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Natural and Organic Products Industry Sales Near $91 Billion

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  • The natural and organic products industry remains healthy, posting 10 percent growth

    Natural Foods Merchandiser magazine's 2012 Market Overview reports healthy growth for the natural and organic products industry.  With nearly $91 billion in total revenue last year, the industry grew 10 percent over 2010, showing that consumers are filling their carts with natural products and that the industry is healthy and growing.

    Natural Foods Merchandiser's 2012 Market Overview is a comprehensive report detailing sales results for the natural and organic products industry. In addition to overall spending figures, the Market Overview also reports product segment sales, average sales per store and overall business statistics for natural products retailers.

    Market research found that several categories experienced double-digit growth. Produce and meat, for example, grew 12 percent and 10 percent respectively over the previous year. "Double digit growth in 2011 is impressive," said Carlotta Mast, Editor-in-Chief of Natural Foods Merchandiser magazine. "These numbers demonstrate that shoppers are returning and continuing to shop natural products stores for everyday groceries," she said.

    Organic Food Trends Growing - Focusing on Affordability

    In a recent interview with the TABS Group, I found out that Organic Foods Are Growing as a Lifestyle Choice.

    Dr Kurt Jetta of the TABS Group told me that for the last 4 years the hype was Organic is growing but retail buyers are telling TABS that in the past, the "Organic" sections were not moving. 2011 seemed to be a turning point... Organic is finally turning around. Kurt says "the one area that answers why Organic is moving up is the price gap is narrowing". I notice that the price gap shrinks measurably when Organic is on sale and that is a strong motivator or reason to buy for the consumer.

    Not sure of this? Just visit your local Whole Foods and notice the plethora of "sale" point of sale shelf talkers are sprouting around the store.  The trend may continue with as Walmart rolls out their Front of Package Labeling effort in healthier food options and Walmart is the supply chain expert in bringing prices to an affordable level.

    Whole Foods Dominates Natural

    The $37 billion natural products retail channel is broken down into product category and region, and includes eight store categories plus the biggest chains--Whole Foods Market ($10.2 billion in sales), GNC ($1.4 billion in sales at store-owned and franchise locations), Vitamin World (owned by NBTY; $220 million in sales), Vitamin Shoppe ($758 million in sales)--and other specialty retailers (specialty/gourmet shops, personal care stores, health clubs, co-ops, herb shops, mall stands, etc., totaling $1.7 billion).


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