Analysis of Consumer Behavior in the UK Organic Food Market

This report provides a comprehensive analysis of the UK organic food industry, examining its growth, consumer behavior, and market trends. The study begins with an acknowledgment of contributions and an executive summary highlighting the industry's evolution and the increasing consumer demand for organic products. It explores the rationale behind the study, its aims and objectives, and research questions, emphasizing the shift towards healthier lifestyles and the impact of retail giants. The literature review delves into the benefits of organic food, industry analysis, factors affecting consumer behavior, and consumer demand. The methodology section outlines the research philosophy, approach, strategy, and techniques used, including primary data collection from 100 London consumers. The report analyzes the findings, revealing consumer perceptions and factors influencing preferences. The introduction provides a background on the industry's development, the role of technology, and the growing awareness of health and environmental issues, and the report concludes by investigating the consumer behavior and market trends of the organic food industry in the UK.

FROM CAUSE TO
CORPORATION- ORGANIC
FOOD INDUSTRY

ACKNOWLEDGEMENT
The study attempted by me is a result of humble contribution and selfless efforts of many
people in my life. I hereby seek the opportunity to pay modest gratitude to all the individuals
who helped me in guiding, planning, editing ad shaping the report. I am thankful to my mentor
and all the people who have given me support and guidance for completing the dissertation. I am
grateful to my team members, family and friends who helped me in all possible accords. I would
also like to thank my parents who supported me while conducting this particular study. The
combine efforts of all these people helped me in successfully completing the research in the
desired manner.

EXECUTIVE SUMMARY
People are adjusting to the demand of occupied lifestyles and complex work schedules.
With the advancement of the science and technology, more and more humans are getting
exposed to the information, technology, knowledge and education than ever before. Retail giants
such as Tesco, Sainsbury, Waitrose, Aldi, Marks and Spencer etc. has adopted organic food
selling in order to enhance sales and brand image within the market. The concept of organic food
segment is not new for UK market. The growth of food sector has been high and effective for the
country. Present research has focused on evaluation of the growth and development of the sector
within the UK economy. Research has been made to show that how the organic food became
popular among the masses and the perceptions that customers have in their mind-set about this
organic food
Literature section of the research focused on developing extensive research on the topic
through secondary research analysis. With the help of it, conceptual information is attained based
on which research gaps are identified. From this, appropriate objectives are developed which
aids in bridging out the identified gaps. Research methodology section deals with the discussion
over research tools and techniques so that researcher can able to conduct the study in effectual
manner. Research onion approach has been adopted to attain the set results for the research.
Moreover, the study focuses on evaluating the growth of organic food industry in UK and also
investigating about factors developing consumer preferences for the same. The researcher has
collected primary data from 100 consumers of London. To collect reliable and authentic data
structure questionnaire tool was used by the researcher. This helped in attaining quantitative
results for the study. The data has been quantified and processed by using SPSS tool.
The findings of the current study reveals a true picture of the market thus provides
effective base to draw constructive conclusions. For the current report the stated segment will
understand the overall study and develop an effective analysis of the same in order to attain
effective research results. study helped in analysing that the term organic food has gained
effective popularity within the market. Majority of the respondents were acquainted with the
terminology and has a clear idea about facts and attributes associated with the term. Moreover,
the findings helped in analysing various factors responsible for developing consumer perception
towards the product range.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the study...................................................................................................1
1.2 Rationale of the study.......................................................................................................3
1.3 Research aims and objectives...........................................................................................4
1.4 Research Questions..........................................................................................................4
1.5 Potential significance of research.....................................................................................4
1.6 Research structure............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
2.1 Introduction......................................................................................................................7
2.2 Organic food.....................................................................................................................7
2.3 Benefits of organic food...................................................................................................8
Industry analysis...................................................................................................................10
Factors affecting consumer behaviour..................................................................................12
Consumer demand for organic food.....................................................................................14
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................1
3.1 Introduction......................................................................................................................1
3.2 Research Philosophy........................................................................................................2
3.3 Research approach............................................................................................................3
3.4 Research strategy..............................................................................................................3
3.5 Research choices..............................................................................................................4
3.6 Time Horizon....................................................................................................................5
3.7 Research techniques.........................................................................................................5
3.8 Ethical consideration........................................................................................................7
3.9 Research limitation...........................................................................................................7
CHAPTER 4 DATA ANALYSIS...................................................................................................9
4.1 Introduction......................................................................................................................9
Data analysis and findings......................................................................................................9
REFERENCES..............................................................................................................................31
APPENDIX....................................................................................................................................35

Questionnaire for Customer survey......................................................................................35

CHAPTER 1: INTRODUCTION
1.1 Background of the study
Economies are widely developing incorporating advanced technologies and comfortable
lifestyles. People are adjusting to the demand of occupied lifestyles and complex work
schedules. With the advancement of the science and technology, more and more humans are
getting exposed to the information, technology, knowledge and education than ever before
(Pivato, Misani and Tencati, 2008). Because of all these things, people are getting more aware
and sensitive to the environment and the surroundings. Although technical growth has simplified
lives for people yet there are some significant challenges caused due to these issues (Healthy
organic food sales buck industry trend, 2015). Present era of gadgets and busy work schedules
has enhanced health inequities within the market. In recent past trend of fast food and junk food
was developed which efficiently became the part of the economy. People preferred taste over
health and time over wellness. This resulted in high casualties and health instability across the
globe. Health problems such as obesity, diabetes, cancer, cardiac arrest etc. has significantly
increased in the economy (Zander and Hamm, 2010.). Government and people started finding
healthy and quality food options in order to fill the health inequality gap within the market.
A quality and a healthy lifestyle has become necessity to the modern generation. To
maintain this healthy lifestyle people are shifting towards the use of organic food. Organic is
primarily a labelling term that is used on a wide variety of foods that have been produced
through methods and practices which are healthy and quality ascertained (Organic market shows
improved growth amidst tumbling food prices, 2015). The misconception regarding organic food
is that they are those products which are earth friendly such as vegetables and fruits. However,
this conception do not portray the true picture of the term. Organic food are the ones for which
farming practices and food production steps are closely monitored and controlled in order to
reduce the risk of food contamination and enhance its quality. These ensurers low adulteration
and high nutritional factors in food (Paul and Rana, 2012.). Food industry is one of the most
dynamic and volatile business segment. Demands and trends change quickly which demands the
industry to effectively integrate with innovative practices and ideas.
Organic food concept is increasingly being accepted within the market. More and more
companies are now focusing on the production of this type of food (History of Organic Food,
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2010). Everyday people can read and see the organic topic everywhere from the newspaper,
magazine, billboard advertisements, internet, etc. These are developing huge demand within the
market due to health benefits and quality issues associated. Companies are now focusing on
adopting these policies widely in order to create a positive change within the market. Retail
giants such as Tesco, Sainsbury, Waitrose, Aldi, Marks and Spencer etc. has adopted organic
food selling in order to enhance sales and brand image within the market (Analysis: Optimism in
UK organic industry, 2015). Organic food is directly linked with quality and surety with hearty
lifestyles which helps the business units in creating a positive brand image in the market through
offering these products. It has also been expected that the organic food market will grow by 14%
in the upcoming years and will surely surpass the fast food industry (Yeon Kim and Chung,
2011).
The concept of organic food segment is not new for UK market. The growth of food
sector has been high and effective for the country. After financial crises of 2008 the industry has
developed significantly within the country (Chen, 2009). Both production and retailing of
organic food has grown stronger within the market. This has resulted in enhancing revenue and
employment rate for the country. Researches has reflected An annual growth rate of 0.3% from
the year 2011-2016 which is significant for the country. Moreover, the regulatory authorities and
governemnt have developed effective standards and policies to ensure food quality and
effectiveness for people (Tsakiridou and et.al., 2008.). Companies has adopted those measures
and has developed a strong foundation for organic food segment which is now posing challenges
for new market entrants.
Present research will focus on evaluation the growth and development of the sector
within the UK economy. Research has been made to show that how the organic food became
popular among the masses and the perceptions that customers have in their mind-set about this
organic food (Hustvedt and Dickson, 2009.). It will develop an in-depth study about this sector
and the factors which has helped in developing the segment. The report will closely examine the
cause of massive growth of the industry in recent past. It will investigate problems or
consequences related to it, how it affects food industry. The research will be analysing growth of
organic food industry by using variety of research tools and techniques. The researcher will
critically analyse and evaluate the issues and standards of the sector which has contributed
widely in the growth and development of the sector.
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1.2 Rationale of the study
Organic food is enhancing wide and effective demand within the market. This sector is
continuously expanding its reach within the food industry in order to revolutionize the economy.
The practice came into picture years ago when green revolution was practiced and adopted by
the people (Vermeir and Verbeke, 2008.). However, with time and upcoming industrial
revolution subsided the practice in the economy. At present when modern world is facing wide
issues regarding heath inequalities, demand for healthy food has enhanced. The practice of
organic food developed in the era of late 90s and presently has become widely popular. The
present study will investigate consumer behaviour within the market for the organic food.
Consumer behaviour is one of the most vital aspects in the global marketing. One of the
basic requirements for every human being is food so consumer wants maximum satisfaction in
the food products (Mazar and Zhong, 2010). From last few years, it has been noticed that many
people are diagnosed with some or the other harmful disease and all this is related to food habits
among people. Because of all these factors the attention of people is shifting towards the organic
food because they are getting the same satisfaction from this type of food as they used to get
from the fast food and this food is not unhealthy too. However, organic foods are expensive in
nature as compared to the non-organic food but still as the demand is increasing these prices may
soon come down.
This particular research is conducted to evaluate the factors that are increasing the use of
organic food business in United Kingdom. It is conducted in order to understand the needs and
demands of the consumers within the food market (Pearson, Henryks and Jones, 2011).
Companies are continuously developing and adopting innovative practices to enhance their sales
and profitability within the market. The present report will investigate the current trends and
demands of the consumers. It will examine the factors that are increasing the demand for organic
food within the UK market and create an effective impact of the same on the organizational
growth and development. Moreover, it will help in understanding industry trends through
evaluating social perspective for the topic. The research reflects how preferences of people are
changing and that how a small cause has now developed a revolutionary change within the
economy.
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1.3 Research aims and objectives
Research is developed in order to attain the specific aims and objectives which helps in
developing an in-depth understating and effective format for the study. The aim of the present
research is to analyse the behaviour of consumers towards the organic food industry.
Research Objective-
 To analyse the consumer preference towards the organic food
 To identify the factors that leads to the increasing demand for the organic food in United
Kingdom.
1.4 Research Questions
Research questions helps in developing an effective structure to attain research
objectives. These are developed to efficiently outline and design the research study. In order to
attain research objectives for the present report research questions are:
 What are the consumer preferences towards the organic food?
 What are the factors that lead to the increasing demand for the organic food in United
Kingdom?
1.5 Potential significance of research
The significance of the study depicts the value of the analysis and its impact on further
evaluation of the topic. It also indicates that how the research will contribute to the existing
studies and researches. Researches may have academic as well as commercial significance which
may help in developing an in-dpeth understanding on the topic. The Present research has been
conducted in order to create an effective impact on the growth of the industry. The aim of the
present study is to analyse the behaviour of consumers towards the organic food industry. It will
critically focus on analysing consumer behaviour favouring the growth and development of the
industry along with the factors which are causing the sector to grow. This will create a clear
reflection of food sector trends in UK.
The stated research topic is broad and effective for analysis of food sector trends through
social perspective. Understanding consumer needs and demands helps in conceptualising the
research and developing strong foundation for the same. Along with this study also helps in
enhancing a unique academic perception for the topic. Facts and knowledge associated with the
research helps in enhancing the conceptual knowledge of the aspirant researchers and may helps
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them to use the similar or same topic for further studies. The present study will widely contribute
in existing literature by developing reliable and authorised research results for the study.
1.6 Research structure
Research structure reflects an overall format of the research in order to develop a clear
understanding and well developed research study for the proposed topic. It enhances the
successful development of research to attain research objectives. In order to attain the research
aim to analyse the behaviour of consumers towards the organic food industry the researcher has
adopted the following structure:
Chapter 1: Introduction-This section of the research creates a clear and in-depth analysis of
research topic and develops an effective overview about research. It clearly states research aims
and objectives and provide a clear and effective background of the study to support the topic.
Research rationale and significance of the research develops a clear understanding about research
aim and its relevance in the present day.
Chapter 2: Literature review- This section of the report develops an extensive and in-depth
secondary research analysis about the proposed research topic. It closely examines the existing
literature and evaluates previous researches done of the same or similar topic. This secondary
perception for the research helps in developing an effective understanding about research topic
and the issues. It focuses on examining all facts and figures associated with research aim in order
to attain research objective significantly.
Chapter 3: Research methodology- This segment is effective and well defined measures to
define research structure and creates a well formatted and designed research study. It applies all
effective tools and techniques to develop a proper and well structure research. The aim of the
present study is to analyse the behaviour of consumers towards the organic food industry. In
order to attain the same research methodology will adopt proper research method, tools and
framework as well.
Chapter 4: Research analysis and discussion- This segment will develop a clear and effective
research findings about the topic. Research analysis has been developed in order to attain proper
facts and figures associated with the research. It will present all research findings collected
through primary and secondary research method.
Chapter 5 Conclusion and Recommendation- This research section focuses on developing
analysing the overall research finding and facts and conclude the overall research in order to
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attain research aim. For the current report the stated segment will understand the overall study
and develop an effective analysis of the same in order to attain effective research results.
Moreover, recommendations on possible measures are provided in order to enhance growth and
development of organic food industry.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
The present study focuses on creating an in-depth analysis about organic food industry
and the factors which has helped in boosting the growth and development of the industry in an
effective and well developed manner (Liebe, 2012). This section of the research will focus on
developing extensive research on the topic through secondary research analysis. With the help of
it, conceptual information is attained based on which research gaps are identified. From this,
appropriate objectives are developed which aids in bridging out the identified gaps. It will help in
effectively attaining the research aim and develop a broad understanding carrying out the
research in an effectual manner (Tencati, 2010). For this purpose tools of secondary research
such as books, journals, company data, news articles etc. have been used to attain all the
necessary information.
2.2 Organic food
Rising health issues within the economy has influenced people to make healthy choices
in living styles and their eating habits. Casualties from unhealthy food choices or adulterated
food is rising at a very high rate. Greed to earn more and more has faded the ethical and social
consideration within business groups (Thøgersen, 2010). Use of harmful chemicals and
pesticides are some common practices which has ruined environmental factors but has resulted in
increasing the rate of production and sales within the market (Vermeir and Verbeke, 2008). Past
production practices has developed a wide and ineffective impact on people and biodiversity
within the economy. This has created an ineffective impact on organizational development and
growth (Georgiou, 2002).
Organic food is the concept developed to ensure nutrition, safety and healthy food
products. This measure has been developed and adopted in order to products and supply safe and
earth friendly food products which are produced and supplied within the market efficiently.
According to MacFie, (2007) organic food is produced in procedural manner following effective
steps of production in a well monitored supervision to minimize the risk of contamination of
food quality. This has resulted in developing an effective and wide impact on the health and
choices of food for people. The process of organic food and farming is not new to people
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