‘Natural’ food trends with Nicola Banville – Stateside NY.

Monday 25th June 2018
Natural Food
‘Natural’ is a trend that’s here to stay. What’s shifting is where consumers are buying their ‘Natural’ products. (Progressive Grocer, 2018).

The US - typically a brand-focused market - has started to see growth in natural and organic private label products in recent years. In particular, a growth in confidence in private label dairy products is apparent amongst US consumers.

In recent years, mainstream or ‘conventional’ retailers have been muscling in on natural food retailers’ share of natural and organic sales. They have achieved this by not only adding more natural products to their shelves but also by keeping prices low and advertising aggressively. One way to keep prices low on natural products is through store brands such as Kroger’s ‘Simple Truth’ and Albertson’s ‘Wild Harvest’.

Milk powder products rank highest for consumer confidence in private label dairy products with natural hard cheese, dairy drinks and butter also looked upon favourably by US consumers. (FMCG Gurus, 2017)
Retailers’ continued investment in private label dairy portfolios, as well as consumers’ willingness to try new brands, has led to increased sales in own-label brands. This growth will have a lasting impact on brand loyalty in the future.

Going forward, both branded and non-branded dairy industry players will need to look for ways to genuinely differentiate their products to help capture consumer attention in this increasingly competitive market.

The 2018 Whole Health Survey conducted by Supermarket News has revealed the top 5 Wellness trends amongst US retailers and wholesalers as:
1. Organic
2. Natural/Organic Private Label
3. Plant Based Options
4. Clean Label
5. Non-GMO

This represents a huge opportunity for companies who can deliver on any combination of these criteria. 81% of respondents claimed that their natural/organic/green - private label sales increased over the past year, further illustrating consumer confidence in store brands.