The Natural/Organic Food Shopper - US - July 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Organics fail to leverage healthier perception
Organic transitional could “water down” organic
Children are the present; older consumers are the future
Figure 1: Population aged 18 or older, in thousands, by age, 2012-22
The opportunities
Price remains paramount among organic barriers
Figure 2: Increasing organic/natural purchase, April 2017
Notable potential among Hispanic Millennials
Figure 3: Increasing organic/natural purchase, by Hispanic origin, April 2017
What it means
MARKET PERSPECTIVE
Health could boost organic claims
Unclear definitions risk label confusion
Expanding organic availability possibly leading to lower prices
MARKET FACTORS 
Organic/natural claims resonate with parents
Figure 4: Population aged 18 or older, in thousands, by age, 2012-22
Hispanic consumers, particularly Millennials, seek organic claims
Figure 5: Population, by race and Hispanic origin, 2011-21
Greater penetration among higher-income households
Figure 6: Disposable Personal Income change from previous period, January 2007-April 2017
THE CONSUMER – WHAT YOU NEED TO KNOW 
Organic penetration potential
Household income impacting purchase behavior
Consumers open to organics from multiple retailers
Natural selection
Lack of faith in organic claims
Perceived health benefit from organics
Younger consumers believe organics to be worth the price
Lower prices could spur further growth
Proven health benefits would resonate with virtually everyone
Variety needed in organics
Organic appeal strongest in fresh categories
ORGANIC PURCHASE 
Organic in relatively few shopping carts but growing
Figure 7: Organic/natural purchase, April 2017
Figure 8: Organic purchase trend, April 2017
Ingredient labels of notable interest to organic consumers
Figure 9: Organic/natural purchase, by consumer behaviors, April 2017
Notably greater relevance among younger consumers
Figure 10: Organic/natural purchase, by age, April 2017
Relatively little income impact on organic appeal
Figure 11: Organic/natural purchase, by income, April 2017
Significant interest in organic/natural among parents
Figure 12: Organic/natural purchase, by number of children under 18, April 2017
Organic/natural resonate strongly with Hispanics, particularly Millennials
Figure 13: Organic/natural purchase, by Hispanic origin, April 2017
PURCHASE TRENDS
Organic loyalists seek nutrition
Figure 14: Organic purchase trend, by food factors ranked as important, April 2017
Health, transparency, variety resonate with organic consumers
Figure 15: Organic purchase trend, by attitudes toward food, any agree, April 2017
Lower-income households twice as likely to be buying less organics
Figure 16: Organic purchase trend, by household income, April 2017
Organic claims resonate strongly with Hispanic Millennials
Figure 17: Organic purchase trend, by Hispanic origin, April 2017
PURCHASE LOCATIONS
Supermarkets lead locations for organic purchase; online options emerge
Figure 18: Purchase location, April 2017
Younger organic consumers turning to mass, natural
Figure 19: Purchase location, by age, April 2017
Online resources resonate strongly with urban organic consumers
Figure 20: Purchase location, by location, April 2017
Hispanic organic consumers much less likely to buy at supermarkets
Figure 21: Purchase location, by Hispanic origin, April 2017
COMPARING FOOD TYPES
Natural claims indicate “simple”; organic associated more with “expensive”
Figure 22: Description of natural/organic, April 2017
Organic’s free-from appeal
Figure 23: Organic/natural purchase, by description of natural/organic, by organic/natural consumers, April 2017
Hispanic consumers regard organics as preservative-/pesticide-free
Figure 24: Description of natural/organic, by Hispanic origin, April 2017
SHOPPING FOR ORGANICS
Trust in organics remains an issue
Figure 25: Organic/natural purchase, by natural/organic opinions, April 2017
Households with children find organics worth an extra price
Figure 26: Opinions of shopping for organic/natural foods, by number of children under 18 in household, April 2017
Figure 27: Opinions of shopping for organic/natural foods, by age, April 2017
PERCEPTION OF ORGANIC FOODS
Self-perception, better-for-you compel consumption
Figure 28: Organic/natural perceptions, by age, April 2017
Proof of health could resonate with consumers avoiding organic
Figure 29: Organic/natural purchase trend, by organic/natural perceptions, April 2017
IMPACT OF ORGANIC EXPENSE
Communicating organics’ benefits could compel consumers
Figure 30: Organic/natural opinions, by age, April 2017
INCREASING ORGANIC PURCHASE
Price, availability could lead to greater market penetration
Figure 31: Increasing organic/natural purchase, April 2017
Lower-priced organics among organic loyalists
Figure 32: Organic purchase trend, by increasing organic/natural purchase, April 2017
More restaurant options could lure Hispanic Millennials
Figure 33: Increasing organic/natural purchase, by Hispanic origin, April 2017
IMPROVING HEALTH PERCEPTION
Proven health benefits would resonate even among organic loyalists
Figure 34: Organic purchase trend, by increasing organic/natural purchase, April 2017
Older consumers seeking health in organics, while younger also consider recyclability
Figure 35: Increasing organic/natural purchase, by age, April 2017
Health, information could spur Hispanic organic consumption
Figure 36: Increasing organic/natural purchase, by Hispanic origin, April 2017
SEEKING MORE DIVERSE ORGANIC OPTIONS
Major brands could spur organic growth
Figure 37: Organic purchase trend, by increasing organic/natural purchase, April 2017
Indulgent, branded organics could lure younger generations
Figure 38: Increasing organic/natural purchase, by age, April 2017
Households with children may respond to more indulgent and vegetarian organic options
Figure 39: Increasing organic/natural purchase, by number of children under 18 in household, April 2017
CATEGORIES WHERE ORGANIC RESONATES
Organic/natural claims sought more in fresh foods
Figure 40: Category preferences, April 2017
Younger consumers, regardless of income, more likely to choose organic
Figure 41: Category preferences – natural/organic versions, by age and income, April 2017
Parents buying organic/natural commodities
Figure 42: Category preferences – Natural/organic versions, by number of children under 18 in household, April 2017
Organic resonates in more categories with Hispanic Millennials
Figure 43: Category preferences – Natural/organic versions, by Hispanic origin, April 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
CORRESPONDENCE ANALYSIS – NATURAL/ORGANIC FOOD SHOPPER – JULY 2017
Methodology
Figure 44: Correspondence Analysis – Description of natural/organic, April 2017