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News    >    3 December 2007

UNAVAILABILITY AND PRICE THE MAJOR REASONS FOR INDIANS NOT PURCHASING ORGANIC PRODUCTS

 

3 December 2007
Mumbai, India

An ageing global population, rising obesity levels and the occasional food scare have all served to heighten awareness among the world’s consumers about the importance of diet and staying healthy, leading to the rapid expansion of ‘organic’ and the emergence of foods promoting specific health benefits. Yet consumers are still to be convinced by these ‘offers’, according to a new study released by The Nielsen Company.

According to a global online survey conducted by The Nielsen Company, more than a third of the world’s Internet users don’t purchase foods that promote specific health benefits because they are either too expensive or they aren’t sure of the actual benefits offered. Lack of credibility appears to be a key barrier for consumption of food products that claim to promote health benefits

As per India, 56 percent respondents blamed unavailability of organic products in stores where they shop, for them not purchasing organic products, whereas 21 percent Indian respondents consider the prices too high for them to consider buying it.

Conducted twice a year among 26,486 internet users in 47 markets from Europe, Asia Pacific, the Americas, and the Middle East, Nielsen most recently surveyed consumers on their purchase habits and attitudes toward organics and foods that promote specific health benefits.

“Though Indians are getting more and more conscious about health, organic products are yet to make a mark amongst the average Indian household. Marketers of organic food need to not only take up the job of educating the consumers about the benefit it offers, but also build credibility for the offerand thereby buy consumers’ trust before they can expect any takers,” said Sonia Pall, Executive Director, Client Solutions, The Nielsen Company.

Interestingly for Indians artificial flavours and preservatives act quiet as a hindrance in selecting any product, 33 percent Indians surveyed consider a product with full sugar content but no artificial flavours, coolers or additives, a healthier option over a product reduced in calories but with artificial substitutes (16%).

“The word ‘artificial’ is associated with ‘unhealthy’ in India and so a product with full sugar content but no artificial flavours is considered healthier any day over a product with some artificial additives” added Pall.

Even though organic products have yet to prove itself in the Indian market, Indians are quite conscious when it comes to purchasing foods that promote specific health benefits. 82 percent Indians regularly buy Iodine enhanced cooking salt, this percentage being the highest for any country globally. Other items regularly bought by Indians include Whole grain, high fibre products (61%), Cholesterol reducing oils and margarines (47%), Fruit juices with added supplements (38%), Milk with added supplements/vitamins (29%), Bread with added calcium or other vitamins (26%), Cereal with added folate (16%), Yoghurts with Acidophilus cultures / probiotics (14%), Fermented drinks containing 'good' bacteria (8%), and Soy Milk (7%).

The main reason cited by Indians for purchasing organic products is that it is Healthier for them (52%) and Better for the environment (21%), “Environmental concerns have taken over in a big way when it comes to the choices people make while purchasing products. This percentage is also the highest amongst the countries surveyed in Asia Pacific region, which is an indicator of the growing environmental concerns of Indians,” said Pall.

Among the various types of food categories offering organic options, Vegetables (48%), Milk (47%), Fruits (44%), and Fruit Juices (35%) were the most regularly purchased items by Indian consumers. Eggs, Poultry, Meat, Packaged food, Tea, and Carbonated beverages were amongst the other products for which Indians prefer the organic option.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (Net Ratings and Buzz Metrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Ad week). The privately held company is active in more than 100 countries, with headquarters in Harlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com

47 Markets Covered: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Czech Republic, Denmark,  Egypt, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Latvia, Lithuania, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Russia, Thailand, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, UAE, United Kingdom, US and Vietnam.

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