This morning, the New Hope Network launched its virtual Spark Brand Success event with an update on the natural and organic products market status.
Of the total natural and organic products market, food and beverage accounted for 70% of industry sales, growing approximately 13% to $186 billion in 2020. Conventional food and beverage grew 8.6% last year, and both markets saw increases brought on by COVID-19 and resulting quarantine trends.
The report acknowledged that consumers continue to seek functionality in the area of food and beverage with the “food as medicine” trend, and sales in this area grew over 9% to $78 billion in 2020. Some of the top growth categories were shelf-stable, frozen, and snacks, while popular ingredients included collagen, mushrooms, adaptogens, nootropics, and healthy fats. Also, plant-based products are reported to be growing twice as fast as their mainstream counterparts.
As consumers seek natural solutions that will boost immunity and reduce stress and anxiety, functional food and beverages are sought out, as well as health and well-being products. Supplement sales increased 14% to $56 billion in 2020 – $3 billion more than anticipated in pre-COVID estimates. (But conversely, it should be noted, consumer trends also saw an uptick in the consumption of junk food and alcohol.)
E-commerce sales growth increased in this market as well as many others in 2020, up 60% in what may be a permanent shift of shopping behavior in some cases. But, the report states, “While total natural and organic e-commerce sales are set to double between 2018 and 2023, retail—especially mass-market retail—will continue to fuel the majority of natural and organic sales.” As consumers shift back to stores as pandemic restrictions lift, an “omni-channel strategy” should be top of mind for a brand’s success.
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