This report provides comprehensive and current information and analysis of the natural food market and organic food market including natural food market size and organic food market size, anticipated market forecast, relevant market segmentation, and industry trends for the natural and organic food market in the US.
Current market landscape
Overwhelming agreement among consumers that natural and organic foods should be more affordable (80%) – even among those consumers decidedly against natural and organic purchase (89%) – points to a larger theme of disengagement based in skepticism related to premium costs. As natural and organic brands ride the waves of inflationary chaos right alongside conventional, they must work overtime to continue clearly communicating their differentiating factors – even to consumers already presently engaged and in support.
Market share and key industry trends
- Dynamic needs call for blended product type repertoires
Nearly all consumers purchase a blend of conventional, natural and organic regardless of sentiments toward natural or organic. However, only 22% report purchasing exclusively natural or organic products, and even fewer (6%) purchase exclusively organic. - Affordability is the ultimate barrier to expanded natural and organic engagement
Predictably, there is a clear association between organic purchase and income level, with a 12-point difference in engagement between those earning less than $50,000 and those earning over $75,000. - Environmental impact may be a plus, but it won’t move the needle
Half of consumers engaging with organic do so because they perceive it as healthy, followed by desires to avoid unwanted extras (ie artificial ingredients (38%), pesticides (35%)).
Future market trends in natural food market and organic food market
One of the biggest threats to the natural and organic markets is sheer product accessibility complicated by the many (and mounting) food production challenges: extreme weather and labor shortages, inflation’s continued attack on all things CPG and distrust in the food system itself. Understand how presently engaged natural and organic shoppers’ blended (and fluid) product type repertoires poise brands for cross-category interest in both natural and organic; expanding lines to capture the spectrum of needs ensures that compromises in preferred product purchase, if necessary, do not mean losing a consumer altogether.
Walking the walk and leading with transparency and clear value communications is the surest way to preserve brand integrity, build consumer trust and come out ahead once the storm passes.
Read on to discover more about the natural food consumer market and organic food consumer market, read our How America Dines Market Report 2021 or take a look at our other Eating Habits and Food Trends research reports.
Quickly understand this organic food market report
- External market factors impacting the natural and organic food landscape.
- Competitive strategies and market opportunities for natural and organic brands.
- Conventional versus natural and organic product type purchase by food and beverage category.
- Changes in purchase compared to one year ago.
- Organic product purchase motivators and barriers.
- Opinions and attitudes toward natural and organic products.
Covered in this natural food market report
Brands include: Sprouts, Misfit Markets, AeroFarms, Bowery, Market Wagon, Instacart, Heritage Local Co., Simple Truth, Dirt Kitchen, Benton’s, Two Good, Honest Tea, Eat the Change, Good & Gather.
Expert analysis from a specialist in the field
This report, written by Adriana Chychula, a leading analyst in the Food, Drink, and Nutrition sector, delivers in-depth commentary and analysis on natural food industry market research and organic food industry market research to highlight current trends and add expert context to the numbers.
Natural and organic brands’ uphill battle in justifying their products’ prices has only gotten steeper as inflation’s record grip heightens sensitivity to sticker shock and scrutiny toward all products’ value. Walking the walk has never been more important for natural and organic brands’ survival; done well, they can position themselves as reliable providers of quality and integrity that stand out against pervasive distrust in our food system as a whole.
Adriana Chychula
Analyst, Food, Drink and Nutrition
