TOP NATURAL TRENDS TO WATCH AT EXPO WEST AND THROUGHOUT 2020, ACCORDING TO SPINS
- The Natural Products Industry experienced 6% growth in the last year and has more than doubled in the last decade.
- Products labeled organic grew 3% while non-organic products declined in sales by 2%.
- Nearly every (99%) household purchased Natural or Organic products last year.
CHICAGO, February 12, 2020 – Gluten-free and non-GMO may have been the health hits of the last decade, but according to SPINS - the leading provider of natural insights - a new class of sustainable trends are expected to become household staples in the year ahead. Innovation will continue to drive new products in the Natural Products Industry bringing substantial enhancements in food and beverage.
SPINS reports that the Natural Products Industry experienced 6% growth in the last year and has more than doubled in the last decade totaling a $140 billion market. Products labeled organic grew 3% while non-organic products declined in sales by 2%.
“Over the last decade, we have witnessed cataclysmic changes in the natural industry that are impacting every facet of consumer lives, shopping habits and conscience,” says Tony Olson, CEO of SPINS. “Our data shows this trend is expected to continue in 2020 and beyond fueled by improvements in innovation, reduced price points, increased competition, and consumer demand.”
One driver of the natural industry over the last decade has been consumer desire for healthier living, that translated into functional products across nearly all food & beverage categories. Nearly every (99%) U.S. household reports that they buy Natural or Organic products each year.
SPINS experts (Product Intelligence experts, registered dietitians and data analysts) looked at grocery and beverage trends throughout the year and a panel was assembled in December 2019 to determine the trends to focus on in 2020 and products tapping into these trends.
Top trends to spot within the inner aisles of the grocery store (excluding fresh produce/meat/bakery). Today’s health and wellness shopper demands more, and brands are meeting their needs going beyond organic and delivering on sustainability concerns and cleaner labels.
- This & That Combos: manufacturers are appealing to consumers who want to incorporate plant-based foods without sacrificing animal products completely through the creation of blended meat & dairy products. With a reduced reliance on animal-based protein, even mainstream brands (like Tyson) have gotten in on the act.
- Brands to watch: TETON burger blends, Farmwise veggie chicken nuggets, and Live Real Farm milk blends made from dairy protein, almonds and oats.
- Savvy Spreads & Sauces: even the condiment aisle is being disrupted by the need for sugar alernatives. Traditional options, like ketchup, syrups and BBQ sauces, are being overhauled to bring wellness to the forefront with cleaner ingredients and no- or less- sugar.
- Brands to watch: Wildbrine’s line of sauerkrauts and siracha sauces, Birch Benders’ syrup, and Primal Kitchen’s expansive line of condiments.
- All about Allulose: an alternative sweetener derived from foods such as figs, raisins and maple syrup, allulose behaves like sugar in taste and texture but is lower in calories and does not impact blood glucose levels. The FDA does not require allulose to be included in total or added sugar count on the Nutrition Facts Panel suggesting it may be a popular option for manufacturers seeking to entice their sugar-conscious shopper.
- Brands to watch: KNOW Better Cookie and QUEST
- Tech First Foods of the Future: as the industry seeks more sustainable options, food scientists are working on food based technologies, like cell-cultured meat and air protein, to dramatically reduce the carbon footprint. Other companies are innovating alternative meat options that are vegan friendly.
- Brands to watch: Memphis Meats cell-cultured meats, CUBIQ line of “smart” fats, and JUST egg man-made vegan eggs.
- Under the Sea: marine based products like seaweed are beginning to emerge as a new ingredient that delivers on fiber with little calorie contributions. Research is underway to further support the health benefits of seaweed.
- Brands to watch: Ocean’s Halo’s assortment of sea-based products, and Seatangle and Blue Evolution products which incorporate seaweed into pasta.
- Children’s Health: Natural and specialty brands are winning with the health and wellness conscious parent. As millennials become parents, the push for good nutrition from the start has a firm foothold in baby & kid products.
- Introducing Allergens: the introduction of allergens as early as 4-6 months is recommended by the National Institute of Health and the American Academy of Pediatrics guidelines. As parents seeks to adhere to their guidance, manufacturers are offering specific products to aid in introduction of foods like nuts and eggs. Brands to watch: Inspired Start fruit & nut pouches and Mewe new line of nut butters.
- Tummy Troubles be Gone: as more research is conducted on the microbiome, some research points to the importance of gut health in babies & tots making this area a prime market for innovation. Digestive aids & enzymes marketed for babies are up 12%. Brands to watch: Nordic Naturals’ line of probiotic powders.
- Supplemental Support: melatonin, elderberry and probiotics are three of the fastest-growing ingredients in kid & baby supplements as parents seeks immunity, digestive and sleep health for their little ones. Brands to watch: Good Day chews with melatonin and Norm’s Farm elderberry extract.
Emerging demand for better-for-you beverages continues to disrupt the industry. Long gone are the days when taste was the only factor driving purchase decisions. The bar has been raised for beverages – and consumers want more.
- Wellness Brews: a new wave of wellness beers is hitting shores with better ingredients, fewer calories and less sugar. Beer powerhouses are making a statement with their voluntary commitment on nutrirtion labeling. Within this, hard kombucha is one of the fastest growing categories of the alcohol industry.
- Brands to watch: Dogfish Head Slightly Mighty, Sufferfest line of brews with unique ingredients (like coconut water and bee pollen), and Luna Bay Booch hard kombucha.
- Keep Calm & Drink On: amidst an anxiety-ridden culture, drinks with calming qualities are on the rise. Popular ingredients in these beverages include chamomille, lavender CBD and L-theanine.
- Brands to watch: Zenify stress relief cans, So Good So You wellness shots, and Tranquini positively relaxed beverages.
- Modernized “Moo”: The dairy milk category is reshaping itself to compete in the modern marketplace. Dairy milk is augmenting its nutrition content by adding even more protein, removing lactose, promoting DHA/omega-3s, and increasing education around A1 versus A2 proteins. The refrigerated dairy milk category experienced stagnant growth this year though pockets of innovation saw wins (milk with >12g protein experienced 16% growth, grass fed milk 24% growth and lactose free milk 71% growth)
- Brands to watch: Organic Valley Ultra product line, Green Goat shelf stable goat milks, and Alexandre Family Farm A2 milk.
SPINSscan Natural and Specialty Gourmet (proprietary), Conventional Multi Outlet and FreshLook Perishables (powered by IRI), Public Financial Reporting, Various Industry Publications, and SPINS estimates.
SPINS is a wellness-focused data technology company and advocate for the Natural and Specialty Products Industry. For the last 20 years, SPINS has been committed to laying the foundation for the next generation of growth, providing dynamic data, actionable insights, and digital activation solutions that contribute to a healthier and more vibrant America. Learn more at www.spins.com.
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