While traditional value drivers price, taste, and convenience continue to be the most important influencers of consumer shopping behavior, Americans also weigh “evolving drivers” health and wellness, safety, social impact, experience, and transparency in their food purchasing decisions.
Perhaps nowhere are these evolving drivers more inherently perpetuated than in the thriving market for natural and organic foods and beverages, finds market research publisher Packaged Facts in the brand new report Natural and Organic Foods and Beverages in the U.S., 5th Edition.
“From freshness to health ingredients to transparency of sourcing, and eco-conscious business models, there’s no denying that today’s core consumer values increasingly center around what the natural and organic food and beverage market has been offering for years,” says David Sprinkle, Packaged Facts’ research director.
Packaged Facts estimates that total U.S. retail sales of natural and organic foods and beverages through all retail channels will reach $69 billion by the end of 2016 an 11.0% gain over 2015 sales of almost $63 billion and 32% higher than sales five years earlier. During the 2012-2016 period, sales rose by a compound annual growth rate (CAGR) of 7%. Growth of natural/organic products outpaced that of total food and beverage sales, which have been relatively flat throughout the period.
Looking ahead, Packaged Facts projects that the retail market for natural and organic foods and beverages will grow by almost 70% between 2016 and 2021.
It’s no wonder then that big brands are making the investment to overhaul products and portfolios in hopes of winning over natural-leaning consumers.
And make no mistake, successfully integrating natural and organic foods into established brands is more challenging than it might appear. It isn’t a matter of merely swapping traditional tomatoes for those that are naturally and sustainably grown.
Changes can often seem frustratingly slow due to the need to find clean ingredients that will work in iconic brands and products without negatively affecting their color, taste, texture, and shelf life.
Despite the challenges, an investment in natural and organic has clearly been worth it. Over the past 18 months alone the food industry has seen more than a half dozen popular brands make waves on the natural and organic front. Just to name a few examples.
For additional information about Natural and Organic Foods and Beverages in the U.S., 5th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts’ website: http://www.packagedfacts.com/Natural-Organic-Foods-10074923/.
Source: Packaged Facts