic marketers in the last week or so.
Just less than 20 filled out the survey, and I will use this space to review the responses in the aggregate.
The question about the biggest competition threat to organic provided the options of:
- Local produce;
- Hydroponic produce; and
- Other.
The results? Interestingly, no one indicated “hydroponic produce” as a threat.
The votes were split between “local produce” and “other”
Specifically, 53% of respondents said “local produce” was the biggest threat to organic growth.
For those responding “other,” here are the fill-in-box answers next to that choice:
- Having enough supply to meet demand;
- Price during the pandemic;
- Erosion of prices for the grower;
- Organic integrity issues that cause the organic seal to lose its relevance in the eyes of consumers;
- Conventional produce; and
- Potential for an economic downturn.
Another question I asked the group is this: How can retailers best promote your organic produce items? Calling out organics in the store is a big theme among those who responded. Here are a few excerpts:
- Placing organic core varietals is important to cover everyday retail needs, however club organics offer consumers an elevated experience and give retailers the opportunity to capture additional sales;
- Organics have a great opportunity for growth but options need to be available and visibly merchandised in-store;
- Make organics availability transparent in the produce department and make them easy to find;
- Retailers can best promote organic items by calling them out specifically in their print/digital ads and online flyers.
- Produce should be marketed separately from organics in the rest of the store, but if specific organic categories (ie dairy) across the store are on ad - consider tying in organic produce to promote holistically;
- Retailers should also provide more recipe inspiration for consumers, especially as cooking fatigue increases with COVID-19 and the holidays. Focus on recipes that take 30 minutes or less to make and have an easy to obtain a list of ingredients;
- Utilize the promotions we have to offer by lowering the retail accordingly;
- It is hard to convert customers to organic in-store. Most organic customers come to a store already looking for organic. Retailers should make sure that their organic selections are easily identified as organic and as readily available in store as the conventionally grown items;
- Support the program year-round and build brand loyalty with the consumers;
- Build an organic program and have a plan. As organic experts, we want to see retailers be successful in designing and building an organic program that’s right for them;
- Display and promote;
- Tell the story of family farmers who are dedicated to organic production;
- Multi-variety promotions are key to organic category growth. For apples. this means 2-5 varieties on ad at one time. Too often we see standalone ads and they elevate that variety but the rest of the category doesn’t rise along with it.;
- We can’t forget about the digital space and the rise of e-commerce. It’s important that organics get prominent space in these formats to encourage trial and repeat purchases;
- Retailers need to call out their organic items, especially organic items they are wanting to promote. Many departments that we see are not putting enough emphasis on sale items, getting the consumer to try these different items. They all seem to run together in most departments and there are so many choices that I feel it sometimes confuses the consumer on what to purchase. Call out your organics, put them on separate displays when you can and let the consumer know that these items are on sale. Promote several items at once on organics; and
- Increase in the visibility of the items within the produce department.
There is much more optimism than worry about the future of organic produce, it seems.
Every one of the marketers believes in organic produce, so I asked the question: What makes you optimistic about the future of organic produce?
Again, here are some excerpts from our organic marketers:
- Consumers are demanding sustainably grown products that they feel good about purchasing;
- Steady growth;
- Competitive advantage for growers and marketers in Washington as growers can’t grow organics in good commercial volumes East of the Rockies;
- The availability of organic produce will continue to grow;
- Demand continues to increase year over year;
- What makes us most excited and optimistic about organics is its potential. There is so much room for growth of the organics category as a whole and demand keeps increasing as well;
- On the growing end, new greenhouse growing technologies are making organic food more accessible and attainable by making it possible to grow crops in new places;
- The consuming public is more interested than previous in knowing about their food. This bodes well for organic produce, it’s a leading story of how we can progress in ag through softer methods;
- Organic produce has fared quite well during COVID-19 as most consumers are able to focus on organics while eating in the home. Once the global pandemic subsides, we hope that consumers will look to choose organic more outside the home driving demand in foodservice, retail deli and more;
- Organic produce had been growing steadily for about the last 8 years or so. This pandemic year was an anomily in as much as organic demand went crazy in the beginning and eventually leveled off. I have no reason to believe that the demand for organics will not continue to grow at a more even and steady pace. I feel much of organic growth is social media-driven and I don’t see that influence ending soon;
- Consumers want to know where their food comes from and how it is grown;
- Being able to offer healthy, organic fruit to the world will never get old. We are optimistic about how organics has really solidified its position in the produce department and we’re excited to be a part of that movement;
- Overall trends;
- The continued increase in consumer awareness and health-conscious decision making;
- Our focus on delivering new varieties with great flavors. Enhancing the consumer experience through flavor is key to organic produce growth!
- More and more consumers are trying organics. As it gains more and more publicity and also because of the pandemic it seems to be gaining more and more strength; and
- Continued growth in demand.
