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Top Trends: Organic and Natural - Capitalizing on consumer preferences for natural and organic products

Top Trends: Organic and Natural - Capitalizing on consumer preferences for natural and organic products

  • December 2016
  • 43 pages
  • ID: 4773726
  • Format: PDF
  • GlobalData

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Top Trends: Organic and Natural - Capitalizing on consumer preferences for natural and organic products

Summary

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. 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.

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.

Few of the opportunities identified for organic and natural product innovations are -
- Basics: Discounters are pushing the cost of organic products lower and removing additives from their brands to court value customers, bucking the Premiumization trend.
- Younger Generations: Parents want what is safest for their children, which is resulting in a plethora of organic alternatives from the crib onwards. Younger consumers prefer more ethical and healthier products.
- Anti-Artificiality: Artificial coloring for food, hair and clothes, as well as flavors, components and packaging are being replaced with organic equivalents.
- Health: A reckoning for sugar is coming from governments, celebrities and consumers. Consumers seek healthier options and avoid less-healthy options.
- Morals: Vegetarian and flexitarian consumers are increasing due to concerns regarding animal rights, the environment and global warming.
- Organic Alcohol: Craft beer, IPAs, spirits, wine and brewing kits are expanding into the organic trend.

The report “Organic and Natural - Capitalizing on consumer preferences for natural and organic products” examines what organic and natural mean as consumer trends and why they are important, who is likely to be the target audience, how FMCG brands can best capitalize on the trends, and what will be the future outlook for the trends. Moreover, this report helps to compare the presence of these trends in each industry across the FMCG space, and learn what the key opportunities are.

Companies mentioned in this report: Aldi, Naty, Similac, Imse Vimse, Ella’s Kitchen, ILIA Beauty, John Masters, Guayaki, Organic Colour Systems, Delixia, Kineta, Clarks, Beloved, SweetLeaf Organics, Organic Valley, Nutriseed, Organic India, Rapanui, Papagayo, Alternativa, Lavera, Vincent Gaudry, Peak Brewing, Blind Tiger Gin, Brew Organic, Better Than Food

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.

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