Organic food market trend and consumers profile in Phnom Penh city, Cambodia

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1 KHON แก นเกษตร KAEN 44 AGR. (2) J. : (2) : (2559). (2016). KHON KAEN AGR. J. 44 (2) : (2016). 343 Organic food market trend and consumers profile in Phnom Penh city, Cambodia Sothea Kouy 1, Parichard Sangkumchaliang 1* and Satit Aditto 1 ABSTRACT: Organic agriculture has received attention in recent decade on account of its biological feature, so agricultural institutions have been formed and developed enormously in organic filed at the present time in Cambodia. This research was to identify organic food market trend and organic consumers profile which was conducted in Phnom Penh City in this regard is the best place where sold organic product majority in Cambodia. Data was collected from supermarkets by structure questionnaire within 456 respondents. Descriptive statistics and Chi-square test were employed to quantify correlation. It was found that organic product in Cambodia is limited and narrowed. However, there is a positive signal for organic market in Cambodia. The study shows that the consumers could be divided in three categories including organic consumers (regular and occasional consumers), non-organic consumers, and never-heard organic consumers. Gender, marital status, education, occupation and income were found relatively statically significant related with consumer behavior. It can be implied that organic consumers mostly are the middle age men who have higher education, married with kid, secure job, and better income are more propensity interested in buying organic food. The main reason to purchase was about the health for the mand for their lovers meanwhile the key reason stood behind consumers not to buy was extremely about the lack of information of organic product. In this context, this relevant information would provide a good point to contribute significant effective to either marketers or other related parties to target potential consumers and raise organic sector. Keywords: Organic Food, Organic Market, Organic Consumer, Phnom Penh, Cambodia Introduction Organic agriculture has received attention in recent decade on account of its biological feature, which offers benefit to health and environmental friendly (Veata, 2013). Organic agricultural land area around the world is about million hectares in 164 countries (FiBL and IFOAM, 2014). The data from IFOAM showed that the top three countries which is the highest increasing organic land area are Greece, Mexico, and Kazakhstan, respectively. Additionally, the top three largest organic markets are USA, Germany, and France. The world organic food market sizes have been increasing from billion US dollars in 1999 to billion US dollars in 2012 (FiBL and IFOAM, 2014). It has been noticeably least developed in developing country including Asia. Particularly, organic agricultural sector in Cambodia has been formed for several years ago (Country Report of Organic in Cambodia, 2014). In 2003, many non-organizations have been initiated to support organic product such as German Agency for Technical Cooperation, Cambodian Centre for Study and Development in Agriculture (CEDAC), Community Cooperative for Rural Development (CCRD), and Khmer Fields Foundation (SRER Khmer) (Cheattho, 2010). Moreover, people have more attention and banned some kinds of pesticide and chemical fertilizer imported and sold in Cambodia (Makarady, 2007; Savoeun, 2008). 1 Department of Agricultural Economics, Faculty of Agriculture, Khon Kaen University, Khon Kaen, Thailand * Corresponding author: parisan@kku.ac.th

2 344 แก นเกษตร 44 (2) : (2559). In 2002, Srer Khmer was founded by former staff of Food and Agriculture Organization of the United Nations. This local NGO has implemented 50 projects related to farming community. About 720 farmers in 12 provinces were trained by this association (Srer Khmer, 2011). KompongSpeu province is the one which grows organic vegetable training by The Cambodian Center for Study and Development in Agriculture (CEDAC) and has 9 shop branches in Phnom Penh city recently (The Cambodian Center for Study and Development in Agriculture [CEDAC], n.d). In 2005, CEDAC commenced selling organic vegetable average 2, kg/year (Savoeun, 2008). In 2011, about 2,500 of organic rice farmers had collaborated together to produce a well-known aromatic organic rice and PhkaMalis (jasmine rice) in Battambang Province (Yu & Diao, 2011). Moreover, organic products are available in the supermarkets, restaurants, and some hotels in Cambodia. The premium price of organic product has range from 10% to 20% higher than conventional product (Makarady, 2007; Cheattho, 2010). Along with this, Cambodian Organic Agriculture Organization certifies organic product such as rice, sugar palm, fruit, and vegetables which are sold in supermarkets and organic shops but they are still very limited (Cambodochine, 2004). Regarding to consumers profile and consumption of organic good in Cambodia has not been understood well. Furthermore, the previous research were organic consumer between Thailand-Cambodia border (Pomsanam, et al., 2014), and organic agriculture in Cambodia (Cheattho, 2010; Makarady, 2007) which not serve on organic consumption. There are lack of information about organic consumer in Phnom Penh. As a result, this present paper presents about overview of consumer profiles and consumption of metro polisin Phnom Penh City. Methodology Sample Size and Data Collection This study was conducted in Phnom Penh City in this regard is the best place where sold organic product majority in Cambodia. Data were collected from June to July 2015 in front of supermarkets. About 456 respondents were collected through the questionnaire survey at 95% confidence level. The validity and reliability of questionnaire were tested. Moreover, the questionnaire was divided into three sections. The first section was about the socio-demographic of respondents, the second part distinguished organic consumer s profile while the last emphasized on the reasons to buy and not to buy organic vegetable, and the third part was focusing on purchasing pattern of organic consumers. Data Analysis To extract the pertinent and useful information for further manipulation and interpretation, questionnaire checking was verified (i.e. all the questions were answered completely). Then, double check database with questionnaires were implemented to ensure the quality of data. After obtaining the accurate and reliable data, normality distribution was run to verify errors by a histogram or normal probability plot of the standardized residual. Then, researcher applied descriptive statistics such as frequency, descriptive, explore, and multiple response

3 KHON KAEN AGR. J. 44 (2) : (2016). associated with chi-square in accordance with each objective of the research. Results and Discussions In the Table 1 demonstrated about the socio-demographic of the respondents. The results with the456 respondents show that about 51.50% of the respondents were female. The average age of the respondents is about 27 years old (SD= 7.08), and ranges from 18 to 64 years old. Regarding to marital status, about 69.70% of respondents were single. The majority of education level was bachelor degree (73%) and about 98% of them were employed. Regarding to the personal income, which is 38.80% of the respondents had monthly income ranged from USD (minimum wage in Cambodia equal to 149 USD). According to the consumer groups, there were three kinds of consumers, which are including organic buyer, non-organic buyer, and never-heard of organic groups. The definition of each groups as following: (1) Organic buyer group is the people who had ever bought organic product. (2) Non-organic buyers group is the people who had ever heard organic product but never consumed, and (3) never-heard of organic group is the people who never heard about organic product before. The results show that the organic buyer group was including about 214 respondents (46.90%), while non-organic buyer and never-heard of organic groups were about 41.20% and 11.80%, respectively. Regarding to the relationship between consumers demographics and purchasing behavior, the results show that more than half of 345 men (54.30%) were organic buyers while about 44.70% of women were non-organic buyers, and less than one fourth (15.30%) of women were never-heard organics term. It was relatively statistically significant related with consumer behavior (x 2 (2) =11.314, p< 0.01). According to marital status, about 54.45% of respondent who married and have kid(s) in their household seem likely to consume organic food when compare with others. Moreover, the education has highly related to buying organic behavior. The results show that about 64.60% of respondent organic consumption holding university degree were more likely to consume organic (x 2 (10) = , p < 0.001). Education was not the only factor that affected the chance of buying organic. Occupation (x 2 (2) = 6.929, p < 0.05), together with income (x 2 (10) = 23.39, p < 0.01), was highly statistically significantly concerned with organic buying. Most of middle age people (71.40%) ranged from 46 to 55 years experienced with organic food consumption while 44.10% of young adult ranged from 26 to 35 years did not buy organic food. Predominantly of 62.10% of consumers, bought organic food, had kids under 18 years living with family; in contrast, only % of consumers, bought organic food, had old people over 60 years lived in family. Additionally, 65% of consumers, bought organic food, never had serious diseased history in their family. Nearly half of employers (47.60%) were more likely interested in organic produce while income more than 1,000 USD/month (80%) was more possibly to take this product.

4 346 แก นเกษตร 44 (2) : (2559). Table 1 Respondents socio-demographic analysis Socio-Demographic Frequency (N=456) Organic Buyer (n=214) Non-Organic Buyer (n=188) Never-heard Organics food (n=54) p-value Gender x 2 (2)=11.314, Male % 37.6% 8.1% p < 0.01** Female % 44.7% 15.3% Age x 2 (8)=12.633, % 41.2% 10.9% p > % 44.1% 10.1% % 36.0% 28.0% % 14.3% 14.3% % 14.3% 28.6% Status x 2 (6)=13.674, Single % 43.4% 10.7% p <0.05* Married % 50.0% 14.7% Married with kids % 32.0% 13.6% Divorce 1 0.0% 0.0% 100.0% Education x 2 (10)=68.571, Illiteracy 3 0.0% 0.0% 100.0% p <0.001*** Primary school % 0.0% 83.3% Secondary school % 42.1% 31.6% High school % 40.4% 8.5% Bachelor % 43.8% 10.2% Master or higher % 31.3% 4.2% Occupation x 2 (2)=6.929, Employment % 40.0% 12.4% p <0.05* Unemployment % 66.7% 0.0% Income (USD/month) x 2 (10)=23.390, % 41.3% 20.0% p < 0.01** % 49.7% 6.8% % 34.7% 14.3% % 36.0% 14.0% % 39.0% 9.8% More than % 6.7% 13.3% * Statistically significant level of 0.05, ** Statistically significant level of 0.01, and *** Statistically significant level of 0.001

5 KHON KAEN AGR. J. 44 (2) : (2016). In the Table 2 demonstrated about organic consumers, which were distinguished into two categories. They are including the regular organic consumers or heavy consumers who shopped more than three times a week. However, occasional organic consumers were shopping organic good less than three times a week. In general, most of occasional organic consumers shopped vegetables less than every two months, 25.2%. Only 18.7% and 17.8% bought organic vegetables more than 3 times/week and every week/month, respectively. Outstandingly, there 347 were around 40% of them purchase organic vegetables every day were regular consumers. A comparative socio-demographic profile between regular and occasional consumers was apparent; socio-demographic was no significant difference between regular and occasional organic consumers toward organic consumption. In this case, it can be implied that organic consumers mostly are the people who has a job rather than household and retired people since the price of organic product is a bit higher than conventional one. Table 2 Organic consumers socio-demographics profile Socio-Demographic Frequency (n=214) Organic Consumer Regular Buyer (n=85) Occasional Buyer (n=129) Gender Male % 59.2% Female % 61.7% Age % 58.8% % 65.9% % 44.4% % 20.0% % 75.0% Status Single % 61.6% Married % 50.0% Married with kids % 58.9% Education Primary school % 0.0% Secondary school % 40.0% High school % 50.0% Bachelor % 64.7% Master or higher % 51.6%

6 348 แก นเกษตร 44 (2) : (2559). Table 2 Organic consumers socio-demographics profile (cont.) Socio-Demographic Frequency (n=214) Organic Consumer Regular Buyer (n=85) Occasional Buyer (n=129) Occupation Employment % 60.4% Unemployment % 57.1% Income (USD/month) % 58.6% % 58.4% % 58.0% % 68.0% % 66.7% More than % 58.3% Regarding to the organic products, about 46.10% of organic consumers purchased organic fresh vegetables and fruits, and 25.50% of them consumed organic rice. On the other hand, only 10.50%, 9.10% and 8.80% of consumers revealed that they had bought organic palm product, organic honey, and organic moringa product respectively. Approximately 64.60% of organic vegetable consumers specified that they satisfied with the range of organic vegetable offered in the organic market or supermarket. According to Table 3, it is clear that the more level of satisfaction on organic food, the more likely to pay (x 2 (4) = 9.490, p <0.05), so most of organic consumers around 50% said that the price of organic is reasonable and affordable which it should be. However, 40% of them said that the price is high. Also, only 1% of organic consumers reflected that the price is not really high as others viewpoint, maybe this kind of consumers have higher income. On the other hand, 53% of non-organic consumers view the price is high that is why they hesitate to buy. Table 3 Price perception ratio between organic consumer and non-organic consumer Price perception Frequency (Percentage) Organic consumers Non-organic consumers Really high 12 (6%) 14 (7%) High 86 (40%) 100 (53%) Reasonable 105 (49%) 67 (36%) Not high 10 (5%) 7 (4%) Really not high 1 (1%) 0 (0%) Total Sample 214 (100%) 188 (100%) x 2 (4) = 9.490, p <.05*, * statistically significant level of.05

7 KHON KAEN AGR. J. 44 (2) : (2016). One of the most significant results obtained from this research was about the reasons that lead organic-consumers made decision to buy. Approximately 31% of them bought organic product because they thought it is healthy for them and their significant person was the first rank. According to 30% of them declared that consuming organic vegetable because it is pesticide free was the second one. With respect to the taste of vegetable, there were 21% of consumers thought that organic vegetable shave better taste than conventional one meanwhile other factors showed lower scores. Noticeably, the freshness of vegetables and conveniences were rated only 12% and 6% in accordingly. In particularly, non-organic consumers were also elicited about the reason that made them didn t want to buy organic product. The main reason was that they received lease information about organic product (27.10%), so how could they buy it without trust and knowing? nonorganic consumers expressed that those were too expensive for them approximately 22% while the distance from shop to their house was about 24.90%. In contrast, organic label was not the problem for non-organic consumers only 13%. Conclusions It can be concluded that organic product in Phnom Penh city is limited and narrowed since this is the late comer who just joints about the international organic agriculture less than one decade ago, yet most Phnom Penh citizens do care about the organic food no matter how it is in term of either health or environment concern. Absolutely, there are more than 50% of number 349 of ever heard organic product are organic consumers which predominantly by male in proportion of Positive signal, middle age people who are employed, are the main target of organic product which ranged from 46 to 55 years along with monthly income more than 1,000 USD. Further results, the higher education is the higher propensity of buying organic product. Organic consumers enjoy with the product availability in organic shop or supermarket. There are many reasons that cause organic consumers willing to buy, but the main reason is known as the benefit of health for their love and their own self, however, non-organic consumers are not likely to buy because of lack information on organic benefit. A part of this convenient and price becomes the barrier in their purchasing intention since it is sold in limited market associated with the luxury price. This information would provide a good point for marketers, government, nongovernment organization or international institution to set up policy or strategy to gain more organic market s segmentation. References Cambodochine, D Environmental Requirements, Market Access/Entry and Export Competitiveness in the Horticulture Sector in Cambodia Phnom Penh. International Institute for Trade and Development, Bangkok. Cheattho, P Country Report: Organic Agriculture in Cambodia. Available: Accessed Apr. 4, Country Report of Organic in Cambodia Available: Accessed Oct. 15, FiBL and IFOAM The World of Organic Agriculture Statistics and Emerging Trends Available: Accessed Aug. 29, 2014.

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