Organic Foods - US

Published by: Mintel International Group Ltd.

Published: Sep. 1, 2007 - 87 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Resources used for The Consumer sections

A note about the six-year data set

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Market continues to grow, but more slowly

Food safety remains a major market driver

Organic vs. natural: clearer messages are needed

The U.S. has the fourth-largest amount of certified organic farmland in the world, but even with that

distinction:

Price is an issue for organic consumers, but conventional prices rising faster

Foodservice embracing the organic movement

Segmenting the organic food market

Major manufacturers include big names and smaller players

FDM channel larger than natural supermarket channel

52% of respondents buy organic food

Respondents express concern about organic and non-organic foods

MARKET DRIVERS AND FUTURE TRENDS

The integrity of the food supply

The current situation: concern about food-borne illness drives organic purchases

Future trend: Food-borne illness will continue to influence purchase patterns

Market opportunity

Distinguishing between organic and natural products

Figure 1: New food and beverage products making a claim of organic or all natural, 2002-07

Opportunities in being clear about benefits

U.S. organic resources are growing, but not fast enough

Figure 2: Total organic acreage and animal herds, 2000-05

The rising price of non-organic products

Figure 3: Price of specific non-organic food items, 2006 and 2007

Future trend: Price may not be an issue in the future

Narrowing the gap even more: store brand organics

Figure 4: O Organics Baby Food Ad, 2007

Organics on the menu: foodservice plays catch-up

Figure 5: Share of green ingredient claims, Q4 2006

Figure 6: Organic ingredients, by dining type, Q4 2006

Food safety vs. health and wellness issues

Figure 7: Kellogg’s Organic Cereal ad, “Nostalgia,” 2007

MARKET SIZE AND TRENDS

Figure 8: Total U.S. retail sales of organic food, at current and constant prices, 2002-07

Figure 9: Unit sales of organic food, 2004-07

Market trends

Figure 10: New organic food products, by category, 2002-07

Familiar mainstream brands go organic

Organic manufacturers also contribute to market innovation

Store brand/private label launches are significant

Figure 11: New store branded organic product launches, 2002-07

MARKET SEGMENTATION

Figure 12: FDM and natural food store sales of organic foods, 2005 and 2007

Organic fruits and vegetables

Figure 13: Sales of organic fruit and vegetables, at current and constant prices, 2002-07

Organic prepared and packaged foods

Figure 14: Sales of organic prepared and packaged foods, at current and constant prices, 2002-07

Organic snacks

Figure 15: Sales of organic snacks, at current and constant prices, 2002-07

Organic grain products

Figure 16: Sales of organic grain products, at current and constant prices, 2002-07

Organic dairy products

Figure 17: Sales of organic dairy products, at current and constant prices, 2002-07

Organic meats

Figure 18: Sales of organic meats, at current and constant prices, 2002-07

Other organic products

Figure 19: Sales of other organic products, at current and constant prices, 2002-07

SUPPLY STRUCTURE

COMPANIES AND BRANDS

Figure 20: Manufacturer sales of organic food and drink in the U.S., 2004/05 and 2006/07

Organic fruits and vegetables

Figure 21: Brand sales of organic fruits and vegetables, 2004/05 and 2006/07

Organic prepared and packaged foods

Figure 22: Brand sales of organic prepared and packaged foods, 2004/05 and 2006/07

Organic snacks

Figure 23: Brand sales of organic snacks, 2004/05 and 2006/07

Organic grain products

Figure 24: Brand sales of organic grain products, 2004/05 and 2006/07

Organic dairy products

Figure 25: Brand sales of organic dairy products, 2004/05 and 2006/07

Other organic products

Figure 26: Brand sales of other organic products, 2004/05 and 2006/07

RETAIL DISTRIBUTION

Introduction

Figure 27: U.S. retail sales of organic food, by channel, 2005 and 2007

Figure 28: Share of organic food sales, by channel, 2003-07

FDM

Figure 29: U.S. FDM sales of organic foods, at current and constant prices, 2003-07

Natural food stores

Figure 30: U.S. natural food store sales of organic foods, at current and constant prices, 2003-07

THE CONSUMER: PURCHASE OF ORGANIC PRODUCTS

Summary

Purchase of organic products

Figure 31: Purchase of organic food and beverage products, by gender, age, household income, race/ethnicity

and region, July 2007

Frequency of purchasing organics

Figure 32: Frequency of purchase of organic food and drink, by age, July 2007

Where organic products are purchased

Figure 33: Purchase venues for organic foods and beverages, 2006 and 2007

Figure 34: Purchase venues for organic foods and beverages, by age, July 2007

Figure 35: Purchase venues for organic foods and beverages, by income, July 2007

Are farmers’ markets and co-ops preferred for organics?

Figure 36: Purchase of organic food at farmers’ markets and co-ops, by income, July 2006

Types of organic foods purchased in past year

Figure 37: Types of organic foods purchased on a weekly or bi-monthly basis, July 2006 and July 2007

Figure 38: Types of organic foods purchased on weekly or bi-monthly basis, by age, July 2007

Branded vs. store brand organic food

Figure 39: Branded and store branded organic foods purchased, July 2007

Figure 40: Branded and store branded organic foods purchased, by age, 2006 and 2007

THE CONSUMER: ATTITUDES TOWARDS ORGANIC PRODUCTS

Summary

Opinions about genetically modified foods

Figure 41: Concern about genetic modification of food, by age, 2006 and 2007

Opinions about organic food and drink

Figure 42: Opinions about organic food and drink, by gender, 2006 and 2007

Figure 43: Opinions about organic food and drink, by age, July 2007

Figure 44: Opinions about organic food and drink, by respondents who purchased organic food in the past year,

July 2007

Opinions concerning price and availability of organic products

Figure 45: Opinions about price and availability of organic food and drink, by age, July 2006

What respondents look for when purchasing organic food

Figure 46: Criteria for purchasing organic food, 2006 and 2007

MARKET FORECAST

Overview

MARKET FORECAST

Organic food

Figure 47: Forecast of total U.S. sales of organic food, at current and constant prices, 2007-12

Organic fruit and vegetables

Figure 48: Forecast of U.S. sales of organic fruit and vegetables, at current and constant prices, 2007-12

Organic prepared and packaged food

Figure 49: Forecast of U.S. sales of organic prepared and packaged food, at current and constant prices, 2007-12

Organic snacks

Figure 50: Forecast of U.S. sales of organic snacks, at current and constant prices, 2007-12

Organic grain products

Figure 51: Forecast of U.S. sales of organic grain products, at current and constant prices, 2007-12

Organic dairy products

Figure 52: Forecast of U.S. sales of organic dairy products, at current and constant prices, 2007-12

Organic meat

Figure 53: Forecast of U.S. sales of organic meat, at current and constant prices, 2007-12

Other organic products

Figure 54: Forecast of U.S. sales of other organic products, at current and constant prices, 2007-12

Forecast Factors

APPENDIX: TRADE ASSOCIATIONS

Abstract

• Fruits and vegetables
• Prepared and packaged foods
• Snacks
• Grain products
• Dairy
• Meat
• Other products

• 52% purchased organic food in the past year
• 47% worry that big companies may not strictly follow organic guidelines
• 67% of respondents would buy more organic food if it was less expensive
• Organic food is defined as food produced according to organic standards, as defined by the USDA:
• Crops grown without the use of conventional pesticides, artificial fertilizers, or sewage sludge
• Animals reared without the routine use of antibiotics and without the use of growth hormones
• Food processed without ionizing radiation and without the use of a wide range of food additives
• Food produced without the use of genetically modified organisms

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.