Natural and Organic Foods and Beverages in the U.S., 3rd Edition

July 2011 | 294 pages | ID: N43F6E23416EN
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U.S. retail sales of natural and organic foods and beverages rose to nearly $39 billion in 2010, an increase of 9% over the previous year’s sales of $35 billion, far outpacing growth in conventional groceries, which crept ahead less than 2%. Despite the continued sluggish economic recovery, Packaged Facts projects sales to more than double by 2015, to exceed $78 billion. Growth will be jump-started in 2011, in great part due to snack king Frito-Lay’s switching half its snack portfolio to all-natural formulations. In addition, attracted by the higher growth rates of natural/organic foods and beverages and in response to consumer demand, other major consumer product companies are becoming more deeply committed to natural and organic products, either through acquisition or internal development. Such deep-pocketed marketers are in a good position to fast-track their products into retail stores and onto consumer tables via their massive product development capabilities, far-reaching distribution networks, and huge advertising and marketing budgets.

This completely revised report, Natural and Organic Foods and Beverages in the U.S., 3rd Edition, examines sales and growth potential, identifying key issues and trends that will affect the marketplace through 2015. Extensive analysis via both proprietary primary data from Packaged Facts’ February 2011 Online Consumer Survey and via Experian Simmons’ national consumer panel data gauges consumer attitudes and behaviors toward natural/organic foods and beverages, retail shopping patterns, and media usage and preferences, both traditional and social. Also included is comprehensive coverage of new product trends across dozens of categories, drawing on new product data from Datamonitor’s Product Launch Analytics database; dozens of images of products and print ads; and profiles of trend-making marketers and retailers. Interviews with industry experts round out this forward-looking market analysis, along with the context of the broader social, economic and psychographic drivers of consumer behavior and shopping preferences.

Contents

CHAPTER 1: EXECUTIVE SUMMARY

Scope of Report

Definition of “Natural”

Definition of “Organic”

Some Foodservice Crossover

Report Methodology

The Market

Retail Sales of Natural/Organic Foods and Beverages Approach $39 Billion in 2010

Produce and Dairy Are the Largest Categories

Figure 1-1: Share of U.S. Retail Sales of Natural and Organic Foods and Beverages by Product Category, 2011 (percent)

Mass-Market Channels Capture Almost Half of Retail Sales

An Expanding Industry

The Marketers

Global Marketers, Investors Control Many Top Brands of Natural and Organic Foods and Beverages

Recent Mergers and Acquisitions

Mainstream Marketers Going Natural

Organic Extensions of Mainstream Lines Not Very Successful

Is Selling the Company Selling Out?

The Gourmet/Natural Foods Synergy

Selling Nutritional Benefits

Selling Convenience

Private-Label Natural and Organic Products Booming

New Product Trends

Overview

Almost 2,900 Natural and Organic Products Launched in 2010

Table 1-1: Number of Natural and Organic Food and Beverage Product Launches, 2006-2010

“Natural” the Most Popular Product Tag

Functional Drinks, Tea Top New Product Launches

ALDI, Hain Celestial, Whole Foods Lead Product Introductions

Natural and Organic Products Promote Ethical Causes

Consumer Trends

37% of Consumers Seek Out Natural/Organic Foods and Beverages

Table 1-2: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Seek Out Natural/Organic Foods and Beverages,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Supermarkets the Most Popular Place to Get Natural/Organic Foods

Fresh Fruit and Veggies Are the Most Popular Organic Categories

High Socioeconomic Status Characterizes Organic/Natural Shoppers

Attitudes Toward Food and Cooking

Attitudes Toward Nutrition

One Out of Three Households Use Organic Produce

Attitudes and Opinions Toward Foodservice

Internet Has Changed How Consumers Spend Free Time

Consumers and Traditional Media

CHAPTER 2: THE MARKET

Market Overview

Scope of Report

Definition of “Natural”

Definition of “Organic”

Some Foodservice Crossover

Controversies Over Organic and Natural Labeling

Market Size and Growth

Methodology for Sales Estimates

Quantifying Sales of Organic Foods and Beverages

Quantifying Sales of Natural Foods and Beverages

Retail Sales of Natural/Organic Foods and Beverages Approach $39 Billion in 2010

Table 2-1: U.S. Retail Sales of Natural and organic Foods and Beverages, 2006-2015 (in billions of dollars)

Natural Foods and Beverages: A Larger Slice of a Bigger Pie

Figure 2-1: Share of U.S. Retail Sales of Natural and Organic Foods and Beverages by Market Segment: Natural vs. Organic, 2010 vs. 2006 (percent)

Produce and Dairy Are the Largest Categories

Figure 2-2: Share of U.S. Retail Sales of Natural and Organic Foods and Beverages by Product Category, 2011 (percent)

Mass-Market Channels Capture Almost Half of Retail Sales

Figure 2-3: Share of U.S. Retail Sales of Natural and Organic Foods and Beverages by Retail Channel, 2011 (percent)

Market Outlook

The Economy and Its Impact

Organic vs. Natural

Brand Organic?

And Certify Natural?

The Consumer Component

Figure 2-4: Percent of U.S. Adult Consumers Who Agree with the Statement I Seek Out Natural and Organic Foods and Beverages,” February 2011

Nearly 60% of Organic Grocery Shoppers Anticipate Increasing Organic/Natural Purchases

Figure 2-5: Percent of U.S. Adult Grocery Shoppers Who Buy Organic Groceries Who Agree or Disagree with the Statement “I Anticipate an Increasing Proportion of the Groceries I Use Will Be Organic or “All-Natural,” February 2011

Figure 2-6: Percent of U.S. Adult Grocery Shoppers Who Buy Packaged Foods Marketed as “All-Natural” (But Not Organic)

Who Agree or Disagree with the Statement “I Anticipate an Increasing Proportion of the Groceries I Use Will Be Organic or “All-Natural,” February 2011

Organic Foods and Beverages Carry a Price Premium

How Willing Are Consumers to Pay More for Organics?

Organic Farming Takes Root

Table 2-2: U.S. Certified Organic Acreage, 1992, 2000, 2003, 2005, and 2008

Young Farmers Joining the Field

An Expanding Industry and Marketplace

Sometimes It’s Difficult to Produce Organic or All-Natural Foods

Census 2010: Nation Is Older, More Ethnic

Table 2-3: Demographic Snapshot of the U.S. Population, 2010

Health Issues Continue to Drive Sales

New 2010 Dietary Guidelines

MyPlate Icon Replaces Food Pyramid

Illustration 2-1: The New MyPlate Food Icon, Introduced in June 2011

Illustration 2-2: The Old MyPyramid Food Icon Introduced in 2005

Reasons for Buying Natural/Organic Foods and Beverages

The Fear Factor

Overlap Between Natural/Organic and Gourmet/Premium Foods

Table 2-4: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Seek Out Gourmet Foods and Beverages,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Going Local

Table 2-5: Percent of U.S. Adults by Level of Agreement with the Statement “I Seek Out Local and Seasonal Foods,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Artisan Foods

Table 2-6: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Like to Buy Products with Artisan or Hand-Made Appeal,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Romancing the Products

Many Natural/Organic Foods and Beverages Support Other Environmental and Social Issues

Table 2-7: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “Environmental and Ecological Issues Are Very Important to Me,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “allnatural”)

Table 2-8: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Take Recycling Very Seriously,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Sustainable Packaging

Humane Treatment of Animals and Sustainable Seafood

The GMO Debate

New Tests May Verify Organic Claims

Projected Market Growth: U.S. Retail Sales Will Top $78.4 Billion by 2015

CHAPTER 3: THE MARKETERS

Marketer Overview

Global Marketers, Investors Control Many Top Brands of Natural and Organic Foods and Beverages

Recent Mergers and Acquisitions

Mainstream Marketers Going Natural

Organic Extensions of Mainstream Lines Not Very Successful

Is Selling the Company Selling Out?

The Gourmet/Natural Foods Synergy

Figure 3-1: Number of Natural and Organic Food and Beverage Launches by “Upscale” or “Gourmet” Package Tag/Claim, 2006-2010

Selling Nutritional Benefits

Table 3-1: Number of Natural and Organic Food and Beverage Launches By Selected “Nutritional” Package Tags/Claims, 2006-2010

Selling Convenience

Figure 3-2: Number of Natural and Organic Food and Beverage Launches By Selected “Convenience” Package Tags/Claims, 2006-2010

Private-Label Natural and Organic Products Booming

Figure 3-3: Private-Label Natural and Organic Food and Beverage Launches, 2006-2010

Advertising and Marketing Trends

Marketers Ally Themselves with Social and Environmental Causes

Good Works

Newman’s Own

Illustration 3-1: Newman’s Own Ad Encourages Consumers to Volunteer

Clif Bar

Illustration 3-2: Clif Bar’s 2 Mile Challenge Promotes Riding Bikes

Guerilla Marketing Techniques

Illustration 3-3: Stonyfield Farm Lids Tout Environmental and Social Causes

CEOs Rap to Promote Organic Food and Beverages

Illustration 3-4: Stonyfield CEO Gary Hirshberg Sings Out to Promote Eating Organic

Illustration 3-5: Honest Tea CEO Seth Goldman’s “Rethink What You Drink!” Rap

Targeting Kids Through Entertainment

Illustration 3-6: Disney Channel Commercial for Horizon Organic Milk

Making Use of Websites and Social Media

Table 3-2: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Am Active on Online or Mobile Social Networks (e.g., Facebook or Twitter),” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Websites and Social Media

Starbucks Savvy About Social Media

Illustration 3-7: Starbucks Mines its Facebook Fans for Data

PepsiCo’s Near East Food Products Less of a Success

Illustration 3-8: Cooking Video on YouTube for Near East Couscous

Illustration 3-9: Near East’s Couscous Caravan Offers Free Samples at Outdoor Venues

Advertising and Marketing Positioning

Illustration 3-10: Ad for Campbell’s Select Harvest Soup Conveys Multiple Messages

Competitive Positioning

Illustration 3-11: Sierra Mist Natural Takes on Sprite

Illustration 3-12: A Wisconsin Family Accepts the “Silk for Milk 10-Day Challenge”

Consumer Testimonials

Illustration 3-13: Consumers Testimonials in Mezzetta Pasta Sauce Ad

Good Enough to Serve My Own Family

Illustration 3-14: Frito-Lay’s Ingredients Buyer Selects All Natural Ingredients

Limited Edition

Illustration 3-15: Muir Glen Reserve Tomatoes “Limited Edition” Ad

Nutritional Benefits

Illustration 3-16: Whole Grain Barilla Pasta Ad

Illustration 3-17: Great Day All-Natural Eggs Ad

Illustration 3-18: Sargento Reduced Sodium Cheese Ad

Poetry in Motion

Illustration 3-19: Fage Commercials: Poetry in Motion

Illustration 3-20: Starbucks Natural Fusions Coffee Ad

Real People

Illustration 3-21: Chobani Yogurt’s Campaign Uses Real People’s Stories

Simple Ingredients

Illustration 3-22: Häagen-Dazs Five Ad

Status

Illustration 3-23: Green & Black’s Organic Chocolate Ad

Taste

Illustration 3-24: Newman’s Own Salad Dressings Ad

Competitor Profiles

Amy’s Kitchen, Inc

The Nation’s Leading Organic Frozen Foods Brand

Clif Bar & Company

Raising the Ethical Bar

Dole Food Co., Inc.

Sustainable Organic Bananas

Illustration 3-25: Dole Organic Lets Consumers Trace Bananas to the Farm Where They Were Grown

EVOL Foods

The EVOL Empire is Growing and Evolving

Frito-Lay

Going Natural

The Hain Celestial Group, Inc.

Growth Through Acquisitions

Honest Tea

Acquired by Coca-Cola

Benefits for Both Sides

Newman’s Own, Inc.

Wholly Dedicated to Philanthropy

Organic Valley

Owned by a Cooperative of Farmers

Stonyfield Farm, Inc.

A Model for Corporate Responsibility

CHAPTER 4: NEW PRODUCT TRENDS

Overview

Almost 2,900 Natural and Organic Products Launched in 2010

Table 4-1: Number of Natural and Organic Food and Beverage Product Launches, 2006-2010

Table 4-2: Natural and Organic Percent of All New Product Launches, 2006-2010 (based on total number of new product reports)

“Natural” the Most Popular Product Tag

Table 4-3: Top 10 Product Claims on New Food and Beverage Products, 2006, 2008, and 2010

Functional Drinks, Tea Top New Product Launches

Table 4-4: Top 20 Product Categories for Natural and Organic Food and Beverage Product Launches, 2006-2010

ALDI, Hain Celestial, Whole Foods Lead Product Introductions

Table 4-5: Top 15 U.S. Marketers of Natural and Organic Foods and Beverages by Number of New Product Reports, 2006-2010

Macro Trends

Natural and Organic Products Promote Ethical Causes

Illustration 4-1: EarthGrains Bread, Made with 20% Eco-Grain Wheat

Illustration 4-2: Home Chef Kitchen Soup Is Certified Humane

More Dairies and Retailers Go Hormone-Free

Demand for Gluten-Free Foods Surging

Illustration 4-3: Gluten-Free Café Canned Soups (Natural)

Illustration 4-4: Rudi’s Gluten-Free Bread (Natural)

Illustration 4-5: Amy’s Kitchen Gluten-Free Frozen Pizza (Organic)

Superfoods

List of Superfruits Is Growing

Illustration 4-6: Celestial Seasonings’ Kombucha—Exotic Flavors and Health Benefits (Natural)

Moriheiya

Illustration 4-7: GreeNoodle Instant Noodles (Natural)

Chia Seeds

Illustration 4-8: Mary’s Gone Crackers Pretzel Sticks with Chia Seeds (Organic)

Illustration 4-9: ChiaVie Superfruit Smoothie Combines Chia Seeds + Fruit (Natural)

Going Coconuts

Competition Intensifying in Coconut Water

Illustration 4-10: Phenom Fortified Coconut Water (Natural)

Coconut Milk Becomes a Beverage

Illustration 4-11: Silk PureCoconut Milk (Natural)

Illustration 4-12: So Delicious Coconut Water Sorbet (Organic)

Next Up, Coconut Oil and Coconut Sugar

Illustration 4-13: Pamela’s Products Cheesecake, Sweetened with Agave and Coconut Sugar (Natural)

Stevia as a Natural Sweetener

Illustration 4-14: Honest Tea Stevia-Sweetened Tea (Organic)

Illustration 4-15: Stevia-Sweetened Rainforest Cola (Natural)

Illustration 4-16: Stevia-Sweetened R.W. Knudsen Light Juices (Natural)

Illustration 4-17: Stevia-Sweetened Breyer’s YoCrunch Yogurt (Naturally Sweetened)

Local Trend Continues to Grow

Baby and Kid-Targeted Foods Play Up Safety

Illustration 4-18: Earth’s Best Whole Grain Rice Cereal (Organic)

Illustration 4-19: HappyBaby Organic Baby Food Comes in BPA-Free Pouches

Category Trends

Frozen Meals

Illustration 4-20: Amy’s Light & Lean Frozen Meals (Natural/Organic)

Illustration 4-21: Amy’s Sonoma Veggie Burger (Natural/Organic)

Illustration 4-22: Kashi Frozen Basil Pesto Pizza (Natural)

Illustration 4-23: Kashi Frozen Black Bean Enchilada (Natural)

Illustration 4-24: Michael Angelo’s Frozen Italian-Style Pie (Natural)

Illustration 4-25: GoodHeart All Natural Cuisine Steam-in-Bag Frozen Meals

Illustration 4-26: GoodHeart All Natural Cuisine Frozen Kid’s Meals

Illustration 4-27: Organic Bistro Frozen Bowl Meal

Illustration 4-28: Cube Artisan Foods Chimichurri Wild Pacific Salmon (Natural)

Illustration 4-29: Pineland Farms Natural Beef

Illustration 4-30: Tandoor Chef’s Frozen Balanced Vegetarian Meals (Natural)

Illustration 4-31: Annie Chun’s Frozen Potstickers (Organic)

Illustration 4-32: EVOL Frozen Flatbreads (Natural)

Side Dishes Go More Interesting

Illustration 4-33: Green Giant Healthy Colors Frozen Vegetables (Natural)

Illustration 4-34: Alexia Frozen Select Sides (Natural)

Illustration 4-35: Alexia Frozen Sweet Potato Puffs (Natural)

Illustration 4-36: Village Harvest Frozen Whole Grains (Natural)

Dairy Case

Milk: Organic Includes DHA and Omega-3 Fortification

Illustration 4-37: Horizon Organic DHA Omega-3 Milk

Illustration 4-38: Organic Valley Omega-3 Milk

Milk Alternatives: Almond Milk Wars

Illustration 4-39: Blue Diamond Almond Breeze Almond Milk (Natural)

Yogurt: It’s All Greek to Me

Illustration 4-40: Chobani Champions Greek Yogurt (Natural)

Illustration 4-41: Fage Total 0% Yogurt, Now in Flavors (Natural)

Illustration 4-42: Stonyfield Farm’s Oikos Organic Greek Yogurt

Illustration 4-43: Cascade Fresh Amande Almond Milk Yogurt (Natural)

Illustration 4-44: Straus Yogurt: Organic, Local, Sustainable

Illustration 4-45: Organic Valley Pourable Yogurt (Organic)

Illustration 4-46: DAHlicious Lassi Yogurt Smoothies (Natural)

Fresh Produce

Illustration 4-47: Earthbound Farm Organic Salad Kits

Illustration 4-48: Dole Natural Salad Kits

Cereals and Cereal Bars

Illustration 4-49: Kashi Berry Blossoms Cereal (Natural)

Illustration 4-50: F-Factor Cereals and Cereal Bars (Natural)

Illustration 4-51: Nature Valley Granola Thins (Natural)

Snacks Go More Natural

Illustration 4-52: Frito-Lay All Natural Tostitos (Natural)

Illustration 4-53: Frito-Lay Tostitos and Lay’s Dip Creations (Natural)

Illustration 4-54: Boulder Canyon Tortilla Chips with Hummus & Sesame (Natural)

Illustration 4-55: Snyder’s Eatsmart Naturals Snacks (Natural)

Illustration 4-56: Pepperidge Farm Baked Naturals Cracker Chips (Natural)

Illustration 4-57: New York Style Risotto Chips (Natural)

Hale Kale Chips!

Illustration 4-58: Earth Chips Kale Chips (Organic)

Illustration 4-59: Rhythm Kale Chips (Natural)

Desserts

Cookies

Illustration 4-60: Amy’s Shortbread Cookies (Natural/Organic)

Ice Cream and Frozen Desserts

Illustration 4-61: Häagen-Dazs Five Ice Cream (Natural)

Illustration 4-62: Raw IceCream Raw, Vegan Frozen Desserts (Organic)

Illustration 4-63: Jamba Frozen Fruit Sorbet (Natural)

Beverages

Coffee

Illustration 4-64: Starbucks Natural Fusions Coffee (Natural)

Tea

Illustration 4-65: Lipton 100% Natural Iced Tea

Illustration 4-66: The Republic of Tea Raw Green Bush Tea (Natural)

Chocolate Beverages

Illustration 4-67: Honest Tea CocoaNova (Organic)

Energy Drinks

Illustration 4-68: Nestlé Jamba Energy Drinks (Natural)

Sodas: Handcrafted and All-Natural

Illustration 4-69: Waialua Soda Works Kona Red Soda (Natural)

Illustration 4-70: Sipp Sparkling Eco Beverage (Organic)

CHAPTER 5: RETAIL TRENDS

Types of Retail Outlets

Competitive Situation

Store-within-a-Store Merchandising vs. Integration

Marketers Teach Conventional Retailers How to Sell Natural/Organic

Private-Label Offerings Explode

Figure 5-1: Number of Private-Label Natural and Organic Beverage Launches, 2006-2010

Retailers Spearhead Animal Welfare Standards

Pushing for Sustainable Seafood

Supermarkets vs. Foodservice: Blurring the Boundaries

Really Local Farms

Chef-Run Local Markets

The World’s First All-Natural/Organic Food Court

Channel and Retailer Profiles

Whole Food’s Consolidation of Super Naturals and the Continued Growth of Trader Joe’s

Conventional Retailers Develop Fresh Format Stores

Retailer Profile: Kroger

Retailer Profile: Safeway

Illustration 5-1: Safeway’s O Organics Line of Over 300 Products

Illustration 5-2: Safeway Open Nature 100% Natural Private-Label Brand

Several Smaller Regional Chains Set Exemplary Examples

Central Market in Whole Foods’ Backyard

Retailer Profile: Publix Super Markets, a Public Favorite

Retailer Profile: Wegmans Raises the Bar on Grocery Shopping

Illustration 5-3: Wegmans Food You Feel Good About Private-Label Natural/Organic Line

Illustration 5-4: Wegmans Organic Research Farm in Canandaigua, NY

Natural Food Stores

Whole Foods: The Natural Leader Reemerges as a Growth Leader

Focusing on Value Yields Rewards

Strong Focus on Prepared Foods and In-Store Dining

Mission Driven Values and Aggressive PR Images

New Sustainable Seafood, Animal Welfare, and Healthy Eating Initiatives

A ‘Game Changer’ in the Retail Food Business

Retailer Profile: The Secrets of Trader Joe’s

Retailer Profile: Sprouts Farmers Market

Natural Co-ops Experiencing a Resurgence

Retailer Profile: PCC Natural Markets

Retailer Profile: Park Slope Food Coop

Retailer Profile: Rainbow Grocery

Small-Format Grocery Stores

Fresh & Easy: British Invasion Not So Easy Going

Gourmet/Specialty Food Stores

Mass Merchandisers and Supercenters

Retailer Profile: Walmart Forays into Healthier Foods

Groceries Grow to 54% of Walmart’s Sales

Walmart Revamps Great Value Private-Label Brand…

… After Scaling Back Ambitious Organic Plans

Walmart Announces Healthier Foods Initiative

Walmart Shifts Seafood to Sustainable Sourcing

Retailer Profile: Target Corp. Is Targeting Foods

Target Pushing into Fresh Foods

Contest for National Warehouse Club Supremacy

Retailer Profile: Costco Wholesale Corp.

Retailer Profile: Sam’s Club

Retailer Profile: BJ’s Wholesale Club

Drugstores Making a Play for Food

Drugstores Fight Back as Retail Lines Blur

Drugstores Testing Fresh Foods

Retailer Profile: Walgreens

Retailer Profile: CVS Caremark

Can the Drugstore Channel Compete in Fresh Foods?

Convenience Stores

Farmers’ Markets Chart Double-Digit Growth in 2010

Figure 5-2: Growth in Number of Farmers’ Markets, 1994-2010 (number)

Two Types of Farmers’ Markets

Farmers’ Markets Complain About Grocery Competition

Community Supported Agriculture Programs (CSAs)

Internet and Mail Order

Retailer Profile: FreshDirect

CHAPTER 6: THE NATURAL/ORGANIC FOODS CONSUMER

Consumer Overview

Methodology

37% of Consumers Seek Out Natural/Organic Foods and Beverages

Table 6-1: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Seek Out Natural/Organic Foods and Beverages,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Half Are Willing to Pay More for Higher-Quality Groceries

Table 6-2: Percent of U.S. Grocery Shoppers Who Agree with the Statement “I Am Willing to Pay More for Higher-Quality Groceries,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Table 6-3: Percent of U.S. Grocery Shoppers by Level of Agreement with the Statement “I Am Willing to Pay More for Better-for-You Grocery Products,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Four Out of Five Think Organic Foods Are Overpriced

Table 6-4: U.S. Adult Consumer Attitudes Toward Organic/Natural Foods and Beverages, February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “allnatural”)

Two out of Three Adults Have Changed Wellness Lifestyle

Figure 6-1: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “My Wellness Goals and Behaviors Make My Lifestyle Significantly Different Than It Was 10 Years Ago,” February 2011

Table 6-5: Percent of U.S. Adult Grocery Shoppers by Level of Agreement with the Statement “The Groceries I Buy Are Determined In Part by Specific Wellness Goals,” February 2011 (overall, grocery shoppers who buy organic groceries, grocery shoppers who buy packaged foods marketed as “allnatural”)

More Organic/Natural Consumers Seek Specific-Purpose Nutrition

Organic/Natural Consumers Want Extra-High Nutrition Foods

Table 6-6: Percent of U.S. Adult Consumers by Level of Agreement with the Statement “I Seek Out Foods and Grocery Products That Have Specific-Purpose Nutrition,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

Table 6-6: Percent of U.S. Adults by Level of Agreement with the Statement “I Seek Out Foods and Grocery Products That Have Extra-High Nutrition,” February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “all-natural”)

More Organic/Natural Shoppers Avoid Certain Foods

Table 6-7: Percent of Grocery Shoppers by Level of Agreement with the Statement “Food Restrictions, Food Avoidances, or Food Allergies Play an Important Role in What I Eat,” February 2011 (overall, grocery shoppers who buy organic groceries, grocery shoppers who buy packaged foods marketed as “all-natural”)

Fresh Fruit and Veggies Are the Most Popular Organic Categories

Almost One Out of Four Adults Looks for Organic/Natural Foods

Table 6-8: Percent of U.S. Adult Grocery Shoppers Who Usually Buy Organic/Natural Foods and Beverages, by Product Category, February 2011 (overall, consumers who usually buy organic groceries, and consumers who usually buy packaged foods marketed as “all-natural”)

Table 6-9: Number and Percentage of U.S. Adult Natural/Organic Consumers, 2006-2010 (consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)

Supermarkets the Most Popular Place to Get Natural/Organic Foods

Table 6-10: Percent of U.S. Adult Grocery Shoppers Who Shop for Organic/Natural Foods and Beverages, by Retail Channel, February 2011 (overall, who shop for organic groceries, and who shop for “all-natural”)

Whole Foods and Trader Joe’s

Table 6-11: Retail Shopping Patterns in the Past Month Among U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)

Shopper Attitudes and Behavior

Table 6-12: U.S. Adult Consumer Attitudes/Behavior Toward Shopping, 2010 (overall, consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)

High Socioeconomic Status Characterizes Organic/Natural Shoppers

Table 6-13: Selected High-Index Demographics of U.S. Adult Consumers Who Agree with the Statement “When I Shop for Food, I Look for Organic/Natural, 2010

Table 6-14: Demographic Overview of U.S. Adult Consumers Who Agree with the Statement “When I Shop for Food, I Look for Organic/Natural,” 2010 (percent, number and index of U.S. Adult consumers)

Upscale and Older Consumers Prefer No Artificial Additives

Table 6-15: Selected High-Index Demographics of U.S. Adult Consumers Who Agree with the Statement “I Prefer Foods Without Artificial Additives,” 2010

Table 6-16: Demographic Overview of U.S. Adult Consumers Who Agree with the Statement “I Prefer Foods Without Artificial Additives,” 2010 (percent, number and index of U.S. Adult consumers)

Attitudes Toward Food and Cooking

Attitudes Toward Nutrition

Table 6-17: U.S. Adult Consumer Behavior/Attitudes Regarding Food and Cooking, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)

Table 6-18: U.S. Adult Consumer Behavior/Attitudes Regarding Nutrition, 2010 (consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)

One Out of Three Households Use Organic Produce

Table 6-19: Leading Organic Foods by Level of U.S. Household Penetration, 2010 (percent of U.S. households)

Milk Tops Organic List by Index

Table 6-20: Leading Organic Foods by U.S. Adult Consumer Indexes, 2010 (consumers who look for organic/natural foods and consumers who prefer foods without artificial additives)

Natural Foods Consumers and Restaurant Use

Table 6-21: Frequency of Eating at Restaurants that Feature Organic Foods Among U.S. Adult Consumers, February 2011 (overall, consumers who buy organic groceries, and consumers who buy packaged foods marketed as “allnatural”)

Table 6-22: Frequency of Eating at Restaurants that Feature Distinctively “All-Natural,” Fresh or Locally Grown Menus Among U.S. Adult Consumers, February 2011 (overall, consumers who shop for organic groceries, and consumers who shop for “all-natural”)

Attitudes and Opinions Toward Foodservice

Table 6-23: U.S. Adult Consumer Attitudes/Opinions Toward Foodservice, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)

Consumers and Media

Internet Has Changed How Consumers Spend Free Time

Table 6-24: Internet-Related Lifestyle Changes Among U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)

Internet Has Changed How Consumers Shop

Consumers and Traditional Media

Consumer Attitudes Toward Advertising

Table 6-25: Internet Usage Patterns Among U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)

Table 6-26: Use of Traditional Media by U.S. Adult Consumers, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)

Table 6-27: U.S. Adult Consumer Attitudes Toward Advertising, 2010 (overall, consumers who look for organic/natural foods, and consumers who prefer foods without artificial additives)

Appendix: Selected Industry Addesses