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‘Natural’ surpasses ‘organic’ in sales, says report


October 20, 2014
By Bakers Journal

Oct. 20, 2014, Rockville, MD – The "natural" category has surpassed
the "organic" category in 2013, making up just over half of all natural
and organic food and beverage sales, said a recent report by Packaged Facts.

Oct. 20, 2014, Rockville, MD – The "natural" category has surpassed
the "organic" category in 2013, making up just over half of all natural
and organic food and beverage sales, said a recent report by Packaged Facts.

According to the report, "Natural and Organic Foods and Beverages in Canada," sales of natural and organic foods and beverages have enjoyed strong,
consistent growth over the last five years in Canada, maintaining a
compound annual growth rate of 9.4 per cent between 2009 and 2013 and reaching
sales of $5,260 million.

The natural category finally managed to surpass
the organic category in 2013, comprising just over 50 per cent of all natural
and organic food and beverage sales on the strength of a typically lower
price point coupled with higher Canadian consumer confidence in
“natural” claims over products certified as organic.

While market growth
was slightly lower at 8.7 per cent in 2014 due to a slightly cooler Canadian
economy, the research firm forecasts a compound annual growth rate of over 11 per cent between 2014 and
2019 for natural and organic food and beverage sales in Canada, with
millennials and South Asian and Chinese ethic groups helping to spur
growth.

Product segments that will grow faster than the overall market
include organic baby foods and fair trade organic coffee, as well as
meats with natural and Certified Humane labels.

Non-GMO labelling for
both natural and organic products will also be a strong marketing tool
over the forecast period.