Natural and Organic Food and Beverage Trends: Current and Future Patterns in Production, Marketing, Retailing, and Consumer Usage, 2nd Edition

http://www.reportlinker.com/p096421/Natural-and-Organic-Food-and-Beverage-Trends-Current-and-Future-Patterns-in-Production-Marketing-Retailing-and-Consumer-Usage-2nd-Edition.html

Once a reaction against large scale food processing and ever-larger supermarkets disconnected from the land, the natural/organic marketplace is now a key component of many divergent corporate interests. Investment bankers, consumer packaged goods giants and large retailers all are participating in, as well as changing the face of the marketplace for natural/organic food and beverage products.

Natural and Organic Food and Beverage Trends in the U.S.: Current and Future Patterns in Production Marketing, Retailing, and Consumer Usage, 2nd Edition begins by detailing the rise of the natural and organic producers and retailers. With this background, the report examines the market situation where a growing number of manufacturers, retailers and consumers seeking natural/organic food and beverages comprise a cultural shift, a 'green' mega-trend that is impacting every area of the food and beverage business.

In addition to establishing these facts, the report examines the market size for natural/organic food and beverages and through the research into retail distribution, manufacturer analysis and consumer trends, provides sales projections through 2013.

This report will serve as a scoreboard tracking the current flux in the natural/organic food and beverage marketplace as both established players and relative newcomers seek to either expand or enter the market. It looks at the various ways both conventional and natural manufacturers and retailers are gaining share as well as how the established natural/organic leaders are shaping the way for their conventional followers.

The current market leaves no doubt that these efforts will continue and sales will grow. However, as failures indicate, the road isn't necessarily an easy one. From the March 2007 sale of the always struggling Wild Oats Market, to the September 2007 closing of Supervalu's natural format Sunflower Markets, along with numerous losing 'me-too' efforts from manufacturers such as Nabisco, Ragu and Kellogg's, lots of money has been lost in seeking to capture natural/organic consumers' loyalties.

The varying degrees of success and failure indicate that current efforts from all players, whether the large CPGs, natural industry leaders, small owner-operated shopkeepers and even the world's largest mass merchants, are far from static.

One lesson to be learned, that is both obvious and elusive, is that innovation and integrity are both critical to this market. This report shows how successful companies have created a mirror representing the values and demands of natural/organic consumers.

Report Methodology

The information presented in this report was obtained from primary and secondary research. Primary research included interviews with industry participants as well as on-site store examinations and reviews of websites, blogs and readers' comments posted on these sites. Secondary research and data gathering included extensive examination of the trade, business and popular press, websites as well as company annual reports and various trade association publications.

Packaged Facts market size estimates are based on Information Resources, Inc. (IRI)

InfoScan Review and on SPINS data. New product introduction figures are published with permission of Datamonitor's Productscan online service.

The analysis of consumer behavior and demographic data is based on two source: Simmons Market Research Bureau and BIGresearch.

CHAPTER 1: EXECUTIVE SUMMARYScope of ReportDefinitionReport MethodologyThe MarketDynamic Growth Has Transformed Both Shopping and RetailingNatural and Organic Sales Just Under $33 Billion in 2008While Organic Sales Projected to Reach Just Under $20 Billion in 2008Table 1:1 Organic and Natural Food Sales 2005-2008 (in million $)Strong Growth in FDM and Natural ChannelsMarket OutlookTable 1:2 Packaged Facts Estimates Natural and Organic Products 2008-2013(in Billion $)The Retail ArenaHuge Retail Expansion-From Grass Roots to Mass MarketWhole Foods Consolidates Leadership as Trader Joe's GrowsTrader Joe's Leading CompetitionEmergence of Second-Generation Natural SupermarketsRecord Number of Private-Label Organic Products in 2007Table 1:3 Private Label Organic Food and Beverage Product IntroductionsSurgeTarget Expands Shabby Chic to Food AisleThe MarketersConsumers Want More than Just Organic and NaturalCorporate Buyouts and Consolidation ContinueHain Celestial Leading Natural and Organic Mfr in the United StatesTable 1:4 Total Reported Sales Hain Celestial Foods, 2003-07Kashi emerges as natural leader in FDMTable 1:5 IRI Reported FDM Sales of Kellogg's Kashi Foods, 2003-07Dean Foods Dominates Organic Dairy and Non-Dairy BeveragesOther CPG Owned Natural/Organic Brands Mostly Sluggish in FDMInnovation and Entrepreneurial Spirit Still Drive Natural LeadersFuture TrendsRecord Number of Organic Product Introductions in 2007Table 1:6 New Product Introductions Organic, 1997-2007Natural Claims Get Increasingly "Fuzzy"Commodity Prices Growing, Supply Shortages To EmergeValues Other than Price Also Driving SalesStevia the All-Natural, No-Calorie SweetenerOrganic Wine, Beer and SpiritsThe ConsumerTable 1:7 Percent of Adults Who Shop for Organic Products: By Frequencyof ShoppingConcern Over Artificial Ingredients Stronger than Interest inOrganic/NaturalPresence of Children Not Indicative of Greater Natural and Organic InterestPurchase Habits by OutletAge Not Consistent with Shopping HabitsAsian and Hispanic Shoppers Seek out Organic and Natural Foods Most OftenTable 1:8 "When I Shop for Foods, I Look for Organic/Natural Products":By EthnicityHigher Education and Higher Income Associated with More Natural/OrganicTable 1:9 "When I Shop for Foods, I Look for Organic/Natural Products":By HH IncomePacific and Northeast Respondents Buy More Natural and OrganicCHAPTER 2: MARKET SIZE AND GROWTHHighlightsINTRODUCTIONScope of ReportReport MethodologyBackgroundVarious Factors Spur Entry into MarketplaceResponse to Post-World War Innovations in Food and FarmingReturn to Smaller Scale Production and Less Processed FoodsDefinition and Rules for Natural and Organic FoodsRise of the Cooperative Grocery and Organic ManufacturersCorporate Buyouts in 1980s and Early 1990s Failed; New Wave ofConsolidation ContinuesConventional Products Grow Slowly in FDM While Natural Product Surge InFDMOrganic/Natural Items Surging While Conventional Items StruggleTable 2:1 IRI Reported Growth of FDM Segments vs. IRI Reported FDM Sales ofNatural/Organic SKUsBaby Food Sales BoomTea Sluggish Due to Celestial Seasonings TravailsNatural/Organic Cold Cereal Sales in FDM SurgeYogurt Surprise-Conventional Items Show Growth Alongside Natural/OrganicOnesLeading IRI Segments with Natural/Organic PenetrationTable 2:2 IRI Reported Share of FDM Segments by Natural/Organic Brands2003-2007Natural/Organic Perform While Most CPG Owned Natural/Organic BrandsPerform PoorlyMARKET SIZETable 2:3 Organic and Natural Food Sales 2005-2008 (in million $)Produce Lead Organic SalesOrganic Bread Sales GrowTable 2:4 SPINS Reported Sales of Rudi's Organic and Food For Life Brandsin NaturalOrganic Liquid DairyTable 2:5 IRI Reported Sales of Organic Liquid Dairy in FDM OutletsNon-Dairy BeveragesSPINS Data and the Natural Supermarket ChannelTable 2:6 SPINS Reported Sales of Total Packaged Food & Beverages inNatural Products SupermarketsMarket OutlookAre Natural and Organic Foods No Longer Recession Proof?Packaged Facts Projects Slower But Steady Growth Through 2013Table 2:7 Packaged Facts Estimates Natural and Organic Products2008-2013CASE STUDIESIntroduction to Manufacturer Case StudiesCase Study: TeaTable 2:8 IRI Reported Sales of Bag/Loose Tea in FDM Outlets 2003-07Celestial Losing Ground to Smaller BrandsHealth and Wellness Drive InnovationCase Study: YogurtTable 2:9 IRI Reported Sales of Selected Yogurt in FDM Outlets 2003-07Stonyfield, Doing it RightNot Doing it Right: Horizon OrganicCase Study: Ready to Eat Cold CerealTable 2:10 IRI Reported Sales of Selected Ready to Eat Cold Cereal inFDM OutletsKellogg's Cereal Star KashiNature's Path Sells More than Just ProductCase Study: CookiesTable 2:11 IRI Reported Sales of Selected Cookies in FDM Outlets 2003-07Newman's Own Organics LeadsBack to Nature Flounders While Kashi Racks up SalesDiet-Specific Natural CookiesCase Study: Meat and Poultry SubstitutesTable 2:12 IRI Reported Sales of Meat and Poultry Substitutes in FDMOutletsRevolutionary GardenburgerQuorn and Franklin Mushroom as InnovatorsCase Study: Premium Refrigerated JuicesTable 2:13 IRI Reported Sales of Refrigerated Juices in FDM OutletsCoca-Cola's Odwalla as LeaderPepsico's Naked JuicePom Wonderful-Vertically Integrated Processor Creating DemandCase Study: Spaghetti/Italian SaucesTable 2:14 IRI Reported Sales of Refrigerated Juices in FDM OutletsRao, a Gourmet Brand is the LeaderCase Study: Millenium Product's GT's KombuchaTable 2:15 Sales of GT's Kombucha By ChannelCase Study: Nutrition BarsTable 2:16 IRI Reported Sales of Nutrition/Intrinsic Health Bars in FDMOutletsClif Bar DominatesNestle's PowerbarAbbott Lab's Zone Perfect Also FlatSPINS Reported Natural Channel Leading Categories & BrandsTable 2:17 SPINS Reported Sales of Natural and Organic Food & Beveragesin Natural Supermarkets, Excluding Private LabelBaked Goods Lead in Natural Channel's Frozen & RefrigeratedTable 2:18 SPINS Reported Sales of Leading Frozen and RefrigeratedCategories in Natural SupermarketsDairy and Non-dairy Beverages Do Not Lead in Natural ChannelTable 2:19 SPINS Reported Sales of Leading Grocery Categories in NaturalSupermarketsSmucker's and Nature's Path Lead as Grocery Brands in the Natural ChannelTable 2:20 SPINS Reported Sales of Leading Natural Supermarket GroceryBrandsAmy's Kitchen the Clear Leader in Frozen/Refrigerated of Natural ChannelTable 2:21 SPINS Reported Sales of Leading Natural SupermarketFrozen/RefrigeratedCHAPTER 3: THE RETAIL ARENAHighlightsINTRODUCTIONFrom Grass Roots to Mass MarketEmergence of Natural SupermarketsExpanding Natural and Organic Distribution in All OutletsConventional Markets Offer Greatest Opportunity for GrowthConventional Retailers Seeking "Right" Formula For Better ResultsStore Within A Store versus Super-IntegrationIncreased Efforts to Teach Conventional Markets How to Sell Natural &OrganicConventional Private Label Offerings Items 'Explode'Store Brands of Natural and Organic are Becoming Recognizable BrandsTable 3:1 Private Label Organic Food and Beverage Product IntroductionsSurgePricingWhole Food's Consolidation of Super Naturals and the Continued Growth ofTrader Joe'sWhile Some Call it Whole Paycheck, Others Can't Wait to Have A Whole Foodsin Their TownThe Whole Foods Trader Joe's Two-StepRegional Outlets and Specialty Markets Seek to Be the Anti-Whole FoodsConventional Retailers Develop Natural Format StoresCentral Market in Whole Foods' BackyardPublix SupermarketsSupervalu Fails with Sunflower MarketsLook to Safeway's Dedication and CreativityNatural Coops Continue To ThriveWal-Mart's Organic Offerings Scaled BackTarget Expands Shabby Chic to Food Aisle Seeking to Capture Natural &Organic ShoppersRETAILER PROFILESIntroductionWhole Foods MarketOverview: Ethics Driven Capitalism with Business & Marketing SavvyMission Driven Values with Aggressive PR ImagesValue Driven Initiatives Grow-Local, Humanely Raised and Fair TradeJohn Mackey, an Innovative and Unusual CEOEmployee Relations Key to SuccessCombating the Stigma of Whole Foods as 'Whole Paycheck'No Slotting Fees and Working with VendorsRegional Efforts with Increasing Corporate Oversight to meet 'Numbers'Whole Foods becomes Whole Lifestyle, Expands to Offer Spa Services, GourmetDining and Free Wi-FiFuture Expansion and Wild Oats TransitionsRetailer Profile: Trader Joe's MarketConvenience price and qualityCustomer Service Drive SalesRetailer Profile: Earth FareRetailer Profile: Sunflower Farmers MarketRetailer Profile: Sprout's Farmers MarketRetailer Profile: Canadian Planet Organic Mrs. Green's and New LeafCommunity MarketsRetailer Profile: Natural Grocers by Vitamin CottageRetailer Profile: Henry's Farmers MarketSpecialty and Conventional OutletsRetailer Profile : WegmansRetailer Profile: SafewayRetailer Profile: Fresh MarketRetailer Profile: Tesco's Fresh & EasyCHAPTER 4: PRODUCER/MARKETER ARENAHighlightsLook We're Organic - Product Launches, Product Failures IllustrateConsumers Want More than Just OrganicConsumers Look for More than Just Organic or GreenCorporate Buyouts and Consolidation Continue at a Rapid PaceAcquisitions as An Alternative to Creativity Within; The Salsa RuleRevealedEarly Buyouts in the 1980s and 1990s Were FailuresBut Kellogg's and Hain Seem to Be Doing It RightInnovation and Entrepreneurial Spirit Still Drive Natural LeadersNatural and Organic Leaders Create Social Networks via WebsiteKellogg's Kashi's Division as a Corporate Role ModelMANUFACTURER PROFILESHain Celestial FoodsTable 4:1 Total Reported Sales Hain Celestial Foods, 2003-07Kellogg'sKashi emerges as natural leader in FDMTable 4:2 IRI Reported FDM Sales of Kellogg's Kashi Foods, 2003-07Table 4:3 SPINS Reported FDM Sales of Kellogg's Kashi Foods, Grocery Items,2005-07Morningstar Farms Ready for RevitalizingWholesome and Hearty's GardenburgerTable 4:4 IRI Reported Sales of Kellogg's Morningstar Farms in FDM Outlets,2003-07Table 4:5 IRI Reported Sales of Kellogg's Gardenburger in FDM Outlets,2003-07General MillsCascadian FarmsMuir GlenHumm Foods' LaraBarsTable 4:6 IRI Reported Sales of General Mills Small Planet Foods Brands inFDM Outlets, 2003-07Table 4:7 SPINS Reported Sales of Cascadian Farms Frozen Items in NaturalSupermarkets, 2005-07Dean Foods White Wave DivisionTable 4:8 IRI Reported FDM Sales of Dean Foods Brands, 2003-07PepsiCoTable 4:9 IRI Reported Sales of PepsiCo Brands in FDM Outlets, 2003-07Frito-Lay Naturals MoribundTable 4:10 IRI Reported Sales of Frito-Lay Naturals in FDM Outlets, 2003-07Flat Earth is Just the OppositeKraft AltriaThe Back to Nature Foods CompanyTable 4:11 IRI Reported Sales of Kraft Altria Natural Brands in FDMOutlets, 2003-07Boca FoodsJ.M. Smucker CompanyTable 4:12 IRI Reported Sales of Smucker's Quality Beverage Brands inFDM OutletsTable 4:13 SPINS Reported Sales of Cascadian Farms Frozen Items inNatural Supermarkets, 2005-07Nature's Path FoodsTable 4:14 IRI Reported Sales of Nature's Path Cold Cereal andSnack/Granola Bars in FDMNot Just Organic but Also Eco-friendly and Great Tasting TooTable 4:15 SPINS Reported Sales of Nature's Path Grocery Items inNatural Supermarkets, 2005-07Amy's KitchenTable 4:16 IRI Reported Sales of Nature's Path Cold Cereal andSnack/Granola Bars in FDM Outlets, 2003-07Table 4:17 SPINS Reported Sales of Amy's Kitchen Frozen Foods Items inNatural Supermarkets, 2005-07Organic Valley of Farms 155 Table 4:18 IRI Reported Sales of OrganicValley in FDM Outlets, 2003-07Other MarketersNatural Selection Foods: Earthbound FarmsNewman's Own OrganicsTable 4:19 IRI Reported Sales of Newman's Own Organic in FDM Outlets,2003-07Kettle FoodsTable 4:20 IRI Reported Sales of Kettle Foods in FDM Outlets, 2003-07SafewayCon-Agra FoodsTable 4:21 IRI Reported Sales of Con-Agra Brands in FDM Outlets, 2003-07Other Producer TrendsImports Likely to Get Scarce While Falling Dollar May Increase ExportOpportunitiesFood Service Seeks More Organic and NaturalLocal is the New OrganicCHAPTER 5 NEW PRODUCT TRENDSHighlightsValues Other than Price Drive SalesInnovation and Creativity Are Key for SuccessRecord Number of Organic Product Introductions Reported and Likely toContinueFigure 5:1 New Product Introductions Organic, 1997-2007Table 5:2 Organic Food and Beverage Product Introductions, 1998-2002Private-Label Introductions Up in Organic and NaturalTable 5:3 Private-Label Organic Food and Beverage Product IntroductionsOrganic Food Introductions Outpace Beverage OnesTable 5:4 Organic Food Product Introductions, 1997-2007Table 5:5 Organic Beverage Product Introductions, 1997-2007Table 5:6 Leading Organic Product Introductions, by Category, 1997-2007Natural Product Claims Get Increasingly 'Fuzzy' as Manufacturers Seek toDifferentiate ProductsAll Natural High Fructose Corn SyrupHormone-Free Milk Claims Get HeatedMy Poultry is Better than Your Poultry.Corporate Organic Continues to Fuel Controversy and Drives Buy LocalMovementNon-GMO Labeling is UpTable 5:7 New Product Reports For Food and Beverages with Non-GMO ClaimsCommodity Prices and Organic SupplyIncreased Interest in Organic Farm Methods from Conventional GrowersIncreasing Efforts at Educating Conventional Consumers About OrganicEducating PlayersKids Products GrowHow To Do It RightTable 5:8 New Product Reports For Kids Foods & Beverages Kids with OrganicTagsConnection Between Food, Nutrition and Well BeingHemp FoodsTable 5:9 New Product Reports Foods & Beverages with Hemp Tags, 1997-2007Flax, Omegas and Essential Fatty AcidsTable 5:10 New Product Reports Foods & Beverages with Flax Tags, 1997-2007Raw FoodsHigh Protein Foods and Low Glycemic IndexTable 5:11 New Product Reports For Low Glycemic Foods, 1997-2007Other Food TrendsFood Allergies and Food SensitivitiesTable 5:12 New Product Reports For No Gluten Items, 1997-2007Autism and ADHD Drive Parents to Seek All Natural ChoicesSustainable SeafoodStevia All Natural No Calorie SweetenerFrozen Baby FoodsFunctional Foods, the Natural WayOrganic Wine, Beer and SpiritsOrganic Beer Less Challenged than Organic WineOrganic Sprits the Latest Trend in SpiritsCause Related Marking Continues to GrowFair TradeTable 5:13 U.S. Imports of Fair Trade Certified Products, In Pounds,2002-2007Table 5:14 New Product Reports For Fair Trade, 2004-2008Green, Green the Grass Is GreenOther TrendsOrganic and Natural TelevisionOrganic Fast Casual and Fast Food GrowsFood Distribution Business to Heat upCHAPTER 6: THE CONSUMERHighlightsMethodologyNotes on Simmons DataIntroductionWith $4.00 Gas and $5.25 Heating Oil, will any money be left for OrganicMilk?A Large Number of Disinterested Consumers RemainConcern Over Artificial Ingredients Stronger than Interest inOrganic/NaturalSurprising Data Reveals Presence of Children Not Indicative of GreaterNatural and Organic Interest63% Report Regular or Occasional Organic PurchasingTable 6:1 Organic Shopping Pattern for U.S. Adults Overall, 2008Produce is Most Commonly Reported Organic PurchaseTable 6:2 Percent of Adults Who Shop for Organic Products: By ProductCategory, 2008Organic Products by Location ShoppersTable 6:3 Retail Channel Most Often Shopped for Organic Products,2008Publix in the Top Five for Organic PurchasesTable 6:4 Retail Chain Most Often Shopped for Organic Products, 2008Walmart Leads Among Regular Organic ShoppersTable 6:5 Retail Chains for Groceries Most Frequently Shopped by OrganicShoppers, 2008Shopping for Organic Products by CategoryOrganic Shopping Patterns Consistent by Category and ChannelTable 6:6 Organic Shopper Patterns by Product Category and Retail Channel,2008Respondents Report Slight Variations For Key Categories Among Retail ChainsShoppedTable 6:7 Organic Shopper Patterns by Product Category and Retail Chain,2008Nearly Twenty Percent of Adults Report Spending Less on GroceriesTable 6:8 Retail Chain Most Often Shopped for Organic Products: AdultsOverall vs. Adults Who Are Spending Less on Groceries, 2008Shopping Organic Correlates with IncomeTable 6:9 Organic Shopping Patterns by Household Income Level and AverageIncomeNew England, Mountain and Pacific Regions Report Buying More Organic FoodsTable 6:10 Regional Patterns: Adults Overall vs. Adults Who Are Buying MoreOrganic Foods, 2008Simmons Shows that Most Shoppers Do not Look for Organic/Natural ProductsTable 6:11 "When I Shop for Foods, I Look for Organic/Natural Products"Preference Among Consumers Not Consistent with AgeTable 6:12 "When I Shop for Foods, I Look for Organic/Natural Products":By Age BracketWomen Shoppers Look For Organic/Natural More than MenTable 6:13 "When I Shop for Foods, I Look for Organic/Natural Products":By GenderAsian and Hispanic Shoppers Seek out Organic and Natural Foods Most OftenTable 6:14 "When I Shop for Foods, I Look for Organic/Natural Products":By Ethnicity, 2008 (percent of U.S. adults)Higher Education Associated with Greater Preference for Natural and OrganicTable 6:15 "When I Shop for Foods, I Look for Organic/Natural Products":By Higher Education, 2008 (percent of U.S. adults)Higher Income Leads to Greater Preference for Natural and OrganicTable 6:16 "When I Shop for Foods, I Look for Organic/Natural Products":By HH Income, 2008 (percent of U.S. adults)Pacific and Northeast Respondents Buy More Natural and OrganicTable 6:17 "When I Shop for Foods, I Look for Organic/Natural Products":By Region, 2008 (percent of U.S. adults)Children in Household not Indicative of Increased Natural and OrganicPreferencesTable 6:18 Percent of Adults Who Agree a Lot That They Seek OutOrganic/Natural Foods: By Child-Influenced and Family-CenteredPsychographic ScalesAPPENDIXMarketers IRetailers IVTo order this report:

Natural and Organic Food and Beverage Trends: Current and Future Patterns in Production, Marketing, Retailing, and Consumer Usage, 2nd Edition

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