Spark Change Kicks Off: An Update on the Natural and Organic Market
Last week, Spark Change, a Natural Products Expo, kicked off its virtual 2020 event. To start the event off, Carlotta Mast from New Hope Network and Nick McCoy from Whipstitch Capital gave attendees an update on the state of the natural and organic industry in this very unusual year.
With COVID-19 upending basically every aspect of normal life around the world, the outlook for the natural and organic market is quite different than it was at the start of the year.
The natural and organic industry is poised hit $252 billion dollars, spurred by 9.5% growth. COVID-19 sent consumer demand surging this year, as shoppers loaded their pantries in March and April and continued to spend more time preparing meals and eating at home. If projections hold, the market is on track to hit an estimated $300 billion in 2023.
What’s driving this growth? Mast and McCoy shared some of the leading industry trends today:
Higher Demand for Supplements
The pandemic has amplified consumers’ focus on their health and wellness. As a result, supplements are more in demand than ever. This year, supplements are on track to grow by 12%, hitting $54 billion—which is $3 billion higher than pre-COVID projections. (Find out more about how shoppers are turning to supplements and ingredients in the wake of this year’s health crisis.)
Growing Interest in Natural, Organic, and Functional Food and Beverage
Conventional food and beverage continue to comprise a majority of category sales. However, when looking at growth, natural, organic, and functional are taking the lead. Last year their growth rate is on track to outpace conventional food and beverage by more than 200%, and 2020 is looking to maintain that momentum.
Natural Shoppers Are Turning to eCommerce
COVID-19 accelerated the popularity of online shopping for customers wary of in-person shopping. Although eCommerce sales have been steadily increasing for many years, 2020 experienced an extraordinary spike: Natural and organic eCommerce sales growth is expected to surpass 50% this year. Shoppers will likely continue to rely on online shopping post-COVID, especially now that they’re used to the convenience, but it will level off a bit from this year’s unexpected surge.
To get the full story on the trends that are popping up as a result of COVID-19 and what to expect in a post-COVID market, you can view the entire presentation here (if registered) or contact us at [email protected] for a copy of the slides. And if you’re attending Spark Change, visit the SPINS virtual booth.