Reaching consumers in search of natural and organic products requires finesse. Acosta Group’s Kathy Risch shares consumer insights and best practices.
Washington — The surge in popularity of natural and organic products across all categories is remarkable. Natural and wellness industry sales have skyrocketed to $320 billion annually, up from $200 billion in 2017, according to recent Spins LLC data. The demand is influencing candy and snacks. In fact, half of shoppers surveyed in an Acosta Group 2024 Sweets and Snacks study said they would like treat manufacturers to offer natural and organic options.
How is this trend reshaping shopper perceptions and what are the key drivers — and barriers — to purchasing natural and organic products? To answer these questions and understand what’s driving this shift, Acosta Group turned to consumers.
Three out of four U.S. shoppers purchased at least one natural or organic product in the six months prior to an October 2024 survey of U.S. adult shoppers. For most, health is a key motivator, with 58 percent of shoppers purchasing these products because they are “better for me.” But what does this mean? These shoppers say it means the products are free of harmful chemicals, additives, artificial ingredients, and pesticides.
They consider natural and organic products safer and prefer them because they are clean and minimally processed. Natural and organic shoppers also see a clear link between these products being better for the environment and therefore healthier for them and their families.
While natural and organic consumers say these products taste better than conventional products, non-natural and organic shoppers disagree. For 72 percent of conventional shoppers — those who do not buy natural and organic — the primary barrier to purchase is affordability.
Despite the growth in natural and organic products, confusion remains. In particular, there is a lack of clarity around the meaning of “natural” versus “organic.” While the industry uses these terms separately, 40 percent of shoppers say natural and organic mean the same thing, or they are not sure of the difference. Even shoppers who believe natural and organic mean different things often describe them similarly.
In general, shoppers associate “natural” with the terms “no additives,” and “no artificial ingredients,” while they associate “organic” with the terms “pesticide free” and “chemical free.” However, this ongoing confusion suggests that more transparency and education are needed.
Shoppers are often overwhelmed by the growing number of terms and claims. Shoppers want credible sources for the true meaning behind the abundance of terms. Simply put, they would like to know why a natural or organic product is a better choice for them and their family.
The Halo Effect Of A Natural Store
For more than one-third of shoppers, seeing a brand in a natural grocery store positively affects their opinion of the brand. This is even higher among natural and organic product shoppers (46 percent) and natural channel shoppers (53 percent).
Shoppers perceive natural stores as offering the best selection of high-quality natural and organic products. They consider the brands there to be of higher quality and trust them more. Natural store shoppers also find store associates more knowledgeable, and two thirds are willing to pay a slight premium for natural and organic products sold in a natural store.
The good news for retailers is that natural and organic consumers also shop across a wider range of channels to meet their grocery and household needs than conventional shoppers. And only 38 percent of people who bought a natural or organic product in the past six months did so at a natural store. This suggests an opportunity for all retailers to provide natural and organic solutions and helpful information for their shoppers.
3 Opportunities For Manufacturers & Retailers
As shoppers’ appetites for natural and organic products continues to grow, communicating with these consumers increases in importance.
1. Communicate The Value Of Natural & Organic Benefits — Help shoppers understand why natural and organic products support their health goals – the most important motivator. Focus on easy-to-understand labels. The most appealing and transparent claims are: no artificial ingredients, made with natural ingredients, 100%/certified organic, pesticide-free, and why it is better-for-you (i.e., safe, higher nutritional value).
2. Highlight Taste — Over-deliver on the delight factor of taste to build perceived value and eliminate a potential barrier for new buyers. To meet shoppers’ desires, provide more great tasting, healthier natural and organic snacks and sweet treat options.
3. Create A Tiered Distribution Strategy — Natural channel distribution is key to elevated brand perception. Seeing a brand in a natural store improves brand perception, particularly in terms of quality and trust. Availability in traditional channels increases brand accessibility. Natural channel shoppers shop the widest variety of retail channels — more than any other shopper segment.
Contributor Info: Kathy Risch is senior vice-president, shopper insights and thought leadership for Acosta Group, overseeing annual research studies with the company’s 40,000-member proprietary Shopper Community. She has more than 25 years of experience in insights, market research, analytics and product innovation in consumer goods and can be reached at insights@acosta.com.
