Natural and organic foods make up a large portion of the LOHAS market’s Healthy Living sector, and historically it’s been one of the total market’s hottest growth categories, racking up double-digit annual sales increases for more than 20 years.

The global market for organic food and drink reached $45 billion in 2006, according to Research Institute of Organic Agriculture. In 2006, U.S. organic food sales totaled $16.9 billion, accounting for 3% of all retail sales of food and beverages, but still way below Europe's estimated share of 7-10%. Although Americans are actually exercising less, nine in 10 shoppers are thinking about their health more when they choose foods.

Organic Foods and drinks by definition are those that have been grown, handled and processed without the use of toxic pesticides and fertilizers, genetic modification, irradiation, sewage sludge and growth hormones. Products adhering to these federally mandated standards may carry the USDA seal. For starters, the USDA’s organic production guidelines prohibit the use of irradiation and genetically modified organisms; prohibit antibiotics in meat and poultry; and requires 100 percent organic feed for any organic livestock used in the production of organic products. The requirements for organic production are unabashedly laborious, but the resulting top-notch quality makes the effort worth the work.

Surveys taken by HealthFocus of Emmaus, Pa., indicate that Americans are making healthier food choices. Most are concerned about nutrition and have cut down on fat, sugar and salt. Many want to eat fiber as well as low-cholesterol and low- or no-fat products.

In 2007, the overall household penetration of organic products is 57%, up only slightly from 2006. While greater penetration was expected, many consumers don't recognize the organic label, especially within portable products such as fresh juices and nutrition bars. Increased selection and availability have driven increased frequency of usage and 20%+ sales increases over the past year. Twenty percent said they would pay approximately 20% more for organic foods, while 67% said that price was a barrier to their buying these products. Some consumers of these products simply purchase on taste and convenience and have no recognition that the product is organic. (source: eBrain Market Research 2002)

Continued growth is predicted for the global organic food industry. Organic products are now available in nearly 20,000 natural food stores and 73 percent of conventional grocery stores. 31% of overall U.S. organic sales in 2006 were through mainstream supermarkets/grocery stores, 24% were through leading natural food supermarket chains (such as Whole Foods Market or Wild Oats), 22% were through independent, small chain natural grocery stores, and only 3% through food service sales. The largest Increases in LOHAS Product Attribute Drivers are shown below:

Figure 1.  Largest Increases in LOHAS Product Attribute Drivers
(% LOHAS consumers stating the following are very important in product purchase decisions)

There will be expansion of emerging categories such as clothing, linens, lawn and garden as well as continued growth of new personal care and food and beverage products from which to choose.

The future is bright for those marketers who speak the language of organic correctly, and connect their brands on an emotional level with Integrated Organic Users.