From The Spring 2005 Issue of Natural Grocery Buyer

Statshots

Expo West by the numbers
Taking place March 17 to 20 at the Anaheim Convention Center in Anaheim, Calif., Natural Products Expo West is the biggest show of its kind in the United States, and it just keeps getting bigger.

• A record 2,500 exhibitors and 36,000 attendees from 86 countries attended Expo West in 2004.
• Natural Products Expo West covers more than half a million square feet of exhibit space in the Anaheim Convention Center.
• In 2004, Expo West visitors took up 15,450 hotel rooms, effectively booking the entire city of Anaheim.
• The Center’s ballroom is one of the largest available anywhere, with 38,058 square feet.
• Thousands of products will be introduced at this year’s show. In the New Products Showcase, more than 650 companies will be highlighted.
• Attendees can search exhibiting companies in more than 275 product categories with the online Expo Planner at www.expowest.com.
• Pounds of product collected and donated to the Second Harvest Food Bank in 2004: 30,000.

—T.W.

Snack facts

• In an online survey for USA Today, nearly 37 percent of respondents said they would buy an organic version of their favorite snack if it provided nutritional benefits.
• The snack-food category was the second fastest growing segment in 2003, up 29.6 percent over the previous year.
• Medical studies continue to link trans fatty acids from hydrogenated and partially hydrogenated fats, often found in snack foods, to such conditions as heart disease, cancer and diabetes.
• Some conventional manufacturers are removing trans fats from their products, while others are developing products with organic ingredients.

Source: Organic Trade Association

Health and wellness are big business
Last year, retail sales in the consumer packaged goods health and wellness industry reached $68 billion. Since 2001:

• Sales of functional and fortified foods and beverages rose 8.3 percent;
• Sales of vitamin, mineral, herbal and dietary supplements rose 3.6 percent;
• Sales of natural foods and beverages rose 5.6 percent;
• Sales of organic foods and beverages rose 12.8 percent;
• Sales of personal care products rose 18.6 percent
• Total sales growth: 7.6 percent.

Source: The Natural Marketing Institute’s Health and Wellness Trends Database

Aging Americans eat at home
Older Americans are spending proportionately more on food that they consume at home.

• Those between the ages of 65 and 74 allocate 8.9 percent of their expenditures to food at home, while those ages 75 and over allocate 9.2 percent. The U.S. population at large allocates around 7.6 percent.
• Spending in the 55 and over age group totals more than $101 billion annually.
• The aging U.S. population is 64 million strong and has $2.4 trillion in spending power.

Source: Packaged Facts

Product introductions increase in ’04

• More than 150,000 new products were introduced worldwide in 2004, up more than 30 percent from 2003.
• Products with health and wellness positioning continue to be a major force in new product trends.
• While the mainstay trends within health and wellness continue—low-fat, low-calorie, vitamin-fortified—one new trend is toward products that offer specific functional benefits or are geared to consumers with specific health concerns.
• The low-carb trend is on the decline; the number of low-carb products introduced in 2004 began to slow down at the end of the year.
• Globally, new food and beverage products totaled 81,000 in 2004, while nonfood introductions reached 68,000.
• Categories with the greatest growth included bakery, beverages, dairy products, snacks, cosmetics, hair care and skin care.
• U.S. new product introductions increased 45 percent in 2004, with food categories experiencing 20 percent growth.

Source: Mintel’s Global New Products Database

Pet products barking up the right tree

• Sales of natural pet-health products, such as grooming products, cat litter and supplements, totaled an estimated $45 million in 2004, reflecting a 30 percent compound annual growth rate from 2000 to 2004. Forecasts predict 20 percent annual growth during the next five years.
• Organic pet food sales skyrocketed in 2004, to an estimated $21 million, reflecting 59 percent compound annual growth between 2000 and 2004, with double-digit annual growth expected to continue during the next five years.
• Both natural and organic pet-product introductions will be strong again in 2005, and products segmented by animal breed, life stage, weight and so on will proliferate in this niche much earlier than they have in the market overall.
• Healthy growth is projected in sales of natural pet food through 2009, when sales are expected to reach $754 million. During this period, mass-market outlets will gain a better foothold in the naturals segment, although most of the activity will continue to be driven by new product launches in pet specialty stores, and by ramped-up activity in natural foods stores.

Source: Packaged Facts

Americans going natural in 2005

• While 41 percent of meat-eating Americans say they still find vegetarian products “too weird,” 44 percent include meatless products in their daily diets because they know how healthy vegetarian food is for them.
• More than six in 10 Americans are looking past labels and fad diets in the New Year and resolving to eat more natural foods as a part of a sensible diet.
• Fourteen percent of Americans usually follow a vegetarian diet, but occasionally eat fish or meat.
• One in four Americans says they’re looking to eat less meat in 2005. Of these, 38 percent say they are reducing the amount of meat because they were on a high-protein/low-carb diet and want more balance for 2005.

Source: Opinion Research