Channel Strategies
Now trending
By Chloe Alverson
Natural, organic retailers share shopper insights
(Image courtesy of Whole Foods)
When it comes to natural and organic, shoppers have no shortage of options. Despite inflation impacting these products, consumers still are allocating their hard earned dollars toward these items.
According to the Organic Trade Association (OTA), Washington, D.C., dollar sales for the American organic marketplace reached $69.7 billion in 2023, a 3.4%, as reported in the 2024 Organic Industry Survey.
“It is encouraging to see that organic is growing at basically the same rate as the total market,” said says Tom Chapman, co-CEO of OTA, in a statement at the time of survey release. “In the face of inflation and considering organic is already seen as a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases. Although organic is now a maturing sector in the marketplace, we still have plenty of room to grow.”
The Top 3 product categories were produce, grocery and beverages. In a May press release, the OTA reported that organic beverage sales totaled $9.4 billion in 2023, a 3.9% increase.
“As always, this category was a driver of innovation with functional beverages, whether for enhanced hydration or mental focus, playing a prominent role,” the OTA’s release stated. “2023 also saw a surge in new organic non-alcoholic beverages and mocktails. On the flipside, organic wine sales were up 2.5% to $377 million, and organic liquor and cocktails, while still the smallest sector of beverages at $59 million, posted over 13% growth.”
Given the continued interest in organic products stores like Fresh Thyme, Whole Foods, Sprouts and Trader Joe’s are watchful of key consumer insights about the products most associated with being better-for-you and contributing to overall health and wellness.
An October 2023 article titled “Top Ten Food Trends for 2024,” from Downers Grove, Ill.-based Fresh Thyme, shared insights on anticipated trends for this year.
Whole Foods provides observations of shopper trends and anticipated trends. (Image courtesy of Whole Foods)
Focusing on Midwest shopping behaviors and brands, the Fresh Thyme article offers 10 food and beverage insights that are impacting natural and organic retailers.
One of the trends Fresh Thyme points to is sustainability solutions.
“There are multiple ways to care for the planet, and consumers are highlighting many of them in their sustainable shopping habits,” the article states. “Certified upcycled products and certified regenerative organic products are on the rise.”
Fresh Thyme shares that Coral Reef safe products are among those on the rise. Some sustainable products listed by the company are Ancient Nutrition’s Multi Collagen Protein Powder and Organic Supergreens, along with Groundwork Coffee Columbia Whole Bean Coffee.
In an April blog post titled “The State of Natural and Organic: 4 Macrotrends to Know,” SPINS also pinpoints sustainability’s influence, but adds that consumers still need guidance on the variety of options and definitions. It also noted the importance of supporting sustainable practices from retailers by the products they stock.
“Some retailers are courting shoppers with their own sustainable practices and commitments,” the blog stated. “From requirements for pesticide avoidance to only stocking organic or fair/direct trade coffees, these retailers are giving shoppers a reason to choose their stores and shop with confidence.”
Brands and products that are close to home and diverse also are popular among consumers, according to Fresh Thyme.
“Fresh Thyme is committed to supporting its local communities, and each Fresh Thyme location carries Midwest-founded brands as well as brands with underrepresented founders to ensure diversity in its offerings and foster an inclusive shopping experience,” it states. “Many of these partner brands are affiliated with U.S. Veteran Owned Business, National Gay & Lesbian Chamber of Commerce (NGLCC), Women’s Business Enterprise National Council (WBENC) and National Minority Supplier Development Council (NMSDC).”
Products the company lists as examples of both local and diverse are Cameron’s Coffee Vanilla Hazelnut Ground Coffee and Cameron’s Jamaica Blend Medium Roast Ground Coffee.
Fresh Thyme says that “protein in motion” is a trend, too.
“Shoppers are seeking out new and unique alternative protein sources to support their fitness routine,” it states. “Plant-based protein powders like pea protein and beet protein have both become popular among consumers looking for plant-based products.”
“In the face of inflation and considering organic is already seen as a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases.”
— Tom Chapman, co-CEO of OTA
The company lists brands like Truvani, Orgain and Sunwarrior as “leading the charge” at the market with their flavor-forward, plant-based protein products.
Meanwhile, functional beverage trends are impacting consumer choice as well, Fresh Thyme reported.
“Last year, consumers showed rising interest in non-alcoholic beverages,” according to Fresh Thyme. “This year, it’s all about beverages that have added benefits. Whether immunity boosting, mood boosting or just better-for-you ingredients, consumers are craving drinks that taste good and help them feel good, too.”
SPINS blog post also highlights the impact of functional beverages as part of the Lifespan to Healthspan macro trend. With this trend, the market research firm notes that healthspan puts the power in consumers’ hands and consider how they want to feel in their golden years, with nutrition being a key focus. This is being approached with the food as medicine concept.
“Nothing illustrates this mindset better than functional beverages, which are beverages containing added functional ingredients to relieve anxiety, support mindfulness, and create alcohol alternatives for social connectivity,” the blog states. “As a result, non-alcoholic beer sales are up 28.5% despite the total beer category being down 0.6%.”
In line with food as medicine, Fresh Thyme points to “mushroom mania” as trending in the food and beverage market.
“While the common varieties of mushrooms have remained popular amongst shoppers, consumers are also seeking out exotic and gourmet mushroom varieties in new forms,” Fresh Thyme states in the article. “Mushrooms’ nutritional value and ability to fit into a wide variety of diets, particularly the ingredient of mushroom root, has seen the fungi be included in coffee, capsules and more.”
Moreover, products like Buddha Teas Turmeric Ginger Tea, Odyssey Elixir Strawberry Watermelon Sparkling Beverage and Host Defense Mushrooms Mycobrew Coffee fit this “mushroom mania” trend, the company notes.
In a similar article published by Austin, Texas-based Whole Foods Market, titled “The Next Big Things: Our Top 10 Food Trends for 2024,” the company looks at what’s working for consumers this year. Whole Foods’ expert Trends Council decided on these trends based on Whole Foods shoppers, it notes.
The first trend Whole Foods lists is putting “the ‘plant’ back in ‘plant-based,’” noting how labels are shrinking in the plant-based category.
“We’re seeing new and emerging protein-forward products with mushrooms, walnuts, tempeh and legumes in place of complex meat alternatives,” the article states. “Even plant-based milk alternatives are participating, with some brands simplifying labels to just two ingredients — perfect for the vegetarian purist.”
Similar to Fresh Thyme’s take of functional beverages, Whole Foods anticipates that its shoppers will be searching for “a better boost” from caffeinated beverages.
“Combining a boost with benefits has never been easier, thanks to new coffee and energy drinks with added mushrooms, probiotics and more,” the company says. “There’s never been a better time to search the ‘clean caffeine’ space for your next obsession.”
Although retailers for the natural and organic market are keeping an eye on the trends influencing consumers, experts note more education still in needed to keep the positive performance moving along.
“It is essential to educate consumers that choosing organic is a straightforward way to tackle some of the greatest challenges we face,” said Matthew Dillon, co-CEO of OTA, in statement in May. “Whether it’s accessing healthy foods, improving transparency in supply chains, mitigating climate change, supporting rural economic resilience, protecting natural resources, or realizing the multitude of other benefits, effectively communicating and delivering on these promises is the key to expanding organic’s share of our dinner plate.” BI