Natural, organic food and beverage market expected to double by 2015

Posted by Linda Casey

January 29, 2014

2 Min Read
Natural, organic food and beverage market expected to double by 2015 |somniak



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Far outpacing growth in conventional groceries, U.S. retail sales of natural and organic foods and beverages rose to nearly $39 billion in 2010, an increase of 9 percent over the previous year, and 63 percent higher than sales five years earlier, according to "Natural and Organic Foods and Beverages in the U.S., 3rd Edition" by market research publisher Packaged Facts.


The next several years are forecast to experience even greater growth. Packaged Facts projects 2011 will serve as a jump-start for the market as sales ultimately increase by a dramatic 45 percent by the end of the year. Overall projections are that the market will grow by 103 percent between 2010 and 2015, with total annual sales exceeding $78 billion in 2015.

Helping to fuel growth are recent moves by major marketers and manufacturers seeking to capitalize on consumer demand for these products. At the beginning of 2011, Frito-Lay North America, the $13 billion snack food division of PepsiCo, announced that by the end of the year, approximately half of its product portfolio will be made with all natural ingredients. The change will affect three of Frito-Lay's biggest brands: Lay's potato chips, Tostitos tortilla chips, and SunChips multigrain snacks.


"The Frito-Lay products will in themselves have an enormous impact on the natural foods marketplace, and Frito-Lay's move will spur other manufacturers to invest more heavily in producing natural and organic products," says David Sprinkle, research director and publisher of Packaged Facts. "Since Frito-Lay's announcement, Kraft Foods and Coca-Cola have made strategic moves to better position themselves in the market."


A February 2011 Packaged Facts consumer survey found that 38 percent of the U.S. adults who are grocery shoppers buy organic groceries, and 58 percent buy packaged food products marketed as "all-natural" (but not organic). Furthermore, the Packaged Facts survey found that 37 percent of all respondents "strongly" (12 percent ) or "somewhat" (25 percent ) agree that they seek out natural and organic foods and beverages.


"Natural and Organic Foods and Beverages in the U.S., 3rd Edition" examines sales and growth potential, identifying key issues and trends that will affect the marketplace through 2015. Extensive analysis via both proprietary Packaged Facts data and syndicated national consumer panel data gauges consumer attitudes and purchasing, retail shopping patterns, and media usage and preferences, both traditional and social.


The report also includes comprehensive coverage of new product trends across dozens of categories; analysis and images of products and print ads; and profiles of trend-making marketers and retailers. Interviews with industry experts round out the market analysis, filling out the context of the broader industry, social, economic and psychographic drivers of consumer behavior and product purchasing.


SOURCE: Packaged Facts


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