Natural organic products are fueling sustainable growth in center store
Natural organic products are breathing renewed life into center store. They’re driving sustainable sales in almost every category as consumers continue to look for healthier alternatives throughout the entire store. The notion that center store should be avoided due to all of the preservatives, artificial colors, chemicals and hard to pronounce additives is no longer the case. Natural organic products are at the center of these trends and are gaining in popularity, forcing traditional mainstream brands to clean up their ingredients.
A growing number of shoppers, 64%, are looking for healthier meal solutions to help manage their overall health – including reducing their need for prescription and OTC drugs. 39% of consumers suffer from an ailment and 75% of consumers believe they can achieve better health through proper nutrition. Natural organic shoppers are typically well-educated and very knowledgeable about the products they eat. They read and compare labels to make the best possible choices for their needs.
Shoppers want greater transparency and authenticity in the food they purchase and eat. They want to know how and where it was produced. These trends are apparent in food service as well as at retail. Baby Boomers and millennial’s are driving demand across health ingredients. The natural organic channel is and will always be the incubator for natural organic products. Many of the brands born in natural are being adopted by other channels. Shoppers are now able to find natural organic products in every channel in most every retailer including Drug, Mass, and Convenience. Total Store all outlet sales are up +2.2%. Food represents 60.6% of total store sales, up +1.9%. Natural food represents 7.7% of total and food and is up + 11.0% while Organic is up 16.9%
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Daniel Lohman, CPSA is Strategic Advisor in the CPG and Organic Industry. His company, Category Management Solutions (CMS4CPG LLC), provides innovative ideas, actionable insights and strategic solutions for companies interested in gaining a significant competitive advantage. He assists companies in expanding their retail distribution and improving their merchandising. His extensive knowledge and expertise reaches far beyond traditional category management and has earned him recognition throughout the industry as an expert, speaker, trainer and thought leader. Daniel can be reached at Dan@CMS4CPG.com. Connect with me on LinkedIn.