The Natural Products Marketplace 2006 Report - US

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2006 - 105 Pages

Table of Contents

INTRODUCTION AND ABBREVIATIONS

Introduction

Definition

Natural Retail Store Formats

Natural Products

General Merchandise

Grocery

Packaged Produce

Refrigerated

Vitamins & Supplements

Herbs & Homeopathic

Abbreviations & Terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Natural products are a $513 billion industry

Consumers seek out products that respect the environment

Natural and organic: close, but not identical

Food safety is a major concern

Natural and organic positioning claims in food at home and food away from home

Growing demand for organic stretches US resources

Fair trade products fit with the ethos of the natural consumer

Food allergies and sensitivities

Environmental allergies and sensitivities

Concern for pets

Aging population positive for vitamin and supplement market

Alternative medicine and traditional medicine

Focus on FDM and natural channels: $206 billion in sales in 2005

Food and drink sales through FDM and natural channels

Vitamins and supplements through FDM and natural channels

Other products: personal care, household, pet products

A closer examination of the market segments

Supply structure: food and drink

Supply structure: vitamins and herbs

Supply structure: other natural products

75% of sales are through FDM channels

Safety of the food supply and concern for the environment will continue to drive market

Growing market for organics

Allergies and sensitivities will govern food choices

Aging population will drive vitamin and supplement markets

MARKET DRIVERS

Consumers seek products that show respect for the environment

Food- and beverage-related issues

Food-borne illness

Organic and natural products

Natural and organic positioning in retail and foodservice channels

Figure 1: Natural and organic positioning: GNPD and Menu Insights trends, 2004 & 2005

Demand for organic leads to increase in organic acreage and animal herds

Figure 2: Total organic acreage and animal herds, 2000-03

Figure 3: Organic cropland for fruits and vegetables, 2000-03

Fair Trade Certification

Allergies and sensitivities

Food Allergies and Sensitivities

Environmental Allergies and Sensitivities

Concern for health and well-being of pets

Figure 4: Top five product positionings for new pet food products launched in 2005

Figure 5: Belief that some brands of pet food are healthier and worth paying more for, December 2005

Vitamin use driven by aging population

Figure 6: US population, by age, 2000 & 2005

Figure 7: Usage of vitamins/minerals, by age, January-September 2004

Ongoing research into efficacy has increased acceptance of supplements by medical industry—but resistance is still strong in some places

Migration to alternative pain relief leads to solutions that typically include vitamins/minerals

Alternative medicine and supplement use

Figure 8: Use of selected alternative treatments, 2002

Figure 9: Types of natural products used by people who have used any natural products, 2002

Figure 10: Health conditions treated with alternative medicine by people who used alternative medicine* in past year, 2002

Figure 11: Reasons for using alternative medicine, 2002

The effects of supplements vs drug therapies

MARKET SIZE AND TRENDS

NATURAL PRODUCTS IN THE CPG RETAIL UNIVERSE

Overview

Figure 12: The CPG retail universe: sales through all CPG outlets, 2005

The natural products industry

Figure 13: Natural product retail sales by channel, 2005*

A Closer Look at the Natural Retail Channel

Figure 14: Sales of natural products by natural channel and number of stores per natural channel, 2005

NATURAL PRODUCTS MARKET SIZE

Overview

Figure 15: Retail sales of natural products through FDM and natural supermarket channels, at current and constant prices, 2003-2005

Food and drink

Figure 16: Retail sales of natural food and drink products through FDM and natural supermarket channels, at current and constant prices, 2003-05

Vitamins and herbs

Figure 17: Total US retail sales of natural vitamin and herb products, at current and constant prices, 2003-200534 Other natural products

Figure 18: Total US retail sales of other natural products, at current and constant prices, 2003-05

MARKET SEGMENTATION

OVERVIEW

Figure 19: Sales of natural products segmented by product type, 2003 and 2005

FOOD AND DRINK

Dry grocery (food and beverage)

Figure 20: Sales of natural dry grocery products (food and beverage) at current and constant prices, 2003-05

Refrigerated Food and Drink

Figure 21: Sales of natural refrigerated food and drink at current and constant prices, 2003-05

Packaged produce

Figure 22: Sales of natural packaged produce at current and constant prices, 2003-05

Frozen Food

Figure 23: Sales of natural frozen food at current and constant prices, 2003-05

VITAMINS AND HERBS

Vitamins and supplements

Figure 24: Sales of natural vitamins and supplements at current and constant prices, 2003-05

Herbs and Homeopathic Products

Figure 25: Sales of natural herbs and homeopathic products at current and constant prices, 2003-2005

OTHER NATURAL PRODUCTS

Body care

Figure 26: Sales of natural body care products at current and constant prices, 2003-05

General merchandise

Figure 27: Sales of natural general merchandise products at current and constant prices, 2003-05

SUPPLY STRUCTURE

FOOD AND DRINK

Companies/brands

Figure 28: Manufacturer sales of natural food and drink in the US, 2003 and 2005

Dry Grocery (Food and Beverage)

Figure 29: Manufacturer/brand sales of natural dry groceries (food and beverage) in the US, 2003 and 2005

Refrigerated Food and Drink

Figure 30: Manufacturer/brand sales of natural refrigerated food and drink in the US, 2003 and 2005

Packaged produce

Figure 31: Manufacturer/brand sales of natural packaged produce in the US, 2003 and 2005

Frozen Food

Figure 32: Manufacturer/brand sales of natural frozen food in the US, 2003 and 2005

VITAMINS AND HERBS

Companies/brands

Figure 33: Manufacturer sales of natural vitamins and herbs in the US, 2003 and 2005

Vitamins and supplements

Figure 34: Manufacturer/brand sales of natural vitamins and supplements in the US, 2003 and 2005

Herbs and homeopathic products

Figure 35: Manufacturer/brand sales of natural herbs and homeopathic products in the US, 2003 and 2005

OTHER NATURAL PRODUCTS

Companies/brands

Figure 36: Manufacturer sales of other natural products in the US, 2003 and 2005

Body Care

Figure 37: Manufacturer/brand sales of natural body care products in the US, 2003 and 2005

General Merchandise

Figure 38: Manufacturer/brand sales of natural general merchandise products in the US, 2003 and 2005

PROFILES OF MAJOR BRANDS/MANUFACTURERS

Food and drink

Amy’s Kitchen

Applegate Farms

Barbara’s Bakery

Cal-Maine Foods (Eggland’s Best)

Coca-Cola Co (Dasani, Odwalla)

Cooperative Regions of Organic Producers Pool (Organic Valley)

The Dannon Company, Inc (Stonyfield Farm)

Dean Foods (White Wave, Horizon, Silk)

Driscoll Strawberry Associates

General Mills (Cascadian Farm)

Global Berry Farms LLC (Southern Sun)

Hain Celestial Group (Imagine Foods)

Jacobs Farm

Kraft (Boca Foods)

Kellogg Company (Morning Star Farms)

La Brea Holdings (La Brea Bread)

Naked Juice

Natural Selection Foods (Earthbound Farm)

Nature’s Path Foods

Nestlé Waters North America (Poland Spring)

Newman’s Own Organics

PepsiCo, Inc (Aquafina)

Ready Pac

Red Bull

Charterhouse Group (Rudi’s Organic Bakery)

JM Smucker Company (RW Knudsen)

Well Pict Berries, Inc

Wellshire Farms

Wholesome and Hearty Foods Company (Gardenburger)

Vitamins and Herbs

Boiron

Country Life

Gaia Herbs

Knight-McDowell Labs (Airborne)

Matrixx Initiatives, Inc (Zicam)

Nature’s Plus

NBTY, Inc (Nature’s Bounty, Solgar, Nature’s Way)

New Chapter

Now Foods, Inc

Nutraceutical International Corporation (Solaray)

Pharmavite LLC (Nature Made)

The Quigley Corporation (COLD-EEZE)

Ricola USA, Inc

Ross Products; Abbott Laboratories (Ensure)

Slim-Fast Foods (Slim-Fast Optima)

Wyeth Pharmaceuticals (Centrum)

Other Natural Care Products

Avalon Organics (Alba Botanica)

Burt’s Bees

Colgate-Palmolive (Murphy’s cleansers)

Earth Friendly

Ecover

Haw Par Corporation Limited (Tiger Balm)

Jason Natural Cosmetics

Kiss My Face, Corp

Laclede Company (Biotene)

Marcal Paper Mills, Inc

Mars, Inc (Greenies)

Natracare

PetGuard

Queen Helene

Salton, Inc (Melitta)

Seventh Generation

Tom’s of Maine

RETAIL DISTRIBUTION

Introduction

Figure 39: US retail sales of natural products, by channel, 2003 & 2005

Mainstream FDM Channels

Figure 40: Sales of natural products through mainstream FDM channels, at current and constant prices, 2003-05

Natural Supermarkets

Figure 41: Sales of natural products through natural supermarkets, at current and constant prices, 2003-2005

FUTURE AND FORECAST

FUTURE TRENDS

Safety of the food supply is a major concern

The growing market for organic products

Allergies and sensitivities

Vitamin and supplement markets driven partially by aging Boomers

Figure 42: US population, by age, 2005-2010

MARKET FORECAST

Natural products

Figure 43: Forecast of US sales of natural products, at current and constant prices, 2005-08

Natural food and drinks products

Figure 44: Forecast of US sales of natural food and drink products, at current and constant prices, 2005-2008

Natural vitamin and herb products

Figure 45: Forecast of US sales of natural vitamin and herb products, at current and constant prices, 2005-08

Other natural products

Figure 46: Forecast of US retail sales of other natural products through FDM and natural supermarket channels, at current and constant prices, 2005-08

Forecast factors

APPENDIX: SPINS OVERVIEW

Industry Reporting Services

Retail Measurement Services

Consumer Information Services

Syndicated Marketplace Reports

SPINS Natural Product Content and Categorization

Consulting Services

APPENDIX: SPINS’ METHODOLOGY

SPINSscan Natural - Retail Measurement Services (RMS) for the Natural Products Supermarket Channel

SPINSscan Conventional - Retail Measurement Services (RMS) for Natural Products selling through Conventional Food, Drug and Mass Channels

Abstract

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