The Natural/Organic Food Shopper - US - July 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Natural Non-believers barrier to major growth
Figure 1: Segmentation by attitudes toward natural and organic foods, May 2019
Consumer confusion may water down value of claims
Figure 2: Select statements of natural organic knowledge, May 2019
Lack of regulation is a sore spot for natural claims
Figure 3: Natural claims should be regulated, by shopper type, May 2019
The opportunities
Mainstream supermarkets accommodate natural shoppers
Figure 4: Preferred shopping locations, May 2019
Majority buy at least some natural/organic, could be persuaded to buy more
Figure 5: Types of foods or beverages purchased in last year, May 2019
Private label offers gateway to organic loyalty
Figure 6: Natural/organic store brand products are the same quality as name brands, by age, May 2019
Sustainability concerns encourage organic growth
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
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
Organic market optimistic for fruitful future
Sales increase, but important top categories are fluid
Figure 8: Categories ranked by highest organic dollar sales, 52-week period ending Dec 1, 2018
Natural and organic have fully entered the mainstream
Figure 9: Preferred shopping locations, May 2019
MARKET PERSPECTIVE
Not all consumers are convinced when it comes to natural and organic
Figure 10: Types of foods or beverages purchased in last year, May 2019
Organic consumers buying across the aisles
Figure 11: Categories of organic products used by households that use organic foods, 2018
Meat consumers’ concerns bode well for organics
Figure 12: Use of organic meat/poultry in households that use organic foods, 2013 and 2018
MARKET FACTORS 
Higher prices challenge total loyalty to market
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 
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?
Non-GMO and organic claims continue to rise
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
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
Figure 17: Product examples from select private label organic brands
WHAT’S STRUGGLING?
Certain consumers may never be swayed
Figure 18: Segmentation by attitudes toward natural and organic foods, May 2019
Natural claim has image issues
Figure 19: Natural claims should be regulated, by shopper type, May 2019
WHAT’S NEXT?
New wave of environmental concerns push the market forward
Figure 20: Influence of biodynamic claims and biodegradable packaging claims, by age, May 2019
Biodiversity takes organic standards to the next level
Figure 21: Biodynamic product examples
More consumers demanding sustainable packaging
Figure 22: Product examples with biodegradable/compostable packaging
Ethical sourcing and social mission concerns likely to rise
Figure 23: Influence of ethical sourcing and social mission claims, by age, May 2019
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
Consumers are mixing mainstream with natural and organic purchases
Figure 24: Types of foods or beverages purchased in last year, May 2019
Natural and organic breaking the income barrier
Figure 25: Types of foods or beverages purchased in last year, by household income, May 2019
Distinct consumer camps present opportunities and barriers
Figure 26: Segmentation by attitudes toward natural and organic foods, May 2019
Figure 27: Shopper type by attitudinal segments, May 2019
Trusting Dabblers need a push to buy more
Figure 28: Trusting Dabblers attitudinal segmentation, by select demographics, May 2019
To grow the market, Scrutinizing Enthusiasts must be convinced
Figure 29: Scrutinizing Enthusiasts attitudinal segmentation, by select demographics, May 2019
Older adults most inclined to be Natural Non-believers
Figure 30: Natural Non-believers attitudinal segmentation, by select demographics, May 2019
SHOPPING HABITS
Shopping behavior changes
Figure 31: Shopping behavior changes compared to one year ago, May 2019
Millennials are the current target, Gen Z is next
Figure 32: Purchase more natural and organic foods/beverages compared to one year ago, by generation, May 2019
Parents show increased natural purchases
Figure 33: Purchase more natural foods/beverages compared to one year ago, by parental status, May 2019
PREFERRED SHOPPING LOCATIONS
Mainstream supermarkets are the top destination for natural shoppers
Figure 34: Preferred shopping locations, May 2019
Natural and organic shoppers visiting multiple locations
Figure 35: Repertoire of preferred shopping locations, May 2019
Black and Hispanic consumers more open to online shopping options
Figure 36: Preferred shopping locations – Any online (net*), by Hispanic origin and race, May 2019
UNDERSTANDING OF NATURAL AND ORGANIC CLAIMS
Consumers could benefit from clarification of claims
Figure 37: Natural organic knowledge, May 2019
Figure 38: Understanding of natural and organic claims, by shopper type, May 2019
CLAIMS OF INFLUENCE
Focusing on emerging concerns can boost the market
Figure 39: Claims of influence, May 2019
Consumers who buy a mix of products most focused on claims
Figure 40: Claims of influence, by shopper type, May 2019
Ethical sourcing and social mission concerns likely to rise
Figure 41: Influence of ethical sourcing and social mission claims, by age, May 2019
ATTITUDES TOWARD NATURAL AND ORGANIC FOOD CLAIMS
Consumers are critical when it comes to natural and organic
Taste, variety and freshness areas of opportunity
Figure 42: Attitudes toward natural and organic food claims, May 2019
Environmental benefits motivate consumers
Figure 43: Natural/organic foods are safer for the environment than conventional foods, by age, May 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
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
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
Figure 48: Use of organic eggs used by households that use eggs, 2013-18
Figure 49: Use of organic milk by households that use organic foods, 2018
APPENDIX – THE CONSUMER
TURF Analysis
Figure 50: TURF Analysis – Other influential claims, May 2019