Bio+pro – Target Groups in the Market of Organic Foods

New Target Groups for Organic Products: Improving Market Opportunities for Organic Products

The Federal Government has set itself the ambitious goal of increasing the proportion of agricultural land devoted to bio-farming to twenty percent. But this goal can only be reached if there is a corresponding increase in demand for products from certified biological farming. So far demand for organic food products in the food trade has hovered around the two percent mark. Consumer surveys, however, show a strong interest on the part of consumers, and therefore significant potential for organic food products. Which target groups display this potential demand?

In order to answer this question a target group model for organic foods was developed within the framework of the project, a model which registered the different wishes and preferences of organic food products buyers and which provided producers and retailers with ideas for a new positioning of their organic food products. The target group model was centered on the organic food products consumer. The survey of a representative group of consumers (a total of 2920 persons) showed that 54% of adult purchasers of food in Germany (1575 persons) had already tried organic food products. Organic food products are particularly popular among middle and higher age groups, the 40-60 year olds. The figures are clearly lower for those under 30.

A survey of the 1575 organic food products consumers made clear that the typical consumer of organic products does not exist. Rather, it was possible to identify five target groups within the general group of organic food products consumers:

The Holistic Convinced Consumer
The Successful and Demanding Consumer
The 50+ Health Oriented Consumer
The Cautious and Skeptical Consumer
The Young and Undecided Consumer

The target group model for organic food products was developed on the basis of a dual-level, qualitative and quantitative, empirical survey. During the empirical survey ISOE used its tried and tested "Social-Ecological Life Style Approach," which the institute developed for research on questions involving ecological consumption. This approach identifies, on the one hand, life-style specific orientations and motivating factors, and, on the other, life situation of the interviewees, as well as their buying behavior. In addition to the social milieu, the life phases and biographical transitions (family start, new orientation in post-family phase) of the interviewees are taken into account.

The target group model has provided substantial knowledge about the attitudes, motives, preferences, and buying habits and barriers of buyers of organic food products. In a market that has grown considerably over the last few years, and has become more complex, the study provides producers, processors and marketers in particular with valuable ideas for developing group-specific strategies for communicating about and marketing organic food products.

For the Totally Convinced Consumer ethical considerations and Epicurean enjoyment form the basis of a sustainable mode of eating that also includes organic food products. This group accounts for about 40% of the organic market.
The Successful and Demanding Consumer also represents a large market potential, one that has not yet been exhausted by a long shot. The wellness of a child or children is a central motive for buying organic food products. This group places particularly high value on the packaging and presentation of the product.
The 50+ Health Oriented Consumer is dependent on organic food products for reasons of health. For these consumers reliable information and qualified advice are highly regarded. Many of these consumers are intensive buyers, but often have only a low income.
The Cautious and Skeptical Consumer is the only group where men form a majority. This group contains primarily spontaneous and opportunistic buyers. Simple preparation (convenience) plays a crucial role.
The Young and Undecided Consumer are strongly price oriented and buy organic food products only spontaneously and sporadically. For them, there is a good deal of doubt concerning the personal usefulness of organic food products.

The Totally Convinced Consumer and the Successful and Demanding Consumer groups have the highest market potential. Presently, two thirds of all organic food products are sold to these two groups. Given demographic developments, the 50+ Health Oriented Consumer group is a target group that is growing in size and becoming more important.In contrast, the Cautious and Skeptical Consumer and the Young and Undecided Consumer groups currently represent only a small market potential. However, given their buying power, cautious and skeptical consumers are an interesting target group, if one can succeed in attracting them. Young and undecided consumers, on the other hand, are not easy to reach. But, given their young age, and in light of future transitions in their life situations (family start-ups), this group has a significance for the future that should not be underestimated.

Project Planning

The project began 1 July 2002.

At the beginning of the qualitative phase, creative group discussions were held in various regions in Germany in August-September 2002. This was followed by the qualitative exploration from November 2002 till end of January 2003.

The findings concerning the qualitative structure of organic consumption were presented to the first milestone workshop in March 2003.

More than 1500 individuals were questioned for the quantitative empirical survey. The analysis of the data was concluded in July 2003, together with the development of a target group typology.

On the basis of these findings, an evaluation of the market potential of individual target groups was completed in July and August 2003, together with the development of proposals for target group oriented marketing and communication strategies.

On 17 September 2003, the target group model and the proposals for marketing strategies were presented to organic producers, processors and retailers at a workshop at ISOE and then discussed.

The first official presentation of the target group model took place on 10 October 2003 at a workshop entitled, "The Transparent Organic Consumer," at the University of Goettingen.

On 15 October 2003 the target group model was presented at the ANUGA food trade fair in Cologne.

A workshop entitled, "New Target Groups for the Organic Market: Analysis and Ideas for the Marketing of Organic Food Products," is planned for 20 February 2004 as part of supplementary program of the Biofach (World Organic Trade Fair) in Nuernberg.

In the range of the international symposium "9th Karlsruhe Nutrition Congress: Consumer and Nutrition - Challenges and Chances for Research and Society" Immanuel Stieß presented the so called food styles by means of a poster. The file is downloadable now (pdf-file 348 kb)

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