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Organic Foods and HBC Still Not Mainstream [TABS Group Research]

Written by TABS Analytics | January, 02 2009

Shelton, CT (January 2, 2009) – Despite all of the attention from the media and consumer products manufacturers, Organic Foods and Beauty Care items have still not gained mainstream acceptance by American consumers according to a recently released study by TABS Group, a leading Marketing Research and Consulting firm in the Consumer Products Industry. “There is a significant gap between the hype and reality of consumer purchase behavior with regards to Organic products,” states TABS Group President and Founder, Dr. Kurt Jetta. “Less than 40% of Adults claim to have purchased anything from the major Organic categories in the last six months.”

According to the study, Organic Fresh Fruit had the highest purchase incidence at 27%, with Organic Fresh Vegetables close behind at 26%. Organic Dairy Products, Eggs and Milk, were cited for purchase by 18% and 17% of US Adults, respectively. Frozen Organic products – Vegetables, Fruit and Ice Cream - had low purchase levels at 5-6%. Purchase levels for Organic Beauty Care products also had very low mainstream acceptance with stated purchase for Organic Skincare at 5% and Organic Hair Care and Cosmetics at 4% and 3%, respectively. By contrast, non-Organic products for all of the above categories have household penetration levels of well above 70%.

“The findings are consistent with trends we have been tracking in retailer sales data,” commented Dr. Jetta. “Very few of these products have meaningful sales levels in traditional mass market retailers, even the ones that are very strong in the Natural Food and Specialty channels.”

Dr. Jetta goes on to say that while a few retailers have had success with Organic products, most of the ones that have invested heavily in this trend will see a poor return on that investment. “Most of the sales growth in these channels has been driven by increased selection of Organic products rather than any inherent growth in consumer appeal.”
About TABS Group and the Organic Product Research

The Organic Product study was conducted among 1,000 representative respondents aged 18+ in the TNS panel. The study was fielded from November 12-15, 2008. TABS Group is a leading provider of research and consulting services to the consumer products industry. TABS Group (www.tabsgroup.com), based in Shelton, CT, has been in business since 1998, and has developed particular expertise in the Nutritionals industry.