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Natural and Organic Food and Beverage Trends

Posted on January 13th, 2020

Americans, are eating healthier and more Natural and Organic food and beverages than ever before.

Most people buy Natural and Organic food and beverages for health reasons. Natural and Organic food and beverage is often viewed as healthier, more ethical, and tastier than food grown with pesticides.

How your food is grown or raised can have a major impact on your mental and emotional health as well as the environment. Organic foods often have more beneficial nutrients, such as antioxidants, than their conventionally grown counterparts and people with allergies to foods, chemicals, or preservatives often find their symptoms lessen or go away when they eat only organic foods.

As shoppers today turn to clean labels and demand transparency in the foods they eat and the beverages they drink, organic is ideally positioned.

Natural and Organic food and beverage products are the fastest growing sector of the U.S. food industry. Organic food sales increase by double digits annually, far outstripping the growth rate for the overall food market. Top growth trends include “Healthy/natural,” “Plant-based alternatives,” and “Portioned and convenient.”

The U.S. market for organic products had a record year in 2018, breaking the $50 billion mark for the first time. The market size is expected to reach USD $70.4 billion by 2025 as a result of increasing demand from consumers. On a global scale, organic food market is expected to reach $323.56 billion by 2024.

Natural performance beverages, enhanced waters, puffed snacks, baby food, pet food, oat Milk, kombucha, plant-based products and better-for-you snacking are a few key subcategories driving this significant growth.

Millennials are a key driver of the organic food market. Today’s Millennials are now the largest demographic spending group. They want to purchase from brands that are more organic, smaller, and locally focused. The Organic Trade Association pointed out millennials seek transparency and integrity in the food supply chain, and the U.S. Department of Agriculture’s organic seal encompasses the spectrum of non-bioengineered/non-G.M.O., no toxic pesticides or chemicals, dyes, or preservatives.

While much of the growth in the organic foods market segment can be attributed to the massive cultural shift toward healthy eating, the adoption and availability at conventional grocers of organic and natural foods is a significant factor in the rapid growth in organic foods.

Where organic foods once were a specialty item reserved for high-dollar health food stores, consumers now expect to find reasonably priced organic items at all their local food stores. Big box stores, mass market retailers and large grocery chains have all picked up on the popularity of organic foods and are stocking more organic options than ever before.

Overall, the trends in organic food purchasing look as though the organic and natural foods frenzy is sure to continue and expand. Improved infrastructure and increased channels of distribution will pave the way for even greater growth in this area.