Willingness to pay for organic produce among urban consumers in emerging markets

Abstract:

Here is a paradox: Iranian consumers express strong support for organic farming in opinion polls, yet organic produce accounts for less than 0.3% of the domestic food market. This research investigated Willingness to Pay (WTP) premiums for organic vegetables, fruits, grains, dairy, and pulses among 624 urban consumers in Rasht and Isfahan using a contingent valuation method with double-bounded dichotomous choice. A structured questionnaire was administered face-to-face between March and June 2023. Mean WTP premium across all categories was 21.4% above conventional prices, but this varied sharply by product and income group. High-income consumers (monthly household income above $700 equivalent) were willing to pay 31.4% more for organic vegetables compared with 12.3% among low-income respondents. Dairy attracted the highest WTP (34.7% premium in the high-income group), while grains had the lowest (22.8%). Health concerns were the primary motivation for 38.4% of respondents. Binary logistic regression identified income, education, household size, and prior organic purchase experience as significant predictors of WTP. These findings suggest that the organic market in Iranian cities has latent demand that is constrained by price, availability, and trust in certification rather than by lack of consumer interest.