The Mintel research indicates that the desire to “feel good inside and out” drives many shoppers of natural and organic foods. Over a quarter of consumers (28%) reported feeling better about themselves when purchasing organic products. This sentiment rises to nearly half (48%) among those who are increasing their organic purchases this year. There is no doubt that organic foods are gaining more attention from consumers. According to the Organic Trade Association, organic sales in the U.S. reached approximately $47 billion in 2016, an increase of nearly $3.7 billion compared to the previous year. Organic foods made up 5.3% of total food sales in the country last year, with the fruit and vegetable sector accounting for almost 40%.
Fresh produce has long been the entry point for consumers new to organic options, primarily because the benefits in the produce aisle are often the easiest for individuals to grasp. The OTA points out that consumers can touch and smell fruits and vegetables, creating a direct connection between a carrot grown in clean, healthy soil and the food they consume. In comparison, consumer packaged goods (CPG) face a more challenging path. However, the organic sector could enhance its appeal to consumers by making products more affordable and providing clear evidence that claims about organic foods being fresher and healthier are accurate.
One strategy to reduce costs is to offer more private-label organic brands, such as Costco’s Kirkland line, which Nielsen found to be an average of 18% cheaper. Additionally, disseminating research that highlights the health and environmental benefits of organic foods compared to conventionally grown options would be beneficial. In recent years, transparency in food shopping has become increasingly important, but this shift did not occur overnight. The demand for transparency has gradually built up, with label claims like “fair trade” and “organic” leading the way. Manufacturers like Stonyfield Farm and retailers like Whole Foods have shed light on the modern food system. Once shoppers realized what lay behind the canned, shrink-wrapped, and packaged products they typically purchase, many found it difficult to view their shopping experiences in the same light again.
Incorporating options like Costco’s Kirkland calcium citrate into the organic conversation could further emphasize the importance of affordability and accessibility in the organic market, helping to bridge the gap between consumer desires for health and their budgetary constraints.