The Natural/Organic Shopper - Canada - April 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
Market context
COVID-19: Canadian context
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Impact of COVID-19 on natural and organic foods and drinks
Figure 1: Short, medium and long-term impact of COVID-19 on natural/organic foods/drinks, March 2021
Opportunities
Organic/natural food and drinks are well positioned as Canadians focus more on their health
As safety takes centre stage, natural/organic foods help bring peace of mind
Organics has a role as concern over climate change escalates
Challenges
Communicating value for money is key for natural/organics
Many Canadians remain confused around the benefits of natural/organic products
Smaller companies are more trustworthy for many Canadians
THE MARKET – KEY TAKEAWAYS
COVID-19 widens the divide between the ‘haves’ and ‘have nots’
Canadians have more information at hand, but are they more informed?
Climate change will dominate the discussion over the next decade and beyond
MARKET FACTORS 
COVID-19 widens the divide between the ‘haves’ and ‘have nots’
Canadians have more information at hand, but are they more informed?
Climate change will dominate the discussion over the next decade and beyond
Figure 2: Sources of greenhouse gas emissions in Canada, 2018
Figure 3: Maple Leaf Foods is Carbon Neutral Now, November 2019
Figure 4: Not Just Little Things, February 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Natural/organic foods is an alternative to plant-based foods
2020 saw significant growth in natural and organic food and drink launches
Private label’s push into organics helps convey value
COMPETITIVE STRATEGIES
Private label’s push into organics helps convey value
Figure 5: Compliments Organic Banana Apple Baby Food Puree (Canada), August 2020
Figure 6: Compliments Organic 100% Pure Amber Maple Syrup (Canada), November 2020
Figure 7: Great Value Organic Free Range Large Size Brown Eggs (Canada), August 2020
Figure 8: Great Value Organic Rotini Pasta (Canada), August 2020
Figure 9: PC Organics Dark Chocolate Covered Coconut Clusters (Canada), October 2020
Figure 10: PC Organics Pure Honey (Canada), December 2019
Figure 11: PC Organics Ground Turmeric (Canada), January 2020
2020 saw significant growth in natural and organic food and drink product launches
Figure 12: Maple Leaf Natural Sliced Turkey (Canada), January 2021
Figure 13: Robin Hood Organic All Purpose Flour (Canada), December 2020
Figure 14: Heinz 57 Varieties Tomato Ketchup (Canada), June 2020
Figure 15: Honey Stinger Naturally Flavored Honey Waffle (US), February 2021
Figure 16: Solely Whole Organic Spaghetti Squash (US), February 2021
Figure 17: Annie’s Homegrown Honey Bunny Grahams (US), April 2018
Figure 18: Nature’s Promise Kids Organic Stars Fruit Snacks (US), February 2021
Figure 19: No Evil Foods Pit Boss Pulled ‘Pork’ BBQ (US), May 2019
Figure 20: Greenhouse Ketolatté Almond Butter Coffee (Canada), March 2021
Figure 21: Let There Be Hemp Original Grain-Free Hemp Chips (US), February 2021
Sobeys’ acquisition of Farm Boy is a big bet on ‘natural’
Figure 22: Farm Boy. It’s All About the Food., August 2020
MARKET OPPORTUNITIES 
Natural/organic foods are an alternative to plant-based foods
Figure 23: Correspondence analysis – Description of natural/organic, February 2018
The pandemic incentivizes healthier (safer) living
Organic is a means to promote ethics and the environment 
THE CONSUMER – KEY TAKEAWAYS 
Natural products’ popularity exceeds organic’s
Natural and organic foods’ popularity grows during COVID-19
Supermarkets are where most Canadians shop for natural/organic products
Health and the environment are central to the value of natural/organic products
Keep it simple!
Not all perceptions of natural/organic foods are positive
NATURAL/ORGANIC PURCHASE BEHAVIOURS
Natural products’ popularity exceeds organic’s
Figure 24: Types of food or beverages typically purchased, February 2021
Demographics’ influence on usage can inform more effective targeting 
Figure 25: Types of food or beverages typically purchased, 18-44s vs over-45s, February 2021
Figure 26: Types of food or beverages typically purchased, by living areas, February 2021
CHANGE IN SHOPPING BEHAVIOURS DURING COVID-19
Organic and natural foods’ popularity grows during COVID-19
Figure 27: Share of consumers purchasing more versus less organic/natural products compared to before COVID-19, February 2021
Young adults and parents drive natural and organic’s growth
Figure 28: Share of consumers purchasing more organic/natural products compared to before COVID-19, 18-44s vs over-45s, February 2021
WHERE CONSUMERS SHOP FOR NATURAL/ORGANIC PRODUCTS
Organic and natural claims can help promote trial
Figure 29: Share of consumers who are shopping at fewer stores to find what they need compared to before COVID-19, by age and gender, February 2021
Supermarkets are where most Canadians shop for natural/organic products 
Figure 30: Where natural or organic foods/beverages are typically purchased, February 2021
Figure 31: Where natural or organic foods/beverages are typically purchased, 18-44s vs over-45s, February 2021
ASSOCIATIONS MADE WITH NATURAL/ORGANIC PRODUCTS
Health and the environment are central to the value of natural/organic products 
Figure 32: Statements on natural/organic foods/drinks (% agree), February 2021
Figure 33: Natural/organic foods are worth paying more for (% agree), consumers of organic foods/drinks vs consumers of natural foods/drinks vs overall, February 2021
Age influences perceptions towards natural/organic products
Figure 34: Statements on natural/organic foods/drinks (% agree), by age, February 2021
Figure 35: Select statements on natural/organic foods/drinks (% agree), by parental status, February 2021
Figure 36: Natural/organic foods/drinks are a gimmick (% agree), Prairie Provinces vs overall, February 2021
CLAIMS THAT MATTER MOST TO CANADIANS
Keep it ‘simple’
Figure 37: Claims that are important when buying food, February 2021
Figure 38: Claims that are important when buying food, consumers of organic foods/drinks vs consumers of natural foods/drinks vs overall, February 2021
Younger and older shoppers have some different priorities
Figure 39: Claims that are important when buying food, by age, February 2021
Figure 40: Claims that are important when buying food, by gender, February 2021
ATTITUDES TOWARDS NATURAL/ORGANIC FOODS AND DRINKS
COVID-19 has influenced shoppers to buy more organic/natural products 
Figure 41: “COVID-19 has influenced me to buy more organic/natural foods as I'm trying to eat healthier” (% agree), 18-44s vs over-45s, February 2021
Not all perceptions of natural/organic foods are positive
Figure 42: Attitudes towards natural/organic foods, February 2021
Figure 43: Categories in which consumers are more likely to purchase organic and natural products, January 2018
Smaller companies get more credit on trust and authenticity
Figure 44: “I have more trust in the authenticity of natural/organic foods from small companies than large companies” (% agree), by age, February 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Mintel Trend Drivers
Consumer qualitative research
Correspondence analysis
Abbreviations and terms
Abbreviations