State of growth: SPINS report on natural industry to be featured by Naturally Chicago
This piece is part of the Good Food Insights series—a collaboration with FamilyFarmed’s Good Food Accelerator and Naturally Chicago programs, Esca Bona, and SPINS—that unpacks the dynamics driving the good food movement.
If you had to boil down SPINS’ data-rich State of the Natural Industry report to one takeaway, it is this: The 5% sales growth rate for natural food and beverages over the year ending May 19, 2019, was nearly three times greater than for the overall food and beverage industry—continuing a now-longstanding trend.
“Natural products have been outpacing their conventional counterparts for some time in terms of dollar growth,” said Jessica Hochman, SPINS senior manager of natural insights and innovation research and the lead author of the State of the Natural Industry report in a webinar that accompanied the release of the study.
SPINS’ groundbreaking analysis is getting quite an airing. It was featured at New Hope Network’s Natural Products Expo East in Baltimore on Sept. 12 in a presentation by Andrew Henkel, SPINS senior vice president of brand growth solutions.
It will also be highlighted at Naturally Chicago’s Quarterly Keynote Event Oct. 7, this time with Anu Goel, SPINS president of client growth solutions, taking the lead. Brandon Barnholt, CEO of KeHE Distributors, will headline the event. For more information and tickets, please visit the Naturally Chicago Events site.
As the leading provider of data and insights for the natural, organic and specialty products industry since 1996, SPINS—a partner in this Good Food Insights with New Hope Network and FamilyFarmed—is well positioned to paint the landscape of the national market.
“Our cross-channel data has given us a front-row seat to the evolution of the trends and brands driving this industry forward, and our product intelligence has allowed us to pinpoint and anticipate the key factors driving consumer behavior at shelf, including emerging consumer ways of eating and brand positioning, providing insight along the way into where the industry was going,” wrote SPINS CEO Tony Olson in the introduction to the State of the Natural Industry report.
Here are some of the key topline findings by SPINS (the Naturally Chicago event will present a much deeper dive into market details).
● SPINS reports that natural food and beverage product sales amounted to $47.2 billion over the one-year period.
● There is much room for growth: The above figure amounted to 10.5% of the overall $448.2 billion overall food and beverage market. But … natural products accounted for 29.3% of all food and beverage industry sales growth.
● Good Food Insights examined consumers’ rising demands for convenience in their food and beverage purchases in an article on “fresh snacking” published in August 2018. Already a major factor in the product mix in both natural and MULO grocery sales, this trend is beginning to have an impact in the convenience store channel. While SPINS’ research found natural products amounted to just 4.6% of total convenience store sales, that constituted a whopping 12.6% growth rate.
The SPINS report also referenced data that was reported in two other Good Food Insights articles.