Organic: What’s in A Name?

While the term "organic" has a regulatory definition in the United States, it's more than just a word for many consumers and producers-it's a way of life. It runs the gamut from sustainable farming and nutrient-dense produce to antibiotic- and...

August 9, 2011 | Source: Natural Products Marketplace | by Alissa Marrapodi

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While the term “organic” has a regulatory definition in the United States, it’s more than just a word for many consumers and producers-it’s a way of life. It runs the gamut from sustainable farming and nutrient-dense produce to antibiotic- and hormone-free goods and minimizing pesticide exposure. And as consumers are making strides toward healthier lifestyles via nutrient-rich, better-for-you foods, active lifestyles and reducing their carbon footprint, they’re paying more attention to what’s in the box-reading labels; seeking out locally grown, ethically sourced products; and buying meat and dairy products from animals not treated with antibiotics or hormones. They’re thinking   organically.

According to Mintel’s Consumer Attitudes Toward Natural and Organic Food and Beverage U.S. March 2010 Executive Summary, Americans-who report having a healthier diet than they did a year ago-were considerably more likely to state they have an interest in natural/organic products. This attitude,  and the higher number of Americans cooking at home (in addition to the higher demand for convenience-positioned frozen, refrigerated and shelf-stable natural/organic meals), are just two contributing factors driving the organic market today. Clearly, Americans’ shift in lifestyle is a major growth factor in the organic arena.

Unfortunately, expensive is one of the first things that comes to mind for many shoppers when talking about organic. Research confirms price is the main reason many shoppers opt out of buying organic. “Among the small group leaving organic products on the shelf this year, the main reason is cost, cited by 85 percent of shoppers,” according to the Food Marketing Institute’s (FMI) U.S. Grocery Shopper Trends 2011. “The price barrier will continue to be the biggest obstacle facing the organic market.” This response of high-cost is up from 2007-57 percent-and 2010-69 percent. According to FMI and Rodale/Prevention Magazine, Shopping for Health 2010, despite the fact that affluent shoppers are twice as likely as lower-income shoppers to buy organic food (which has been true for a while), those who no longer do so are just as likely to cite price as the reason. Interestingly, 38 percent of shoppers who used to buy organic but no longer do so said they prefer locally grown foods instead, according to FMI. The group noted the number one reason shoppers buy locally grown or produced goods is because of freshness (83 percent), followed by support of the local economy (68 percent); taste (56 percent); knowing the source of the product (40 percent); price (35 percent); nutritional value (30 percent); environmental impact of transporting foods across great distance (27 percent), which tied with appearance; and lastly, 15 percent of shoppers bought local goods due to long-term health effects.