U.S. Sales of Natural, Organic Products Top $56.7 billion
Organic meat sales up nearly 33%,
Produce remains largest category with $3.3 billion in sales
Sustainable Food News | June 6, 2007
U.S. sales of natural and organic products increased 9.7 percent last year across all channels, reaching $56.8 billion in total sales, according to The Natural Foods Merchandiser's 2007 Market Overview.
Natural and organic food sales at natural food stores were up 11.7 percent in 2006 fueled by strong sales in the fresh meat, seafood and beer and wine categories. Produce remains the largest category with sales of $3.3 billion, up 11.5 percent over 2005.
The natural meat category grew 18.2 percent, and organic meat was up 32.6 percent. Beer and wine sales increased 17.1 percent, and organic beer and wine sales for the category were up 31.2 percent.
Showing strong growth in the organic category were coffee and tea at 23.3 percent and nutrition bars at 22 percent.
The retail channel accounted for 81.2 percent, or $46.1 billion, of total sales. For the second consecutive year, natural products retailers realized a 10.7 percent growth rate.
Natural products retailers accounted for close to 50 percent of total market revenues with sales of $28.3 billion.
"U.S. consumers continue to demonstrate a growing appetite for natural and organic products, as manufacturers and retailers expand into new and nontraditional areas and deepen their offerings. In fact, total sales for the natural and organic industry increased 56 percent between 2002 and 2006," said NFM Editor-in-chief Marty Traynor Spencer.
Data is gathered through NFM's annual survey of over 780 stores and supermarket chains.
NFM is the leading print trade magazine serving the natural and organic products industry, read by more than 15,000 retailers, industry leaders and trend watchers each month, the company said. NFM is owned by Boulder, Colo.-based New Hope Natural Media.
For purposes of the survey, natural foods are considered those formulated without artificial preservatives, flavors, colors, fats, sweeteners and GMOs (genetically modified organisms).
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