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The Growth Of Natural Products Is Increasingly Strong

Views: 4     Author: Golden Horizon (Chengdu) Technology Co., Ltd.     Publish Time: 2020-10-28      Origin: Golden Horizon (Chengdu) Technology Co., Ltd.

Recently, SPINS will publish the first "State of the Natural Industry Report" for external publicity, and will share some facts and data through a webinar before its release. The most important point is that the dollar growth rate in the natural food and beverage sector has exceeded that of traditional industries. In 2018, the total food and beverage market was US$448.2 billion, a year-on-year increase of 1.7%, and the natural food and beverage market was US$47.2 billion, a year-on-year increase of 5%.


Although natural food accounts for 10.5% of the total food and beverage market sales, its contribution to the growth of the dollar is as high as 29.3%. Even in the traditional multi-channel retail channel, natural foods and beverages contributed 9.1% of sales and at the same time accounted for 27.4% of the channel’s dollar growth. Product attributes for market growth include organic, plant and primitive diets. Organic products accounted for $13.4 billion in cross-channel groceries, accounting for 3% of total food and beverage sales, but the growth rate exceeded 1% of the entire market. In 2018, the market size of vegan products increased by 10.1% to US$7.1 billion, a large part of which came from traditional multi-channels.


Although the growth of primitive diets and grain-free products has been around for some time, in traditional multi-channels, the growth of primitive diets and grain-free products was 45.3% and 76%, respectively. Another attraction is the increasing importance of facilitation channels. Natural products accounted for less than 5% of food and beverage sales in this field, but sales of natural products increased by 12.6% to US$2.7 billion. Some of the key subcategories driving this growth are natural functional drinks, fortified water, puffed snacks and kombucha. Although the market capacity of the convenience channel is small, the growth rate of natural products is three times that of natural and specialty food channels and twice that of traditional multi-channels.

 natural food

SPINS attributes this to higher distribution changes than traditional and traditional multi-channels, which means that more natural products are entering the product category and replacing mainstream products that perform poorly. Convenience also provides a lot of "take and go" product options, which is in line with consumers' idea of buying natural products in convenient places. Conversely, other channels should also adjust their product mix to incorporate more innovative products.


In terms of vitamin and supplement channels, traditional channels such as natural channels account for 12% of total store sales of vitamins and supplements, traditional multi-channel accounts for 7%, and convenience only accounts for 4% of total sales. Although the sales share of traditional channels was fairly stable, increasing by 1.7%, the traditional multi-channels fell by 1.2%, and the share of convenience channels increased by 23.4% year-on-year. SPINS said that the base of facilitation channels is much smaller, but this shows the migration of natural products to this channel. Food supplement products such as MCT, CBD, and fish oil contributed to this growth, and their share increased by 523% year-on-year.


Natural and professional channels are the way of product innovation. Once trends and products mature, these innovative products will eventually enter traditional and convenient channels, so brand owners must decide whether they want to become innovators or after the product or trend is confirmed Join. Therefore, the attention of the cross-channel market is crucial.

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