Impact of the consumer’s environment on the demand for organic food in France
Résumé
A distinctive feature of the organic market is its strong growth rate. The central question
of this paper is whether, in addition to individual determinants, the probability of buying
organic products is influenced by the consumer’s environment. A quantitative approach
was utilised involving databases: the Homescan dataset Kantar Worldpanel, with both
purchasing and socio-demographic data for a panel of 22,359 French households, and
national databases describing some components of the consumer's environment: the
local sales structure of food retailing, the presence of downstream organic operators and
the extent of organic farming. This work relies on a bundle of fourteen products and the
methodology used (Heckman method) takes two distinct decision processes into account:
the binary decision of whether or not to buy organic products (39% of households did not
purchase any organic products), and the budget share that a household allocates to
organic food. The ‘all-organic’ basket costs a 62% premium over that of the ‘all-
conventional’ basket. The average food-budget share for organic products was 3.61% (for
all households) and 5.96% (for those that purchase organic). The results show that
factors related to the household’s environment (kinds of local sales channel, number of
organic operators in the living area and the local role of organic farming) impact on the
household’s propensity to purchase organic products. From a practical perspective, our
findings point out that to expand organic food consumption, information campaigns on the
organic label could benefit from being associated with territorial factors and with the
strengthening of contact between (potential) consumers and the local actors of the
organic sector.