Steve Ramsey, EVP and GM, Strategic Accounts, IRI, gave this overview in the press release: “Dollar sales for natural products continue to grow over one year ago, as much as an astounding 78% in the middle of March during consumers’ initial stock-up period and continuing in the high teens at present. Given that natural products represent more than 8% of total store sales year-to-date and are outpacing sales of conventional products, there are significant opportunities for manufacturers and retailers alike to show support for consumers.”
Kathryn Peters, EVP at SPINS, added: “We continue to see an ongoing shift in shopper thinking when selecting from natural and conventional products. As the pandemic dominates the news and the focus remains on health and well-being, natural products will continue to outperform other products as consumers continue to invest in better-for-you items to eat, use on their bodies, and to maintain their homes.”
Other key findings the press release points out:
- Natural product shoppers are not abandoning this focus during COVID-19; they are doubling down, carefully studying label claims and certifications. They are also beginning to focus on e-commerce, particularly in the post-stock-up period.
- New customers are coming to the natural product marketplace, due to concerns surrounding COVID-19. This provides an opportunity for manufacturers and retailers to create loyalty with new shoppers, as well as reinforce their commitment to existing ones. One opportunity noted: “True Believers” and “Enlightened Environmentalists” represent 22% of total shoppers, but 44% of natural product sales.
Related: IRI Launches CPG Inflation Tracker, COVID-19 Resource SPINS, Mercato Partner to Launch Attribute-Powered Online Grocery E-Commerce Solution New Online Store Solution Available for Independent Retailers
IRI and SPINS predict that shoppers will adapt strategies that include looking for sale items, larger package sizes, private-label options, and others that will help them handle heightened costs due to plant closures. This is already bearing out—the release says that sales of private label supplements jumped 1,286% compared to a year ago, and as compared to 41% total category growth. Sales of private-label household cleaners and supplies grew 120% compared to 37% total category growth.Three core strategies IRI and SPINS recommend in the press release:
- Reinforce commitment to current shoppers by better understanding their engagement with natural foods, and design strategies to maintain their loyalty and increase share of basket.
- Identify potential new buyers, gain a deep understanding of their behaviors, build conversion strategies and actively engage them through targeted marketing.
- Continuously refine a fluid channel strategy to reflect changing circumstances that target both brick-and-mortar stores and the growing importance of e-commerce.
