January 22, 2009
‘Natural’ Claims Made for More Products Than Anything Else
By Bernice Hurst, Managing
Partner, Fine Food Network
It sounds so right, and
simple. Most of us try. Doing what comes naturally, that is. A review from
the Mintel Global New Products Database (GNPD),
quoted on just–food.com, showed that
“natural” claims, which included the word itself as well as descriptions
such as no additives/preservatives, organic and wholegrain, appeared on “nearly
one in four (23 percent) of new food and drink products in 2008.”
The nine percent increase
on 2007 figures made them the “most frequently featured on new products
globally.” Following well behind “natural”
claims were products touting “convenience,” 12 percent; and those
with an “ethical and environmental” stance, five percent.
In the UK, products highlighting
natural qualities were even more widely used
“with over one in three (36 percent) new food and drink products highlighting
‘natural’ qualities,” Mintel found. This represents
a 17 percent increase on 2007. Europe reportedly increased by 23 percent.
Meanwhile, products boasting “less,” such
as low-fat, reduced sugar or low-calorie, have been less popular and are
said to be “stagnating globally.”
According to David Jago,
new product expert at Mintel, “convenience” and the
“environment” may be “popular talking points” but they
didn’t receive anywhere near the same level of attention as “natural”
claims. And while low-fat and low-calorie have previously been seen as
“hallmarks of good nutrition and dieting,” that lifestyle now seems
“passé.”
“With economic struggles
driving people toward a simpler way of life,” he reportedly said, “food
and drink manufacturers will continue to prize natural, wholesome benefits
well into 2009.” Mr. Jago also believes
that fortified products are falling out of favor as manufacturers recognize
that consumers seeking “holistic, genuine nutrition they can trust” will
view “natural and pure” as the ideal for healthy eating.
Discussion question:
How strongly are claims such as “natural” or “organic”
still resonating with consumers? As “natural” becomes more prevalent, will
it lose its meaning? Why do you think growth of products with low-fat, reduced
sugar and low-calorie claims is stagnating?
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Really, most shoppers are just trying to find healthier products for their families. Shoppers see many headlines about food safety, contaminants, potential harmful additives and concerns about levels of fat, salt, and sugar. While the economy is driving changes in behavior, many consumers feel better about buying “natural” or organic foods because it suggests fewer artificial ingredients and additives, and will make budget trade-offs based on their understanding and concerns.
LOHAS shoppers will continue to thoughtfully choose organic and certified products because of their research and understanding of sustainable practice. However, most people will respond to natural or organic because it sounds better for you. Some will then take the time to look for short ingredient lists, no artificial additives or colors, and nutritional labels that say product provides nutritional value, not just calories–guides for people taking the time to make better choices.
I tend to believe “natural” is now simply a point of entry description for many items. It places the product in a category which may or may not benefit from the label. The word “organic” is still evolving and currently it justifies a higher price point. It will be interesting to learn how the economy affects the word organic. Also, aside from a few folks, the word organic is misunderstood; ask ten people what it means, and you will get ten different answers.
I don’t believe the growth of healthier products is stagnating. This will have to do more with the manufacturer than the consumer. If the manufacturer caters to its broadest consumer base with healthier products, the consumer will buy it. Conversely, if the aforementioned options are not available to the consumer, the consumer will purchase what is available.
There are two basic “advantages” claimed for all-natural and organic products: 1.) They are healthier for the environment and, 2.) they are healthier for you. Neither claim has been proven in any way, in any report, or in any clinical study. To describe “all-natural” and “organic” as despicable scams would not be too harsh an indictment.
And now comes a report from here in NorCal, where 60% of the nation’s natural and organic produce is grown, that some of our major suppliers have been using non-organic fertilizer.
Surprise! But, I find this part of the scam difficult to criticize if the final outcome is no better or worse than the plebian produce most of us consume, canned or fresh. It simply garners a higher price, which duped consumers are willing to pay at the rate of $24 billion annually. And here’s a “by the way” (BTW for you texters), NorCal HQd Safeway purchases the ingredients for their “O” line of private label organic products right here in their own backyard. Apparently their supplier scrutiny stops before they get to the fertilizer guy.
Despite the lack of evidence of the benefits of most of these items, I think the “organic” and “natural” concepts remain strong. Certainly I’ve seen no slowdown in marketing using these concepts.
To me, the time seems right for “budget organic” to emerge as a concept. Maybe it could be one of Safeway’s private label lines, something Target or even Walmart could push, or something left to Trader Joe’s. It could also emerge from CPG, but I think that would be harder, as organic is often used to price up existing branded items. I don’t think the target is necessarily current buyers of value brands, but rather a mix of better-off value buyers and organic buyers who shop with guilt–i.e., feeling guilty because of paying high price points for organics in this economy and/or feeling guilty for “destroying the planet” (and maybe their own bodies) if they don’t buy organic.
At this point, consumers have become increasingly confused with the natural claims that appear on packaging. Due to the fact that the regulations in place that dictate what can be deemed natural and/or organic continue to be murky, consumers have become somewhat ambivalent with products that make the claims, due to the fact that they are unaware as to what the claims really mean.
If the natural claims are going to continue to drive products, there will need to be a better definition, and better understanding as to what the claim really means from a manufacturing point of view, as well as what it means to the consumer.
With respect to “reduced” or “lower,” again these claims have become watered down. When a consumer is able to purchase “100-calorie” packs of potato chips, that are high in fat and sodium, does the fact that it is fewer calories really mean anything? It tends to be an empty claim.
Consumers are no doubt confused as to what “natural” and “organic” really mean. And, my understanding is that organic products are not sustainable from a global perspective.
In general, manufacturers and retailers have made consumers very skeptical about various claims that have been made on labels and in advertising over the years. For example, I recently saw a claim on a canned product that said it was made with “farm fresh vegetables.” Where do vegetables possibly come from other than a farm? So, in the end, it may come down to the reputation of the brand or manufacturer for the attributes the consumer is looking for.
The organic and natural messages are becoming more confused because the message is being abused by an increasing number of marketers. I recently saw a “natural” toothpaste product sample on a buyer’s desk. The ingredients included Fluoride. Hardly “natural.”
The word “natural” has lost its meaning. It can be applied to every item since everything originates from nature somewhere. The word “organic” means expensive and no immediate benefits.
As long as “natural” isn’t regulated by the government, it’ll have no meaning. So everyone can use the word for any meaning and any reason. It’s a good thing RetailWire is a natural web site. That’s why it’s healthy to read it.
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Really, most shoppers are just trying to find healthier products for their families. Shoppers see many headlines about food safety, contaminants, potential harmful additives and concerns about levels of fat, salt, and sugar. While the economy is driving changes in behavior, many consumers feel better about buying “natural” or organic foods because it suggests fewer artificial ingredients and additives, and will make budget trade-offs based on their understanding and concerns.
LOHAS shoppers will continue to thoughtfully choose organic and certified products because of their research and understanding of sustainable practice. However, most people will respond to natural or organic because it sounds better for you. Some will then take the time to look for short ingredient lists, no artificial additives or colors, and nutritional labels that say product provides nutritional value, not just calories–guides for people taking the time to make better choices.
I tend to believe “natural” is now simply a point of entry description for many items. It places the product in a category which may or may not benefit from the label. The word “organic” is still evolving and currently it justifies a higher price point. It will be interesting to learn how the economy affects the word organic. Also, aside from a few folks, the word organic is misunderstood; ask ten people what it means, and you will get ten different answers.
I don’t believe the growth of healthier products is stagnating. This will have to do more with the manufacturer than the consumer. If the manufacturer caters to its broadest consumer base with healthier products, the consumer will buy it. Conversely, if the aforementioned options are not available to the consumer, the consumer will purchase what is available.
There are two basic “advantages” claimed for all-natural and organic products: 1.) They are healthier for the environment and, 2.) they are healthier for you. Neither claim has been proven in any way, in any report, or in any clinical study. To describe “all-natural” and “organic” as despicable scams would not be too harsh an indictment.
And now comes a report from here in NorCal, where 60% of the nation’s natural and organic produce is grown, that some of our major suppliers have been using non-organic fertilizer.
Surprise! But, I find this part of the scam difficult to criticize if the final outcome is no better or worse than the plebian produce most of us consume, canned or fresh. It simply garners a higher price, which duped consumers are willing to pay at the rate of $24 billion annually. And here’s a “by the way” (BTW for you texters), NorCal HQd Safeway purchases the ingredients for their “O” line of private label organic products right here in their own backyard. Apparently their supplier scrutiny stops before they get to the fertilizer guy.
Despite the lack of evidence of the benefits of most of these items, I think the “organic” and “natural” concepts remain strong. Certainly I’ve seen no slowdown in marketing using these concepts.
To me, the time seems right for “budget organic” to emerge as a concept. Maybe it could be one of Safeway’s private label lines, something Target or even Walmart could push, or something left to Trader Joe’s. It could also emerge from CPG, but I think that would be harder, as organic is often used to price up existing branded items. I don’t think the target is necessarily current buyers of value brands, but rather a mix of better-off value buyers and organic buyers who shop with guilt–i.e., feeling guilty because of paying high price points for organics in this economy and/or feeling guilty for “destroying the planet” (and maybe their own bodies) if they don’t buy organic.
At this point, consumers have become increasingly confused with the natural claims that appear on packaging. Due to the fact that the regulations in place that dictate what can be deemed natural and/or organic continue to be murky, consumers have become somewhat ambivalent with products that make the claims, due to the fact that they are unaware as to what the claims really mean.
If the natural claims are going to continue to drive products, there will need to be a better definition, and better understanding as to what the claim really means from a manufacturing point of view, as well as what it means to the consumer.
With respect to “reduced” or “lower,” again these claims have become watered down. When a consumer is able to purchase “100-calorie” packs of potato chips, that are high in fat and sodium, does the fact that it is fewer calories really mean anything? It tends to be an empty claim.
Consumers are no doubt confused as to what “natural” and “organic” really mean. And, my understanding is that organic products are not sustainable from a global perspective.
In general, manufacturers and retailers have made consumers very skeptical about various claims that have been made on labels and in advertising over the years. For example, I recently saw a claim on a canned product that said it was made with “farm fresh vegetables.” Where do vegetables possibly come from other than a farm? So, in the end, it may come down to the reputation of the brand or manufacturer for the attributes the consumer is looking for.
The organic and natural messages are becoming more confused because the message is being abused by an increasing number of marketers. I recently saw a “natural” toothpaste product sample on a buyer’s desk. The ingredients included Fluoride. Hardly “natural.”
The word “natural” has lost its meaning. It can be applied to every item since everything originates from nature somewhere. The word “organic” means expensive and no immediate benefits.
As long as “natural” isn’t regulated by the government, it’ll have no meaning. So everyone can use the word for any meaning and any reason. It’s a good thing RetailWire is a natural web site. That’s why it’s healthy to read it.