Presentation Download: SPINS Industry Overview 9/21/2015
Natural and organic sales continue to outpace total channel sales. Natural product sales have reached over $42 billion and have grown 22 percent since 2012, and organic product sales have reached over $12 billion and have grown 17 percent since 2012.
- Private Label Organic is a strong contributor to overall organic sales volume within conventional outlets, but Branded Organic drives more dollar growth.
- Consumers are seeking transparency and authenticity. These are savvy shoppers who are looking at ‘specifics’ and this will accelerate.
- Many natural attributes are going mainstream, but the Natural Channel is still where the innovation is at.
- The Natural Channel continues to drive the development of the Natural Products Industry. Natural products comprise lion’s share of sales mix and growth, and retailers are selectively adding specialty and conventional products
- Sales growth in Natural Channel stores can be attributed primarily to store count growth and distribution.
- Specialty Gourmet Channel is shifting from Conventional products to Natural products, driving nearly 40% of growth.
- Sales growth in the Specialty Gourmet Channel stores can be attributed to both distribution and store count.
- In Conventional channel, we’re seeing far greater emphasis on Natural products, driving 45 percent of dollar growth.
- Sales growth in the Conventional Channel stores can be attributed primarily to increased pricing and distribution points.
- The Natural Channel continues to drive the development of the Natural Products Industry.
- Trends include: Ancient grains, paleo, vegan, beverages, yogurt, protein, personal care
Strong growth will continue in 2015 and beyond for natural and organic products. Natural supermarkets will continue to flourish and take the forefront in innovation and health paving the way for products to grow more mainstream over time.
- Organic, Non-GMO, Gluten Free, Fair Trade, B certified are among the certifications expected to continue to outpace overall growth
- Consumers increasingly seek transparency to build confidence in the products they purchase – certifications meet this need
- Important for retailers and certifiers to educate consumers