Study predicts natural products will continue to outperform in food, drug, mass

SCHAUMBURG, Ill. Spins, an information and service provider for the natural products industry, has found that natural products continue to outperform in conventional food, drug and mass outlets, and the authenticity of such products will be key to future growth.

“As evidenced by the performance in the natural channel, authenticity of natural brands and retailers continue to be one of the key factors in product performance,” said Spins chief executive officer Tony Olson.

“Authenticity extends beyond whether a product is free of artificial flavors and ingredients and moves into the realm of overall health and wellness, social and environmental sustainability, nutritional benefits and other leading factors. A brand or retailer’s ability to resonate with a consumer on this level is a strong indicator of success in conventional food, drug, mass channels.”

According to Spins research, the natural products industry posted sales of $13.4 billion on growth of more than 12 percent within conventional food, drug and mass retailers over the 52 weeks ended Oct. 4. Body care, general merchandise, and frozen and refrigerated foods continued to post double-digit growth rates. Organic products continue to outperform the overall natural products industry with growth of more than 13 percent compared with the previous year.

While the industry momentum has slowed in conventional retailers over recent weeks, the organic growth continues to be solid at 7 percent in the recent 12 weeks, Spins noted. While the top sellers will continue to attract the majority of sales, there are a number of fast growing categories that, according to Spins, will provide retailers and manufacturers with additional organic expansion opportunities, especially in body care.