Jacksonville, Florida-based Acosta Group has shared a new shopper insights study, looking at the state of the natural and organic shopper to provide brands and retailers information to drive growth in store and online.
Natural product sales continue to climb, and interest and usage has increased across all age groups, particularly with Gen Z and Millennial shoppers. These customers also tend to be more affluent, placing a higher emphasis on leading a healthy life, being ecofriendly and concerned for animal welfare.
“When we ask natural and organic shoppers of all ages the most important influence in their product choices, the top response is their focus on being healthier, including the avoidance of chemicals, pesticides and processed foods,” said Kathy Risch, SVP of consumer insights and trends at Acosta Group.
“These shoppers place nearly equal importance on ingredients as they do on price, while conventional shoppers place more importance on price alone.”
However, the study also found that when natural/organic shoppers are asked to explain the difference between natural and organic, many find it challenging, responding that the two are “similar” or that they are “unsure.”
“This knowledge creates an exciting opportunity for brands and retailers to further educate both natural and organic and conventional shoppers,” Risch said.
Other key findings and implications from the study include:
- With natural/organic product sales on track to reach an estimated $300 billion in 2024, according to New Hope Network, a selection of natural/organic products will be expected across the omnichannel store. This will be relevant to Gen Z shoppers, who will have more spending power over the next decade.
- The demand for increased label and ingredient transparency by manufacturers and retailers will rise and be a critical factor in purchase choice.
- For non-natural and organic shoppers, 73 percent list price as the primary barrier to purchase, with 47 percent saying that conventional products are “more practical” and 44 percent expressing skepticism about the “hype” around the products.
“This study clearly shows the tremendous opportunity for brands and retailers to find new ways to engage with the next generation consumer that is stimulating the natural and organic category,” said John Carroll, president of digital commerce and advanced analytics for Acosta Group.
“To support further growth with these shoppers, a critical component is bridging the physical and digital shelf with an omnichannel strategy that will drive conversion and brand preference.”
Acosta Group’s Natural and Organic online survey was conducted Oct. 26-Nov. 4 with 816 primary household shoppers, ages 18-76, from Acosta’s proprietary shopper community.
For more information, visit acosta.com.