RollAMA analyses show: Organics get more and more popular in Austria

The consumption of organic products in Austria has increased by 35 % between 2003 and 2006. A high percentage of the people interviewed stated that they bought organic products at least occasionally and would appreciate a broader offer. Organic products have an average price premium of about 30 %. These facts were revealed by the latest consumer survey of the Austrian agency RollAMA. It is expected that when the range of organic products is broadened within the next years, a further growth of the market will take place.

Picture: Organic-advertising in Austria

91 % of the respondents stated they bought organic products at least on odd occasions. 33 % said they bought them frequently (2005: 24 %), and 16 % of the interviewees even mentioned they bought organic products regularly (2005: 9 %). As the main reason for these organic purchases, 50 % of the respondents stated they expected benefits for their health. They also considered it important to know that the products were free from chemical additives and that they supported the organic farmers. Consumers had a strong desire to be informed about the source of the products. While in 2005, 46 % of the questioned would not be ready to buy organic food because of the price premium, this number decreased to 32 % in 2006. 77 % of the respondents stated they would appreciate a larger range of organic products.

While in 2004 a total of 74,000 tonnes of fresh organic products equalling 150 million Euros were sold, this number increased to 90,000 tonnes worth 200 million Euros in 2006. This means an increase of 35 % in a period of three years. The share of organic products on the total turnover in food retail in Austria was about 5 %. Almost all commodity groups experienced a growth. The most important product groups were milk, fruit, vegetables, but also eggs. Organic milk was the most important product on a quantity basis with 14 % in all retail stores. Eggs also increased their share and were the most important fresh food group regarding turnover. A continuous increase was also revealed for organic fresh fruit (from a turnover of 2.7 % to 6.6 %) and for organic fresh vegetables (4.4 % to 6.1 %). The share of organic meat grew on a low level and had a share of 2.8 %. Organic sausage had the lowest share with just 1.4 %.

Private labels helped to increase the share of the discounters by 10 % on a quantity basis, lifting it to 35 % of the total organic market in 2006. Regarding turnover, however, the share of the discounters only summed up to 27 %. On average, the price difference between organic and conventional fresh products was 36 %. But big differences, depending on the product, were obvious. For one kilogram of organic potatoes, for example, one had to pay a premium of 76 %. The price for fresh organic fruit showed a premium of 65 % and a premium of 51 % for meat and fat. Organic milk, however, was not more expensive than conventional milk.

The analyses showed typical groups of organic consumers. 20 % of the consumers have a share of 68 % on the total purchases of organic products. Organic consumers often have a high educational level (86 %). Consumers with a high school and university degree are responsible for about 40 % of all purchases. Furthermore, organics are more important for families than for singles. It was also revealed that people buying organic products also buy more fresh fruit and vegetables, but less sausage and meat. They also purchase less canned food and instant meals.

Consumers of organic food are a very interesting target group. They have the spending power and are ready to spend more money on high-quality food. At this time, however, the so called “organic heavy users” only spend about 13 % of their total income dedicated to food on organic products. It is expected that when the range of organic products is broadened within the next years, a further growth of the market will take place.

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