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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

  • March 2017
  • 43 pages
  • ID: 4826932
  • Format: PDF
  • GlobalData

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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.

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