Organic Food and Beverages - US - August 2004

Contents

INTRODUCTION AND ABBREVIATIONS

• Introduction
• Other relevant reports
• Definition
• Abbreviations & terms
• Abbreviations
• Terms

EXECUTIVE SUMMARY

• A $5.3 billion market shows strong growth
• Growing availability drives sales
• A newly regulated industry
• More farmland, crops, and herds are certified organic
• Organic products are more expensive. Do consumers care?
• Organic food industry divided into eight segments
• Some 700 companies involved in organic food production
• Increasingly mainstream advertising and promotion of organics
• Natural and mainstream channels vie for customers
• Consumers becoming more active organic buyers and represent all demographic segments
• Integrity of the nation's food supply will remain the major driver
• Store brand organics will help make these products more affordable
• Is there enough organic farmland, and for products at what price?
• Expect continued strong sales gains

MARKET DRIVERS

• Food safety is an issue that is also part of the other major drivers
• Figure 1: Farmers market growth, 1994-2002
• National standards within the National Organic Program regulate the industry
• Growth of organic acreage and animal herds
• Figure 2: Total Organic Acreage and Animal Herds, 1992-2001 (selected years)
• Figure 3: Organic acreage for fruits and vegetables, 1997, 2000, and 2001
• Organic consumers increase, but what price premium are they willing to pay?

MARKET SIZE & TRENDS

• Figure 4: Total U.S. retail sales of organic food and beverages, at current and constant prices, 2001-2004
• Graph 1: Total U.S. retail sales of organic food and beverages, at current and constant prices, 2001-2004

MARKET SEGMENTATION

• Overview
• Figure 5: Sales of organic food and beverages segmented by product type, 2002 & 2004
• Organic fruits and vegetables
• Figure 6: Sales of organic fruits and vegetables, at current and constant prices, 2001-2004
• Organic dairy products
• Figure 7: Sales of organic dairy foods, at current and constant prices, 2001-2004
• Organic beverages
• Figure 8: Sales of organic beverages, at current and constant prices, 2001-2004
• Figure 9: Comparison of sales of organic soy milk and organic dairy milk, at current and constant prices, 2001-2004
• Organic grain-based foods
• Figure 10: Sales of organic grain-based foods, at current and constant prices, 2001-2004
• Organic prepared and packaged foods
• Figure 11: Sales of organic prepared and packaged foods, at current and constant prices, 2001-2004
• Organic snacks, desserts, and confectionery
• Figure 12: Sales of organic snacks, desserts, and confectionery, at current and constant prices, 2001-2004
• Organic meat and poultry
• Figure 13: Sales of organic meat and poultry, at current and constant prices, 2001-2004
• Other organic foods
• Figure 14: Sales of other organic foods, at current and constant prices, 2001-2004
• Figure 15: Sales of organic meat alternatives, at current and constant prices, 2001-2004

SUPPLY STRUCTURE

• Introduction to companies producing organic foods and beverages
• Figure 16: Manufacturer sales of organic foods and beverages in the U.S., 2001 & 2003
• Organic dairy products
• Figure 17: Manufacturer sales of organic dairy products in the U.S., 2001 & 2003
• Organic beverages
• Figure 18: Manufacturer sales of organic beverages in the U.S., 2001 & 2003
• Organic grain-based foods
• Figure 19: Manufacturer sales of organic grain-based foods in the U.S., 2001 & 2003
• Organic prepared and packaged foods
• Figure 20: Manufacturer sales of organic prepared and packaged foods in the U.S., 2001 & 2003
• Organic snacks, desserts, and confectionery
• Figure 21: Manufacturer sales of organic snacks, desserts, and confectionery in the U.S., 2001 & 2003
• Other organic foods
• Figure 22: Manufacturer sales of other organic foods in the U.S., 2001 & 2003
• Major manufacturers
• White Wave
• Horizon
• Earthbound Farm
• Stonyfield Farms
• Organic Valley
• Amy's Kitchen

ADVERTISING & PROMOTION

• White Wave
• Horizon
• Stonyfield Farms
• Organic Valley

RETAIL DISTRIBUTION

• Introduction
• Figure 23: U.S. retail sales of organic foods and beverages, by channel, 2002-2004
• Mainstream channels (food, drug, mass merchandisers)
• Figure 24: U.S. mainstream channel sales of organic foods and beverages, at current and constant prices, 2001-2004
• Supermarket operating data
• Figure 25: Top supermarket operating statistics, latest fiscal year-end
• Figure 26: Percentage change from latest fiscal year-end versus year prior
• Natural food stores (chains)
• Figure 27: U.S. natural food channel sales of organic foods and beverages, at current and constant prices, 2001-2004
• Natural food store (chains) operating data
• Figure 28: Top organic grocer operating statistics, latest fiscal year-end
• Figure 29: Percentage change from latest fiscal year-end versus year prior

THE CONSUMER

• Introduction
• Demographics of organic food and beverage purchasers
• Figure 30: Purchasers of organic foods and beverages in past year, February 2002 and July 2004
• Figure 31: Demographic penetration of organic food and beverage purchasers, February 2002 and July 2004
• Frequency of purchase of organic foods
• Figure 32: Frequency of purchase of organic foods, February 2002 and July 2004
• Figure 33: Frequency of purchase of organic foods, by age, February 2002 and July 2004
• Figure 34: Frequency of purchase of organic foods, by household income, February 2002 and July 2004
• Figure 35: Frequency of purchase of organic foods, by region, February 2002 and July 2004
• Level of concern about food safety
• Figure 36: Level of concern about food safety, February 2002 and July 2004
• Figure 37: Level of concern about food safety, by gender, February 2002 and July 2004
• Figure 38: Level of concern about food safety, by age, February 2002 and July 2004
• Genetically modified foods
• Figure 39: Profile of respondents concerned about genetically modified foods, February 2002 and July 2004
• Shopping venues for organic food purchasers
• Figure 40: Purchase venues for organic foods, July 2004
• Figure 41: Purchase venues for organic foods, by gender, July 2004
• Summary

FUTURE & FORECAST

FUTURE TRENDS

• Food fears, health concerns will continue to drive the market
• Price not as big an issue as more store brand organic products appear
• Is there enough organic farmland, and for products at what price?

MARKET FORECAST

• Organic food and beverages
• Figure 42: Forecast of U.S. sales of organic food and beverages, at current and constant prices, 2004-2009
• Graph 2: U.S. sales of organic food and beverages, 2001-2004, and forecast, 2005-2009
• Forecast factors

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: NEW PRODUCT DEVELOPMENTS

CATEGORY REVIEW

• Figure 43: New product introductions of organic food and beverages, by category, 2001-2004

NEW PRODUCT BRIEFS

• ShopRite: Organic Soy Milk
• Domino Foods: Certified Organic Sugar
• Nature's Path Foods: Organic FlaxPlus Raisin Bran Cereal
• Imagine Foods: Soy Dream Chocolate Fudge Brownie Non-Dairy Frozen Dessert
• Sweet Leaf Tea: Sweet Leaf Tea
• Kraft Foods: Oscar Mayer Lunchables
• Trader Joe's: Organic Garbanzo Beans
• Woodstock Farms: Organic Green Peas
• Hain-Celestial Group: Earth's Best Tots Organic Crunchin' Blocks
• Clif Bar: Organic Energy Bar

APPENDIX: RESEARCH METHODOLOGY

• Consumer Research
• Sampling & Weighting
• Presentation & Definition
• Further Analysis
• Trade Research
• Informal trade research
• Formal trade research
• Desk & Internet Research
• Sources
• SPINS
• Definitions
• Forecasts

APPENDIX: WHAT IS MINTEL?

• Mintel Publications
• Mintel Services
• Product retrieval
• Retail audits
• Tailored research
• Global New Products Database
• Research Support/Consultancy/MIC
• The Mintel Information Centre (MiC)
• PR Research