New tendencies in the organic food market

Summary

We investigate the organic food market in two selected European countries, Great Britain and Denmark. Using unique household panel purchase data together with information on stated concern, values and attitudes, we find that the Danish and British markets share several important features. In both countries, most organic food is produced, processed and distributed at a concentrated and industrialised market, where consumer confidence is sustained by well-working organic labelling. We find that household propensity to purchase organic foods increases significantly with the household’s stated importance of private good attributes, thus making assigned private values determine the level of market participation. The weight assigned to public values is not significantly explaining household organic budget share. However, as almost all consumers purchasing organic foods are in fact acknowledging public good attributes, public values may represent a prerequisite for buying.