ORGANIC VERSUS NATURAL:
THE BALANCE OF PRICE
Written by: The Natural Marketing Institute
The Natural Marketing Institute (NMI), the leading provider of strategic consulting, consumer insightsand market research services for the health, wellness and sustainability marketplace, today expanded on one of the key trends ithas identified as having a significant impact in 2006.
While the marketplace is experiencing many new organic introductions from mainstream brands as well as private label brands,finding the balance of price and benefits will be the determining factor in consumer choice between natural and organic products.
According to NMI President Maryellen Molyneaux, “American household penetration of organic products is currently at 56% ofhouseholds and is projected to grow from $13 billion in 2005 to $20 billion in 2009. There were approximately 500 new organicproducts introduced into the marketplace over the past year. In order to succeed, marketers will need to understand the trade-offsconsumer make in their purchase decisions of natural versus organic.”
As evidenced in data from NMI’s Health & Wellness Trends Database™, consumers are more likely to desire the benefits oforganically grown foods and beverages (such as “contains no chemical pesticides”), than they are to make the connection betweenthose benefits and the classification “organically grown.”
The data also indicates that there is a clear need for continued consumer education in the marketplace. Finding the optimal balanceof price, benefits, branding and levels of understanding will be the determining factor in consumer choice between natural and organicproducts --- and will provide the edge over conventional products. “With consumers showing an 88% increase from 2002 to 2005 intheir willingness to pay a premium price for organic foods and beverages, converting understanding of the features of organic shouldtranslate into increased sales and continued double-digit market growth,” states Molyneaux.
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