Now that we’re in the second half of 2022, many people are settled into a hybrid working world and have established new habits. The natural industry is less in flux than it was this time last year, but it is still evolving — and will continue to do so. To understand the state of the natural industry right now so you can plan ahead, we looked at cross-channel data from IRI and SPINS.

Natural and Specialty Products Are in Demand

Looking at a 52-week period, data shows that natural and specialty products are driving sustained market growth and innovation. Obviously, conventional products are the bulk of CPG sales (making up 75% of dollar volume), but 63% of share of dollar growth comes from the health and wellness products that natural customers want. This pattern repeats throughout the store, as natural products are:

• 24% of grocery sales, but 76% of growth
• 17% of frozen sales, but 61% of growth
• 14% of body care, but 28% of growth

Natural Shoppers Are Adopting Online Shopping

Shoppers’ quick adoption of online grocery shopping in the spring of 2020 was a logical option during quarantine, but its continued popularity proves that it’s now common practice in many households — especially among natural shoppers. Make no mistake: Brick-and-mortar sales still dominate, but online shopping is holding its own. According to SPINS data, 5% of shoppers for all products bought online, while the natural shoppers nearly doubled that rate at 9.1%.

Conscious Consumption Is Driving Trends

The pursuit of wellness goes beyond common goals like weight management or muscle growth and extends to overall wellness for the planet, animals and mental health. That’s why shoppers are looking at a variety of information before choosing a product and ensuring it aligns with their priorities.

• Plant-based items continue to grow in popularity as their audience expands. You can find plant-based options for almost any grocery item, and even non-plant-based shoppers are giving them a try. Shoppers spent $6 billion on plant-based products over the last year; 6% of plant-based products are sold within the natural grocery channel; and 94% of plant-based products are sold within the conventional channel.

• Sustainability concerns are causing shoppers to pay attention to how ingredients are sourced, how livestock is raised, and what kind of packaging is used. Within frozen and refrigerated meat, poultry, seafood and frozen prepared meat, we’ve seen a 6% increase in sales for items labeled with animal welfare and an 8% increase for items labeled non-GMO.

• Responsible business practices attract shoppers who want to spend their dollars with businesses that care about the effects they’re having on the community around them. Companies that earn a Certified B Corporation label have met standards for social and environmental performance, their impact on workers and customers, and public transparency. Within the SPINS data, 1.6% of products in the past year were B Corp Certified and there has been a 3.5% increase in B Corp Certified product sales, as well as a 3% increase specifically across natural and organic product sales.

Listen to Customer Priorities

Today’s wellness goals might look a bit different than they did two years ago, and they will probably look different two years from now. What stays constant is the natural shopper’s desire to choose products that fit their needs. Continue to provide shoppers with the natural products they are seeking, omnichannel options for purchasing, and an inventory that appeals to the conscious consumer. Customers want a shopping experience that puts their needs first, even as they evolve.