Packaged Facts Reports Stable Growth in the Natural Food Industry

Modern consumers are no longer driven only by the price and taste of food. With most consumers seeking healthy foods, their shopping behaviors have also changed. Today, American consumers consider safety, experience, social impact, transparency, as well as health and wellness when it comes to purchasing food. This is the reason why organic and natural foods are a growing niche in the food industry.

According to the report titled Natural and Organic Foods and Beverages in the US (5th edition), most consumers value the transparency and eco-conscious models of how their foods are made. Opting for natural and organic foods fulfill the needs of the customers.

Research Director of Packaged Facts, David Sprinkle, noted that this new behavior of consumers resulted in the rise of the organic and natural foods market. Packaged Facts estimated that the industry would earn $69 billion by the end of this year. This is 11% higher than the sales from last year.

The Industry Shift to Organic And Natural Foods

The growth of the organic and natural products has outpaced the sales of conventional food items. It is forecasted that the growth will be up to 70% from 2016 to 2021. This is the reason why big food manufacturers are shifting towards the natural and organic food niche. They hope to achieve this by overhauling their products or creating a new portfolio in the hopes of attracting consumers who lean towards natural and organic foods.

But what most big companies do not realize is that integrating organic and natural foods to their established brand can be quite challenging. While the market for organic food products is rising, it still has big shoes to fill. Conventional companies might find it difficult to look for clean ingredients because the suppliers are not quite there yet.

Big Food Companies Making Changes

Although there are some challenges present, investing in the natural and organic food niche is worth it. In fact, many big companies have seen stark improvements in sales after jumping into the natural and organic bandwagon.

For instance, Campbell Soup Co. announced to remove all artificial flavors and colors in its products by the end of 2018. Other companies that have plans to remove its artificial colors and flavors include Mondelez, General Mills, Mars Inc., Kraft Heinz, and Hershey Co. On the other hand, companies like WhiteWave Foods have pledged to use only organic ingredients in their products.

The food manufacturing industry has come a long way from using artificial flavors and colors in the past to using only natural ingredients. As consumer behavior continues to lean towards clean ingredients and healthy foods, the other main food manufacturing companies will follow suit–an action that will not only benefit food manufacturers but consumers as well.

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8 Natural Food Trends Disrupting the Market

Natural food products are no longer a unique niche with a few followers. With the natural food movement growing across the industry, this niche has turned into a necessity for brands.

The New Hope Network conducted research that showed that people are consuming a lot of natural food products. Food manufacturers are prioritizing such opportunities to create products that meet the demands of many health-conscious consumers. Below are the natural food trends disrupting the market today.

Trend #1: Prebiotics

Our gut is our second brain. It is important to feed your gut bacteria with the right kinds of foods. Prebiotics are very popular right now, and many consumers buy them for health reasons. Modern prebiotic food manufacturers include Rainbow Light and Jica Chips. Products and supplements containing prebiotics have a high market prediction rate of 93% which means that the future of prebiotics will be huge.

Trend #2: Natural Food Products with a Mission

Products that are developed out of a mission is a popular food trend today. These products are not only geared towards health but also to the environment. For instance, the Marley Coffee EKOCups are recyclable pods that can help solve the problem of solid waste pollution caused by non-biodegradable coffee cups. Food companies that also support charities and communities are also appreciated by consumers.

Trend #3: Paleo Foods

The Paleolithic diet has caught on with a lot of people seeking a healthier lifestyle. This particular diet involves eating minimally processed foods that include no dairy, no refined sugar, and no grains.

Trend #4: Locally Sourced Foods

Gone are the days when people go crazy over imported food products. Today, many consumers want traceability through locally sourced foods. Many customers also want to source their foods locally because they want to support the local economy and the surrounding community.

Trend #5: Brain Food

Brain food is another trend that has become popular in the last few years. People want to protect their memory and brain function. Products that contain brain foods like hemp and green tea extract are becoming more popular. Moreover, foods that also contain omega-3 fatty acids vs. omega-6 are gaining traction for brain function benefits.

innovative hidden veggies good health natural foodTrend #6: Hidden Veggies

With many children avoiding their vegetables, hidden vegetables in food products are a welcome addition to the natural food trends disrupting the market. Many food manufacturers are developing products to hide vegetables since 33% of consumers in the United States indicated that they would rather eat vegetables they cannot see in their foods. Examples of sneaky veggies include the Made Good Granola Mini Snack Poppers and Good Health Salty Snack products with natural vitamins from vegetables.

Trend #7: Grass-Fed Meat

Many consumers are also looking for grass-fed meats and free-range poultry products. Today, most meats are obtained from grain-fed livestock. Feeding grains to livestock does affect not only the quality of meats but also the nutritional value. With the popularity of naturally grown livestock, this trend has a prediction score of 99%.

Trend #8: Eco-Friendly Packaging

Many consumers want products that come in eco-friendly packaging.  To answer the need of many consumers, food manufacturers are developing compostable packaging to reduce the waste produced from their products.

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