Robust organic sector growth and a resurgent traditional medicine movement were two of the standout trends identified by Natural Products Global editor-in-chief Jim Manson in his keynote talk at last week’s Natural & Organic Products Europe event in London.
Developing his talk from news articles, features and commentaries published on the new Diversified’s new global web portal, he identified major trends in key products categories and in retail.
Manson showed that growth in organic markets around the world strengthened in 2017, with double-digit growth being recorded across Europe, and especially strong performance from France and the Nordics. India, the country in the world largest number of organic farmers, also asserted itself on the global organic stage by strengthening government support and increased commercial investments. But tensions around organic regulation and standards, and questions over ownership – 2o17 saw a wave of buyouts of organic brands – were leading to calls for a return to organic fundamentals, he said. “Some prominent figures within the organic movement are asking if organic is any longer an open-source, citizen-owned concept, and warn that new movements are forming as a way of rejecting what is seen as an institutionalised organic model.”
Away from organic, Manson highlighted a worldwide surge in sales of vegan products, noting that veganism is now claimed to be “the biggest lifestyles movement of the 21st century”.
Looking at the VMS category, he said that resurgent traditional medicine sectors in China and India were helping drive growth in the wider herbals market. And he added that the supplements sector was undergoing a “partial reinvention” with the result that the boundaries between supplements and food were becoming increasingly blurred. But Manson identified a “missing conversation” around the category in the national media. “Compared to food, organic and vegan in particular, there is far less of a discussion of the benefits of natural health interventions playing out in the media,” he said.
“Compared to food, organic and vegan in particular, there is far less of a discussion of the benefits of natural health interventions playing out in the media”
Manson said specialist natural products retailers would need to find more ways to differentiate themselves as the major multiples push further into the natural and organic space, and he urged them to hold their nerve on price. Elaborating on the retail picture, he said: “We are seeing major disruption – a period of constant revolution. Bricks and mortar operators are testing multiple retail concepts and models combinations to find the retail sweet spot, while online disruptors – for example Brandless in the US, where everything (including many certified organic food and personal care products) are priced at $3, or US natural product discounter Thrive Market – are tearing up the rule book.”
Summing up he said that the direction of travel was firmly towards natural and organic, and in taking more personal responsibility for health and wellbeing. “It means that this industry is in a really good place right now,” he said.
All of the articles featured in the video presentation above are archived (and searchable) on this website.