This article appears in the February 2017 issue of Potato Grower.
More and more often, retailers are requesting potato suppliers to make their value-add potato products organic in an effort to maximize value to those shoppers. There is precious little existing research or analysis to address the question of whether value-added potato products are more successful when also marketed as organic.
Potatoes USA recently conducted a study to determine whether consumers respond better to products within the potato category and overall vegetable categories when a product is marketed as both value-added and organic, versus only value-added. Potatoes USA utilized point-of-sale data to find answers as to how value-added organics are performing compared to conventional value-added products. Here are five major takeaways from that study.
More and more often, retailers are requesting potato suppliers to make their value-add potato products organic in an effort to maximize value to those shoppers. There is precious little existing research or analysis to address the question of whether value-added potato products are more successful when also marketed as organic.
Potatoes USA recently conducted a study to determine whether consumers respond better to products within the potato category and overall vegetable categories when a product is marketed as both value-added and organic, versus only value-added. Potatoes USA utilized point-of-sale data to find answers as to how value-added organics are performing compared to conventional value-added products. Here are five major takeaways from that study.
- Organic produce represents one-tenth of all produce dollar sales. From 2015 to 2016, organic sales increased at four times the rate of conventional produce sales growth.
- The organic produce shopper is valuable to both food manufacturers and retailers, spending more time both in the fresh produce section and in the whole store and therefore generally spending more money on fresh produce.
- Shoppers who purchase organic potatoes are very particular, less willing to switch to a conventional item and more likely to shop another retailer if their preferred organic potato product is not available.
- Sales of value-added potatoes are growing in total dollars, volume and market share with the highest share growth of all vegetables. Value-added potato sales totaled just under $32 million in the second quarter of 2016.
- Organic value-added potato sales are on the rise, and so are conventional value-added potatoes. This indicates that a growing number of consumers are purchasing both options. However, it is worth noting that organic value-added sales are growing faster than conventional value-added in both dollars and volume.