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Innovation Trends in Organic and Natural Products: Capitalizing on consumer preferences for natural and organic products

Innovation Trends in Organic and Natural Products: Capitalizing on consumer preferences for natural and organic products

Innovation Trends in Organic and Natural Products: Capitalizing on consumer preferences for natural and organic products

Summary

Organic and natural branding relate to products and ingredients that keep away from artificial additions and over-processing. In order to be bought and sold as organic products in the US and European Union (EU), products must be certified by the US Department of Agriculture (USDA) or EU, although the requirements around natural” product labels is much more ambiguous. In February, 2012, the EU and the US announced that as of June 2012, their respective countries’ certified organic products can be represented in each other’s markets.

Demand for organic and natural products has consistently risen; the US organic agriculture industry’s sales value, for instance, was recorded at US$31.4 Billion in sales in 2011 compared US$21.1 Billion in 2008 in a White House report. Global demand for organic food products has more than doubled since 2000, with Europe and North America together accounting for the vast majority of global sales. The area of organic farmland globally grew from 11.0 million hectares in 1999 to 43.7 million hectares in 2014, almost quadrupling.

Organic and natural trends involve individuals who seek a mixture of high-quality, simplified, healthy and ethical products that are often part of wider environmental and social responsibility. In food and drink, quality often refers to pleasantness in taste and aroma, which allows self-indulgence. Natural or organic claims suggest that the ingredients are responsibly sourced and in line with higher environmental responsibility and animal welfare. Knowing a product abides by organic standards means that it is unadulterated by preservatives and artificial additives, so consumers consider it safer, healthier, and more ethical.

Brew Organic supply kits and organic-certified materials to encourage more ‘devolved’ organic production. This will join the grow at home” kits that allow people to grow organic plants and vegetables to introduce consumers to experiential and novelty experiences. Products that allow consumers to personalize and make the final goods at home, including food, drink, and personal care, will appeal to the authentic-seeking craft and organic consumers.

The report Innovation Trends in Organic and Natural Products” provides you to understand which audiences are most affected by organic and natural trends, to compare the presence of these trends in each industry across the FMCG space, and learn what the key opportunities are and also identifies the actions that major brands are taking to get ahead of the greater interest in organic and natural.

Scope

  • Once a small selection of niche products, organic and natural ingredients can now be found in a wide variety of food and non-food categories.
  • Discounters are moving more into low-cost organic produce to appeal to new target groups.
  • Younger consumers and parents are interested in organic and natural ingredients.
  • Health perceptions drive a lot of organic and natural product consumption.
  • Moral perceptions drive a lot of organic product consumption.
  • Organic alcohol and personal care products are growing categories.
Reasons to buy
  • Understand which audiences are most affected by organic and natural trends.
  • Compare the presence of these trends in each industry across the FMCG space, and learn what the key opportunities are.
  • See the actions that major brands are taking to get ahead of the greater interest in organic and natural.


  • Executive Summary
    • Content to help you learn from the past, understand the present, and see the future
  • Introduction
    • Introducing organic and natural products
    • The history of the organic movement
    • The demand for organic products has consistently risen since 2000
    • The TrendSights trends that are driving organic and natural are pinpointed below
  • Trend Snapshot
    • The TrendSights trends that are driving organic and natural are pinpointed below
    • Key motivations driving the rise of organic and natural products
    • GlobalData has identified six opportunities in organic and natural innovation
  • Basics
    • Value retailers will affect the supermarkets' adoption of organic
    • Value retailers will affect the developing world
    • Consumers will continue to be attracted to safety, authenticity, nostalgia and local produce
    • Examples we like: Everyday items that target everyone
  • Younger Generations
    • Younger consumers may be part of the most organic generation in modern times
    • Examples we like: Baby care
    • Millennials and centennials may be the most organic generations in modern times
    • Examples we like: Ethical personal care and energy drinks aimed at millennials
    • Millennials want to eat healthier
  • Anti-Artificiality
    • Innovations in a new, artificial-free era
    • Cleaner labels, authenticity and healthier options
    • Case study: Waitrose Duchy Organic Ice Cream
    • Examples we like: Hair colors, Dulce de Leche, Matcha Tea
    • Distrust of GMOs
  • Health
    • Organic is often associated with free-from options
    • Healthier consumption prompts avoidance behaviors
    • Organic alternatives to sugar and sweeteners will need to be explored
    • Examples we like: High protein organic milkshakes, algae powder, herbal remedies
  • Morals
    • Ethical consumption
    • Examples we like: Ethical consumables
  • Organic Alcohol
    • Craft Breweries and Private Label products
    • Examples we like: Organic craft wine, craft beer and spirits
  • Conclusions: Packaging
    • Cleaner labels, authenticity and healthier options
  • Conclusions: Appeal
    • Cleaner labels, authenticity and healthier options
  • Conclusions
    • Three more trends in natural and organic to watch
  • Appendix
    • References

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