A new update of NPG’s Global Trends in Natural and Organic report gives an aerial view of developments in key industry categories – food, health, beauty, eco and retail – over the last 12 months.
Reviewing a year’s worth of news stories, articles and analyses published on the NPG site, editor Jim Manson talks our readers through the key developments that continue to shape the global natural and organic products industry.
A playable version of the presentation prepared for last week’s Eco Life Scandinavia can be viewed below. A narrated version will be added to this post in the next few days.
Looking at Food, the latest update finds:
- Robust organic sector growth around the world, with sales topping $100 billion for the first time.
- Double digit growth in organic across Europe, with especially strong performances in the Nordics and France, and the US market growing a 6x the rate of conventional.
- Increasingly heard debate on the need to ‘rethink organic’ – emergence of new variants, for example the breakaway Regenerative Organic Certification scheme and Real Organic Project in the US.
- Fewer big ticket acquisitions of organic brands in 2019.
- Plant-based food sector is powering on, with a 62% increase in plant-based claims.
- Rates of veganism in the UK predicted to soar by 327%.
- But rulings in Europe and the US say some meat and dairy terms must not be used by vegan brands
Reviewing trends in Health & Nutrition the update finds:
- Strong global interest in TCM and Ayurveda supported by growing institutional support and investment
- Resurgent TCM and Ayurveda driving growth in the wider herbals market
- Disruption of retail channels having particular impact in VMS markets
- Self-care emerging as major ‘repositioning’ opportunity for the VMS sector
- High levels of interest and investment activity in personalised nutrition
- A continuing, concerted campaign to denigrate natural health and CAM, which is feeding through at national regulatory levels in Europe and N. America
- Google/facebook clampdown on natural health sites
- Growing demand for ‘clean label’ ingredients
Turning to beauty, the latest update finds:
- Standards has been the issue that has dominated the discussion on natural beauty – particularly perceived shortcomings of the new ISO 16128 standard for natural and organic
- More category policing by the natural and organic beauty sector (eg the Soil Association’s #çomeCleanAboutBeauty campaign
- In the US greenwashing cases have led to multi-million dollar fines.
- Anti-pollution cosmetics identified as a golden opportunity for natural and organic beauty brands
- Reconciling efficacy with natural and organic values is a challenge for our sector
- Similarly, industry search for novel green ingredients creates challenges (natural versus sustainable)
- Ethical beauty now extends well beyond cruelty-free
Summarising trends in Natural Living (green cleaning, eco housewares, home improvements and organic textiles), the update finds:
- Clear signs that green cleaning is shifting into the mainstream
- This is creating pressure for pioneer and socialist brands to continue to differentiate themselves
- Eco cleaning products still only make up 3% of the total market – so, a huge opportunity exists for category expansion
Looking at trends in Natural and Organic Retail:
- Major disruption continues in retail – multiple and big online operators are aggressively moving into the natural and organic space
- Specialists need to differentiate themselves more clearly and offer compelling reasons for people to shop with them regularly
- Specialist natural and organic chains are testing multiple retail concepts and model combinations to find the retail sweet spot (eg. Holland & Barrett, Vitamin Shoppe)
- Specialist chains, particularly in Europe, are expanding and extending their reach
- But ‘channel shifting’ (mostly involving multiples taking a greater share of the natural and organic market) is becoming an issue.
