Natural Topics & Trends
Read SPINS' updates on key Natural Products Industry Trends based on our SPINSscan Retail and Consumer Measurement Services and network of industry experts.
SPINS 30 Index
SPINS was curious: How does the regular price of an identical set of items compare in the Natural Food Channel versus Conventional Food Channel? To find out, we selected 30 popular grocery items to include in a ‘SPINS 30 Basket’ and monitored their total cost to see how it changes on a yearly and period-by-period basis in each of the channels.
SPINS Macro Trends
Interested in finding out the topline trends for total Natural/Organic products in both Natural and Conventional Grocery supermarkets? SPINS takes a close look at key unit, price and dollar trends over each of the latest 13 periods. Check out the update through Period 13 (the four weeks ending 12/26/09)!
SPINS 2010 Market Trend Predictions
As we head into 2010, the prospect of change and innovation not only in the new year, but also in the new decade is exciting. The challenges that the latter part of the 2000s posed left natural consumers more cost-conscious, yet still responsive to quality standards and social responsibility. So, what principles and trends will guide natural consumer behavior this year? SPINS' team of Natural Product Experts has coupled the underlying market factors with its extensive knowledge of the industry to release its trend forecast for 2010.
Consumers Demand Value, Natural Product Manufacturers Bring It On!
As the recessionary environment of the past year continues to exact a toll on all types of consumer spending, consumers are doing without, trading down, and demanding more value for their dollars. It must be noted however, that the picture is not uniform across all manufacturers and all product types. SPINS’ sales data clearly shows that some categories have continued to perform well throughout the recession. Looking at the range of results in category performance, we wondered whether there were differences in how various manufacturers managed through the economic downturn and which strategies had proven more effective.
Sustained Demand for Fair Trade Products in Economic Downturn
In spite of the challenging economic situation of the last year consumers have shown sustained commitment to Fair Trade products, confirming their support for ethical trade practices and responsible supply chains with their purchases. Even in the midst of the downturn Fair Trade goods have demonstrated impressive growth rates both worldwide and in the United States.
Fast Growth Continues in Select Categories
While natural channel dollar growth has been relatively slow over the past 24 months some categories continue to bump the slow growth trend. The fastest growing category within SPINSscan Natural for the 24 weeks ending 9/5/2009 was Sweeteners.
Where do Consumers of Natural Products Shop?
Consumers continue to seek the best strategies to effectively manage the household budget, even when it comes to deciding where to shop. For reasons of price, proximity or assortment, consumers are considering alternate outlets, and more channel blurring is being seen. This is even true of the natural consumer -- According to the SPINSscan 2008 syndicated consumer report, the center store/grocery department is experiencing a shift in shopping patterns.
Pricing in the Natural Channel
Prices rose steadily in the latter half of 2008 but have shown signs of stabilization in the early part of 2009. As commodity prices return to more reasonable levels we are starting to see market forces attempt to move average prices downward once again.
Understanding the Natural Consumer
The SPINSscan Consumer biannual panel update, produced in partnership with Nielsen, has been released and provides some insight to the natural product consumer. The number of US households purchasing Natural products continues to grow, up 1.2 points, with 83.4% of the US households now purchasing Natural Grocery Products.
Introduction to the Natural Growth Index
The SPINS Natural Growth Index is a new feature that will appear in the Presence Marketing newsletter each month. The goal of this index is to provide an easy to follow measure to monitor growth rates within the natural products industry. The growth index is based on natural product sales measured through SPINS Inc. proprietary SPINSscan Natural retail measurement service.
Water and the Natural Consumer
As the packaged water debate continues, natural consumers speak loudly with their purchasing decisions. According to SPINS, water sales have fallen by more than -11% over the last year (SPINSscan Natural, 52 weeks ending 2/21/2009). The environmental impact from plastic bottles, regional availability of clean/safe drinking water, and health benefits of some water types appear to be more heavily weighed than in the past.
Certified Gluten-Free
Increased awareness of gluten insensitivity and the more severe intolerance known as celiac disease has had a major impact on the food industry. Celiac disease is a common yet under-diagnosed health condition that affects more than 3 million Americans today. For those that rely on gluten-free foods, the recently established standard for labeling comes as good news.
Double Digit Dollar Growth in Natural
While the past year proved to be a challenge for many industries, the Natural Foods Channel was still able to produce double digit dollar growth in 2008. Natural product sales, as measured by SPINSscan Natural, increased at year-end, due to rising average retail prices as well as increased unit sales.
SPINS' 2009 Market Trend Predictions
Despite the changing economy, consumers still strive to maintain quality standards and variety in their buying decisions. Undoubtedly, a balance between these needs and a more cost-conscious outlook will influence the market trends for 2009. Check out what SPINS predicts will be hot in the coming year.
Market Trend Archive:
2008
The Organic Marketplace in Conventional Retail
Hot Cereal Gaining Steam
Tea Time Anyone?
Are You Ready for Soup?
2006
Digestive Aids and Enzymes a Healthy Category to Watch
Stevia Sales Sweeter by the Second
Consumers Turning to Natural Supplements to Prevent Type II Diabetes
2005
Finding Key Sales Opportunities in the Natural Product Marketplace
Acai Sales Show Wild Growth
Products with gluten-free label claims total over $662MM in sales.
Will Echinacea Sales Take A Hit from New England Journal of Medicine Study?
2004
The Progression of the Natural Products Consumer
Turmeric Sales Skyrocket