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Natural and Organic Foods and Beverages in the U.S., 3rd Edition

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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.

Table of Contents :

Chapter 1: 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

Figure 1-1: Share of U.S. Retail Sales of Natural and Organic Foods and Beverages by Product Category, 2011 (percent)

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

Almost 2,900 Natural and Organic Products Launched in 2010

Table 1-1: 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

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