Agriculture Reference
In-Depth Information
Milk, 2005-06
Conventional
94.54%
High-end
0.37%
Supermarkets
Supermarkets
81.74%
High-end
80.32%
Organic
8.45%
5.46%
Value-oriented
Value-oriented
9.81%
13.85%
Milk, 2007-08
Conventional
92.32%
High-end
0.31%
Supermarkets
Supermarkets
78.12%
High-end
76.86%
Organic
2.43%
7.68%
Value-oriented
Value-oriented
19.45%
15.14%
Fig. 2a. Consumption Choice by Store Format and Product Type for Milk, 2005-2008
purchase was organic in 2007-08, while organic milk purchase was only 5.46% out of total in
2005-06. In the case of eggs, organic choice though still accounts for only a small portion of
egg purchase, its share has grown from 1.42% to 2.31%, which is over 60% of growth.
In terms of outlet choice, supermarket was the dominant store format of which consumers
purchased their milk and eggs, accounting for 59.70% to over 80% of total number of
transactions in all categories for both periods. We however observe a trend of market
transition, in which consumers are switching their organic purchases from high-end
specialty stores to value-oriented stores or supermarkets. In the case of milk, the value
oriented retailers' share of organic milk doubled (increased from 9.81% to 19.45%) mainly at
the expense of the high-end stores' sales: their share dropped from 8.45% to 2.43% between
the two periods. This change reflects the marketing strategy by Wal-Mart and others to
expand on organic offerings in 2006. The impacts are even more apparent in the market of
organic eggs, as around 30% of consumers switched from high-end's to value-oriented
stores and supermarkets for organic eggs purchase.
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