Blog: No price on health say organic parents
Hannah Abdulla | 19 June 2014
Annie's recently expanded the organic kids range Bernie's Farm
More parents in the US are willing to pay a higher price for organic food to guarantee their kids are eating better, according to the latest research from the Organic Trade Association.
The body carried out a survey of over 1,200 households in the US with at least one child under 18, discovering "price has become much less of a barrier to purchasing organic products".
Some 51% of parents said cost was a key factor in limiting their organic purchases but that compared with 62% a year earlier.
"Parents in charge of the household budget recognise the benefits of organic, and are willing to pay a little more to know that they are giving their families the highest quality and most healthy products being offered in their local store," said Laura Batcha, executive director and CEO of OTA.
Almost half of the parents polled - 47% - said half or more of their weekly grocery purchases are organic, while close to 10% said they buy only organic.
But pricey organic product manufacturers are likely to have to re-think their strategies soon as others look to provide more "affordable organic" options.
In April, Wal-Mart announced it would list a range of products under the Wild Oats brand, a move it said would "save customers 25% or more" on organic groceries.
"We know our customers are interested in purchasing organic products and, traditionally, those customers have had to pay more," Jack Sinclair, executive vice president of grocery for Wal-Mart US, said. "We are changing that and creating a new price position for organic groceries that increases access."
Nevertheless, Wal-Mart's move could bring more consumers into the organic space, giving conventional manufacturers food for thought.
Sectors: Natural & organic
The make-up of the ingredients in baby food in the US is under some scrutiny, with Campbell Soup Co. and Nestle attracting criticism from consumer watchdogs....
UK cash-and-carry and convenience retailer Booker Group has struck a deal to buy the Londis and Budgens symbol retail chains from Ireland's Musgrave Group - and emphasised the changing retail landscap...
US efforts to liberalise international trade faced something of a roller coaster ride this week, as the Senate first voted down Barack Obama's proposals only to reach a compromise that would give the ...
Over the weekend, there were fresh claims Europe-based food retailers Ahold and Delhaize are in discussions to join forces....
- Premier Foods to push on with range revamp
- Why FMCG background key for next Thorntons CEO
- USDA's GMO move may block mandatory labels
- Focus: Why Dairy Crest needs to offload dairies
- UK Responsibility Deal must solve credibility gap
- Unilever CFO Jean-Marc Huet stands down
- Mars launches "healthy" snacks Goodnessknows
- Premier Foods sees FY profits fall
- Mondelez to cut jobs at Chicago site
- JBS "seeking M&A" in Americas, Australia
- Mars Inc in Packaged Food (World)
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Pizza Delivery & Takeaway in the UK - Industry Market Research Report
- Chocolate Flavors Market by Application & Region - Global Trends & Forecast to 2019
- Global Database of the Top 1000 Chocolate and Confectionery Producers - Company Names, Financial Performance, and Contact Details