Consumer demand for organic foods

Knowledge about organic production with regards to physical and economic factors is available today. However, only little research has been carried out regarding consumer demand for organic foods. If a major part of the Danish cultivated area is to be converted to organic farming, a substantial market expansion is required. Thus, assessing consumer demand is highly relevant.

The aim of this project is to assess the long-term consumer interest in organic foods. The demand functions for Danish household consumption of organic foods is estimated utilising a household level data set with daily registration of food purchases. Household characteristics such as income, geographic location or number of children are background variables. The project aims at shedding new light on the structure and relative importance of various motives for purchasing organic foods within different consumer segments. Focus will be on purchasing motives, attitudes towards organic convenience food, and attitudes towards conventional versus alternative sales channels. A demand system including representation of valued good attributes and underlying attitudes is set up. This makes it possible to evaluate different information strategies in addition to more traditional evaluation of the demand effects of prices and demography. Similar analyses will be conducted in one or two neighbouring countries.

The driving forces behind the origin and growth of pioneering firms like dairies or sales co-operatives, and the barriers for further marketing are analysed. Focus areas are establishment of reliance between producer and user, organisation of various initiatives, and distribution of products.

Publications

Project title
III.1 Consumer demand for organic foods – domestic and foreign market perspectives (COF)

Project leader
Mette Wier
Danish Research Institute of Food Economics
Rolighedsvej 25, 1958 Frederiksberg C
Phone: +45 35 28 64 54, Fax: +45 35 28 68 01
E-mail: mew@foi.dk

Project participants
Lars Gårn Hansen, Kjeld Høgsbro and Laura Mørch Andersen, Institute of Local Government Studies
Martin Browning, University of Copenhagen
Katrin Millock, Centre International de Recherche sur l'Environnement et le Dévelopment, France
Henrik Stender, GfK Denmark
Jan Holm Ingemann, University of Aalborg