Natural and Organic Foods and Beverages in the U.S., 5th Edition

Published: September 28, 2016 - 226 Pages

Table of Contents

  • Executive Summary
    • Overview
      • Scope of Report
      • Report Methodology
      • Defining and Re-defining "Natural"
      • Definition of "Organic"
      • Retail Sales of Natural/Organic Foods and Beverages Will Reach $69.4 Billion in 2016
      • Produce Is the Largest Category
      • Supermarkets, Natural Foods Stores, Warehouse Clubs Battle for Market Share
      • Consumer Drivers for Buying Natural/Organic Foods and Beverages
      • Organic Farming Takes Root
      • The GMO Debate
      • U.S. Retail Sales Will Approach $118 Billion by 2021
    • Retail Trends
      • Upsurge of Competition in Natural Foods
      • Retailer Profiles
    • The Marketers
      • Many Thousands of Marketers
      • More Acquisitions, Investments, and Funding
      • Private-Label Natural and Organic Products Proliferating
      • Competitor Profiles
    • Marketing and New Product Trends
      • Going Clean
      • Ingredients Trends
      • New Product Trends by Category
    • Consumer Trends
      • Packaged Facts National Consumer Survey
      • Simmons National Consumer Survey
      • Fruit and Vegetables Are Top Organic Categories
      • Ethnicity, Socio-Economics Differentiate Organic or Natural Food Shoppers
  • Overview
    • Key Points
      • Scope of Report
      • Report Methodology
      • Some Foodservice Crossover
      • Defining and Re-defining "Natural"
      • Definition of "Organic"
    • Market Size and Growth
      • Methodology for Sales Estimates
      • A Range of Sales Estimates from Different Sources
      • Retail Sales Projected at $69.4 Billion in 2016
        • Table U.S. Retail Sales of Natural and Organic Foods and Beverages, 2012-2016 (in billions of dollars)
      • Organic Foods and Beverages: A Larger Slice of a Bigger Pie
      • Produce and Dairy Are the Largest Categories
      • Supermarkets, Natural Food Stores, Warehouse Clubs Battle for Share
    • Market Outlook
      • Most Consumers Buy Natural and/or Organic Products
      • Consumer Drivers for Buying Natural/Organic Foods and Beverages
      • Widening Distribution Channels Also Driving Increased Sales
      • Produce and Dairy Are `Gateway' Categories for Organic Foods
      • Organic Farming Takes Root
      • Some Organic Products in Short Supply
      • The GMO Debate
      • Litigation Over the Meaning of "Natural"
    • Projected Market Growth
      • U.S. Retail Sales Will Approach $118 Billion by 2021
        • Table Projected U.S. Retail Sales of Natural and Organic Foods and Beverages, 2016-2021 (in billions of dollars)
  • Retail Trends
    • Key Points
    • Overview
      • Upsurge of Competition in Natural Foods
        • Table Selected Leading Natural and Organic Foods Competitors, 2016
      • Ahold Delhaize
      • Albertsons Cos.
      • ALDI Inc.
      • Amazon.com—AmazonFresh, Prime Pantry, and Prime Now
      • Costco Wholesale Corp. Strengthens Organic Position
      • CVS Expanding Selection of Healthier Foods and Beverages
      • Fairway Market Emerges from Bankruptcy
      • Farmers' Markets Grow to Almost 8,700 Nationwide
      • The Fresh Market Pulls Back, Goes Private
      • Fresh Thyme Farmers Market Rolls Out in the Midwest
      • The Kroger Co.
      • Natural Grocers by Vitamin Cottage Planning Major Expansion
      • Sprouts Farmers Market Appears to Have a Winning Formula
      • Target Corp. Recasting its Grocery Business Again
      • Thrive Market
      • Trader Joe's
      • Walmart Forays into Organic Foods—Again
      • Whole Foods Market Feeling the Heat of Competition
  • The Marketers
    • Key Points
    • Marketer Overview
      • Many Thousands of Marketers
      • More Acquisitions, Investments, and Funding
      • Recent Mergers and Acquisitions
      • Private-Label Natural and Organic Products Proliferating
    • Competitor Profiles
      • Amy's Kitchen, Inc.
      • Campbell Soup Co.
      • Danone SA
      • General Mills, Inc.
      • The Hain Celestial Group, Inc. Challenged by Growing Competition
      • Organic Valley
      • Pinnacle Foods Group Sees Health and Wellness as a Key to Growth
  • Marketing and New Product Trends
    • Key Points
    • Marketing Trends
      • Going Clean
      • Kashi Launches New `Certified Transitional' Label
    • Ingredients Trends
      • Avocados
      • Beets Are Red Hot
      • Chickpeas and Other Beans Transformed
      • Functional and Fortified Foods and Beverages
      • Grass-Fed Proteins Gaining Momentum
      • Plant-Based Foods
      • Turmeric and Matcha
    • New Product Trends by Category
      • Frozen Meals
      • Soups
      • Dairy Case
      • Fresh Produce
      • Breads
      • Cereals and Cereal Bars
      • Snacks
      • Desserts and Sweets
      • Baby and Kid-Targeted Foods
      • Beverages with Benefits
  • Consumer Trends
    • Key Points
    • Packaged Facts Proprietary Consumer Survey
      • Many Consumers Seek Out Organic and Natural Foods and Beverages
      • Consumers Shopping Multiple Channels
      • Organic Foods and Beverages Attract Shoppers to Stores
      • Two Out of Five Consumers Buying More Organic or Natural Foods
      • Half of Consumers Believe Organic or Natural Foods Are Healthier
      • No Artificial Ingredients Outweighs Organic in Packaged Foods
      • Only 45% of Consumers Trust "Organic" or "Natural" Labels
      • Willing to Pay More for Organic—But Think It Costs Too Much
      • Information Consumers Want Most on Package Labels
      • Consumer Attitudes Toward Food
      • Consumer Attitudes Toward Genetically Modified Organisms (GMOs)
      • Consumer Attitudes Toward Social Responsibility
    • Simmons National Consumer Study
      • Methodology
      • Three Out of 10 Households Seek Out Organic or Natural Foods
      • Nearly Half Prefer Foods Without Artificial Additives
        • Table Consumers Who Prefer Foods Without Artificial Additives; Who Look for Organic or Natural Foods; and Who Buy Natural or Organic Foods When Watching Their Diet, 2012-2016 (percent and number in millions)
      • Fruit and Vegetables Are Top Organic Categories
        • Table Top Product Categories for Consumers Purchasing Organic Foods Most Often, 2012 vs. 2016 (percent)
      • Ethnicity, Socio-Economics Differentiate Organic or Natural Food Shoppers
        • Table High-Index Demographics for Consumers Who Agree with the Statement, "When Shopping for Food, I Especially Look for Organic or Natural Foods," 2016 (index)
        • Table Demographic Overview of Consumers Who Agree with the Statement, "When Shopping for Food, I Especially Look for Organic or Natural Foods," 2016 (percent, number and index)
      • Asian-Americans, Educated Consumers, Homemakers Avoid Additives
        • Table High-Index Demographics for Consumers Who Agree with the Statement, "I Prefer to Eat Foods Without Artificial Additives," 2016 (index)
        • Table Demographic Overview of Consumers Who Agree with the Statement, "I Prefer to Eat Foods Without Artificial Additives," 2016 (percent, number and index)
      • Attitudes Toward Food and Cooking
        • Table Attitudes Toward Food and Cooking: Consumers Who Look for Organic or Natural Foods, and Consumers Who Prefer Foods Without Artificial Additives, 2016 (percent and index)
      • Attitudes Toward Nutrition and Health
        • Table Attitudes Toward Nutrition and Health: Consumers Who Look for Organic or Natural Foods, and Consumers Who Prefer Foods Without Artificial Additives, 2016 (percent and index)
    • Other Surveys
      • International Food Information Council Foundation Survey
      • Wedbush Securities Consumer Survey
      • Consumer Reports Labels Survey

Abstract

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Natural and Organic Foods in the U.S., 5th Edition

The marketplace for natural and organic foods and beverages is undergoing tremendous expansion and change. At the retail level, while Whole Foods Market remains the dominant natural foods supermarket chain, itfaces challenge from Trader Joe’s and No. 1 supermarket operator Kroger Co., which maintains almost 2,800 stores across the country under regional banners including Kroger, Ralph’s, and Harris Teeter. Kroger now sells about $11 billion in natural and organic food products annually, making it the third-largest player in organic foods industry after Whole Foods and Trader Joe’s. Meanwhile, drawn by attractive consumer demographics, a higher growth rate than conventional foods, and a healthier aura, major food companies and private equity firms are buying or making large investments in natural and organic food and beverage companies. For example, in July 2016, France’s Danone SA announced that it will acquire The WhiteWave Foods Co. in a $10 billion transaction by the end of 2016, while General Mills claims it is now the third largest natural and organic food maker in the United States. In addition, responding to consumer demand for more company transparency and cleaner formulation, big brands are overhauling products and portfolios in hopes of winning over natural-leaning consumers. Many consumers seek out organic (36% of the 1,914 U.S. respondents surveyed by Packaged Facts) or natural foods and beverages (42%) when shopping for food. In particular, a good selection of organic fruits and vegetables can be a game-changer in determining where consumers grocery shop.

Report Scope & Methodology

This completely revised report, Natural and Organic Foods in the U.S., Fifth Edition, is divided into six chapters. After the Executive Summary, the Overview chapter presents an overview of this dynamic market segment, analyzing sales and industry growth potential, and identifying key issues and trends that will affect the marketplace through 2021. The next chapter, Retail Trends, examines the upsurge of retail competition, profiling 17 retailers including Albertsons, Amazon.com, Costco, Farmers Markets, Fresh Thyme Farmers Market, Kroger, Sprouts Farmers Market, Trader Joe’s, Walmart, Whole Foods Market, and more. The Marketers chapter lists major marketers and their natural/organic brands, discusses the influx of private label into this marketplace, and profiles seven key marketers and their marketing positions. Marketing and New Product Trends highlights key trend in the natural/organic market, including clean label, ingredients trends, and trends by food and beverage categories. The Consumer chapter analyzes data from a proprietary Packaged Facts National Consumer Survey conducted in July-August 2016, examining consumer attitudes and behaviors toward natural/organic foods and beverages as well as retail shopping patterns. Included are copious tables, charts, graphs, and illustrations that reinforce and make points in the text easy to grasp.

In addition to the Packaged Facts consumer survey, our primary research for Natural and Organic Foods in the U.S. entailing interviews with members of the industry, and on-site examination of products in retail stores. Secondary research involved evaluating and comparing data and reports from government agencies such as the U.S. Department of Agriculture (USDA) and trade associations such as the Organic Trade Association (OTA); and reviewing more than 600 articles in consumer and industry publications, websites, and blogs; annual reports, earnings call transcripts, and marketing literature of individual companies; and other reports by Packaged Facts. Secondary research involved evaluating and comparing data and reports from government agencies such as the U.S. Department of Agriculture (USDA) and trade associations such as the Organic Trade Association (OTA); and reviewing more than 600 articles in consumer and industry publications, websites, and blogs; annual reports, earnings call transcripts, and marketing literature of individual companies; and other reports by Packaged Facts.

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