Impact of organic certification on the price of ready-to-drink fruit nectars and juices

Victor De Souza Tavares,Paulo César Stringheta,Gustavo Bastos Braga,Ronaldo Perez

doi:10.1590/fst.01920

Victor De Souza Tavares, Paulo César Stringheta + Show 2 more

Open Access

https://doi.org/10.1590/fst.01920

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Abstract

Abstract Several studies indicate that the consumer market considers the price of organic foods to be significantly high and attribute this fact as one of the main restrictive aspects for starting the consumption of organic foods or even increasing their frequency. Given this scenario, the present study is proposed as a way to confirm such a perception. Therefore, the purpose of the study is to evaluate if the price of organic is higher than conventional in the market of ready-for-consumption juices and nectars, using samples collected in Brazil and France. For this, the hedonic price methodology was applied, using as variables the information described on ready-to-drink processed juices/nectars marketed in Brazil and France. The results of the study confirm that organic version is more expensive, with the price being approximately 50% higher in the Brazilian market, and 10% higher in France. Additional attributes, such as type of packaging, pulp content, and flavor, are also relevant for the price. This is believed to be the first study to evaluate the impact on price of the organic certification of ready-for-consumption juices and nectars in different consumer markets.

Highlights

Purchasing is the result of making a decision
It is believed that, contrary to the traditional Marxist theory that people find meaning through production capacity, people find their identity through consumption, including the consumption of food (Dixon, 1999). In this context, one could note the growth in the market for organic products because of the increased demand for products and services that possibly promote health and well-being (Dias et al, 2015). Evidence of this market growth is noted in the study by the Research Institute of Organic Agriculture (FiBL) and the International Federation of Organic Agriculture Movements (IFOAM), where it was found that the area of cultivable land devoted to organic production and the organic market increased from 11 to 69.8 million hectares and from $15 to $97 billion, respectively, from 1999 to 2017 in the worldwide (Willer & Lernoud, 2019)
Due to the method used to obtain data, one of the limitations of the study is related to the generalization of the results, which applies to other works that have used the hedonic price methodology for foods

Summary

Introduction

Purchasing is the result of making a decision. understanding the way consumers make their purchasing decisions becomes increasingly important for business success and for the creation of public policies (Antonialli, 2015; Demirtas, 2019). It is believed that, contrary to the traditional Marxist theory that people find meaning through production capacity, people find their identity through consumption, including the consumption of food (Dixon, 1999). In this context, one could note the growth in the market for organic products because of the increased demand for products and services that possibly promote health and well-being (Dias et al, 2015). To sustain and strengthen the growth of this phenomenon, an increase in studies related to organic foods can be noted, because understanding the motivations and, especially, the difficulties in the consumption of such products is vital to achieving success (Demirtas, 2019)

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