What are the Drivers for Organic Food Sales?

A stand with fruits and vegetables at a market.

Our global food system is a top driver of environmental consequences such as greenhouse gas (GHG) emissions, water scarcity, or soil erosion. Shifting this will require changes on both sides of the supply chain and the consumer plays a key role. In response to a growing awareness of the impact of our appetites, many consumers are starting to turn to more environmentally sustainable options, although this is still a very small share of the market. So, the key question remains: what drives consumers to purchase more sustainable food items? The answer may not be what you think!

Macro Analysis of Organic Food Sales

In our study, we aim to identify factors that positively correlate with increased organic food sales for an entire population and extended period using spatial statistics. To do so, we collected data on all food retailers in Hamburg between 1999-2019 and reasonably inferred the organic sales of each store based on data from the retailers or industry reports. In addition, we collected data on sociodemographic characteristics and voting behavior of residents living in the area around each shop to identify which factors are related to more organic food sales.

It's about Being Convinced

We found that while factors such as income or age play a role, areas with a higher number of residents that voted for political parties with a core focus on environmental issues (the Greens and the Left Party in Germany) were strongly correlated with increased organic food sales over time. However, the link was more significant in connection with the more “radical” Left Party than with the “mainstream” Green Party, which may provide evidence for the attitude behavior gap, as Left Party supporters may be more convinced of their pro-environmental attitudes, and behavior thus follows.

Published on 27 June 2024 by Dr. Sarah Joseph