Progressive Grocer Product

Spring 2015

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Strong and Growing The natural and organic market continues to gain traction and generate broader shopper appeal. "A typical organic consumer is difcult to pinpoint," the USDA overview reports, "but new research continues to shed light on consumer attitudes and purchasing behavior." As the role of organic foods has changed and a mainstream market interested in organic products has emerged, defning the organic consumer continues to be a challenge. But an overall interest in healthier, purer eating has driven consumers to explore organic across food and beverage categories, and personal care, too. As a foundation for the organic segment, fresh fruits and vegetables have been the top- selling category of organically grown food for more than three decades, since the inception of the category. Looking at fresh produce and the numerous other segments that now contribute to organic sales – dairy, snacks, packaged/ prepared foods, beverages, breads and more – the Organic Trade Association reports that more than 90 percent of sales take place through conventional and natural food supermarkets and chains. Thanks to the expansive reach of organic – and natural – across segments, potential growth likely benefts the supermarket segment, in particular. Mainstream interest will continue to increase, and mainstream consumers primarily shop conventional supermarkets for groceries. And growth forecasts look good – the United States Organic Food Market Forecast & Opportunities 2018 reports that solid growth in the organic food market is expected to continue until 2018 given increasing interest across the country — especially in the Western U.S. — and increased consumer expenditure. While organic has clear guidelines, the natural claim always has been more challenging to defne. But given consumers' desires to buy "cleaner" products, many manufacturers have tweaked ingredients, eliminating artifcial additives and thus delivering more natural products, often labeled as such. Health and wellness trends have dramatically infuenced food and beverage development in recent years, and this momentum will continue moving forward as the U.S. fghts an obesity epidemic, strives to raise healthier children and combats disease through healthier choices in food and beverage. PGPS Spring 2015 / Progressive Grocer Products Showcase 1 3 Natural aNd OrGaNIC rganic products are now available in nearly 20,000 natural food stores and three out of four conventional grocery stores, according to the USDA's Organic Market Overview. Continuing to report double-digit growth, organically produced goods generate consumer demand across a much broader audience than in decades past. Key Trends to Watch 4 Healthy eating 4 Cleaner foods/ingredient listings 4 Environmentally friendly purchasing decisions 4 Health and wellness focus

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