Natural and Organic Food and Beverage Industry Trends: Current and Future Patterns in Production, Marketing, Retailing, and Consumer Usage

Published: June 1, 2006 - 198 Pages

Table of Contents

  • Executive Summary
    • Scope & Methodology
      • Scope of Report
      • Report Methodology
    • Market Overview
      • Market Size and Growth
      • Mainstream Supermarkets Lead Retail Channels in Organic Sales
      • Not Just a Fad
      • Natural/Organic Market to Reach $46.1 Billion in 2010
      • Most Mass-Market Brand Shares Still Under 2 Points
      • Natural/Organic Brands Outperform Their Categories
      • Organic Products Outperform Natural Ones
      • Higher Levels of Education and Income Characterize Consumers
    • The Retail Arena
      • Retail Competition Driving Market Growth
      • Big Three's Growth Explosion Begins in 1990s
      • Whole Foods Brings "Supernaturals" Format to Fruition
      • Mainstream Supermarkets Taking Up the Challenge
      • Opportunities in Store Brands
      • The Foodservice Connection
    • The Producer/Marketer Arena
      • Mainstream Moves to Incorporate Natural/Organics
      • Global Marketers, Investors Now Control Most Natural/Organic Leaders
      • Big Money Influx Is Altering Market
      • Mainstream Marketers Entering Natural/Organic Arena
      • Foodservice Side Emphasizing Flavor, Origins
    • New Product Trends in Natural/Organics
      • Organic Linked to Weight, Heart Health Concerns
    • Looking Ahead
      • Trends and Opportunities
  • Chapter Market Overview - Highlights
  • Market Overview
    • Introduction
      • Definition of "Natural"
      • Definition of "Organic"
      • "Organic" Exposes Lack of Definition for "Natural"
    • Market Trends
      • Market Size and Growth
        • Table U.S. Retail Sales of Natural and Organic Foods and Beverages, 2002-2005 (in billions of dollars)
      • Produce Is Largest Organic Category
      • Mainstream Supermarkets Lead Retail Channels in Organic Sales
      • Health Product Shoppers Rate the Channels
    • Market Outlook
      • Not Just a Fad
      • Organics' Greatest Growth Is Yet to Come
      • Organics Just Beginning to Take Hold in U.S.
      • Few Introductions as Yet from Major Marketers
      • Consumer Survey Findings Augur Well for Organics
      • Limiting Factors: Price and Supply
      • Controversy Over Standards
      • Natural/Organic Market to Reach $46.1 Billion in 2010
        • Table Projected U.S. Retail Sales of Natural and Organic Foods and Beverages, 2005-2010 (in billions of dollars)
    • Leading Marketers and Brands
      • Methodology: Estimates Based on IRI Three-Channel Data
      • Most Brand Shares by Category Still Under 2 Points
      • Earthbound Farm Is Standout in Produce
      • Dairy Is Second Strongest Department
      • Natural/Organic Brands Far Outperform Their Categories
      • Amy's Kitchen Is Standout in Frozen Foods
      • Three Natural/Organic Brands Stir Soup Category
      • Healthful Image Helps Snack Brands
      • Dakota Growers Paces Spaghetti/Macaroni/Pasta Category
      • Organic Products Outperform Natural Ones
      • Newer Natural/Organic Entries Take Sales from Older Ones
      • Meat Category Still Small, Especially at Mass
      • Organic Brands vs. Conventional Brands
      • Organic Brands Breakfast on Conventional Rivals
      • Organic Brands Outshine Competition in Milk Category
      • Organics Also Lead the Way in Yogurt Category
        • Table Top-Selling Natural/Organic Brands in the Mass Market: By Product Segment, 2005 (in millions of dollars)
        • Table Cold Cereal: Mass-Market Sales Growth of Organic vs. Conventional Brands Since 2001 (in thousands of dollars)
        • Table Milk: Mass-Market Sales Growth of Organic versus Conventional Brands Since 2001 (in thousands of dollars)
        • Table Yogurt: Mass-Market Sales Growth of Organic vs. Conventional Brands Since 2001 (in thousands of dollars)
    • Consumer Trends
      • Reasons for Buying Organic Foods
      • The Taste Factor
      • The Simmons Consumer Survey
      • Higher Levels of Education and Income Characterize Consumers
      • Asian-Americans Skew High for Natural/Organic Foods
      • Older Shoppers, Women, Small Households Also Indicated
        • Table Demographic Overview for Patrons of Whole Foods Market or Trader Joe's, 2005 (U.S. adults)
  • Chapter The Retail Arena Highlights
  • The Retail Arena
    • Overview
      • Retail Competition Driving Market Growth
      • Counter-Culture Origins
      • Enter the "Supernaturals"
      • Big Three's Growth Explosion Begins in 1990s
      • Whole Foods Brings "Supernaturals" Format to Fruition
    • Retailer Profile: Whole Foods Market
      • Overview
      • Bigger Stores
      • A Fierce Competitor
      • Whole Foods Eyes European Market
      • A $12 Billion Sales Goal for 2010
      • From Whole Foods to Whole Lifestyle
      • Company Works to Improve Quality of Life for Farm Animals
      • Commitment to Renewable Energy, Recycling
      • Wall Street Bullish on Whole Foods
    • Retailer Profile: Trader Joe's
      • Overview
      • Emphasis on Unusual Items at Low Prices
      • Parent Company Aldi Is International Giant
      • From Convenience Store to Gourmet and Health Foods
      • Big Expansion Comes in Wake of "Supernaturals"
      • Pressure to Sell Only Cage-Free Eggs
      • Larger Aldi Sister Chain Also Growing Rapidly
    • Retailer Profile: Wild Oats Markets
      • Overview
      • To Health Foods Via Convenience Stores
      • Responding Aggressively to Whole Foods
      • Downturn Leads to Management Change
      • Wild Oats Seeks to Grow Private Labels
      • Strength in Supplements, Personal Care
      • Partners with Major Mainstream Supermarket
      • More Mainstream Fare; Cage-Free Eggs Only
    • Emerging Supernaturals
      • Overview
      • Earth Fare
      • Sprouts Farmers Market
      • Sunflower Market
      • Vitamin Cottage Natural Food Markets
    • Mainstream Supermarkets
      • Taking Up the Challenge
      • Opportunity Is Too Good to Miss
      • Supermarkets Growing Natural/Organic Market Share
      • Keeping Prices in Line on Basic Items
      • Case Study: Safeway
    • Albertson's, A&P Bulk Up on Natural/Organics
      • Merchandising Natural/Organics in Mainstream Supermarkets
      • Supermarkets Create Own Natural/Organic Formats
    • Opportunities in Store Brands
      • Lack of National Brands Creates an Opening
      • H.E. Butt Brings Central Market Brand to Mainstream Stores
      • Early Commitment to Natural/Organics Boosts Harris Teeter
      • SuperValu Expanding with Nature's Best
      • Other Mainstream Chains Also Active
    • The Foodservice Connection
      • The Dining/Food Shopping Dynamic Duo
      • Organic Items on the Rise in Restaurants
      • Supernaturals Entering Restaurant Business
      • Gourmet Supermarkets Also Reap Benefits of Converging Trends
  • Chapter The Producer/Marketer Arena Highlights
  • The Producer/Marketer Arena
    • Competitive Trends and Case Histories
      • Mainstream Moves to Incorporate Natural/Organics
        • Table Changing Ownership in Leading U.S. Natural/Organic Brands
      • Factory Farms Dominate Organic Produce
      • Global Marketers, Investors Now Control Most Natural/Organic Leaders
      • Big Money Influx Is Altering Market
      • Market Transformation Begins with Whole Foods' IPO
      • Hain Celestial Becomes Natural Foods Conglomerate
      • Venture Capital Migrates to Natural/Organic Market
      • Natural/Organic's Boulder Roots and "The Way Things Were"
      • Market Founders Resurface as New Company Leaders
      • Clif Bar Founder Just Says "No"
      • The Case of White Wave
      • The Case of Horizon Organic: Going Public to Fund Growth Leads to Takeover
      • Whole Foods as "Whole-Mart"
      • Hain Celestial as Whole Foods' Marketer Counterpart
        • Table Hain Celestial Group: Product Categories and Brand Lines, 2006
      • A New Spate of Entrepreneurship
      • The Case of Dakota Beef: Young Entrepreneur Taps into Organics' "Final Frontier"
      • The Case of Niman Ranch: A Pioneer in Naturally Raised Meat
      • The Case of Dagoba Organic Chocolate
      • The Lesson of Gardenburger
      • Familiar Faces Among Today's Entrepreneurs
      • Mainstream Marketers Entering Natural/Organic Arena
    • The Foodservice Side
      • A Heavy Emphasis on Flavor, Origins
      • Niman Ranch Banking on Better Tasting Pork
      • Bell & Evans Chicken Also Touted as Tastier
      • Green Mountain Coffee's Foodservice Success
      • McDonald's Picks Newman's Own Organics Coffee
  • Chapter New Product Trends in Natural/Organics Highlights
  • New Product Trends in Natural/Organics
    • Rapid Growth in Food and Beverage Introductions
      • Table Food & Beverage New Product Selling Points by Selected Package Tags, 1996, 2001-2005
      • Growth of Organic Intros Outpaces Market
      • Organic Linked to Weight, Heart Health Concerns
      • Private Label Growth
        • Table Use of Selected Package Tags on New Food and Beverage Products Tagged "Organic": 1996, 2001-2005
      • Other Tags Link Organic to Gourmet, Kids, and Convenience
      • Organic Products Acquire Gourmet Cachet
      • Kids and the Organic Future
      • Convenience Remains Essential
      • Non-Allergenic Products-Healthy and Safe
      • Organics Gets Boost from Functional Foods
      • Touring the World's Cuisines-Organically
      • Cultivating Dairy
      • Whole Grains Bring Healthier Image to Bread, Cereal, Pasta
      • Fair Trade Carries Clout in Coffee, Tea, and Chocolate Intros
      • Meats: the Final Frontier
      • Major Marketers Add Organic Entries
      • Mainstream Supermarkets Create Natural/Organic Brands
        • Table Safeway's O Organics Brand: New Product Introductions, First-Quarter 2006
      • HEB, Wild Oats Continue to Extend Natural/Organic Labels
  • Chapter Looking AheadHighlights
  • Looking Ahead
    • Retail Competition, Expansion Will Continue to Drive Market
      • The Wal-Mart Effect
      • Private-Label and Price Pressure
      • Additional Mergers and Acquisitions
      • Continued Cross-Over by Mainstream Marketers
      • Natural/Organics Tapping into Broader Food Trends
      • OTA Launches "Go Organic! for Earth Day" Campaign
      • Foodservice Helping to Build Organics Constituency
      • Organic vs. "Organic. Inc."
      • Looser Standards for Organics Could Undermine Market
      • The OTA Survey: Living Organically in 2025
  • Selected Marketers and Retailers of Natural and Organic Foods and Beverages

Abstract

The growing understanding of the connection between diet and health—especially in a country with a rapidly growing 55-plus population that wants to stay healthy and active—has made natural and organic products the most dynamic area of the food retailing business. This Packaged Facts report examines this and other factors in the sustained double-digit growth of this now $25-billion-plus market, including the intense competition within and between retail channels, as mainstream supermarkets are pressed by large specialists such as Whole Foods Market on one side, and by Wal-Mart supercenters on the other; the absorption of natural/organics into the mainstream as major marketers and investment firms buy up natural/organic specialists; and the competition between mainstream players and specialists who prefer to stay independent, as well as between branded products and higher-margin private-label goods. The report also explores the convergence of other key product trends—including functional foods, weight loss, gourmet, and convenience—with natural/organic, underscoring key synergies and opportunities.

Report Methodology
The information in Natural and Organic Food and Beverage Industry Trends is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the natural/health retail and products market and consultants to the industry. Market size data was derived from Information Resources, Inc. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Datamonitor. Consumer behavior patterns and data were derived from Simmons Market Research Bureau’s National Consumer Survey for Spring 2005.

What You’ll Get in this Report
Natural and Organic Food and Beverage Industry Trends makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective marketers can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Natural and Health Retailers and Products in the U.S offers.

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report
If your company is already competing in the natural and health products industry, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for products and the trends that affect them, as well as projected sales and trends through 2010. Contributing to that understanding will be a complete analysis of sales data, and a detailed discussion of the weight loss consumer based on Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for natural and health products.
  • Research and development professionals stay on top of competitor initiatives and explore demand for natural and health retailing and products.
  • Advertising agencies working with clients in the natural and health retail industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executivesunderstand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Get full details about this report
(US): 800.298.5294
(Int): +1.240.747.3095
Fax: 240.747.3004