Limits to Growth in Organic Sales

F.H.J. Bunte; M.A. van Galen; W.E. Kuiper; G.M.L. Tacken

doi:10.1007/s10645-010-9152-3

Limits to Growth in Organic Sales

F.H.J. Bunte, M.A. van Galen, W.E. Kuiper, G.M.L. Tacken

Research output: Contribution to journal › Article › Academic › peer-review

22 Citations (Scopus)

Abstract

The price gap between organic and conventional food might explain the low market share of organics in the Netherlands. A real-life experiment was carried out in 2006 in order to determine the price sensitivity of consumer demand for organics. Consumer prices of selected organic products were reduced by up to 40% below current market levels. The price elasticity of demand was low, because not all consumers perceived the price reductions. Moreover, the offer of organic varieties is limited, as is the consumer’s willingness to pay for the social attributes of organics.

Original language	English
Pages (from-to)	387-410
Journal	De Economist - Quarterly Review of The Royal Netherlands Economic Association
Volume	158
Issue number	4
DOIs	https://doi.org/10.1007/s10645-010-9152-3
Publication status	Published - 2010

Keywords

consumption
field experiment
organic food
price elasticity of demand

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10.1007/s10645-010-9152-3

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title = "Limits to Growth in Organic Sales",

abstract = "The price gap between organic and conventional food might explain the low market share of organics in the Netherlands. A real-life experiment was carried out in 2006 in order to determine the price sensitivity of consumer demand for organics. Consumer prices of selected organic products were reduced by up to 40% below current market levels. The price elasticity of demand was low, because not all consumers perceived the price reductions. Moreover, the offer of organic varieties is limited, as is the consumer{\textquoteright}s willingness to pay for the social attributes of organics.",

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Y1 - 2010

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AB - The price gap between organic and conventional food might explain the low market share of organics in the Netherlands. A real-life experiment was carried out in 2006 in order to determine the price sensitivity of consumer demand for organics. Consumer prices of selected organic products were reduced by up to 40% below current market levels. The price elasticity of demand was low, because not all consumers perceived the price reductions. Moreover, the offer of organic varieties is limited, as is the consumer’s willingness to pay for the social attributes of organics.

KW - consumption

KW - field experiment

KW - organic food

KW - price elasticity of demand

U2 - 10.1007/s10645-010-9152-3

DO - 10.1007/s10645-010-9152-3

M3 - Article

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JO - De Economist - Quarterly Review of The Royal Netherlands Economic Association

JF - De Economist - Quarterly Review of The Royal Netherlands Economic Association

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ER -

Limits to Growth in Organic Sales

Abstract

Keywords

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