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Organic Goes Mainstream

Stores specializing in organics are everywhere, and most large chains are coming out with their own lines. What’s in Alberta’s shopping cart?

How attracted are you to the “organic” aisle at your local grocery store? If you’re like other Alberta consumers, you’re venturing down it more often than ever. Organic food consumption is on the rise. That’s the message coming out of research from the Department of Rural Economy, Faculty of Agricultural, Life and Environmental Sciences, University of Alberta. The university, in conjunction with Agriculture and Agri-Food Canada Consumer and Market Demand Agriculture Policy Research Network, has recently looked at why shoppers
are increasingly opting for organic.

How many organic producers are there in Canada?

A 2004 report by Agriculture and Agri-Food Canada (AAFC) identified 3,134 certified organic producers, representing a little over one per cent of all farms. Saskatchewan has the highest number of certified producers (1,049), followed by Quebec (610), Ontario (487) and British Columbia (420).

How big is the organics market?

In 2007, the Canadian certified organic food market was worth approximately $1 billion. Grocery stores sales accounted for $586 million, smaller stores for $175 million, large natural food stores for $330 million, delivery for $20 million, direct sales (farmers’ market) for $50-65 million, and restaurants and food service for $10 million.

“The organics industry is growing fast in Calgary,” agrees Shawn Peters, grocery manager at the Calgary Shaganappi outlet of Planet Organic. “It’s not just the green movement, but the emergence of allergies and other health concerns, that may be drawing people to stores like ours.”

Are organic products becoming mainstream?

“Most stores are realizing the potential of organics and are developing their own lines,” says Peters. “Organics is not going away.” The research supports him. According to a 2007 survey, a quarter of all members in most age groups have tried organic foods. Moreover, about 30 per cent, of people with post-secondary degrees have tried organic foods. People in British Columbia have tried an organic product more often than other Canadians: 33 per cent compared to 20 per cent in other regions.

What are the most popular organic products?

“Produce is number one, along with dairy,” says Peters, of
his experience at Planet Organic. And nearly a quarter of Canadians have purchased organic produce. Fresh produce accounted for $157 million or 38 per cent of all the certified organic foods sold through the grocery channel of supermarkets. Soya drinks, yogurt and milk are important categories. Although raw meat is a relatively small market ($3 million), it’s growing, showing gains of 81 per cent from 2005 to 2006. Organic poultry accounts for more than 60 per cent and beef for nearly 40 per cent of the total organic raw meat.

“And organic grains are also becoming more important,” says Peters. “We have a significant base of shoppers in Alberta with food sensitivities or allergies, such as people with Celiac disease.”

Why are Albertans eating organic foods?

It depends who you talk to. One study examined how willing Edmonton area consumers were to pay premium prices for organic wheat bread. If they weren’t able to taste the bread, respondents’ willingness to pay increased when environmental information was provided, more so than when they looked at health information. However, when consumers could actually taste the product, the health information became more important.

That means that successful marketing of organic products depends on circumstances. Health claims for organic products became more important when the product could be tasted. It doesn’t surprise Peters. “Health is closer at hand, and tackling the environment may seem more like a philosophical issue. So when shoppers can taste a product, they’d be more apt to make that health connection.”  

Funding is made available through the Agriculture and Food Council, which is responsible for delivering Agriculture and Agri-Food Canada’s Advancing Canadian Agriculture and Agri-Food (ACAAF) Program in Alberta.

Click here to read the original papers.