Natural and Organic Food and Beverage Industry Trends
Total Page:16
File Type:pdf, Size:1020Kb
Natural and Organic Food and Beverage Industry Trends Current and Future Patterns in Production, Marketing, Retailing, and Consumer Usage Published by: Packaged Facts A division of MarketResearch.com 38 East 29th Street New York, NY 10016 212-807-2629 / 1-800-298-5699 212-807-2676 (Fax) June 2006 www.PackagedFacts.com NATURAL AND ORGANIC FOOD AND BEVERAGE INDUSTRY TRENDS: CURRENT AND FUTURE PATTERNS IN PRODUCTION, MARKETING, RETAILING, AND CONSUMER USAGE JUNE 2006 Natural and Organic Food and Beverage Industry Trends: Current and Future Patterns in Production, Marketing, Retailing, and Consumer Usage has been prepared by Packaged Facts and is a MarketResearch.com product. We serve consumer products companies and allied businesses in the United States and abroad with a complete line of research publications. Packaged Facts market intelligence reports are specifically designed to aid the action- oriented executive by providing a thorough presentation of essential data and concise analysis. Acquisitions Editor Don Montuori Project Manager David Lummis Author Marigny Research Group, Inc. New Orleans, LA Publication Date June 2006 LA 1187212 1-59814-061-2 All rights reserved. No part of this report may be reproduced without permission of the publisher. Copyright © 2006 MarketResearch.com, Inc. Packaged Facts Company Background Packaged Facts is a trusted provider of authoritative consumer market research. For over 30 years, our in-depth research, expert analysis and personalized client support have helped business professionals make the right strategic decisions. Why Buy From Us? In-depth research…expert analysis. Our reports are written by analysts with years of experience as professionals working in the industries that they now cover. This experience and our time-intensive research methodology result in authoritative analysis that aids the decision-making processes of our clients. Our reports continue to provide a broad, top-level overview of a market and offer not only the raw data, but focus on interpretation of that data to make it more rel- evant and usable by our clients. The right information…at the right time. From identifying the effects of emerging markets across major industries, to covering the trends in niche markets, our reports are timely. Our editorial team tracks the trends that will shape these markets in the coming months, and years. Packaged Facts provides the expert analysis our clients have come to rely on to make the right strategic decisions, at the right time. Products you need…with flexibility in pricing and delivery you want. We offer a breadth of products that includes both in-depth Market Profiles with expan- sive coverage of a specific topic, and MarketLooks, which offer concise summaries of our popular full-length studies. With Buy By The Slice, you save money by purchasing smaller section(s) of a report (when you don't need the entire report) which you can read immediately online. Instant Online Delivery is a unique online delivery method that enables you to purchase, read and use the research you need immediately. Personalized Client Support Packaged Facts is unrivaled in the level of client support that we provide to our clients. From assistance in identifying the most relevant research, to post-sale question and answer support, our goal is to develop long-term relationships that meet the ongoing needs of our clients. How our reports will help you. Marketing Managers: Business Development: Identify market opportunities Understand the dynamics of the market Develop targeted promotion plans Identify possible partnerships Research and Development: Product Managers: Stay on top of competitor initiatives Anticipate changes in distribution Explore demand for products Investigate market rumors About MarketResearch.com MarketResearch.com is the leading provider of global market intelligence products and services. With over 40,000 research publications from more than 350 top consulting and advisory firms, we offer instant online access to the world's most extensive database of expert insights on global industries, companies, products and trends. Natural/Organic Trends Table of Contents Table of Contents Natural and Organic Food and Beverage Industry Trends: Current and Future Patterns in Production, Marketing, Retailing, and Consumer Usage Chapter 1: Executive Summary ....................................1 Scope and Methodology ...........................................................................1 Scope of Report .................................................................................................. 1 Report Methodology ............................................................................................ 1 Market Overview ........................................................................................2 Market Size and Growth...................................................................................... 2 Figure 1-1: Share of U.S. Retail Sales of Organic Foods and Beverages by Product Category, 2005 (percent) ............................................ 2 Mainstream Supermarkets Lead Retail Channels in Organic Sales.................... 3 Not Just a Fad ..................................................................................................... 3 Natural/Organic Market to Reach $46.1 Billion in 2010....................................... 3 Most Mass-Market Brand Shares Still Under 2 Points ........................................ 4 Natural/Organic Brands Outperform Their Categories ........................................ 4 Organic Products Outperform Natural Ones ....................................................... 5 Higher Levels of Education and Income Characterize Consumers..................... 5 The Retail Arena.........................................................................................6 Retail Competition Driving Market Growth .......................................................... 6 Big Three’s Growth Explosion Begins in 1990s................................................... 6 Whole Foods Brings “Supernaturals” Format to Fruition..................................... 7 Mainstream Supermarkets Taking Up the Challenge.......................................... 7 Opportunities in Store Brands ............................................................................. 8 The Foodservice Connection............................................................................... 9 The Producer/Marketer Arena.................................................................10 Mainstream Moves to Incorporate Natural/Organics......................................... 10 Global Marketers, Investors Now Control Most Natural/Organic Leaders ......................................................................................................... 10 Big Money Influx Is Altering Market................................................................... 11 Mainstream Marketers Entering Natural/Organic Arena.................................... 12 Foodservice Side Emphasizing Flavor, Origins................................................. 14 New Product Trends in Natural/Organics ..............................................15 Organic Linked to Weight, Heart Health Concerns............................................ 15 Figure 1-2: Selected High-Growth Package Tags on Organic Food & Beverage New Product Introductions, 1996 vs. 2005 ................................... 15 Looking Ahead.........................................................................................17 Trends and Opportunities.................................................................................. 17 June 2006 © MarketResearch.com, Inc. i Table of Contents Natural/Organic Trends Chapter 2: Market Overview........................................21 Introduction ............................................................................................. 21 Definition of “Natural” ........................................................................................ 21 “Natural Beef” Benefits from Definition.......................................................... 21 Definition of “Organic” ....................................................................................... 21 Different Degrees of Organic......................................................................... 22 Sales of Organics Are Easier to Track .......................................................... 23 Organic Sales Reflect Attitudes Toward Health, Social Issues ..................... 23 “Organic” Exposes Lack of Definition for “Natural”............................................ 23 Market Trends.......................................................................................... 25 Market Size and Growth.................................................................................... 25 Table 2-1: U.S. Retail Sales of Natural and Organic Foods and Beverages, 2002-2005 (in billions of dollars) ................................................ 25 Produce Is Largest Organic Category ............................................................... 25 Figure 2-1: Share of U.S. Retail Sales of Organic Foods and Beverages by Product Category, 2005 (percent) .......................................... 26 Produce Is Also Most Often Purchased Category......................................... 26 Mainstream Supermarkets Lead Retail Channels in Organic Sales ................. 27 Figure 2-2: Share of U.S. Retail Sales of Organic Foods and Beverages by Channel, 2005 (percent)........................................................