The overall natural-products market grew more than 9% to $137 billion in 2012, compared to the conventional grocery market whose growth has been under 4% for the last few years, according to "NEXT: The Natural Products Industry Forecast 2014," recently released by New Hope Natural Media, a division of Penton, and Sterling-Rice Group.
The report is especially pertinent to the beauty industry as the natural-beauty products category continues to grow, requiring ever-expanding space on beauty retailers' shelves. In the report, beauty retailers and businesses in general will gain greater insight into the trends, brands, products, people and sales shaping the future of the natural-products industry and compelling consumers to make healthy behavior changes.
The NEXT Forecast also provides current sales and growth figures for all major nutrition categories with projections all the way out to 2018, while discussing trends in beauty, food, design, supplements and natural living. Essentially, the report serves as a guide to where the natural, organic and healthy products market is now and where it's headed.
“The NEXT Forecast represents the future of the natural-products market," says Carlotta Mast, its chief author. "The report 'future casts' products with ingredients, benefits, branding, packaging and missions that align with the trajectory of the industry—and is bolstered by robust data and insights.”
Five of the top industry trends in the NEXT Forecast are:
- Natural, effective personal care: Natural personal care, a $10-billion market, has suffered from the perception that its products just don’t work. Until now, thanks to advances in green chemistry, progressive personal-care companies have been busying themselves creating natural products that work just as well as—if not better than—conventional products.
- Courting millennials: This generation of consumers between the ages of 18 and 32—typified as independent, educated, skeptical and frustratingly fickle—has become the next great spending force in the United States. By 2020, millennials are expected to amplify grocery spending by $50 billion.
- Personalization: As the balance of power between consumer and corporate interests realigns itself, products will have to meet consumers closer to where they live to resonate in the years to come. Everything from food to nutrition to healthcare is becoming more tailored.
- Transparency 2.0: After food-safety scares and troubling discoveries related to industrialized food production, consumers want to know exactly what's in their food, how it was sourced and who made it. Through messaging, honest labeling, storytelling and more, standout companies are getting creative with their approaches to transparency, taking consumers closer to the source.
- Performance goes natural: Sports nutrition remains one of the fastest-growing categories in supplements, and is expected to grow at an average annual rate of 10% through 2015. As non-endemic consumers buy in, and as doping scandals continue to pop up, a shift toward cleaner, third-party certified, natural-supplement products will continue to gather steam.
Tomorrow’s yesterday is the type of world that companies will spend millions of dollars and millions of man-hours trying to decipher. No easy answers exist to the many questions now facing businesses that are providing natural offerings. The NEXT Forecast was designed to help businesses navigate this complex and shifting terrain, also providing for a deep understanding of how the health-and-wellness movement is evolving.
"NEXT: The Natural Products Industry Forecast 2014" is divided into three product-focused sections: natural, organic and functional foods and beverages; dietary supplements and nutritional ingredients; and natural beauty, pet and household products.
It also features an executive summary that reveals the 10 macro forces influencing the natural-products market and a branding chapter that looks at how cultural and societal trends have changed the world of food and how these shifts are evident in packaging design and branding.
A full copy of the report is $1,995.
In addition, the 2014 NEXTY Editor’s Choice Awards have been bestowed upon leaders and innovators in the natural, organic and healthy living market across food, beverage, supplement and healthy living categories. The awardees are considered industry provocateurs that are helping to shape the landscape of the natural-products world.
Winners included beauty/personal-care supplier W.S. Badger Co. for the Natural Living category. W.S. Badger Co. was awarded for its focus on safety, efficacy and organic ingredients. For various products, the brand has obtained USDA Organic, NPA Natural and NSF/ANSI 305 "contains organic ingredients" certifications, NPA and NSF seals.
[Image courtesy of "NEXT: The Natural Products Industry Forecast 2014"]