“Natural” Beats “Organic” in Food Sales According to Nielsen’s Healthy Eating Report

January 21, 2009

Americans are increasingly turning to foods and beverages that promote healthy living.  But just how much do these foods generate in sales? And which categories have shown the most growth?  Nielsen’s Healthy Eating Report for 2008 answers these and many other questions about food and beverage health and wellness claims.

Highlights of the report include:

  • Food labeled as “natural” generated $22.3 billion in sales in 2008, up 10% from 2007, and up 37% from 2004
  • Organic foods (UPC-coded) accounted for $4.9 billion in sales, up 16% from the year before, and up 132% since 2004
  • Foods that tout antioxidants produced $1.9 billion in sales, up 11% in 2008 and up 147% since 2004
  • Foods that are targeted to those who are “carb conscious” saw sales decline 3% in 2008 to $2 billion, and declined 31% since 2004
  • Hormone/Antibiotic-free foods saw sales grow 11% in 2008 to $2.4 billion, an increase of 66% since 2004
  • Caffeine content seems to be less of a concern: sales of beverages labeled “caffeine free” declined 3% in 2008, and 5% since 2004

“Although much is written about organics, products labeled “natural” generate much higher sales.  In fact, sales of products labeled “organic” leveled off significantly in 2008 after four years of solid growth,” said Tom Pirovano, Director of Industry Insight at Nielsen. “Looking at the year ahead, it will be interesting to see how the economic downturn affects sales of foods and beverages that are primarily described as organic, which, for many consumers, have a reputation for being more expensive than other foods.”

When looking at specific types of food, Nielsen found several interesting facts, including:

  • Milk represents 25% of all “fat free” sales although fat-free milk only makes up 18% of milk sales
  • Cheese labeled “natural” represents 69% of all cheese sales and 32% of all “natural” food and beverage sales
  • 38% of snack foods are described as saturated or trans fat-free
  • Beer labeled as “reduced calorie” accounts for half of all beer sales and 41% of sales of food and beverages labeled as such
  • 54% of all cereals are labeled as “whole grain” and cereals make up 40% of all foods described as such

Nielsen’s LabelTrends service tracks health and wellness claims for nearly every food product that passes through U.S. cash registers, including 55,000 items labeled “natural” and 21,000 items labeled “preservative-free.”

For press inquiries or for more information on this article contact Nielsen
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  • Charles Snellings

    I noticed the article photo was showing the produce section, but it was not clear from the article if these stats include anything from the produce section. How does organic play in the produce section?

  • foodandart

    W00t!

    Guess my insistence on only buying **LOCAL** organic milk is part of a trend that has paid off in SPADES in New England!

    Now if only the rest of the country would get as enlightened.

    http://lancasterfarming.com/node/1700

    Deb.

  • http://www.vivavitality.ca/ Rhonda Olsen

    I’m wondering…what is the difference between “natural” and “organic”?

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  • http://www.timforrest.com Tim Forrest

    Retail buyers lately appear more interested in the benefits provided with clean labels and all natural claims as compared to the certified and detailed requirements of Organic certifications.
    They get their marching orders from the unit movement and sales. Organic currently has a stigma of being much too expensive with little to no benefit over all natural quality food products for the individual consumer.
    My guess is the lack of deep competition in many organic areas has buyers pushing the all natural product format.

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