Natural and Organic Products Sales Grow 12.7% to $259 Billion in 2020
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This article originally appeared in Presence Marketing’s April 2021 Industry Newsletter
By Steven Hoffman
Natural and organic products sales grew an estimated 12.7% to $259 billion, with sales on track to surpass $300 billion by 2023, reported New Hope Network at its virtual Spark Brand Success event, held March 2-4, 2021. Sales were accelerated by the COVID-19 pandemic, as consumers cooked more meals at home and developed a greater interest in healthier food, wellness and boosting immunity. “2020 was a challenging year. But natural and organic brands face a bright future. We are positioned where a growing number of consumers are headed,” Carlotta Mast, SVP and Market Leader at New Hope Network said at the event, the Fermentation Association reported. Natural and organic food and beverages (39% of total sales) and functional food and beverages (31% of total sales) dominate the market, reported the Fermentation Association. Other key findings include: Consumers are prioritizing health and are seeking immunity-boosting and nutrient-dense foods. However, while consumers are focusing on health and wellness more than ever, they’re also struggling with junk food, lack of exercise, and anxiety and sleep issues emerged in 2020. Also, binge drinking is up a disturbing 41% among women since the start of the pandemic, Mast noted. Consumers want less sugar and fewer carbs and additives, and plant-based foods, pantry staples, frozen foods and meat/fish/poultry experienced the highest growth rates, while snack foods and packaged and prepared foods declined as fewer people opted for grab and go offerings during lockdown. Of note, Mast said the pandemic accelerated e-commerce sales, which grew 60% in 2020, generating $16.5 billion in natural and organic products sales. She noted that natural products are outpacing conventional products in e-commerce, with natural shoppers spending on average twice as much as those that buy “traditional” items online. “As you all know, organic is mainstream now,” Mast said. “During other economic downturns that we’ve experienced, the organic sector has typically taken a hit when it comes to sales growth, but not in 2020,” she said.