However, the biggest selling point for organics (to both men and women) is the perception that the products are healthier. So much so that 73% of women and 71% of men purchase organics for health and nutrition reasons. Those numbers fall to 31% of women and 29% of men who purchase organics because they are less processed than their non-organic counterparts, and 20% of women and 16% of men purchase organics because organic companies treat animals more ethically.

Products at a Premium
More than half of U.S. consumers (51%) agree that labeling something as organic is an excuse to charge more. Generation X (51%) and the Swing Generation (57%) in particular regard an organic label as a premium price tag.

The distrust many Americans have of organic food and drinks extends beyond issues with the price. Only 39% of Gen X trust that organic-labeled products are actually organic. This number decreases to 35% of Swing Generation consumers. Furthermore, only four in 10 Millennials (40%)—the demographic that most supports organics—recognize that organic products are highly regulated. More than a third of all consumers (38%) regard organic as a marketing term with no real value or definition.

“Considering the typically higher cost of organic foods and beverages, consumers are increasingly hard pressed to justify the added expense,” said Billy Roberts, senior food and drink analyst at Mintel. “As such, sales have hit something of a plateau, where they likely will remain until consumers have a clear reason to turn to organics. This could come in the form of a growing number of lower-cost organic options, bringing a new degree of competition to the category.”

Love for Non-Millennial Shoppers
Whether due to a lack of availability, the increased price or simply a lack of desire for organics’ perceived attributes, organic food and beverages clearly have room to grow, as only a third of consumers (33%) indicate they purchased a food or beverage labeled as organic within the last three months.

However, organics consumption is greatest among the younger generations, with nearly half of Millennials (49%) choosing organic for at least half of their food/beverage purchases—a drastic comparison to the 43% of Gen X, 51% of Baby Boomers and 58% of the Swing Generation who consume no organic products. Additionally, more than half of Millennials (51%) indicate they feel better about themselves when they purchase organic products, a factor that declines notably among older generations, to less than a quarter of Baby Boomers (24%).

While nearly three in five Millennials (42%) indicate they purchased an organic food or drink in the last three months, purchase rates drop dramatically among Baby Boomers and older consumers. Millennials are significantly more likely to purchase high volumes of organics: 20% indicate that organics comprise at least three quarters of their total food/beverage purchase. Baby Boomers and the Swing Generation, however, are much less likely to purchase high volumes of organics. In fact, organics comprise significantly lower portions of those consumers’ food and beverage purchases (just 6% and 2%, respectively).

Proof before Purchase
Mintel’s research also reveals that consumers aren’t just asking where grocery products are made or what additives they contain, but they’re also questioning whether their price tags are justified. “Consumers are confused when shopping for organics due to the large selection, confusion over natural versus organic claims, and limited regulation of the term ‘natural,’” Roberts says. “Our research shows that only 29% of shoppers recognize that organic foods and beverages are highly regulated, and an even greater percentage—38%—regard organic as a marketing term with no real value or definition.

“This skepticism could be leading to some degree of consumer apathy, as shoppers may not perceive any real benefits to going green,” he continues. “The Mintel Trend Prove It indicates that companies will need to counter this skepticism by striving for transparency and proactively making green and sustainable practices part of their business model. Consumers likely focus on the short-term impact of purchasing a product, but brands could help shift consumer perception to be more about a longer-term and holistic approach to a healthy lifestyle.”