Canada Natural and Organic Shopper Market Report 2023

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Consumer trends
• Confusion and doubt swirl around the terms ‘natural’ and ‘organic’
  • Figure 1: Barriers to natural or organic food/beverage purchase (select), 2023
• With rising costs of groceries, (natural and organic) food and beverage purchases are contentious
• Multicultural Canadians help drive demand for natural and organic
  • Figure 2: “Following an organic diet is better for the environment” (% agree), by race, 2023
• Competitive strategies
• Better together: mergers and acquisitions mean grocery delivery is only getting better
• Catering to Canadians’ love affair with local
• Market predictions
  • Figure 3: Category outlook: natural and organic food and drink, 2023-28
• Opportunities
• Appeal to multicultural Canadians with diverse offerings
• Avoid siloing natural and organic products from their conventional counterparts
• Clear messaging helps demystify

Market Drivers

• Wake me up when it’s over: costs of living (and eating) remain stubbornly high
  • Figure 4: Year-over-year change in the Consumer Price Index, 2020-23
  • Figure 5: Top concerns over next six months (any rank), 2023
• Ongoing record-level immigration will shape the composition of Canada
  • Figure 6: Top places of birth of recent Canadian immigrants, 2021
• Wildfires impact production and reignite climate change discussions

Competitive Strategies and Market Opportunities

• Local over all.
  • Figure 7: Food Basics Instagram post, 2023
  • Figure 8: Summerhill Market Instagram post, 2023
• • Figure 9: Sheldon Creek Dairy Ghee with Turmeric (Canada), 2023
• Appeal to multicultural Canadians through flavours and preparations
  • Figure 10: Kinds of food/beverages typically purchased, by race, 2023
• • Figure 11: T&T Supermarket Instagram post, 2023
  • Figure 12: PC President’s Choice Plant Based Cauliflower & Chickpea Pie (Canada), 2022
• Integrate natural and organic alongside conventional products
  • Figure 13: Great Value Natural Crunchy Peanut Butter with Chia Seeds and Coconut (Canada), 2023
  • Figure 14: Sun-Maid Sour Watermelon Fruity Raisin Snacks (Canada), 2023
• Mergers and acquisitions mean consumers have more options
  • Figure 15: Voilà Instagram post, 2023
  • Figure 16: Whole Foods Instagram post, 2023
• Widespread availability of dairy and meat alternatives expands
  • Figure 17: Daiya Mozza Flavour Slices (Canada), 2022
  • Figure 18: Daiya White Cheddar Flavour Plant-Based Deluxe Max & Cheeze (Canada), 2023
• • Figure 19: Whole Foods Canada Instagram post, 2023
• Accessible (organic) produce should be a right
  • Figure 20: About Fresh Instagram post, 2023
  • Figure 21: Flipp Instagram post, 2023
• Demystifying ‘organic’ and ‘natural’
  • Figure 22: Attitudes toward natural and organic food (% agree), 2023
• • Figure 23: Earth’s Own Vanilla Oat Beverage (Canada), 2023

Fast Facts – Natural and Organic Shopper

Purchases by Product Type

• Traditional food and beverages continue far outpace their natural and organic counterparts
  • Figure 24: Kinds of food/beverages typically purchased, 2021 vs 2023
• • Figure 25: If a product is labelled as all natural or organic, I am more likely to buy it (% agree), by kinds of food/beverages purchased, 2023
• • Figure 26: Kinds of food/beverages typically purchased, by area lived, 2023
• Where there’s a will there’s a way: the impact of perceived financial situation of purchasing
  • Figure 27: Kinds of food/beverages typically purchased, by perceived financial status, 2023
• • Figure 28: “I have been affected by increases in food and drink prices in the last two months”, by perception of household financial status, 2023
• Younger consumers drive interest in natural and organic
  • Figure 29: Kinds of food/beverages typically purchased, by age, 2023
• • Figure 30: If a product is labelled as all natural or organic, I am more likely to buy it (% agree), by age and gender, 2023
• • Figure 31: Mrs. Renfro’s Mild Salsa (US), 2023
• Parents show more interest in natural and organic
  • Figure 32: Kinds of food/beverages typically purchased, overall vs parents, 2023
• Multicultural Canadians are avid natural and organic purchasers
  • Figure 33: Kinds of food/beverages typically purchased, by race, 2023
• • Figure 34: If a product is labelled as all natural or organic, I am more likely to buy it (% agree), by race, 2023
• • Figure 35: Real Canadian Superstore Instagram post, 2023
  • Figure 36: Kinds of food/beverages typically purchased, overall vs newer Canadians, 2023
• Multiculturalism means recognizing multilingualism
  • Figure 37: Kinds of food/beverages typically purchased, overall vs Chinese-speaking consumers, 2023
• Brands still have a way to go to convince French speaking Quebecers to switch to natural and organic
  • Figure 38: Kinds of food/beverages typically purchased, English vs French speaking Quebecers, 2023
• • Figure 39: Metro Instagram post, 2023

Changes in Purchase Behaviour

• People are paying more to eat
  • Figure 40: Changes in food/beverage purchase behaviour, 2023
• • Figure 41: Paying more for conventional foods vs natural/organic foods, by age, 2023
• Household financial status is clearly impacting amount of organic/natural purchases
  • Figure 42: Changes in organic and natural food/beverage purchase behaviour, by perceived financial status, 2023
• • Figure 43: “I am less likely to purchase natural/organic products because of rising cost of food” (% agree), by age, 2023
• • Figure 44: Changes in organic and natural food/beverage purchase behaviour, 2021 vs 2023
• Younger and middle aged men are fans of all natural
  • Figure 45: Motivated to purchase natural food/beverages because they are high in quality, by age, 2023
• • Figure 46: Purchasing more “all natural” food/beverages than a year ago, by age and gender, 2023
• Dads are driving parents’ increased all natural purchases
  • Figure 47: Purchasing more “all natural” food/beverages than a year ago, overall vs mothers vs fathers, 2023

Product Type Purchase by Category

• Look to conventional purchasers for conversion into natural/organic purchasers
  • Figure 48: Food or beverages purchased, by category and type, 2023
• • Figure 49: Organic/natural food and beverages purchased (net), by category, 2023
• • Figure 50: “I can get the same benefits of organic products in natural products while paying less of a premium” (% agree), by age, 2023
• Plant-based outliers
  • Figure 51: Plant-based alternative purchase by type, by race, 2023

Purchase Locations

• Traditional supermarkets lead the way
  • Figure 52: Locations of natural or organic food/beverages purchase, 2023
• • Figure 53: Organic food tastes better than mainstream food (% agree), by kind of foods or beverages typically purchased, 2023
• Just send it to me!
  • Figure 54: Natural or organic food/beverages typically purchased from Amazon or subscription delivery service, by workplace location , 2023
• • Figure 55: Typically purchase natural or organic food/beverages from Amazon, by age and gender, 2023
• • Figure 56: DoorDash Canada Instagram post, June 2023
• Shopping where the young, cool kids shop
  • Figure 57: Locations of natural or organic food/beverages purchase, by age, 2023
• • Figure 58: “I wish more stores carried a wider selection of organic/natural foods” (% agree), by age, 2023
• • Figure 59: Locations of natural or organic food/beverages purchase, overall vs parents, 2023
• Income obviously dictates retailers frequented
  • Figure 60: Locations of natural or organic food/beverages purchase, by household income, 2023
• Multi-sited multicultural purchase locations
  • Figure 61: “I wish more stores carried a wider selection of organic/natural foods” (% agree), by race, 2023
• • Figure 62: Locations of natural or organic food/beverages purchase, by race, 2023
• Quebec does it differently
  • Figure 63: Locations of natural or organic food/beverages purchase, English-speaking vs French-speaking Quebecers, 2023

Motivations for Natural and Organic Purchases

• Consumers seek healthier products and to avoid artificial ingredients
  • Figure 64: Motivating factors for choosing natural and organic food/beverages, organic vs natural, 2023
• • Figure 65: Good Culture Whole Milk Classic Cottage Cheese (US), 2023
• Younger consumers see natural as the safe, high quality and trendy option
  • Figure 66: Motivating factors for choosing natural food/beverages (select), by age, 2023
• Parents prioritize safety
  • Figure 67: Sweet Nothings Squeezable Smoothie Variety Pack (US), 2022
• Buying to avoid: middle and older consumers’ motivations for buying organic
  • Figure 68: Motivating factors for choosing organic food/beverages (select), by age, 2023
• Money can’t buy taste, but it can buy organic which tastes better to younger consumers
  • Figure 69: Organic food tastes better than mainstream food (% agree), by age, 2023
• Different strokes for different folks: incentivizing natural and organic purchases

Barriers to Natural and Organic Purchases

• All else pales in comparison to price…
  • Figure 70: Barriers to natural or organic food/beverage purchase, 2023
• …but men and women conceptualize financial concerns differently
  • Figure 71: Barriers to natural or organic food/beverage purchase (select), men vs women, 2023
• • Figure 72: “It is not in my budget” as barrier to buying natural and/or organic food, overall vs moms vs dads, 2023
• • Figure 73: Flipp Instagram post, 2023
• Consumers in ‘healthy’ financial situations doubt health claims
  • Figure 74: Barriers to natural or organic food/beverage purchase (select), by perceived financial situation, 2023
• Older consumers are feeling skeptical
  • Figure 75: Barriers to natural or organic food/beverage purchase, by age, 2023
• • Figure 76: “I do not trust organic claims”, by age, 2023
• Students are wishing for more widespread natural and/or organic availability
  • Figure 77: Barriers to natural or organic food/beverage purchase (select), overall vs students, 2023
• Quebecers stand out
  • Figure 78: Barriers to natural or organic food/beverage purchase (select), English-speaking vs French-speaking Quebecers, 2023

Attitudes toward Natural and Organic Food/Beverages

• Demands for accessible organic food are loud and clear
  • Figure 79: Attitudes toward access to natural/organic food (% agree), by age, 2023
• • Figure 80: Attitudes toward access to natural/organic food (% agree), men vs women, 2023
• • Figure 81: Attitudes toward access to natural/organic food (% agree), by perceived financial situation, 2023
• Older consumers still need to be convinced that organic diets are better for the environment…
  • Figure 82: Following an organic diet is better for the environment (% agree), by age, 2023
• • Figure 83: Canada Organic Instagram post, 2023
• …but multicultural Canadians are already sure that organic is the environmentally-friendly way
  • Figure 84: “Following an organic diet is better for the environment” (% agree), by race, 2023
• Local produce is worth the extra cost
  • Figure 85: “I am willing to spend more money on my fruits and vegetables if they are grown locally” (% agree), overall vs Black/African consumers, 2023
• • Figure 86: “I am willing to spend more money on my fruits and vegetables if they are grown locally” (% agree), by area lived, 2023
• ‘Natural’, ‘organic’…what’s the difference?
  • Figure 87: Attitudes toward natural and organic food (% agree), 2023
• • Figure 88: “I don’t understand the difference between natural and organic foods “ (% agree), by region, 2023
• • Figure 89: “I don’t understand the difference between natural and organic foods” (% agree), overall vs South Asian consumers, 2023
• Natural seen as affordable alternative to organic
  • Figure 90: Kinds of food/beverages typically purchased, by household income, 2023
• Concerns around organic products’ spoilage abound
  • Figure 91: Natural/organic food and drink spoil quicker than mainstream foods (% agree), by age, 2023
• • Figure 92: Natural/organic food and drink spoil quicker than mainstream foods (% agree), overall vs South Asian consumers, 2023
• Consumers look to smaller companies for authenticity
  • Figure 93: “I have more trust in the authenticity of natural/organic foods from smaller companies than larger companies” foods (% agree), by age, 2023
• • Figure 94: “I have more trust in the authenticity of natural/organic foods from smaller companies than larger companies” (% agree), overall vs South Asian, 2023

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations
• Terms