Demand for Organic Produce

The market for organic foods has grown rapidly in the past decade as they have become more available and affordable for consumers in mainstream grocery stores. An understanding of the demand for organic food is important for farmers, marketers, and retailers in terms of adopting production and marketing schemes that optimize the use of farmland and shelf space. A UGA study by agricultural and applied economists analyzed and compared household purchases of organic fresh fruits and vegetables before and after the implementation of the National Organic Program using the 2001 and 2004 Homescan panel data obtained from ACNielsen. Tomatoes, potatoes, carrots, onions, lettuce, apples, oranges, bananas, grapes, and strawberries are the most frequently purchased fresh vegetables and fruits. Average expenditures for these fruits and vegetables increased by 22 percent between 2001 and 2004. Asian Americans were the most likely group to purchase organic produce. On average, Asian Americans spent 133% more on organic produce than Caucasians in 2001. However, Hispanic consumers emerged to become the largest ethnic group of organic produce consumers. Blacks showed the largest difference, spending 61% more in 2004 than in 2001. Although households with earning over $100,000 a year buy more organic produce than their counterparts in other income brackets, there was no significant difference between any group in the amount spent on organic fruits and vegetables relative to total produce expenditures. The findings suggest that income seems to have little effect on the purchasing of organic produce, i.e., high income households are no more likely to be users of organic produce than low income households.