Organic Consumers: A Demographic Portrayal of Organic Vegetable Consumption within the United States

The organic market sector is one of the fastest growing food sectors in the United States with growth rates in organic food sales averaging 18% per year between 1998 and 2005. The largest segment within the organic market is fresh produce, comprising 36% of retail sales in 2005. To date, no published studies utilize consumer purchase information to understand which demographic factors influence the purchase of organic vegetables. This analysis focuses on aggregate vegetable purchases, along with the top three organic vegetables procured by consumers in the 2004 AC Nielsen Homescan panel dataset: pre-packaged salads, carrots, and spinach. We approach our research questions in two phases. First, the probability a consumer purchases organic vegetables is estimated in a logistic model framework. Second, a Heckman two-stage model is utilized to depict the relationship of organic vegetable expenditures as a ratio of total household vegetable expenditures. Throughout both rounds of analysis, race, education level and household income consistently influence the odds of purchasing organic vegetables.