Natural Products Marketplace Review: The Evolving Natural Lifestyle - US

Published by: Mintel International Group Ltd.

Published: Dec. 1, 2008 - 69 Pages

Table of Contents

SCOPE AND THEMES

What you should know

Definitions

Natural products

Body care

Frozen and refrigerated

General merchandise

Grocery

Packaged produce

Refrigerated

Vitamins & supplements, herbs & homeopathic

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

The evolving natural lifestyle

What is “natural?”

Consumers with allergies and intolerances turn to natural products

Functional foods skirt the line between natural and conventional

Supplements and herbals provide a natural road to health

“Conventional natural” vs. natural products

Organic food and food production

The future of the natural products market

THE EVOLVING NATURAL LIFESTYLE

Key points

What comprises the “natural lifestyle”?

Concerns about climate change

Figure 1: General attitudes toward environmental concerns, December 2007

Concerns translate into actions: buying “green”

Figure 2: Frequency of purcahsing different categories of “green” products, December 2007

Not just “green,” but compassionate “green” - fair trade

Figure 3: Sales of fair trade products, by segment, FDM and natural supermarket channels, 2006-08

Figure 4: Fair trade products launched in the U.S. between 2005 and 2008

Taking “natural” to a higher level

Figure 5: Sales of raw foods, 2006-08 (est.), through FDM and natural channels

CONSUMER CONFUSION: WHAT IS “NATURAL”?

Key points

Lack of regulation confuses consumers - and the marketplace

Figure 6: Distinguishing between natural and organic foods/beverages, July 2008

Taking matters into their own hands: Burt’s Bees

Also taking matters into its own hands: Whole Foods

Taking matters up a notch: Dr. Bronner’s sues other natural personal care companies

The “natural” food industry is even more unregulated

ALLERGIES: FOCUS ON THE GROWTH OF GLUTEN-FREE

Key points

Increased incidence or increased awareness?

Sales of gluten-free products on the rise

Figure 7: Sales of gluten-free natural products, through FDM and natural supermarkets, 2005-08

Gluten-free category sales

Figure 8: Sales of gluten-free natural products, 2006-08

Gluten-free category product launches

Figure 9: New product launches, gluten-free products (natural and connventional), United States, 2005-08

(November)

EATING WELL TO STAY HEALTHY

Key points

The growth of probiotics

Figure 10: Sales of probiotic natural products, through FDM and natural supermarkets, 2005-08

Probiotic category sales

Figure 11: Sales of probiotic natural products, 2006-08

Probiotic product launches

Figure 12: New product launches of food and beverages with probiotics (total and natural), 2005-08 (November) 28

Natural functional foods vs. foods with added functional ingredients

Figure 13: Reasons for eating functional foods, April 2008

THE NATURAL ROAD TO HEALTH: SUPPLEMENTS AND HERBALS

Key points

A pharmacopeia in your supermarket… or natural food store

Figure 14: Sales of natural supplements and herbal products, by top five health condition claims, 2005-08

Women’s health products

Figure 15: Sales of natural supplements and herbal products with claims relating to women’s health conditions,

through FDM and natural supermarkets, 2005-08

“CONVENTIONAL NATURAL” VS. NATURAL PRODUCTS

Key points

It’s (almost) all in the positioning

“Conventional natural” in the conventional channel

Figure 16: Natural product positioning, FDM and natural supermarket channels, 2006-08

ORGANIC FOOD AND FOOD PRODUCTION

Key points

Organic food sales slow

Figure 17: Total U.S. sales and forecast of organic food and drink at current prices, 2003-08

Organic crops and livestock

Figure 18: Certified organic acreage, selected crops, and livestock in the U.S., 2000 and 2005

The consumer is the key

Figure 19: Purchase of organic food and beverage products, by gender, age, household income, race/Hispanic

origin and region, July 2008

And the move to “local food” may dilute the organic wave…

Figure 20: Number of operating farmers markets, 1994-2008

THE FUTURE OF THE NATURAL PRODUCTS MARKET

Key points

Different consumers have different reasons for embracing the market

Safety and security

Threats to the market

APPENDIX: MARKET SIZE

THE NATURAL PRODUCTS UNIVERSE

Figure 21: Retail sales of natural products, by channel, 2007

NATURAL PRODUCTS MARKET SIZE: SPINS/NIELSEN-TRACKED CHANNELS

Figure 22: Retail sales of natural products through FDM and natural supermarket channels, at current and

constant prices, 2005-08

APPENDIX: OVERALL SEGMENT PERFORMANCE

Abstract

• The evolving "natural lifestyle" and how concerns about climate change, green living, and sustainability have changed the market - and the consumer.
• The core of the natural marketplace is the definition of the term "natural." The report focuses on this debate and the need for government oversight. Without such supervision, manufacturers, retailers, and trade associations are working both in tandem and in opposition to define the market.
• Allergies and insensitivities - to food and to the environment - have driven more consumers to natural products. The report focuses on the growth of the gluten-free segment as a way of showing how the needs of consumers have been translated into an opportunity for manufacturers.
• Attention to healthy eating is a focus of the natural products consumer. The report looks at the probiotic market and how it overlaps with the natural market.
• The report also studies the growth of natural herbs and supplements, and how developments in these products have been driven by changing consumer needs.

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