Table of Contents
Executive Summary
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- The issues
- Cost is the main barrier to growth for natural/organics
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- Figure 1: Association with being expensive, January 2018
- Many consumers unclear on benefits
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- Figure 2: agreement with statements on organic natural food claim, January 2018
- Importance of environmental considerations requires perspective
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- Figure 3: Barriers to greater purchases of organic/natural foods, January 2018
- The opportunities
- Stated purchase behaviours point to continued growth for natural/organic products
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- Figure 4: Purchase change for natural and organic foods and/or beverages in the past year, January 2018
- Younger consumers see value in natural/organic products
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- Figure 5: Portion of food or beverages purchased that are organic or natural, 18-44s vs over-45s, January 2018
- Safety is a key value proposition
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- Figure 6: “Foods with organic/natural claims are safer” (% agree), by age, January 2018
- Parents important to success of organic/natural food and drinks
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- Figure 7: Portion of food or beverages purchased that are organic or natural, by parental status, January 2018
- What it means
The Market – What You Need to Know
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- Trust in food supply chain appears to be minimally impacted by food recalls
- How Canadians “feel” supersedes how they “look”
- Canada’s aging population represents a potential challenge
Market Perspective
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- Food fraud gaining more attention
- Trust in food supply chain appears to be minimally impacted by food recalls
Market Factors
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- How Canadians “feel” supersedes how they “look”
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- Figure 8: Motivators for living a healthy lifestyle, May 2016
- Canada’s aging population represents a potential challenge
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- Figure 9: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Canadians are more time-pressed
Key Players – What You Need to Know
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- Consumers demand more transparency
- Price looms as the main barrier to usage of foods/beverages with natural and organic claims
- Focus on “nutrient density” represents a development opportunity
What’s Working?
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- Consumers demand more transparency
- Claims are becoming more specific
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- Figure 10: Trended share of food and drink launches (excluding alcoholic beverages) that fall within the “natural” super-category (Canada), 2013-17
- Figure 11: Trended share of claims on food & drink (excluding alcoholic beverages) launches within “natural” claims grouping (Canada)
Challenges
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- Price looms as the main barrier to usage of foods/beverages with natural and organic claims
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- Figure 12: Select associations with organic, natural and traditional/mainstream foods, January 2018
What’s Next?
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- Technology offers increased traceability and transparency
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- Figure 13: Les Magasins U – La Route de Frais, April 2017
- Focus on “nutrient density” represents a development opportunity
- Launches with all natural, no additive/preservative or organic claims
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- Figure 14: All natural claims on launched products, share by food and drink category (excl. alcoholic beverages), 2017
- Figure 15: No additives/preservatives claims on launched products, share by food and drink category (excl. alcoholic beverages), 2017
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- Figure 16: Organic claims on launched products, share by food and drink category (excl. alcoholic beverages), 2017
The Consumer – What You Need to Know
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- Seven in 10 Canadians purchase organic/natural products
- Produce is the category where organics and natural are most likely to be purchased
- Canadians are more likely to view organics as being “expensive” than “nutritious”
- Nearly half of consumers agree natural/organics are “better for you”
- Many consumers are not clear on the benefits of organic/natural
Usage of Organic and/or Natural Products
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- Seven in 10 Canadians purchase organic/natural products
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- Figure 17: Portion of food or beverages purchased that are organic or natural, January 2018
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- Figure 18: Portion of food or beverages purchased that are organic or natural, 18-44s vs over-45s, January 2018
- Parents are more likely to use organic/natural products
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- Figure 19: Portion of food or beverages purchased that are organic or natural, by parental status, January 2018
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- Figure 20: Portion of food or beverages purchased that are organic or natural, by parental status and age of children, January 2018
- A third of Canadians claim they are buying more organic/natural food and drinks
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- Figure 21: Purchase change of natural and organic foods and/or beverages in the past year, January 2018
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- Figure 22: Purchase change of natural and organic foods and/or beverages in the past year, by age, January 2018
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- Figure 23: Purchase change or natural and organic foods and/or beverages in the past year, by parental status, January 2018
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- Figure 24: Purchase change of natural and organic foods and/or beverages in the past year, by age of children, January 2018
Category Review
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- Produce is the category where organic and natural products are most likely to be purchased
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- Figure 25: Categories in which consumers are more likely to purchase organic and natural products, January 2018
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- Figure 26: Rustica Italian Bakery Pizza (Canada), February 2018
- Figure 27: Vij’s Coconut Beef Curry (Canada), April 2017
- Preference for organic among younger consumers extends across categories
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- Figure 28: Categories in which consumers are more likely to purchase organic products, by age group, January 2018
- Preference for organic/natural among parents extends across categories
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- Figure 29: Categories in which consumers are more likely to purchase organic and natural products, by parental status, January 2018
Perceptions of Natural/Organics Foods and Drinks
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- Canadians associate organic products with “free-from” positioning
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- Figure 30: Correspondence analysis – Description of natural/organic, February 2018
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- Figure 31: Select associations with organic, natural and traditional/mainstream foods, January 2018
- More Canadians view organics as being “expensive” than “nutritious”
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- Figure 32: Associations with organic, natural and traditional/mainstream foods being expensive and nutritious, January 2018
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- Figure 33: President’s Choice Free From Pork Frankfurters (Canada), June 2017
Benefits of Organics/Natural Products
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- Nearly half of consumers agree natural/organics are “better for you”
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- Figure 34: Agreement with statements on organic natural food claim, January 2018
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- Figure 35: agree “Foods with organic/natural claims are better for you”, January 2018
- Safety is a central value proposition for organic/natural foods
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- Figure 36: “Foods with organic/natural claims are safer” (% agree), by age, January 2018
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- Figure 37: “Foods with organic/natural claims are safer” (% agree), by parental status, January 2018
- A quarter of consumers view organic/natural foods as being “fresher”
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- Figure 38: “Foods with organic/natural claims are fresher” (% agree), by age, January 2018
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- Figure 39: SC Johnson Ziploc Fresh Produce Bags (Canada), February 2012
- Figure 40: Rubbermaid Produce Container (Canada), November 2010
Purchase Barriers
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- Perceived high cost is the main barrier more frequent purchase activity
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- Figure 41: Barriers to greater purchases of organic/natural foods, January 2018
- Many consumers are unclear of the benefits that organic/natural products provide
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- Figure 42: Foods with natural/organic claims “offer clear benefits” and “are a gimmick” (% agree), by age, January 2018
- The environment is not a top priority for consumers
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Correspondence analysis
- Abbreviations and terms
- Abbreviations
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