The future looks bright for the natural and organic products industry

Walking the crowded aisles at Natural Products Expo West 2024, it was impossible not to feel the optimism. All signs indicate the natural and organic products industry is emerging from the pandemic (and all its aftershocks) with resilience, determination and so much promise—and the numbers are bearing that out. Nutrition Business Journal preliminary market sizing data published in New Hope Network’s State of Natural Report, available now, shows the industry expanding 4.7% in 2023 to hit $302 billion and projects it will grow 5.2% this year to reach $317.3 billion.

Natural and organic products have mainstreamed, the capital markets are coming back to life after higher interest rates quelled investment, and inflation is easing after a couple of rough years. Sure, brands are still feeling some pressure to reduce prices and invest more in promotions, but for the first time in several years, both dollars spent and units sold—not just dollars spent—grew in the first quarter of 2024, according to the report.

Consumers are spending again, and they’re feeling more optimistic about their financial well-being, according to an NBJ survey conducted for the report. Most say they’re the same or better off financially than they were in 2023, and nearly half of Gen Zers and millennials say they’re more financially flush. Gen Z, which is on track to usurp millennials’ buying power by 2031, represents another bright spot for the industry with its proclivity toward conscious consumerism and clean label.

In addition to telling an upbeat story about growth in all aspects of the industry—including food and beverages, supplements and natural living—the State of Natural Report delves into several trends that are shaping the industry this year, including simpler ingredients, holistic health mainstreaming, democratization of global flavors, experiential supplementation and sustainability as table stakes. The report explores how upcycling has expanded from food to beauty products, the nuances of women’s health products and the growing thirst for beverages that enhance mood and well-being.

For more insights on the state of the natural and organic products industry in 2024, purchase the State of Natural Report.