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Current Position:Home » News » Marketing & Retail » Food Marketing » Topic

Have organic foods become mass market?

Zoom in font  Zoom out font Published: 2016-03-31  Views: 21
Core Tip: As major retailers like Walmart and Whole Foods experiment with cheaper organic lines and sales of organic food have dramatically outpaced that of conventional food, you may think that organic has gone mainstream.
As major retailers like Walmart and Whole Foods experiment with cheaper organic lines and sales of organic food have dramatically outpaced that of conventional food, you may think that organic has gone mainstream. However, a recent study in the Journal of Food Products Marketing suggests that the growth of organics might not be so diversified.

Researchers looked at organic food sales across Manhattan. They visited 1,256 stores, assessing whether each retail location sold organic, local or conventional versions of 24 foods that are among the most common to be sold organically.

They found that stores selling more than a handful of organic products were overwhelmingly concentrated on the Upper East and Upper West sides —neighborhoods that are wealthy and highly educated. Sixty percent of the borough's stores did not offer a single organic item on the list, and one-third offered 12 items or less. Only 5 percent of the stores offered at least half of the 24 items in organic versions.

"I was surprised at how few stores had a good offering of organic products," says study co-author Carolyn Dimitri, a professor at New York University's Food Studies Program. "I thought organic food was everywhere ... but when you take a look, [organic food] does seem to be concentrated in a few select neighborhoods, rather than the wide availability that was implied by the industry."

Some of the findings, such as a correlation between store size and number of organic items offered, may be somewhat specific to Manhattan, says Dimitri. Real estate pressures put shelf space at a premium in New York, limiting retailers' interest in stocking products with lower turnover — as may be the case with organics. That would likely be less of an issue for the large-scale stores common in suburban American, such as Walmart.

Still, the finding that organics are more common in affluent neighborhoods doesn't mean lower-income Americans don't care about organics, says Alexis Baden-Meyers, political director for the Organic Consumers Association.

But because organic foods aren't just rare, but routinely command a significantly higher price than conventional — anywhere from 20 percent for lettuce, according to recent CNBC coverage — fewer Americans buy organics than they otherwise would. "It's less about demand," says Baden-Mayers, "[and] more about how to make it more accessible and affordable."
 
 
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