U.S. retail sales of natural and organic foods and beverages rose to nearly $39 billion in 2010, an increase of 9% over the previous year’s sales of $35 billion, far outpacing growth in conventional groceries, which crept ahead less than 2%. Despite the continued sluggish economic recovery, Packaged Facts projects sales to more than double by 2015, to exceed $78 billion. Growth will be jump-started in 2011, in great part due to snack king Frito-Lay’s switching half its snack portfolio to all-natural formulations. In addition, attracted by the higher growth rates of natural/organic foods and beverages and in response to consumer demand, other major consumer product companies are becoming more deeply committed to natural and organic products, either through acquisition or internal development. Such deep-pocketed marketers are in a good position to fast-track their products into retail stores and onto consumer tables via their massive product development capabilities, far-reaching distribution networks, and huge advertising and marketing budgets.
This completely revised report, Natural and Organic Foods and Beverages in the U.S., 3rd Edition, examines sales and growth potential, identifying key issues and trends that will affect the marketplace through 2015. Extensive analysis via both proprietary primary data from Packaged Facts’ February 2011 Online Consumer Survey and via Experian Simmons’ national consumer panel data gauges consumer attitudes and behaviors toward natural/organic foods and beverages, retail shopping patterns, and media usage and preferences, both traditional and social. Also included is comprehensive coverage of new product trends across dozens of categories, drawing on new product data from Datamonitor’s Product Launch Analytics database; dozens of images of products and print ads; and profiles of trend-making marketers and retailers. Interviews with industry experts round out this forward-looking market analysis, along with the context of the broader social, economic and psychographic drivers of consumer behavior and shopping preferences.
- Executive Summary
- Scope of Report
- Definition of "Natural"
- Definition of "Organic"
- Some Foodservice Crossover
- Report Methodology
- The Market
- Retail Sales of Natural/Organic Foods and Beverages Approach $39 Billion in 2010
- Produce and Dairy Are the Largest Categories
- Mass-Market Channels Capture Almost Half of Retail Sales
- An Expanding Industry
- The Marketers
- Global Marketers, Investors Control Many Top Brands of Natural and Organic Foods and Beverages
- Recent Mergers and Acquisitions
- Mainstream Marketers Going Natural
- Organic Extensions of Mainstream Lines Not Very Successful
- Is Selling the Company Selling Out?
- The Gourmet/Natural Foods Synergy
- Selling Nutritional Benefits
- Selling Convenience
- Private-Label Natural and Organic Products Booming
- New Product Trends
- Overview
- Table Number of Natural and Organic Food and Beverage Product Launches, 2006-2010
- "Natural" the Most Popular Product Tag
- Functional Drinks, Tea Top New Product Launches
- ALDI, Hain Celestial, Whole Foods Lead Product Introductions
- Natural and Organic Products Promote Ethical Causes
- Overview
- Consumer Trends
- 37% of Consumers Seek Out Natural/Organic Foods and Beverages
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Seek Out Natural/Organic Foods and Beverages," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Supermarkets the Most Popular Place to Get Natural/Organic Foods
- Fresh Fruit and Veggies Are the Most Popular Organic Categories
- High Socioeconomic Status Characterizes Organic/Natural Shoppers
- Attitudes Toward Food and Cooking
- Attitudes Toward Nutrition
- One Out of Three Households Use Organic Produce
- Attitudes and Opinions Toward Foodservice
- Internet Has Changed How Consumers Spend Free Time
- Consumers and Traditional Media
- 37% of Consumers Seek Out Natural/Organic Foods and Beverages
- Scope of Report
- The Market - Highlights
- The Market
- Market Overview
- Scope of Report
- Definition of "Natural"
- Definition of "Organic"
- Some Foodservice Crossover
- Controversies Over Organic and Natural Labeling
- Market Size and Growth
- Methodology for Sales Estimates
- Quantifying Sales of Organic Foods and Beverages
- Quantifying Sales of Natural Foods and Beverages
- Retail Sales of Natural/Organic Foods and Beverages Approach $39 Billion in 2010
- Table U.S. Retail Sales of Natural and organic Foods and Beverages, 2006-2015 (in billions of dollars)
- Natural Foods and Beverages: A Larger Slice of a Bigger Pie
- Produce and Dairy Are the Largest Categories
- Mass-Market Channels Capture Almost Half of Retail Sales
- Market Outlook
- The Economy and Its Impact
- Organic vs. Natural
- Brand Organic?
- And Certify Natural?
- The Consumer Component
- Nearly 60% of Organic Grocery Shoppers Anticipate Increasing Organic/Natural Purchases
- Organic Foods and Beverages Carry a Price Premium
- How Willing Are Consumers to Pay More for Organics?
- Organic Farming Takes Root
- Table U.S. Certified Organic Acreage, 1992, 2000, 2003, 2005, and 2008
- Young Farmers Joining the Field
- An Expanding Industry and Marketplace
- Sometimes It's Difficult to Produce Organic or All-Natural Foods
- Census 2010: Nation Is Older, More Ethnic
- Table Demographic Snapshot of the U.S. Population, 2010
- Health Issues Continue to Drive Sales
- New 2010 Dietary Guidelines
- MyPlate Icon Replaces Food Pyramid
- Reasons for Buying Natural/Organic Foods and Beverages
- The Fear Factor
- Overlap Between Natural/Organic and Gourmet/Premium Foods
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Seek Out Gourmet Foods and Beverages," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Going Local
- Table Percent of U.S. Adults by Level of Agreement with the Statement "I Seek Out Local and Seasonal Foods," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Artisan Foods
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Like to Buy Products with Artisan or Hand-Made Appeal," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Romancing the Products
- Many Natural/Organic Foods and Beverages Support Other Environmental and Social Issues
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "Environmental and Ecological Issues Are Very Important to Me," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Take Recycling Very Seriously," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Sustainable Packaging
- Humane Treatment of Animals and Sustainable Seafood
- The GMO Debate
- New Tests May Verify Organic Claims
- Projected Market Growth: U.S. Retail Sales Will Top $78.4 Billion by 2015
- Market Overview
- The Marketers - Highlights
- The Marketers
- Marketer Overview
- Global Marketers, Investors Control Many Top Brands of Natural and Organic Foods and Beverages
- Recent Mergers and Acquisitions
- Mainstream Marketers Going Natural
- Organic Extensions of Mainstream Lines Not Very Successful
- Is Selling the Company Selling Out?
- The Gourmet/Natural Foods Synergy
- Selling Nutritional Benefits
- Table Number of Natural and Organic Food and Beverage Launches By Selected "Nutritional" Package Tags/Claims, 2006-2010
- Selling Convenience
- Private-Label Natural and Organic Products Booming
- Advertising and Marketing Trends
- Marketers Ally Themselves with Social and Environmental Causes
- Good Works
- Clif Bar
- Guerilla Marketing Techniques
- CEOs Rap to Promote Organic Food and Beverages
- Targeting Kids Through Entertainment
- Making Use of Websites and Social Media
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Am Active on Online or Mobile Social Networks (e.g., Facebook or Twitter)," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Websites and Social Media
- Starbucks Savvy About Social Media
- PepsiCo's Near East Food Products Less of a Success
- Advertising and Marketing Positioning
- Competitive Positioning
- Consumer Testimonials
- Good Enough to Serve My Own Family
- Limited Edition
- Nutritional Benefits
- Poetry in Motion
- Real People
- Simple Ingredients
- Status
- Taste
- Competitor Profiles
- Amy's Kitchen, Inc.
- Clif Bar & Company
- Dole Food Co., Inc.
- EVOL Foods
- Frito-Lay
- The Hain Celestial Group, Inc.
- Honest Tea
- Benefits for Both Sides
- Newman's Own, Inc.
- Organic Valley
- Stonyfield Farm, Inc.
- Marketer Overview
- New Product Trends - Highlights
- New Product Trends
- Overview
- Almost 2,900 Natural and Organic Products Launched in 2010
- Table Number of Natural and Organic Food and Beverage Product Launches, 2006-2010
- Table Natural and Organic Percent of All New Product Launches, 2006-2010 (based on total number of new product reports)
- "Natural" the Most Popular Product Tag
- Table Top 10 Product Claims on New Food and Beverage Products, 2006, 2008, and 2010
- Functional Drinks, Tea Top New Product Launches
- Table Top 20 Product Categories for Natural and Organic Food and Beverage Product Launches, 2006-2010
- ALDI, Hain Celestial, Whole Foods Lead Product Introductions
- Table Top 15 U.S. Marketers of Natural and Organic Foods and Beverages by Number of New Product Reports, 2006-2010
- Almost 2,900 Natural and Organic Products Launched in 2010
- Macro Trends
- Natural and Organic Products Promote Ethical Causes
- More Dairies and Retailers Go Hormone-Free
- Demand for Gluten-Free Foods Surging
- Superfoods
- Moriheiya
- Chia Seeds
- Going Coconuts
- Competition Intensifying in Coconut Water
- Coconut Milk Becomes a Beverage
- Next Up, Coconut Oil and Coconut Sugar
- Stevia as a Natural Sweetener
- Local Trend Continues to Grow
- Baby and Kid-Targeted Foods Play Up Safety
- Category Trends
- Frozen Meals
- Side Dishes Go More Interesting
- Dairy Case
- Milk Alternatives: Almond Milk Wars
- Yogurt: It's All Greek to Me
- Fresh Produce
- Cereals and Cereal Bars
- Snacks Go More Natural
- Hale Kale Chips!
- Desserts
- Ice Cream and Frozen Desserts
- Beverages
- Tea
- Chocolate Beverages
- Energy Drinks
- Sodas: Handcrafted and All-Natural
- Overview
- Retail Trends - Highlights
- Retail Trends
- Types of Retail Outlets
- Competitive Situation
- Store-within-a-Store Merchandising vs. Integration
- Marketers Teach Conventional Retailers How to Sell Natural/Organic
- Private-Label Offerings Explode
- Retailers Spearhead Animal Welfare Standards
- Supermarkets vs. Foodservice: Blurring the Boundaries
- Really Local Farms
- Chef-Run Local Markets
- The World's First All-Natural/Organic Food Court
- Channel and Retailer Profiles
- Whole Food's Consolidation of Super Naturals and the Continued Growth of Trader Joe's
- Conventional Retailers Develop Fresh Format Stores
- Retailer Profile: Kroger
- Retailer Profile: Safeway
- Several Smaller Regional Chains Set Exemplary Examples
- Central Market in Whole Foods' Backyard
- Retailer Profile: Publix Super Markets, a Public Favorite
- Retailer Profile: Wegmans Raises the Bar on Grocery Shopping
- Natural Food Stores
- Whole Foods: The Natural Leader Reemerges as a Growth Leader
- Focusing on Value Yields Rewards
- Strong Focus on Prepared Foods and In-Store Dining
- Mission Driven Values and Aggressive PR Images
- New Sustainable Seafood, Animal Welfare, and Healthy Eating Initiatives
- A `Game Changer' in the Retail Food Business
- Retailer Profile: The Secrets of Trader Joe's
- Retailer Profile: Sprouts Farmers Market
- Natural Co-ops Experiencing a Resurgence
- Retailer Profile: PCC Natural Markets
- Retailer Profile: Park Slope Food Coop
- Retailer Profile: Rainbow Grocery
- Small-Format Grocery Stores
- Fresh & Easy: British Invasion Not So Easy Going
- Gourmet/Specialty Food Stores
- Mass Merchandisers and Supercenters
- Retailer Profile: Walmart Forays into Healthier Foods
- Groceries Grow to 54% of Walmart's Sales
- Walmart Revamps Great Value Private-Label Brand…
- … After Scaling Back Ambitious Organic Plans
- Walmart Announces Healthier Foods Initiative
- Walmart Shifts Seafood to Sustainable Sourcing
- Retailer Profile: Target Corp. Is Targeting Foods
- Target Pushing into Fresh Foods
- Contest for National Warehouse Club Supremacy
- Retailer Profile: Costco Wholesale Corp.
- Retailer Profile: Sam's Club
- Retailer Profile: BJ's Wholesale Club
- Drugstores Making a Play for Food
- Drugstores Fight Back as Retail Lines Blur
- Drugstores Testing Fresh Foods
- Retailer Profile: Walgreens
- Retailer Profile: CVS Caremark
- Can the Drugstore Channel Compete in Fresh Foods?
- Convenience Stores
- Farmers' Markets Chart Double-Digit Growth in 2010
- Two Types of Farmers' Markets
- Farmers' Markets Complain About Grocery Competition
- Community Supported Agriculture Programs (CSAs)
- Internet and Mail Order
- Retailer Profile: FreshDirect
- The Natural/Organic Foods Consumer - Highlights
- The Natural/Organic Foods Consumer
- Consumer Overview
- Methodology
- 37% of Consumers Seek Out Natural/Organic Foods and Beverages
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Seek Out Natural/Organic Foods and Beverages," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Half Are Willing to Pay More for Higher-Quality Groceries
- Table Percent of U.S. Grocery Shoppers Who Agree with the Statement "I Am Willing to Pay More for Higher-Quality Groceries," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Table Percent of U.S. Grocery Shoppers by Level of Agreement with the Statement "I Am Willing to Pay More for Better-for-You Grocery Products," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Four Out of Five Think Organic Foods Are Overpriced
- Table U.S. Adult Consumer Attitudes Toward Organic/Natural Foods and Beverages, February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Two out of Three Adults Have Changed Wellness Lifestyle
- Table Percent of U.S. Adult Grocery Shoppers by Level of Agreement with the Statement "The Groceries I Buy Are Determined In Part by Specific Wellness Goals," February 2011 (overall, grocery shoppers who buy organic groceries, grocery shoppers who buy packaged foods marketed as "all-natural")
- More Organic/Natural Consumers Seek Specific-Purpose Nutrition
- Organic/Natural Consumers Want Extra-High Nutrition Foods
- Table Percent of U.S. Adult Consumers by Level of Agreement with the Statement "I Seek Out Foods and Grocery Products That Have Specific-Purpose Nutrition," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Table Percent of U.S. Adults by Level of Agreement with the Statement "I Seek Out Foods and Grocery Products That Have Extra-High Nutrition," February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- More Organic/Natural Shoppers Avoid Certain Foods
- Table Percent of Grocery Shoppers by Level of Agreement with the Statement "Food Restrictions, Food Avoidances, or Food Allergies Play an Important Role in What I Eat," February 2011 (overall, grocery shoppers who buy organic groceries, grocery shoppers who buy packaged foods marketed as "all-natural")
- Fresh Fruit and Veggies Are the Most Popular Organic Categories
- Almost One Out of Four Adults Looks for Organic/Natural Foods
- Table Percent of U.S. Adult Grocery Shoppers Who Usually Buy Organic/Natural Foods and Beverages, by Product Category, February 2011 (overall, consumers who usually buy organic groceries, and consumers who usually buy packaged foods marketed as "all-natural")
- Table Number and Percentage of U.S. Adult Natural/Organic Consumers, 2006-2010 (consumers who look for organic/natural foods and consumers who prefer foods without artificial additives) Consumers Who Look for Organic/Natural Foods Consumers Who Prefer Foods Without Artificial Additives Year
- Supermarkets the Most Popular Place to Get Natural/Organic Foods
- Table Percent of U.S. Adult Grocery Shoppers Who Shop for Organic/Natural Foods and Beverages, by Retail Channel, February 2011 (overall, who shop for organic groceries, and who shop for "all-natural")
- Whole Foods and Trader Joe's
- Table Retail Shopping Patterns in the Past Month Among U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)
- Shopper Attitudes and Behavior
- Table U.S. Adult Consumer Attitudes/Behavior Toward Shopping, 2010 (overall, consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)
- High Socioeconomic Status Characterizes Organic/Natural Shoppers
- Table Selected High-Index Demographics of U.S. Adult Consumers Who Agree with the Statement "When I Shop for Food, I Look for Organic/Natural, 2010
- Table Demographic Overview of U.S. Adult Consumers Who Agree with the Statement "When I Shop for Food, I Look for Organic/Natural," 2010 (percent, number and index of U.S. Adult consumers)
- Upscale and Older Consumers Prefer No Artificial Additives
- Table Selected High-Index Demographics of U.S. Adult Consumers Who Agree with the Statement "I Prefer Foods Without Artificial Additives," 2010
- Table Demographic Overview of U.S. Adult Consumers Who Agree with the Statement "I Prefer Foods Without Artificial Additives," 2010 (percent, number and index of U.S. Adult consumers)
- Attitudes Toward Food and Cooking
- Attitudes Toward Nutrition
- Table U.S. Adult Consumer Behavior/Attitudes Regarding Food and Cooking, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)
- Table U.S. Adult Consumer Behavior/Attitudes Regarding Nutrition, 2010 (consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)
- One Out of Three Households Use Organic Produce
- Table Leading Organic Foods by Level of U.S. Household Penetration, 2010 (percent of U.S. households)
- Milk Tops Organic List by Index
- Table Leading Organic Foods by U.S. Adult Consumer Indexes, 2010 (consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)
- Natural Foods Consumers and Restaurant Use
- Table Frequency of Eating at Restaurants that Feature Organic Foods Among U.S. Adult Consumers, February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as "all-natural")
- Table Frequency of Eating at Restaurants that Feature Distinctively "All-Natural," Fresh or Locally Grown Menus Among U.S. Adult Consumers, February 2011 (overall, consumers who shop for organic groceries, and consumers who shop for "all-natural")
- Attitudes and Opinions Toward Foodservice
- Table U.S. Adult Consumer Attitudes/Opinions Toward Foodservice, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)
- Consumers and Media
- Internet Has Changed How Consumers Spend Free Time
- Table Internet-Related Lifestyle Changes Among U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)
- Internet Has Changed How Consumers Shop
- Consumers and Traditional Media
- Consumer Attitudes Toward Advertising
- Table Internet Usage Patterns Among U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)
- Table Use of Traditional Media by U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)
- Table U.S. Adult Consumer Attitudes Toward Advertising, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)
- Internet Has Changed How Consumers Spend Free Time
- Consumer Overview
- Selected Industry Addresses
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