Table of Contents
Executive Summary
-
- Top takeaways
- Impact of COVID-19 on the natural and organic market
-
- Figure 1: Short-, medium- and longer-term impact of COVID-19 on natural and organic foods and beverages, July 2020
- Opportunities
- Social mission more important than ever
-
- Figure 2: Select opinions on natural and organic products – social mission, by product types purchased, April 2020
- Emphasis on health for people and planet
-
- Figure 3: Organic purchase drivers – health and environment, by age, April 2020
- Natural grocers can excel at a safe in-store experience
- Challenges
- High cost a barrier even before the recession
-
- Figure 4: Types of foods and beverages purchased, by household income, April 2020
- Natural and organic name brands see increased competition from private label
- Need to expand reach to older adults
-
- Figure 5: Types of foods and beverages purchased, by age, April 2020
- Certain consumers likely to remain skeptical
The Market – What You Need to Know
-
- Label claims no match for taste and affordability
- Age is a factor in determining important food factors
- Rising unemployment could slow natural and organic sales growth
- Natural and organic brands can clarify benefit to older adults
Market Perspective
-
- Taste and affordability remain paramount in food purchase
-
- Figure 6: Important food features, April 2020
- Tasty with a side of natural
-
- Figure 7: TURF Analysis – important food features, April 2020
- Food priorities vary by age
-
- Figure 8: Important food features, by age, April 2020
Market Factors
-
- Rising unemployment, sinking consumer confidence may slow industry growth
-
- Figure 9: Consumer confidence and unemployment, 2000-April 2020
- Organic brands should focus on health halo in pandemic times
- Natural and organic brands should reach out to growing senior population
-
- Figure 10: Population aged 18 or older, by age, 2014-24
- Food labeling regulations in need of updates
Key Players – What You Need to Know
-
- Shelf-stable and frozen foods move into the spotlight
- Natural grocers’ enhanced in-store experience can translate to safety
- Some consumers will never be swayed
- Going beyond organic
What’s Working
-
- Organics held in high esteem, but some need to be convinced of value
-
- Figure 11: Consumer attribute rating, food and drink launches with organic claim vs without organic claim, Jan 2017-Mar 2020
- Natural and non-GMO claims continue to resonate with shoppers
- Time for frozen and shelf-stable brands to shine
-
- Figure 12: Natural and organic meal examples – Amy’s, Annie’s and Newman’s Own
- Use of organic animal products remains steady
-
- Figure 13: Organic milk examples – Horizon Organic and Organic Valley
- Private label brands have potential to gain organic market share
-
- Figure 14: Store brand organic product examples
What’s Struggling
-
- Some natural and specialty focused stores are struggling
- Natural grocers can offer a place of refuge in uncertain times
- Certain consumers likely to remain skeptical
What to Watch
-
- More eyes are looking for sustainability throughout the supply chain
-
- Figure 15: Important food features – sustainable product, by product types purchased, April 2020
- Going beyond organic – regenerative/biodynamic farming
-
- Figure 16: Mission driven/sustainable natural and organic product examples
- Going beyond recycling – compostable/biodegradable/zero waste
-
- Figure 17: Organic product examples – sustainable packaging
- Proving value by highlighting values
-
- Figure 18: % of organic food and drink launches with select ethical claims, Apr 2015-Mar 2020
- Natural and organic convenience
-
- Figure 19: Organic and natural items from 7-Eleven, Amazon Go
- Natural and organic brands can harness momentum of online grocery shopping
-
- Figure 20: Ads for natural and organic online grocery/meal delivery
The Consumer – What You Need to Know
-
- More than half of consumers buy natural or organic foods
- Consumers are embracing private label options
- Health halo drives organic purchase
- Organic shoppers hitting perimeter of store
- Younger consumers push for affordable natural/organic options
- Natural/organic shoppers seeking brands that give back
Product Types Purchased
-
- More than half of consumers buy natural or organic products
-
- Figure 21: Types of foods and beverages purchased, April 2020
- Profile of the natural/organic food shopper
-
- Figure 22: Profile of the natural/organic food shopper, April 2020
- 25-44s support the market, leaving room for expansion
-
- Figure 23: Types of foods and beverages purchased, by age, April 2020
- Parents more likely to buy both natural and organic
-
- Figure 24: Types of foods and beverages purchased, by parental status, April 2020
- Natural and organic out of reach for some consumers
-
- Figure 25: Types of foods and beverages purchased, by household income, April 2020
Product Types Purchased by Category
-
- Produce and animal foods remain top organic priorities
-
- Figure 26: Organic foods purchased by category, April 2020
- Parents show higher use of natural and organic across categories
-
- Figure 27: Purchase of any natural/organic foods by category and parental status, April 2020
- Conventional snacks dominate, taste hampers natural/organic growth
-
- Figure 28: Conventional foods purchased by category, April 2020
Organic Purchase Drivers
-
- Organics perceived as healthier by majority of users
-
- Figure 29: Organic purchase drivers, April 2020
- Younger shoppers attracted to benefit to environment; older shoppers swayed by benefit to themselves
-
- Figure 30: Organic purchase drivers, by age, April 2020
Organic Purchase Barriers
-
- High prices, lack of trust continue to hamper organic buy-in
-
- Figure 31: Organic purchase barriers, April 2020
- Youngest adults can be swayed by value; oldest adults need to be convinced of worth
-
- Figure 32: Organic purchase barriers, price and budget, by age, April 2020
Food Shopping Habits
-
- Younger shoppers push demand for affordable natural/organic options
-
- Figure 33: Would buy more natural and organic foods if they were more affordable, by age, April 2020
- Natural and organic shoppers more likely to shop around
-
- Figure 34: Select food shopping habits – number of stores shopped, by product types purchased, April 2020
- Natural/organic shoppers more open to new brands
-
- Figure 35: Select food shopping habits – brand preferences, by product types purchased, April 2020
Store Brand Purchase Habits
-
- Private label purchase of natural and organic products nearly universal
-
- Figure 36: Store brand purchase by food and beverage types, April 2020
- Younger adults on the organic store brand bandwagon
-
- Figure 37: Organic store brand purchase, by age, April 2020
- Parents dedicated private label shoppers
-
- Figure 38: Store brand purchase, by food/beverage type and parental status, April 2020
Opinions About Natural and Organic Foods
-
- Natural claims too vague for some consumers
-
- Figure 39: Select opinions about natural products, April 2020
- Natural and organic shoppers support regulation
-
- Figure 40: Select opinions about natural and organic products – claim regulation, by product types purchased, April 2020
- Social mission on the radar of natural/organic shoppers
-
- Figure 41: Select opinions about natural and organic products – social mission, by product types purchased, April 2020
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
-
-
- Figure 42: Table – TURF Analysis – important food features, April 2020
- Methodology
-
Appendix – The Consumer
-
-
- Figure 43: Consumer attribute rating, salty snacks and bakery launches with organic claim vs without organic claim, Jan 2017-Mar 2020
-
Back to top