The Natural/Organic Food Shopper - US - July 2017
"Certain consumer demographics are embracing the organic claim on foods and beverages, but this is found significantly more in younger consumers and parents. Other consumers appear to lack trust in the organic label, and the lack of a uniform regulatory definition for “natural” in most foods could negatively impact consumer regard for the term going forward. Organic, while relatively clearly defined from a regulatory standpoint, appears largely misunderstood by consumers, suggesting brands could benefit from increasing awareness of exactly what the organic label represents and the strict requirements in attaining the claim. "
- Billy Roberts, Senior Analyst – Food and Drink
This Report discusses the following key topics:
- Organics fail to leverage healthier perception
- Organic transitional could “water down” organic
- Children are the present; older consumers are the future
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Table of contents
Overview
- What you need to know
- Definition
- What you need to know
Executive Summary
- The issues
- Organics fail to leverage healthier perception
- Organic transitional could “water down” organic
- Children are the present; older consumers are the future
- Figure 1: Population aged 18 or older, in thousands, by age, 2012-22
- The opportunities
- Price remains paramount among organic barriers
- Figure 2: Increasing organic/natural purchase, April 2017
- Notable potential among Hispanic Millennials
- Figure 3: Increasing organic/natural purchase, by Hispanic origin, April 2017
- What it means
- The issues
Market Perspective
- Health could boost organic claims
- Unclear definitions risk label confusion
- Expanding organic availability possibly leading to lower prices
- Health could boost organic claims
Market Factors
- Organic/natural claims resonate with parents
- Figure 4: Population aged 18 or older, in thousands, by age, 2012-22
- Hispanic consumers, particularly Millennials, seek organic claims
- Figure 5: Population, by race and Hispanic origin, 2011-21
- Greater penetration among higher-income households
- Figure 6: Disposable Personal Income change from previous period, January 2007-April 2017
- Organic/natural claims resonate with parents
The Consumer – What You Need to Know
- Organic penetration potential
- Household income impacting purchase behavior
- Consumers open to organics from multiple retailers
- Natural selection
- Lack of faith in organic claims
- Perceived health benefit from organics
- Younger consumers believe organics to be worth the price
- Lower prices could spur further growth
- Proven health benefits would resonate with virtually everyone
- Variety needed in organics
- Organic appeal strongest in fresh categories
- Organic penetration potential
Organic Purchase
- Organic in relatively few shopping carts but growing
- Figure 7: Organic/natural purchase, April 2017
- Figure 8: Organic purchase trend, April 2017
- Ingredient labels of notable interest to organic consumers
- Figure 9: Organic/natural purchase, by consumer behaviors, April 2017
- Notably greater relevance among younger consumers
- Figure 10: Organic/natural purchase, by age, April 2017
- Relatively little income impact on organic appeal
- Figure 11: Organic/natural purchase, by income, April 2017
- Significant interest in organic/natural among parents
- Figure 12: Organic/natural purchase, by number of children under 18, April 2017
- Organic/natural resonate strongly with Hispanics, particularly Millennials
- Figure 13: Organic/natural purchase, by Hispanic origin, April 2017
- Organic in relatively few shopping carts but growing
Purchase Trends
- Organic loyalists seek nutrition
- Figure 14: Organic purchase trend, by food factors ranked as important, April 2017
- Health, transparency, variety resonate with organic consumers
- Figure 15: Organic purchase trend, by attitudes toward food, any agree, April 2017
- Lower-income households twice as likely to be buying less organics
- Figure 16: Organic purchase trend, by household income, April 2017
- Organic claims resonate strongly with Hispanic Millennials
- Figure 17: Organic purchase trend, by Hispanic origin, April 2017
- Organic loyalists seek nutrition
Purchase Locations
- Supermarkets lead locations for organic purchase; online options emerge
- Figure 18: Purchase location, April 2017
- Younger organic consumers turning to mass, natural
- Figure 19: Purchase location, by age, April 2017
- Online resources resonate strongly with urban organic consumers
- Figure 20: Purchase location, by location, April 2017
- Hispanic organic consumers much less likely to buy at supermarkets
- Figure 21: Purchase location, by Hispanic origin, April 2017
- Supermarkets lead locations for organic purchase; online options emerge
Comparing Food Types
- Natural claims indicate “simple”; organic associated more with “expensive”
- Figure 22: Description of natural/organic, April 2017
- Organic’s free-from appeal
- Figure 23: Organic/natural purchase, by description of natural/organic, by organic/natural consumers, April 2017
- Hispanic consumers regard organics as preservative-/pesticide-free
- Figure 24: Description of natural/organic, by Hispanic origin, April 2017
- Natural claims indicate “simple”; organic associated more with “expensive”
Shopping for Organics
- Trust in organics remains an issue
- Figure 25: Organic/natural purchase, by natural/organic opinions, April 2017
- Households with children find organics worth an extra price
- Figure 26: Opinions of shopping for organic/natural foods, by number of children under 18 in household, April 2017
- Figure 27: Opinions of shopping for organic/natural foods, by age, April 2017
- Trust in organics remains an issue
Perception of Organic Foods
- Self-perception, better-for-you compel consumption
- Figure 28: Organic/natural perceptions, by age, April 2017
- Proof of health could resonate with consumers avoiding organic
- Figure 29: Organic/natural purchase trend, by organic/natural perceptions, April 2017
- Self-perception, better-for-you compel consumption
Impact of Organic Expense
- Communicating organics’ benefits could compel consumers
- Figure 30: Organic/natural opinions, by age, April 2017
- Communicating organics’ benefits could compel consumers
Increasing Organic Purchase
- Price, availability could lead to greater market penetration
- Figure 31: Increasing organic/natural purchase, April 2017
- Lower-priced organics among organic loyalists
- Figure 32: Organic purchase trend, by increasing organic/natural purchase, April 2017
- More restaurant options could lure Hispanic Millennials
- Figure 33: Increasing organic/natural purchase, by Hispanic origin, April 2017
- Price, availability could lead to greater market penetration
Improving Health Perception
- Proven health benefits would resonate even among organic loyalists
- Figure 34: Organic purchase trend, by increasing organic/natural purchase, April 2017
- Older consumers seeking health in organics, while younger also consider recyclability
- Figure 35: Increasing organic/natural purchase, by age, April 2017
- Health, information could spur Hispanic organic consumption
- Figure 36: Increasing organic/natural purchase, by Hispanic origin, April 2017
- Proven health benefits would resonate even among organic loyalists
Seeking More Diverse Organic Options
- Major brands could spur organic growth
- Figure 37: Organic purchase trend, by increasing organic/natural purchase, April 2017
- Indulgent, branded organics could lure younger generations
- Figure 38: Increasing organic/natural purchase, by age, April 2017
- Households with children may respond to more indulgent and vegetarian organic options
- Figure 39: Increasing organic/natural purchase, by number of children under 18 in household, April 2017
- Major brands could spur organic growth
Categories Where Organic Resonates
- Organic/natural claims sought more in fresh foods
- Figure 40: Category preferences, April 2017
- Younger consumers, regardless of income, more likely to choose organic
- Figure 41: Category preferences – natural/organic versions, by age and income, April 2017
- Parents buying organic/natural commodities
- Figure 42: Category preferences – Natural/organic versions, by number of children under 18 in household, April 2017
- Organic resonates in more categories with Hispanic Millennials
- Figure 43: Category preferences – Natural/organic versions, by Hispanic origin, April 2017
- Organic/natural claims sought more in fresh foods
Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Data sources
Correspondence Analysis – Natural/Organic Food Shopper – July 2017
- Methodology
- Figure 44: Correspondence Analysis – Description of natural/organic, April 2017
- Methodology
The Natural/Organic Food Shopper - US - July 2017