Consumers' Organic Purchasing Continues to Grow and Diversify
SCHAUMBURG, IL January 24, 2011 – Consumers continue to buy organics despite the lingering pressures the recession has brought to the family budget. According to the SPINS Consumer Report for Mid Year 2010, the percent of US households purchasing organic products inched slightly higher from 67% to 68%, based on all outlet consumer scanned shopping behavior.
“What lies beneath the surface of that relatively stable number of organic consumers is an evolution in organic shopping behavior,” says Mary Ellen Lynch, Director of Consumer Insights at SPINS. “An analysis of the on-going buying behavior of over forty two thousand organic buying households reveals continued consumer expansion in the sector.” Total US household penetration for organics grew in 34 categories, a fact suggesting that organic consumers are increasing the diversity of products within in their basket. The top growing categories attracting the greatest number of incremental consumers are as follows:
Rank by Consumer All-Outlet Dollar Growth |
Category |
Percentage Point Increase in # of Households Purchasing Organics |
1 |
Packaged Fresh Produce |
+1.1 |
2 |
Yogurt & Kefir |
+1.3 |
3 |
Energy Bars & Gels |
+.8 |
4 |
Sweeteners |
+1.4 |
5 |
Soup |
+.9 |
6 |
Refrigerated Condiments |
+.4 |
7 |
Coffee, Coffee Substitutes and Cocoa |
+.5 |
8 |
Eggs |
+.7 |
Undoubtedly conventional retailer attention to the organic sector has played a role in the penetration growth for these categories. As retailers focus their attention on Shopper Marketing to improve their bottom line, some have looked to strategically enhancing assortment in selected categories to keep the coveted high-value organic shoppers in their store. That shopper is a consumer who on average spends 31% more annually on all products (not just organic) vs. the non-organic shopper. Though the organic consumer already routinely shops conventional channels, with 99% shopping grocery, 95% shopping Mass Merchandiser and 55% shopping Warehouse club, the result of evolving retail focus on the organic sector has driven migration of organic consumers between the conventional channels for selected organic categories.
Organic Category |
Biggest Gain in Share of Category Consumers |
Negatively Impacted by Consumer Shift |
Refrigerated Condiments |
Warehouse Club (+41 points) |
Grocery Stores |
Conserves/Jams/Spreads |
Warehouse Club (+27 points) |
Grocery Stores |
Pancake/waffle mix |
Mass Merchandiser (+13 points) |
Grocery Stores |
Sweeteners |
Warehouse Club (+11 points) |
Grocery Stores |
Snack Bars |
Grocery Stores (+11 points) |
Mass Merchandisers |
Nuts/Seeds/Dried Fruits and Vegetables |
Warehouse Club (+10 points) |
Grocery Stores |
Eggs |
Mass Merchandiser (+9 points) |
Grocery Stores |
Baking Mixes |
Grocery Stores (+8 points) |
Mass Merchandisers |
Nut and Seed Butter |
Warehouse Club (+8 points) |
Grocery Stores |
Refrigerated Sushi and Grab&Go Meals/Entrees |
Warehouse Club (+8 points) |
Grocery Stores |
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Despite the increased organic activity in conventional retailers, sales of organic products in the Natural channel continue to flourish. According to SPINS, organic dollar sales in the Natural channel were up 8.5% in 2010 versus 2009 – a clear indication that the channel’s commitment to the Natural consumer expressed through deep organic assortment and innovation resonates with the organic shopper. “Trends indicate that the organic sector will continue to grow as more consumers recognize that purchasing organics is a simple and efficient solution to addressing many of their families’ health and wellness and food safety concerns as well as over-arching sustainability goals. An organic shopping strategy becomes increasingly viable for all US households as access is increased through the growing presence of organic products in major conventional outlets,” says Tony Olson, CEO of SPINS.
About SPINS
SPINS is the first company to offer Natural and Specialty Products sales data to the industry. Established in 1995, SPINS is now the premier provider of industry reporting and consulting services for this rapidly expanding sector. SPINS’ comprehensive offering includes retail measurement services, content-based reporting, consumer information and consulting services. Learn more at www.spins.com .
Please direct any SPINS press-related inquiries to Jennifer Fuller at 847.908.1224 or jfuller@spins.com.
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