The market for natural products is still strong.
Estimates from the Nutrition Business Journal show that sales of natural, organic, and functional food and beverage products increased 6.6% to $199 billion in 2018.
Carlotta Mast, senior vice president and market leader at New Hope Network, stated, “We are a sizable, impactful, meaningful industry,” during a presentation on March 8 at Natural Products Expo West in Anaheim. “We are no longer a fad… We are highly commonplace.
Despite the fact that inflation has hindered the growth of the natural products market in the last year, Ms. Mast said that overall sales volume is still higher than pre-pandemic estimates, pointing out that the industry has been bolstered by shifting consumer demands that have encouraged healthy behaviors in the wake of the epidemic.
“During the pandemic, we experienced a significant boost, and we anticipate that the benefits of that boost will last for a very long time,” she stated.
Carbonated drinks, dairy substitutes, sweeteners, infant supplies, and dry and canned soup are among the top growing categories.
According to Ms. Mast, the gut-healthy sodas that have been introduced to the market are quickly rising to the top of the best food and beverage categories in terms of sales.
Chief of staff at market research firm SPINS, Kathryn Peters, said that while consumers looked for nutrient-dense yet reasonably priced pantry staples, sales of natural shelf-stable beans and soup mixes increased by double digits, rising by 15% and 21%, respectively, from the previous year.
Sales of organic food and beverages in the US climbed by an estimated 4.6% to $51 billion in the previous year, which is a doubling of sales over the previous ten years. Yogurt, baby formula, candies, dips, and soft drinks were the top growing categories.We anticipate robust, steady growth in the organic sector going forward,” Ms. Mast stated.
Drinks and munchies led to a 5.8% increase in functional food and beverage sales to $87.3 billion in 2022, primarily from soft drinks, frozen desserts, energy and sports drinks, and snack chips. Prebiotics, healthy fats, mushrooms, adaptogens, and electrolytes are some of the best functional components.
Fiber was highlighted by Ms. Peters as a trending quality. According to her, there may be a $12.3 billion market for high-fiber product sales.
Fiber is not a topic we discuss frequently. It’s not the most glamorous ingredient,” she remarked, pointing out that Americans are not getting enough fiber in their diets. “We firmly think that fiber will become increasingly prominent.”
According to Ms. Peters, sales of snacks and drinks made with beneficial mushrooms, such as reishi, lion’s mane, and turkey tail, increased by 29% to $186 million. According to her, popular functional ingredients like cannabis, ashwagandha, and turmeric are dropping in the vitamins and supplements area but increasing in the grocery and refrigerated sectors.
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“Observe the components that are beginning to appear in supplements and consider how you can incorporate them into your own products,” the speaker advised.Concurrently, traditional food and beverage sales in the US increased by 9.3% on average last year, surpassing $800 billion.
According to Ms. Mast, “natural and organic growth really outpaced conventional growth over the last ten years, and that’s not what we saw” in 2022. “From a sales growth perspective, we anticipate that natural and organic food and beverages will once again surpass conventional options as the economy stabilizes.”