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Study: Organic Food Trends Broadening Competition For Natural Grocers

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Last updated on September 11th, 2017 at 11:47 am

Americans’ perennial enthusiasm for all things health and wellness is expressed in the food they consume, and natural and organic retailers are often at the forefront of meeting this demand, says Packaged Facts. The market intelligence company has published national consumer survey data in its new report “Whole Foods, Trader Joe’s, and Natural Channel Grocery Shopping,” that reveals, even among adults overall, at least half somewhat or strongly agree that organic fruits and vegetables are more nutritious, healthier and taste better compared with their standard counterparts. Among natural food channel shoppers, this ratio shoots up to three-fourths.

More than merely the primary domain of specialty grocers such as Whole Foods and Trader Joe’s, natural and organic foods have crossed a major threshold and are now firmly established in mainstream supermarkets to meet growing demand. It’s a consumer driven food phenomenon that is several years in the making, notes David Sprinkle, research director for Packaged Facts.

“As early as 2014, it was clear that organic foods had become ‘must-have’ items beyond the shelves of natural food stores,” says Sprinkle. “What this means in 2017 is that natural and organic foods can be found in most supermarkets and supercenters, shifting the competitive paradigm from natural food chains pitted against each other into a broader battle for share of the overall marketplace for natural and organic fare.”

What’s at stake in this “broader battle” is a natural and organic foods market segment worth almost $70 billion. Packaged Facts estimates U.S. retail sales of natural and organic foods grew 7 percent on a compound annual basis from 2012 to 2016. Growth is expected to reach double digits in the years looking ahead to 2021, far outpacing sales growth for groceries and consumable overall.

“Whole Foods, Trader Joe’s, and Natural Channel Grocery Shopping” analyzes the trends shaping the market, including the snow-balling impact of Millennials as avid shoppers both online and in-store. In addition to a comprehensive assessment of Whole Foods and Trader Joe’s, this report profiles natural and organic foods retailers across the full spectrum, including pure-play retailers like Earth Fare, Fresh Thyme, Lucky’s, Natural Grocers, Sprouts and The Fresh Market; traditional and non-traditional grocers including Albertsons/Safeway, Aldi, Costco, Kroger, Lidl, Publix, Sam’s Club, Walmart and Wegmans; and “e-tailers” including Amazon.com, Door to Door Organics and Thrive Market.

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