Exploring target consumer segments of organic foods: insights from producers and vendors in Colombo district, Sri Lanka

Abstract

This qualitative research explains the diversified activities and challenges faced by organic producers and sellers in the local market. Out of a total of 4823 registered sole proprietorships and partnerships from 2021 to 2024, as furnished by the Department of Business Registration in Sri Lanka, a total of 20 organic producers and sellers were identified. They were interviewed to know more about their business operations, and saturation was done with 12 respondents. The data indicate that organic fruit and vegetable vendors (sole proprietors and partnerships) mainly focus on the middle-class group by providing a blend of organic and conventional food items, without focusing only on high-income groups. To cater to this group, vendors and producers offer affordable prices for both organic and conventional foods, thereby making organic options more accessible. However, none of the products were organic-certified, as the retailers relied on customers' personal experiences to differentiate between organic and non-organic products. The bureaucratic complexity and expense of certification processes, along with their emphasis on the domestic rather than the export market, have discouraged individuals from certification. Contrary to the common belief that organic food is not bought by consumers due to its high price, studies show that the affordable works to motivate individuals in the middle and low-income groups to utilize organic foods. Furthermore, studying from the vendors’ perspective brings some valuable contributions to the field since many past studies have relied on the consumer perspective. The study finally identifies the need for new marketing segments, as pointed out by small-scale vendors, and the adaptation to the middle and lower income markets is valuable for sustaining the organic market and achieving sustainability goals. Responsible Production and Consumption (SDG 12) and Good Health and Well Being (SDG 3) need to be achieved by 2030.