Implications of an economic definition of organically produced food

The definition of organic food was understandably imprecise in our 2005 article, and described as a general philosophy, a credence good with sensory characteristics and having potential health benefits that influence consumer demand. Since then, the definition of organic agriculture has evolved to partly rely on production processes, biodiversity, and cycles, rather than emphasis on the use of inputs with adverse effects (IFOAM Organics International, 2008). Based on this, organic certification is third-party verified and enforced by law in many countries. Although in practice some farmers may produce organic products ‘by default’, they cannot legally sell these products as certified organic in countries with organic certification unless they have been third-party verified, certified, and meet the equivalency agreements in the country of sale (United States Department of Agriculture, 2025).

While some consumers may not trust or differentiate a ‘certified organic’ label from other less clearly defined labels (e.g., natural and grass-fed), it is expected that over time, consumers will increasingly trust the definition, verification, and enforcement of organic products as knowledge and awareness increase further. Given that the ‘certified organic’ label is unique, transparent, and rewards farmers and others in the value chain, it is reasonable to expect that consumers will respect its value with time. An aspect of the true economic value of organically produced foods relates to nonmarketed benefits associated with environmental and climate risk impacts. Most analysts are in agreement that the true economic value of organic and conventional products must quantify and account for or internalize the market prices and nonmarketed positive and negative externalities associated with the two production systems (Michalke et al., Reference Michalke, Köhler, Messmann, Thorenz, Tobias, Tuma and Gaugle2023).

What production attributes do consumers consider when comparing organic versus conventional products

While consumer perception was discussed in detail in our 2005 article, the assurance of third-party verification, as discussed above, increasingly influences consumer purchases of organic food. For example, we noted in 2005 that consumers have a preference for pesticide-free products. Since then, Hyland et al. (Reference Hyland, Bradman, Gerona, Patton, Zakharevich, Gunier and Klein2019), for example, demonstrated that closely controlled organic diet interventions significantly reduced urinary pesticide levels in children and adults. Similar results were reported earlier (Curl, Fenske and Elgethun, Reference Curl, Fenske and Elgethun2003). Reducing pesticide pollution in the environment is also valued by consumers (Grzybowska-Brzezińska et al., Reference Grzybowska-Brzezińska, Grzywińska-Rąpca, Żuchowski and Bórawski2024).

Since 2005, consumers, especially millennials (Sánchez-Bravo et al., Reference Sánchez-Bravo, Chambers, Noguera-Artiaga, Sendra, Chambers and Carbonell-Barrachina2021), have expressed growing concerns about food production impacts on the environment and climate change (Fosgaard, Pizzo and Sadoff, Reference Fosgaard, Pizzo and Sadoff2024). Consumers are paying attention to research reports that organic production systems increase on-farm energy efficiency and reduce GHG emissions per unit land area and per unit output, and increase biodiversity, compared with nonorganic production systems (Maeder et al., Reference Maeder, Fliessbach, Dubois, Gunst, Fried and Niggli2002; Lynch, MacRae and Martin, Reference Lynch, MacRae and Martin2011).

Consumer knowledge and awareness about organic

In general, the popularity, knowledge and awareness of organic products continue to increase globally, due to factors such as increasing consumer health concerns and awareness about food-related hazards (Barański et al., Reference Barański, Rempelos, Iversen and Leifert2017), animal health and welfare concerns related to the different animal production systems (Kijlstra and Eijck, Reference Kijlstra and Eijck2006), climate and environmental benefits (Dangelico, Nonino and Pompei, Reference Dangelico, Nonino and Pompei2021; Fosgaard, Pizzo and Sadoff, Reference Fosgaard, Pizzo and Sadoff2024), and easy access to general information especially from various online, social media and technology sources (Liao, Wu and Pham, Reference Liao, Wu and Pham2020; Majer et al., Reference Majer, Henscher, Reuber, Fischer-Kreer and Fischer2022). On the other hand, it is important to note that while there is a growing general consumer knowledge and confidence in organic food products, there appears to be less consumer knowledge about actual farm-level organic production and management practices. Organic certification signals the implementation or use of specified standards for producing, handling, processing, and marketing (as opposed to explicitly signaling the product attributes and characteristics) (European Communities, 2007). Nevertheless, misconceptions persist about organic attributes such as nutritional levels and benefits, linked to the public (mis)understanding of what certification entails. Interest and knowledge about the impact of organic production methods on animal health and welfare, and (especially) on climate change continue to evolve (Barański et al., Reference Barański, Rempelos, Iversen and Leifert2017).

Evaluation methods and attributes of organic consumer attitudes and preferences

In our systematic review 20 years ago, we reported that human health, food safety, and environmental stewardship, along with several other product characteristics (e.g., nutritive value, taste, freshness, appearance, and other sensory characteristics), influence consumer preferences. We also noted that there was no consensus about the relative importance of the organic product attributes that influence consumers’ attitudes and perceptions. Recent studies and comprehensive reviews also support the important determinants we reported in our 2005 publication (Eyinade, Mushunje and Yusuf, Reference Eyinade, Mushunje and Yusuf2021; Gundala and Singh, Reference Gundala and Singh2021; Melhim, Reference Melhim2021; Huo, Ahmad and Teoh, Reference Huo, Ahmad and Teoh2024). Several empirical studies have demonstrated that human health, food safety, and environmental concerns, in particular, influence consumer demand for organic food products around the globe (Barański et al., Reference Barański, Rempelos, Iversen and Leifert2017; Liao, Wu and Pham, Reference Liao, Wu and Pham2020; Rizzo et al., Reference Rizzo, Borrello, Dara Guccione, Schifani and Cembalo2020). In contrast, other studies (Sedera et al., Reference Sedera, Putra, Saputra and Ali2023; Hu et al., Reference Hu, Mamun, Reza, Wu and Yang2024) indicated that although environmental concerns and knowledge of organic food products positively influence consumer attitudes toward organic products, environmental concerns alone do not translate into willingness to pay for organic products. In a study of a sample of Chinese consumers, Hu et al. (Reference Hu, Mamun, Reza, Wu and Yang2024) reported that significant (positive) determinants of the intention to consume organic foods included consumers’ health consciousness, perceptions of product value, price sensitivity, and environmental values and concern.

An interesting update to our 2005 conclusions is that public health crises can induce increases in organic product consumption, linked to the perception that organic food products are healthier and safer than conventional alternatives. For example, North American retail organic food sales increased by 13% year-over-year to $56.5 million in 2020, due in part to the COVID-19 pandemic (Melhim, Reference Melhim2021), and rose further to US$71.6 billion in 2024 in the United States (Next Move Strategy Consulting, 2025), and to CAD$ 9 billion in 2023 in Canada (Canada Organic Trade Association, 2024). In a study of German consumers using two datasets ‘before the COVID-19 pandemic and during the first wave of the COVID-19 pandemic’, Sohn et al. (Reference Sohn, Seegebarth and Woisetschläger2022) noted that the pandemic influenced consumer health consciousness and food quality consciousness, resulting in enhanced purchasing of organic foods. The COVID-19 pandemic’s effect on organic food purchase also varied depending on household income level, more so than other factors considered in the study (Sohn et al., Reference Sohn, Seegebarth and Woisetschläger2022).

In summary, consumers’ perceptions that genuine certified organic products are healthier, safer, and nutritious persist and influence willingness to purchase and consume organic food products. There remains no consensus about the magnitude of effects of organic product attributes on consumers’ purchase of organic products.

Price premium and characteristics of consumers’ willingness-to-pay for organic products

Willingness to pay a price premium for organic foods is based on the expectation of higher utility gains associated with the perception of superior attributes and characteristics over conventional food products. Our 2005 review noted that several consumers are willing to pay a price premium for organic products, although there is variability among products and across geographic regions. This conclusion has not changed in recent years. Carlson (Reference Carlson2016), for example, reported that retail price premiums for 17 organic products in the United States ranged from 7% for spinach to 82% for eggs in 2010. Jeong and Jang (Reference Jeong and Jang2019) also reported that United States consumers were willing to pay 12% in casual restaurant dining and 10% in fine dining for organic over conventional foods. In a literature review, Pawlewicz (Reference Pawlewicz2020) reported that price premiums for organic versus conventional foods varied by product and country, and ranged from 5% to 30% for milk and dairy products, 5%–60% for cereal products, 20%–82% for eggs, 60% for carrots and onions, and 40% for potatoes. Similarly, price premiums for organic salmon in Europe have ranged from 20% to 38% (Ankamah-Yeboah, Nielsen and Nielsen, Reference Ankamah-Yeboah, Nielsen and Nielsen2016). In a meta-analysis of 80 global studies on consumer willingness to pay for sustainable food products, Li and Kallas (Reference Li and Kallas2021) concluded that the overall premium for sustainable products averaged about 29.5%, and the willingness to pay for organic attributes was higher than for sustainability attributes.

An important conclusion in our 2025 article has not changed: demand for organic food products generally declines sharply with premiums above 20%. Carlson (Reference Carlson2016) noted that many US organic consumers were not willing to pay a price premium of more than 30%. In the EU, 55% of organic consumers were willing to pay a price premium of 25% for organic food, while only 26% were willing to pay a premium above 50% (Hu et al., Reference Hu, Mamun, Reza, Wu and Yang2024). This pattern demonstrates negative price elasticity of demand for organic food products. Recent increases in general food price inflation may therefore negatively impact organic food demand. Organic food retailers are responding by managing price premiums to acceptable levels; some recent studies report fluctuations and even declines in price premiums of certain organic food products over time (Carlson Reference Carlson2016; Pawlewicz, Reference Pawlewicz2020). Although price premiums fluctuate and decline in some cases, the price premiums are not expected to disappear completely.

Profile of organic consumers

As in our 2005 article, recent reviews identify complexities involving socio-economic and demographic factors (e.g., education and income levels) and organic food purchases. For example, some studies indicate that income and age do not directly influence consumers’ willingness to purchase organic foods (e.g., Bazhan et al., Reference Bazhan, Sabet and Borumandnia2024), while other studies suggest otherwise (e.g., Jakubowska, Grzywinska-Rapca and Grzybowska-Brzezinska, Reference Jakubowska, Grzywinska-Rapca and Grzybowska-Brzezinska2025). Several studies (Siegrist & Hartmann, Reference Siegrist and Hartmann2019; Gutiérrez-Villar et al., Reference Gutiérrez-Villar, Melero- Bolaños, Montero-Simo and Araque-Padilla2022; Bazhan et al., Reference Bazhan, Sabet and Borumandnia2024; Hu et al., Reference Hu, Mamun, Reza, Wu and Yang2024; Jakubowska et al., Reference Jakubowska, Grzywinska-Rapca and Grzybowska-Brzezinska2025) have noted the role of social and demographic factors (e.g., income, age, gender, education, and occupation) in consumer demand for organic food products. For example, consumers with higher income levels are more likely to purchase organic products due to their higher disposable income and greater access to organic foods in economically affluent neighborhoods (Hu et al., Reference Hu, Mamun, Reza, Wu and Yang2024).

However, consumers’ willingness to pay for organic foods may be driven more by their knowledge, attitudes, and perceptions that organic products are healthier, safer, nutritious, and environmentally friendlier rather than income and other socio-economic variables. Other studies also concluded that perceived benefits from organic foods influence consumer attitudes and intentions to consume such organic foods (Dangelico, Nonino and Pompei, Reference Dangelico, Nonino and Pompei2021; Wang, Zhang and Wong, Reference Wang, Zhang and Wong2022; Hu et al., Reference Hu, Mamun, Reza, Wu and Yang2024). There is currently a consensus that consumers who are environmentally health-conscious are more likely to choose organic foods over conventional alternatives and are willing to pay a premium for such products. The high likelihood of women, youth, and more educated consumers purchasing and consuming organic products may be attributed to being more health-conscious and concerned about environmental sustainability. It is important to note that some studies that identify organic consumers as high-income earners may not have controlled for education due to the strong correlation between education and income level.