Abstract

Although Spain is the world’s top organic extra virgin olive oil (OEVOO) producer, domestic consumption is low. Most of the OEVOO produced is destined for external markets. As access to these markets is rife with challenges, developing internal demand has become a matter of utmost importance. Therefore, the general objective of this study is to analyse what is limiting OEVOO consumption levels in Spain. Although a review of the literature reveals some potential explanatory factors, this study analyses the relationship between consumption levels and the limiting factors perceived by consumers. The main novelty of the study is that these limiting factors are divided into two distinct dimensions: difficulties perceived by consumers in the purchase of OEVOO, and the impact of these on their buying behaviour. Based on the results of a survey of 793 people, this distinction throws up a clear paradox: although practically all the factors considered as difficulties are perceived to exist, these do not appear to fully explain the decision not to purchase the product. The suggested explanation for this is simply that the “organic” attribute or label is not highly valued or appreciated by Spanish consumers. Considering the quantitative significance of the group of non-consumers in the population, promoting social and environmental awareness emerges as the best strategy to improve the public’s appreciation of the organic label and boost internal demand.

Highlights

  • The organic food market has undergone significant growth in the last few decades

  • By way of a brief summary, it is widely assumed that this market growth is the result of a convergence of various drivers, such as the growing interest and investment of consumers, markets and society in general in organic products; the strategic promotion of organic farming at the political level (Common Agricultural Policy, European/state-level/regional plans, etc.); and the conviction of many farmers and agents in the sector that organic farming will allow them to increase their income via a differentiation strategy that gives their products a more competitive edge

  • The first relevant result is that only 16.1% of urban consumers use organic extra virgin olive oil (OEVOO), a figure in keeping with the market situation described in the introduction that leads most of the OEVOO produced in Spain to be destined for export

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Summary

Introduction

Worldwide sales of organic foods grossed 81.6 billion dollars in 2015, five times more than in 1999. Europe generates nearly 40% of worldwide sales [1]. For example, boasts the greatest land area dedicated to organic farming in Europe and the fourth greatest in the world, and yet its internal demand is very low (its market share is around 1.5% and per capita consumption is 32 Euros, figures a long way off those of central and northern European countries such as Switzerland, Luxemburg, Sweden and Denmark) [2,3]

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