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JACKSONVILLE, Fla. – As consumer demand for health-conscious options rises, natural and organic products are becoming key growth drivers across multiple retail channels. A new study by Acosta Group reveals that 75% of shoppers purchased at least one natural or organic product in the past six months, with 59% emphasizing the importance of these products in their grocery and household shopping.
The study, conducted with Acosta Group’s proprietary U.S. Shopper Community, highlights trends that could fuel further category expansion ahead of the highly anticipated Expo West event.
Acosta Group’s latest consumer predictions suggest that shoppers are increasingly prioritizing wellness, with a shift towards individualized health management.
“Our natural and organic shopper study reflects opportunities for brands and retailers to build increased shopper trust, loyalty, and sales,” said Kathy Risch, SVP, Thought Leadership and Shopper Insights, Acosta Group. “Three key learnings include the growing role of natural and organic products for consumers, especially related to health, the value of product placement in the natural channel, and the need for education on the definition and benefits of natural and organic products.”
Key findings:
- 58% of shoppers choose natural and organic products because they are healthier and contain fewer synthetic chemicals.
- Younger generations are leading the charge, with 89% of Gen Z and 85% of Millennials purchasing natural and organic items.
- According to New Hope Network and SPINS, sales of natural and organic products are projected to grow 5% annually, reaching $348 billion by 2028.
“The natural and organic shopper is now considered mainstream,” said Andrew Fleming, SVP of Impact Natural, a division of Acosta. “To drive further growth, brands and retailers must emphasize the health benefits of these products, especially for Millennial families.”
The study underscores the importance of product placement in natural stores while maintaining presence across other retail formats.
- 53% of natural store shoppers and 37% of all shoppers perceive brands more positively when they see them in natural stores.
- 82% of natural store shoppers believe these retailers offer the best selection, while 71% value their product quality.
- Natural and organic shoppers frequent a wider variety of stores, including mass merchandisers, traditional grocery stores, and warehouse clubs. They are also significantly more likely to shop at farmers markets and online.
“Emerging and established brands benefit from a natural channel presence, which elevates perception and trust,” noted Fleming.
Despite increased consumer interest, confusion remains regarding the difference between “natural” and “organic” products.
- 40% of shoppers either believe “natural” and “organic” mean the same thing or are unsure of the distinction.
- 18% of conventional shoppers avoid purchasing these products due to lack of understanding.
- 72% cite affordability as the top reason for not buying natural or organic items.
“This is the time for natural and organic brands and retailers to build direct connections with consumers, informing them of the facts and benefits of the products, dispelling misperceptions, and driving trial and loyalty,” said John Carroll, president of Digital Commerce and Advanced Analytics at Acosta Group.
“To educate consumers, we need to develop customized messaging for target audiences, implementing a toolkit of retail media, product detail page (PDP) content management, and in-store strategies to create an informative, seamless experience,” said Carroll. “We know that consumers are willing to pay more when they understand the benefits and value of natural and organic products, and they are looking for trusted resources to gain product knowledge.”
Consumers are increasingly turning to digital sources for product information, with 52% discovering new items via social media and recommendations and 43% through search engines. Carroll emphasized the importance of tailored messaging and digital engagement to build trust and drive purchases.
Acosta Group will be actively participating at Expo West, sponsoring the keynote session “The State of Natural & Organic” on March 5 at 8:30 a.m. PST. Later that day, Kathy Risch will join an educational session discussing “Growing Success at Retail: Who Are Today’s Organic and Regenerative Shoppers?”
