Natural and organic products have become increasingly popular, with sales expected to reach $300 billion by 2024. A recent Acosta Group Shopper Insights study provides valuable information for brands and retailers looking to tap into this growing market. The study found that natural and organic shoppers of all ages place a high importance on being healthier and avoiding chemicals, pesticides, and processed foods. They also tend to be more affluent, eco-friendly, and concerned about animal welfare. However, many shoppers find it challenging to differentiate between natural and organic products, creating an opportunity for brands and retailers to educate consumers.
Key findings and implications from the study include:
Broad Selection of Products Needed: As natural and organic product sales continue to climb, retailers need to offer a broad selection of products across all channels to meet the needs of Gen Z shoppers who will have greater spending power over the next decade.
Transparency is Key: The demand for increased label and ingredient transparency by manufacturers and retailers will rise and be a critical factor in purchase choice.
Price Remains a Barrier: Non-natural and organic shoppers may be hesitant to purchase due to price, with 73% listing it as the primary barrier to purchase. Additionally, 47% believe that conventional products are more practical, and 44% express skepticism about the hype around natural and organic products.
To engage with the next generation of natural and organic shoppers, brands and retailers need to bridge the physical and digital shelf with an omnichannel strategy that will drive conversion and brand preference. By providing consumers with education about the benefits of natural and organic products, and offering greater transparency around ingredients and labeling, brands and retailers can tap into the growing demand for these products and drive growth in-store and online.
