A Point of Difference
Consumers are increasingly interested in purchasing all-natural and organic products. In fact, 81 percent of U.S. families report purchasing organic products at least sometimes within the past two years, states the Washington, D.C.-based Organic Trade Association (OTA) in its April “U.S. Families’ Organic Attitudes & Beliefs 2013 Tracking Study.”
But as one of the fastest-growing segments in the food industry, natural and organic foods and beverages present an area of significant competition for store brands, as more marketers make a play for this business. Differentiation, therefore, could be key to creating customer loyalty.
Trends with traction
Linking all-natural and organic products with social issues is a trend that currently resonates with consumers, states the Packaged Facts division of Rockville, Md.-based MarketResearch.com in its July “Natural and Organic Foods and Beverages in the U.S.” report. Products that claim to be natural and organic appeal to the consumer’s social conscience by sending the message that the product is better for the environment and for the workers that the produce the product. And many all-natural/organic products support other ethical issues such as the humane treatment of farm animals. Promoting social issues and causes that tie in with store brand organic and all-natural products could be one way for retailers to boost sales.
Additionally, consumers of organic and all-natural products are also more likely to be interested in consuming non-GMO foods. In 2014, 23 percent of organic buyers said their desire to avoid GMOs is one of the top three reasons they currently buy organic food, up from 16 percent in 2013, OTA reports. And 43 percent of organic buyers report that buying organic food as a way of avoiding GMOs is an “extremely important reason” they have for buying organic.
Trends on the horizon
Packaged Facts reports that one up-and-coming trend in the organic and all-natural space is a focus on convenience with shelf-stable mixes and meals. For example, Lundberg Family Farms launched 11 organic whole-grain rice and seasoning mixes that are non-GMO verified, vegan, kosher and gluten-free. And WhiteWave Food Co.’s Horizon brand launched organic macaroni and cheese kits this year as well.
And when it comes to milk, consumers are looking for more innovative options. For example, grass-fed dairy products could become very popular. In 2012, Organic Valley launched Grassmilk, milk from Jersey cows fed on a 100 percent grass diet. The taste of the milk changes over the course of the year as the cows eat different seasonal grasses, Packaged Facts states.
Consumers also are looking for innovations in other areas of the dairy case. In June, Organic Valley launched the first organic milk protein shakes made from fluid milk and not powder to respond to this need, Packaged Facts says.
Linking all-natural and organic products with social issues is a trend that currently resonates with consumers. Products that claim to be natural and organic appeal to the consumer’s social conscience by sending the message that the product is better for the environment and for the workers that the produce the product.