Growing Faster Than the Conventional Food and Non

Growing Faster Than the Conventional Food and Non -Food Markets v According to the Organic Trade Association’s 2018 Organic Industry Survey, total organic sales increased 6. 4% during 2017 to a new record of $49. 4 billion and almost $3. 5 billion in new sales. v Of the total organic market, 91. 5% is the organic food sector, totaling $45. 2 billion during 2017, also a 6. 4% increase. The organic food market accounts for 5. 5% of all food items sold in US retail channels. v Produce was the top organic food category, at $16. 5 billion, +5. 3%; followed by organic dairy and egg, $6. 5 billion, +0. 9%; and organic beverages, $5. 9 billion, +10. 5%.

Top of the Harvest v Nielsen reports organic products are now found in all major grocery channels: warehouse clubs, 27%; premier natural and fresh, 26%; conventional grocery, 21%; mass supermarkets, 18%; and discount grocery, 7% (52 weeks ending 7/29/17). v Organic claims are important to 29% of US respondents according to a Nielsen survey, with deli having the largest increase from mid-2016 to mid 2017, or 31%; followed by grocery, 13%; meat and produce, 10% each; and frozen and dairy, 6% each. v Although many organic food products cost more than their non-organic equivalents, Nielsen research found a sample private-label organic grocery basket of 8 items (food and non-food) cost 18% less than a branded organic grocery basket.

Organic Produce Is the Winner v According to Progressive Grocer’s 2017 Retail Produce & Floral Review, 70. 8% of survey respondents said their sales of organic produce increased during 2017 compared to 2016, with 28. 1% saying sales stayed the same and 1. 1% reporting a decrease. v Nielsen and the Organic Produce Network reported $1. 2 billion in total Q 1 2018 organic produce sales, with organic fresh vegetables at $632 million, compared to $400 million for organic fruit. v The Nielsen data also revealed that 80% of all organic produce sales were UPC (universal product code) items, such as packaged salads and berries, while conventionally grown produce items accounted for 57%.

The Increasing Wave of Organic Consumers v According to data from Packaged Facts and Simmons Research, almost 30% of grocery shoppers are consciously seeking organic or natural foods, increasing 5% during the 2010– 2017 period. v Based on the Simmons data and other information in this Profiler, the largest percentage of US households purchased organic produce during 2017: fruit, 34%, and vegetables, 31%. In addition, almost 30% of households purchased organic eggs, 15% organic milk. v The latest data (fall 2016) from Acosta revealed approximately 34% of the grocery items in Latino Americans’ shopping cart were organic compared to approximately 25% for all US shoppers’ carts.

Identifying Healthy Shopper Types v Research from New Hope Network identified 5 groups of consumers based on their healthyproducts shopping. The top two are Well Beings, most health proactive, 26%, and Fence Sitters, who want to be healthy, but not always, 23%. v The other 3 groups are Magic Bullet, a lower commitment to a healthy lifestyle, 20%; Food Actives, mainstream healthy and self-motivated to be healthier, 14%; and Eat, Drink, Be Merry, least health active, 17%. v Millennials are 49% and Baby Boomers are 34% of the Well Beings group; however, Baby Boomers are the largest spenders. Price is not a large concern with Well Beings, but they are brand loyal and typically early adopters of new products.

Organic Farming v According to the latest data (2016) from the US Department of Agriculture, there were 14, 217 certified organic farms in the US, with the top 5 states: California, 2, 713; Wisconsin, 1, 276; New York, 1, 059; Pennsylvania, 803; and Iowa, 732. v The total value of certified organic acres in operation was $7. 55 billion, with crops, including nurseries and greenhouses, $4. 19 billion; livestock and poultry, $1. 16 billion; and livestock and poultry products, $2. 20 billion. v The value of the sales of all certified organic vegetables grown in the US was $1. 64 billion, with California first, at $1. 05 billion; followed by Oregon, $104. 37 million; Washington, $98. 84 million; Arizona, $80. 13 million; and Florida, $46. 43 million.

Advertising Strategies v Organic products, especially produce and locally sourced, is a potential marketing advantage for local independent, natural-food chains. Suggest these stores designate an employee as its “weekend organic concierge, ” assisting shoppers with healthier choices. v Independent, organic-food stores may also want to consider an “Introduce a Friend to Organics” promotion. Stores can offer a discount when two or more people shop together and each purchase a qualifying basket of organic products. v Many younger adults are known for their adventurous eating, so order a number of exotic, unusual produce or other organic food items, create a special display and offer a bundle of samples at a discounted price for one weekend each month during the summer.

New Media Strategies v Suggest independent, local organic-food stores place ads on your Website’s weather page, promoting products in relation to the weather forecast: produce high in antioxidants during cold weather months, organic skin products during the hot summer, etc. v In conjunction with the promotion to introduce younger adults to a special bundle of exotic, unusual produce or other organic food items, share photos on Instagram and Snapchat, including recipes to prepare these items. v Independent organic-food stores should consider promoting the cultured meat trend featured on page 4 of the Profiler. Conduct your own survey on your Website and social media and offer a special discount for trying cultured meat with social media feedback.