Rising Popularity of Organic and Natural Products
Despite inflation, consumers are increasingly drawn to organic and natural products, showing a strong commitment to spending their hard-earned money on these items. According to the Organic Trade Association (OTA) based in Washington, D.C., U.S. sales of organic products reached $69.7 billion in 2023, a 3.4% increase, as reported in the 2024 Organic Market Survey.
Organic Market Growth
“It’s encouraging to see that organic is growing at nearly the same rate as the overall market,” said Tom Chapman, co-CEO of OTA, in a statement during the survey’s release. “Even with inflation and organic products being considered a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases. While organic is now a growing market, we still have plenty of room to expand.”
Top Organic Product Categories
The top three product categories in the organic market were produce, grocery items, and beverages. In a May press release, the OTA reported that organic beverage sales reached $9.4 billion in 2023, marking a 3.9% increase.
“As always, this category was a driver of innovation, with functional beverages, whether for enhanced hydration or mental focus, playing a significant role,” the OTA’s release stated. “2023 also saw a rise in new organic non-alcoholic beverages and mocktails. On the other hand, organic wine sales were up 2.5% to $377 million, while organic spirits and cocktails, still the smallest segment of beverages at $59 million, posted over 13% growth.”
Consumer Trends and Sustainable Products
In the face of inflation and organic products being viewed as a premium category, the current growth reflects that consumers continue to choose organic amidst economic challenges and price increases. Given the ongoing interest in organic products, retailers like Fresh Thyme, Whole Foods, Sprouts, and Trader Joe’s are closely monitoring key consumer insights about products associated with being better-for-you and contributing to overall health and well-being.
An October 2023 article titled “Top 10 Food Trends for 2024,” from Downers Grove, Ill.-based Fresh Thyme, shared insights on anticipated trends for this year. Focusing on Midwest shopping behaviors and brands, the Fresh Thyme article provides 10 food and beverage insights that are influencing organic and natural retailers.
Sustainability Solutions on the Rise
One of the trends Fresh Thyme highlights is sustainability solutions. “There are many ways to care for the planet, and consumers are emphasizing several of them in their sustainable shopping habits,” the article states. “Certified upcycled products and certified regenerative organic products are on the rise.”
Fresh Thyme notes that reef-safe products are among those gaining popularity. Some sustainable products listed by the company include Ancient Nutrition’s Multi Collagen Protein Powder and Organic Supergreens, along with Base Culture Coffee Columbia Whole Bean Coffee.
Retailers Embrace Sustainable Practices
In an April blog titled “The State of Natural and Organic: 4 Macrotrends to Know,” Spins also notes sustainability’s impact but adds that consumers still need guidance on the range of options and definitions. It also emphasized the importance of supporting sustainable practices from retailers through the products they carry.
“Some retailers are attracting consumers with their own sustainable practices and commitments,” the blog stated. “From demands for pesticide avoidance to simply carrying organic or fair/direct trade coffees, these retailers are giving consumers a reason to choose their stores and shop with confidence.”
Supporting Local and Diverse Brands
Brands and products that are local and diverse are also favored among consumers, according to Fresh Thyme. “Fresh Thyme is committed to supporting its local communities, and each Fresh Thyme location carries Midwest-founded brands along with brands with underrepresented owners to ensure diversity in its offerings and foster an inclusive shopping experience,” it states. “Many of these partner brands are associated with U.S. Veteran-Owned Business, National Gay & Lesbian Chamber of Commerce (NGLCC), Women’s Business Enterprise National Council (WBENC), and National Minority Supplier Development Council (NMSDC).”
Products the company lists as examples of both local and diverse brands include Cameron’s Coffee Vanilla Hazelnut Ground Coffee and Cameron’s Jamaica Blend Medium Roast Ground Coffee.
The Shift Toward Alternative Proteins
Fresh Thyme also identifies a trend called “protein shifting.” “Consumers are seeking new and unique alternative protein sources to support their fitness regimen,” it states. “Plant-based protein powders like pea protein and beet protein have both become popular among consumers looking for plant-based products.”
The company names brands like Truvani, Orgain, and Sunwarrior as “leading the charge” in the market with their flavor-forward, plant-based protein products.
Functional Beverages Influence Consumer Choices
Functional beverage trends are also influencing consumer choices, Fresh Thyme revealed. “Last year, consumers showed increasing interest in non-alcoholic beverages,” according to Fresh Thyme. “This year, it’s all about beverages with added benefits. Whether immunity-boosting, mood-enhancing, or simply better-for-you ingredients, consumers are craving drinks that taste great and make them feel good too.”
Whole Foods also provides insights into consumer trends and anticipated trends. The Spins blog also highlights the impact of functional beverages as part of the Longevity to Healthspan macro trend. With this trend, the market research firm notes that healthspan puts the power in consumers’ hands and considers how they want to feel in their golden years, with nutrition being a key focus. This is being approached with the food as medicine concept.
The Rise of Mushroom-Based Products
“Nothing embodies this mindset better than functional beverages, which are drinks containing added functional ingredients to relieve stress, aid mindfulness, and create alcohol alternatives for social connection,” the blog states. “As a result, non-alcoholic beer sales are up 28.5% despite the overall beer category being down 0.6%.”
In line with the food as medicine concept, Fresh Thyme points to “mushroom mania” as trending in the food and beverage market. “While traditional varieties of mushrooms have remained popular among consumers, consumers are also seeking exotic and gourmet mushroom varieties in new forms,” Fresh Thyme states in the article. “Mushrooms’ nutritional value and ability to fit a variety of diets, particularly the ingredient of mushroom root, have seen the fungi being featured in coffee, capsules, and more.”
Additionally, products like Buddha Teas Turmeric Ginger Tea, Journey Elixir Strawberry Watermelon Sparkling Beverage, and Host Defense Mushrooms Mycobrew Coffee align with this “mushroom mania” trend, the company notes.
Whole Foods Market’s 2024 Food Trends
In a similar article published by Austin, Texas-based Whole Foods Market, titled “The Next Big Things: Our Top 10 Food Trends for 2024,” the company examines what’s resonating with consumers this year. Whole Foods’ expert Trends Council selected these trends based on Whole Foods consumers, it notes.
The first trend Whole Foods lists is putting “the ‘plant’ back in ‘plant-based,'” noting how labels are simplifying in the plant-based category. “We are seeing new and emerging protein-forward products with mushrooms, walnuts, tempeh, and legumes instead of complex meat alternatives,” the article states. “Even plant-based dairy alternatives are getting in on the action, with some brands simplifying labels to just two ingredients—perfect for the vegan purist.”
Similar to Fresh Thyme’s take on functional beverages, Whole Foods anticipates that its consumers will be looking for “a better buzz” from caffeinated beverages. “Adding a boost with benefits has never been easier, thanks to new coffee and energy drinks with added mushrooms, probiotics, and more,” the company states. “There’s never been a better time to explore the ‘clean caffeine’ space for your next obsession.”
Education and Awareness Still Needed
Although retailers in the organic and natural market are keeping an eye on the trends influencing consumers, experts note that more education is still needed to maintain positive performance.
“It’s crucial to educate consumers that choosing organic is an easy way to address some of the biggest challenges we face,” said Matthew Dillon, co-CEO of OTA, in a statement in May. “Whether it’s accessing healthy food, increasing transparency in supply chains, mitigating climate change, supporting rural economic stability, protecting natural resources, or exploring the multitude of other benefits, effectively communicating and delivering on these promises is key to growing organic’s share of our dinner plate.”