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With never-ending focus on e-commerce, understand the data behind the retail channels with far larger market share. This is the latest installment of our twice-monthly data discussion from Nutrition Business Journal’s senior analyst.

Claire Morton, Senior Industry Analyst

April 13, 2018

1 Min Read
The Analyst’s Take: Omnichannel dynamics in natural products industry

With all the buzz around e-commerce, it is easy to envision a doomsday when brick and mortar retail is nonexistent. However, the numbers show that this is not the future in store for the natural and organic products industry.

While internet sales are growing twice as fast as the industry as a whole, at 12.6 percent, the channel only makes up 4 percent of the industry. When you exclude supplements and narrow it down to just the natural, organic and functional food and beverage market, this share shrinks to 2 percent. With growth rates like this, e-commerce is sure to play a larger role in the future of natural products, but at a combined 86 percent market share, brick and mortar still accounts for the bulk of sales.

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Retail is changing, and changing rapidly. But change will not be marked as a move from the old model to the new. Instead, a blurring of the lines will continue to unfold as brands and retailers provide consumers with the products and experiences they seek. Learn how retail is changing and how it will affect the emerging and established brands, retailers and consumers in Nutrition Business Journal's Retail Issue.

About the Author(s)

Claire Morton

Senior Industry Analyst, New Hope Network

Claire Morton is the senior industry analyst for New Hope Network’s Nutrition Business Journal. She manages NBJ’s data and insights to inform the industry on market trends and forecasts in natural and organic food and beverage, functional food and beverage, dietary supplements and personal care.

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