Organic food replaces designer bags as the status symbol for the new generation
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Growing up in
different contexts, it is only natural for newer generations to have
perspectives and preferences differing from the generations before them.
Gaining a deeper understanding of what is valued among the people of this
generation, who happen to be a group with significant buying power, is crucial
for businesses.
The young
generation lives in the city. They have changing aspirations and lifestyles
that differ from those of their parents’ generation. A bachelor’s degree is no
longer sufficient, while a master’s has become a must. Trips are planned
whenever possible with purposes ranging from relaxation to gaining experience
along roads less traveled. Looking around, you will probably know someone who
runs marathons and some others who are obsessed with the working out at the
gym. Making health-conscious food choices is also the trend.
The lifestyle of
this generation revolves around “self-investment.” Experience is bought over
assets. The house and car, which provide security and comfort, still hold
importance, but the act of owning extravagant items to convey status has
significantly decreased. Before, carrying designer bags and wearing designer
shoes indicated that you had more than enough to live on. Today, these luxuries
have become more widely accessible. The line separating the upper and
middle-classes has begun to blur.
This trend is
gaining traction among young generations around the world. Elizabeth Currid-Halkett*,
a professor of Public Policy, studied the behaviors of the rich and found that
they are consuming less and less items of status. They are turning towards more
intangible investments, especially in education and health. These instead have
become indicators of status, because they are not accessible to everyone.
Investing in the intangible actually has a higher cost than designer items that
were so popular back then. The cost of education is already high in itself, not
to mention the opportunity cost from not being able to work. If you want to
stay healthy, many factors come into play, whether it be the gym membership,
the money left over from everyday expenses, or the spare time to work out.
This is why
organic food has received such a surge in popularity. Eating healthy is showing
that you “can” invest in health. Though it is true that taking good care of
your health still requires a significant amount of money, organic food is not
expensive to the level that it would be out of reach for most people.
Markets selling
organic produce have emerged from the changes in consumer behavior, opening
doors to farmers and producers to increase the value of their businesses.
According to the the World of Organic Agriculture 2017 Report**, the organic
food market is showing continuous growth, with the U.S. market being the
largest, followed by Germany and France. The total market value worldwide
accounts to about 8 billion U.S. dollars.
Looking at
Thailand, the organic food market may not be as large as those of the above
countries, but there is still great potential for growth in both Thailand and
abroad. This consumer trend is not likely to die down any time soon, because in
the end, investments in education and health go toward the quality of life and
the well-being of future generations. There is therefore a sustainable outlook
for agricultural businesses as producers and exporters of quality agricultural
products.
When healthy food becomes a fashion, and looking to be a
sustainable one, there is currently no food or agricultural market even close
in comparison. It combines basic necessities and fashion, and people are
willing to fork out more money to buy satisfaction over necessity. The Organic & Natural Expo 2017 that will be held during July
27-30 will be of interest to health-conscious consumers and entrepreneurs that
are looking to explore possibilities within this market. The Department of
Internal Trade of Thailand is hosting the event and bringing together a large
number of producers, traders, and service providers related to organic products
at Queen Sirikit National Convention Center.
References
*https://aeon.co/ideas/conspicuous-consumption-is-over-its-all-about-intangibles-now
***http://www.ifoam.bio/en/organic-landmarks/definition-organic-agriculture
****http://www.actorganic-cert.or.th/services/certifications
