Table of Contents
Executive Summary
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- The issues
- Natural Non-believers barrier to major growth
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- Figure 1: Segmentation by attitudes toward natural and organic foods, May 2019
- Consumer confusion may water down value of claims
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- Figure 2: Select statements of natural organic knowledge, May 2019
- Lack of regulation is a sore spot for natural claims
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- Figure 3: Natural claims should be regulated, by shopper type, May 2019
- The opportunities
- Mainstream supermarkets accommodate natural shoppers
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- Figure 4: Preferred shopping locations, May 2019
- Majority buy at least some natural/organic, could be persuaded to buy more
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- Figure 5: Types of foods or beverages purchased in last year, May 2019
- Private label offers gateway to organic loyalty
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- Figure 6: Natural/organic store brand products are the same quality as name brands, by age, May 2019
- Sustainability concerns encourage organic growth
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- Figure 7: Natural/organic foods are safer for the environment than conventional foods, by age, May 2019
- What it means
The Market – What You Need to Know
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- The future is bright for the organic market
- Natural and organic have fully entered the mainstream
- Consumers seeking natural and organic across categories
- Not all consumers are convinced when it comes to natural and organic
- Price and availability challenge complete loyalty to market
Market Breakdown
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- Organic market optimistic for fruitful future
- Sales increase, but important top categories are fluid
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- Figure 8: Categories ranked by highest organic dollar sales, 52-week period ending Dec 1, 2018
- Natural and organic have fully entered the mainstream
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- Figure 9: Preferred shopping locations, May 2019
Market Perspective
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- Not all consumers are convinced when it comes to natural and organic
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- Figure 10: Types of foods or beverages purchased in last year, May 2019
- Organic consumers buying across the aisles
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- Figure 11: Categories of organic products used by households that use organic foods, 2018
- Meat consumers’ concerns bode well for organics
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- Figure 12: Use of organic meat/poultry in households that use organic foods, 2013 and 2018
Market Factors
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- Higher prices challenge total loyalty to market
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- Figure 13: Natural/organic foods should be more affordable, by age, May 2019
- Pesticides continue to get bad rep, organics may benefit
Key Players – What You Need to Know
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- Organic and non-GMO claims on the rise; private label dominating
- Certain consumers may never be swayed
- Natural claim has image issues
- Biodiversity and sustainability taking organic standards to the next level
- Ethical sourcing and social mission concerns likely to rise
What’s Working?
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- Non-GMO and organic claims continue to rise
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- Figure 14: Percentage of food and drink product launches with claims of GMO-free, organic and all-natural product, 2014-18
- Private label brands dominate organic product launches
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- Figure 15: Top 10 brands launching highest number of products with organic claims, 2013-18
- Figure 16: Natural/organic store brand products are the same quality as name brands, by age, May 2019
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- Figure 17: Product examples from select private label organic brands
What’s Struggling?
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- Certain consumers may never be swayed
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- Figure 18: Segmentation by attitudes toward natural and organic foods, May 2019
- Natural claim has image issues
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- Figure 19: Natural claims should be regulated, by shopper type, May 2019
What’s Next?
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- New wave of environmental concerns push the market forward
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- Figure 20: Influence of biodynamic claims and biodegradable packaging claims, by age, May 2019
- Biodiversity takes organic standards to the next level
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- Figure 21: Biodynamic product examples
- More consumers demanding sustainable packaging
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- Figure 22: Product examples with biodegradable/compostable packaging
- Ethical sourcing and social mission concerns likely to rise
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- Figure 23: Influence of ethical sourcing and social mission claims, by age, May 2019
The Consumer – What You Need to Know
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- Consumers mix mainstream with natural and organic purchases
- Millennials key target for organic
- Mainstream channels are the top destination for natural shoppers
- Consumers could benefit from claims clarification
- Simple ingredients draw the most attention
- Strong consumer opinions create challenges and opportunities
Shopper Type
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- Consumers are mixing mainstream with natural and organic purchases
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- Figure 24: Types of foods or beverages purchased in last year, May 2019
- Natural and organic breaking the income barrier
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- Figure 25: Types of foods or beverages purchased in last year, by household income, May 2019
- Distinct consumer camps present opportunities and barriers
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- Figure 26: Segmentation by attitudes toward natural and organic foods, May 2019
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- Figure 27: Shopper type by attitudinal segments, May 2019
- Trusting Dabblers need a push to buy more
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- Figure 28: Trusting Dabblers attitudinal segmentation, by select demographics, May 2019
- To grow the market, Scrutinizing Enthusiasts must be convinced
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- Figure 29: Scrutinizing Enthusiasts attitudinal segmentation, by select demographics, May 2019
- Older adults most inclined to be Natural Non-believers
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- Figure 30: Natural Non-believers attitudinal segmentation, by select demographics, May 2019
Shopping Habits
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- Shopping behavior changes
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- Figure 31: Shopping behavior changes compared to one year ago, May 2019
- Millennials are the current target, Gen Z is next
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- Figure 32: Purchase more natural and organic foods/beverages compared to one year ago, by generation, May 2019
- Parents show increased natural purchases
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- Figure 33: Purchase more natural foods/beverages compared to one year ago, by parental status, May 2019
Preferred Shopping Locations
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- Mainstream supermarkets are the top destination for natural shoppers
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- Figure 34: Preferred shopping locations, May 2019
- Natural and organic shoppers visiting multiple locations
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- Figure 35: Repertoire of preferred shopping locations, May 2019
- Black and Hispanic consumers more open to online shopping options
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- Figure 36: Preferred shopping locations – Any online (net*), by Hispanic origin and race, May 2019
Understanding of Natural and Organic Claims
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- Consumers could benefit from clarification of claims
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- Figure 37: Natural organic knowledge, May 2019
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- Figure 38: Understanding of natural and organic claims, by shopper type, May 2019
Claims of Influence
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- Focusing on emerging concerns can boost the market
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- Figure 39: Claims of influence, May 2019
- Consumers who buy a mix of products most focused on claims
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- Figure 40: Claims of influence, by shopper type, May 2019
- Ethical sourcing and social mission concerns likely to rise
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- Figure 41: Influence of ethical sourcing and social mission claims, by age, May 2019
Attitudes toward Natural and Organic Food Claims
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- Consumers are critical when it comes to natural and organic
- Taste, variety and freshness areas of opportunity
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- Figure 42: Attitudes toward natural and organic food claims, May 2019
- Environmental benefits motivate consumers
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- Figure 43: Natural/organic foods are safer for the environment than conventional foods, by age, May 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 44: Top 10 subcategories for product launches with all-natural and organic label claims, 2014-18
- Figure 45: Poultry claims of importance, September 2018
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- Figure 46: Red meat claims of importance, January 2019
- Figure 47: Use of organic fruits and vegetables by households that use fresh produce, Fall 2018
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- Figure 48: Use of organic eggs used by households that use eggs, 2013-18
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- Figure 49: Use of organic milk by households that use organic foods, 2018
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Appendix – The Consumer
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- TURF Analysis
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- Figure 50: TURF Analysis – Other influential claims, May 2019
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