Facts About the Natural Products Industry
Industry Size and Growth Rate
Sales by Product Category
Channels of Distribution
Consumer Purchasing Patterns
Consumer Trends
Natural Products Industry 2000:
Total sales of $32 billion, up 7% over 1999
| Channel | 2000 Sales | 2000 Market
Share | +/- 2000
vs 1999 |
|---|
| Natural Products Retailers | $15.3 billion | 47.7% | +8.7% |
| Mass Market | $9.3 billion | 28.9% | +6.1% |
| Multi-Level Marketers | $5.0 billion | 15.5% | +1.4% |
| Practitioners | $1.2 billion | 3.7% | +11.3% |
| Mail Order | $1.1 billion | 3.3% | +1.9% |
| Internet | $310 million | 1.0% | +72.2% |
Natural Products Retailers:
WA, OR, AK | $716.9 million | 4.7% | +10.3% |
Total number of Natural Products Retail Storefronts 2000: 18,953
Total number of Natural Products Retail Storefronts 1999: 17,613
Total number of Natural Products Retail Storefronts 1998: 16,479
Source: Natural Foods Merchandiser, June 2001
Average Sales 2000
Natural Foods Stores: 40% or more of sales in natural foods
Health Foods Stores: 40-80% of sales in supplements
Vitamin, Mineral, Supplement Stores: 80% or more of sales in supplements
| | Natural
Foods Stores | Health
Foods Stores | Vitamin, Mineral,
Supplement Stores |
|---|
| Average Sales | $2.49 million | $582 thousand | $355 thousand |
| Posted Sales Increase | 71% | 53% | 57% |
| Posted Sales Decrease | 12.3% | 24.3% | 20% |
| Average Sales Increase | 15.7% | 43% | 17.5% |
| Average Sales Decrease | 9% | 9% | 12.5% |
| Average Storewide GPM | 33.67% | 34.33% | 35.50% |
| Average Net Profit | 5.67% | 6.33% | 7.50% |
| Average Sale Per Customer | $26.07 | $42.00 | $48.65 |
| Average Sales Per Square Foot | $375.77 | $242.23 | $274.30 |
Source: Natural Foods Merchandiser, June 2001
Average Sales for Twelve Months: September 1 through August 31
Natural Products Stores
Full-Line Stores: 52.4%
Vitamin, Supplement, Herb Stores: 30.5%
Vitamin, Supplement Stors: 15.9%
Other: 1.2%
| | 2000 | 1999 | 1998 |
|---|
| Average Store Sales | $1,292,186 | $1,086,764 | $1,072,021 |
| Store Size (sq. ft.) | 2,801 | 2,981 | 3,184 |
| Retail Selling Space (sq. ft.) | 2,092 | 2,075 | 2,307 |
| Sales Per Square Foot | $618 | $524 | $465 |
| Daily Customer Traffic | 117 | 141 | 154 |
| Average Transaction | $26.79 | $25.41 | $25.28 |
| Retail Inventory | $133,158 | $111,022 | $135,665 |
Source: Whole Foods Magazine, December 2000
Percent of Sales by Store Category 2000
Natural Products Retailers
Total Sales: $15.3 billion
Total Storefronts: 18,953
Total Sales through Independents/Small Chains: $9.98 million
Total Storefronts, Independents/Small Chains: 10,480
| Category | Size
(Square Feet) | % Storefronts | % Sales |
|---|
| Natural Food Store | <2000 | 5.96% | 2.1% |
| Natural Food Store | 2-6,000 | 8.39% | 14.8% |
| Natural Food Supermarket | 6,000+ | 3.59% | 25.9% |
| Health Food Store | <1,000 | 6.86% | 1.6% |
| Health Food Store | 1-2,000 | 8.02% | 3.6% |
| Health Food Store | 2,000+ | 7.18% | 10.7% |
| Vitamin, Mineral, Supplement Store | <1,000 | 8.02% | 2.5% |
| Vitamin, Mineral, Supplement Store | 1,000+ | 7.28% | 4.1% |
| Whole Foods, Wild Oats | n/a | 1.20% | 18.2% |
| GNC | n/a | 23.74% | 11.2% |
| Other | n/a | 19.76% | 5.4% |
Source: Natural Foods Merchandiser, June 2001
In 2000, natural products stores over 6,000 square feet were two and one-half times more likely
to have opened a new store than smaller stores. Health food stores
under 2,000 square feet were slightly more likely to have opened a
new store. Vitamin, mineral, supplement stores over 1,000 square feet
were also only slightly more likely to have opened a new store.
Source: Natural Foods Merchandiser, June 2001
Vitamin and Supplement Sales by Channel 2000
| Channel | Total Sales | Multi-
Vitamins | Single
Vitamins | Herbal/
Mineral Supp. | Liquid
Vitamins |
|---|
| Drug Store | $1.3B | $294M | $274M | $704M | $32M |
| 2000 vs 1999 | -6.2% | -4.7% | -14.9% | -2.8% | +9.1% |
| Food Store | $807M | $248M | $184M | $352M | $23M |
| 2000 vs 1999 | -0.7% | +2.7% | -7.9% | +1.4% | -4.5% |
| Mass Merchandiser | $1.2B | $314M | $216M | $644M | $19M |
| 2000 vs 1999 | +0.2% | +12.5% | -13.3% | +0.8% | -18.2% |
| Natural Products Stores | $5.7B | n/a | n/a | n/a | n/a |
Source: Natural Foods Merchandiser, June 2001
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Natural Products Stores: Sales by Product Category 2000
| Product Category | Sales | % of Total |
|---|
| Food | $6.4 billion | 41.7% |
| Beverages | $1.3 billion | 8.2% |
| Food Service | $417 million | 2.7% |
| Vitamin/Mineral/Supplement | $5.7 billion | 37.2% |
| Personal Care | $954 million | 6.2% |
| Books | $252 million | 1.6% |
| Housewares | $197 million | 1.3% |
| Pet Products | $163 million | 1.1% |
Total percentage of all sales that were organic: 29.1%
Source: Natural Foods Merchandiser, June 2001
Natural Pet Product Sales
| 1993 | 1998 | 1999 (est.) | 2005 (est.) |
|---|
| $2 million | $135 million | $200 million | $500 million |
Source: Whole Foods Magazine, July 2000
Natural Products Stores: Average Sales and Gross Margin Percentages by Category 1999-2000
| Product Category | % of Sales | Gross Profit Margin |
|---|
| Packaged Food | 11.2% | 33.9% |
| Vitamins/Supplements | 43.3% | 47.1% |
| Bulk Food | 2.5% | 37.9% |
| Herbs | 18.0% | 46.8% |
| Homeopathy/Medicinals | 5.8% | 44.7% |
| Produce | 1.9% | 26.4% |
| Cosmetics/Body Care/HBC | 3.5% | 40.3% |
| Refrigerated Foods | 3.0% | 30.6% |
| Dairy Food | 1.1% | 28.3% |
| Frozen Food | 1.9% | 30.7% |
| Meat/Poultry/Fish | 0.3% | 34.9% |
| Books/Tapes/Magazines | 3.1% | 38.9% |
| Non-Foods | 0.9% | 39.7% |
| Restaurant/Juice Bar | 2.8% | 57.4% |
| Deli | 0.7% | 50.9% |
Source: Whole Foods Magazine, December 2000
Natural Products Stores: Dietary Supplement Sales Percentages by Category 1999-2000
| Product Category | % of Sales |
|---|
| Bone & Joint | 15.9% |
| Weight Loss Products | 9.2% |
| Antioxidants | 8.3% |
| Stress Formulas | 8.1% |
| Energy Supplements | 5.5% |
| Digestion Support Supplements | 4.9% |
| Enzymes | 4.5% |
| Mood/Brain | 4.4% |
| Cold & Flu | 4.0% |
| Probiotics | 3.9% |
| Cartilage Products | 3.9% |
| Female Support Supplements | 3.6% |
| Fish Oil/GLA Supplements | 3.6% |
| Heart Health | 3.2% |
| Green Food Supplements | 3.1% |
| Bee Pollen/Propolis/Royal Jelly | 3.0% |
| Children's Vitamins | 2.7% |
| Male Support Supplements | 2.4% |
| Hair, Skin, Nail Support Supplements | 2.1% |
| Mixed Carotenoids | 2.0% |
| Glandulars | 1.3% |
| Other | 0.4% |
Source: Whole Foods Magazine, December 2000
Top "Up-and-Coming" Dietary Supplements for 2001:
Diet/Weight Loss
Bone/Joint products
Enzymes/coenzymes
MSM/Methylsulfonylmethane
Multi-vitamins
Green Foods
Immune Boosters
Beta Glucan
Growth Hormones
Soy Isoflavones, Colostrums, MGN-3, and male sexual aids (tie)
Low-carbohydrate products, probiotics, medicinal mushrooms, and antioxidants are also expected to perform well.
Source: Whole Foods Magazine, June 2001
Natural Products Stores: Single Mineral Sales Percentages by Category
| Product Category | 1999 | 2000 |
|---|
| Calcium | 28.4% | 34.2% |
| Magnesium | 14.1% | 14.2% |
| Chromium | 9.3% | 7.7% |
| Potassium | 8.4% | 7.1% |
| Zinc | 8.3% | 7.4% |
| Sulfur | 8.1% | 6.1% |
| Selenium | 6.8% | 5.8% |
| Iron | 4.5% | 5.6% |
| Silica | 2.7% | 2.6% |
| Manganese | 1.8% | 1.5% |
| Choline | 1.6% | 1.7% |
| Boron | 1.4% | 1.6% |
| Copper | 1.4% | 1.2% |
| Iodine | 0.9% | 1.4% |
| Phosphorus | 0.7% | 1.4% |
| Other | 1.6% | 0.5% |
Source: Whole Foods Magazine, December 2000, June 2001
Top Ten Herbs
Herbs expected to have significantly increased market share in 2001:
Olive Leaf
Oregano
Green Tea
Mushrooms
Cat's Claw
Milk Thistle
Elderberry
Huperzine A
Bilberry
Echinacea and Kava Kava (share #10 position)
Source: Whole Foods Magazine, June 2000
Organic Products: Sales by Product Category and Channel 2000
| Product Category | Natural
Supermarkets | Mainstream
Food Stores | Drug
Stores | Mass
Merchandisers |
|---|
| Non-Dairy Beverages | 32.6% | 65.4% | 0.2% | 1.8% |
| Milk, Half & Half, Cream | 34.5% | 65.3% | 0.0% | 0.1% |
| Frozen Entrees, Pizza, Convenience Foods | 48.4% | 51.3% | 0.1% | 0.2% |
| Fresh Produce | 39.1% | 60.5% | 0.0% | 0.5% |
| Cold Cereals | 50.9% | 47.5% | 0.3% | 1.2% |
| Yogurt, Kefir | 52.4% | 47.4% | 0.0% | 0.2% |
| Cheese, Cheese Alternatives | 46.3% | 51.7% | 0.0% | 2.0% |
| Baby Food | 21.0% | 73.9% | 0.4% | 4.7% |
| Chips, Pretzels, Snacks | 51.4% | 47.8% | 0.2% | 0.5% |
| Tofu | 46.3% | 52.8% | 0.0% | 0.9% |
| Eggs | 35.0% | 64.9% | 0.0% | 0.1% |
| Total Organic: | 49.7% | 49.2% | 0.1% | 1.0% |
Source: Natural Foods Merchandiser, June 2001
Natural Products Stores: Sports Nutrition Sales Percentages by Category
| Product Category | 1999 | 2000 |
|---|
| Muscle Growth Products/Protein Powders | 21.5% | 22.0% |
| Sports Bars | 17.6% | 17.0% |
| Fat Burners | 16.8% | 15.2% |
| Sports Nutrition Supplements | 14.4% | 11.5% |
| Endurance Products | 11.6% | 15.2% |
| Fluid Replacement Drinks | 8.3% | 7.9% |
| Weight Gain Products | 7.7% | 9.3% |
| Other | 2.1% | 1.9% |
Source: Whole Foods Magazine, December 2000, June 2001
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Natural products were sold through six channels of distribution in 2000; natural products retailers/health food stores, mass market retailers (drug, grocery and discount stores), multi-level marketers, mail order, health care practitioners and the Internet. A little less than half (48%) of sales are through natural products retailers, 29% through mass marketers, and 16% through multi-level marketers. Internet sales had the most growth for the year, but still made up only 1% of sales. Source: Natural Foods Merchandiser, June 2001
62% of organic product sales are through health food stores, and 31% are through mass market grocery stores. Source: Organic Trade Association "Manufacturers Market Survey"
Of all organic customers who shop regularly in natural food stores, 30% buy their organic products in the grocery store and 27% shop in farmer's markets. Source: The Hartman Group, "Customer Retention in the Organic Market," July 2001
In 1998, 90% of health food stores were 3,000 square feet or less and 78% sold under $500,000 per year. Source: Health Products Business, April 1999
Sales from independent retailers and small chains in 2000 represented 0.3% of the $32 billion natural products market. Source: Natural Foods Merchandiser, June 2001
On average, natural food stores have been in business 12.9 years and have 6.8 employees. About half of employees are full time. Source: Health Products Business, April 1999
Most sales transactions at a natural products store are between $20 and $29.99. 20% are between $10 and $19.99, and 24% are between $30 and $49.99. 11% are more than $50. The average sale at a supplement retailer is 30% higher than that of a traditional store. Source: Health Products Business, April 1999
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Consumer Spending
Average Weekly Purchases at a Natural Products Store
| Under $10 | 14.2% |
| $11-$20 | 12.6% |
| $21-$30 | 19.0% |
| $31-$40 | 11.0% |
| $41-$50 | 12.6% |
| $51-$80 | 15.8% |
| $81-$100 | 3.7% |
| Over $100 | 11.1% |
Source: Whole Foods Magazine, August 2000
Change in Weekly Purchases 1999 vs. 1998
| Increased Purchases | 47.7% |
| Decreased Purchases | 5.2% |
| No Change | 47.1% |
Source: Whole Foods Magazine, August 2000
Primary Reason for Shopping at Natural Product Stores
| Reason | 1998 | 1999 |
|---|
| Health improvement | 58.1% | 58.4% |
| Food quality | 17.4% | 27.3% |
| Diversity of selection | 09.0% | 6.5% |
| Helpful clerks | 05.4% | 2.6% |
| Brands carried | 04.8% | 5.2% |
| Low prices | 03.6% | 0.0% |
| Product knowledge | 01.7% | 0.0% |
| Sales and specials | 00.0% | 0.0% |
Source: Whole Foods Magazine, August 1999 and 2000
Retail Areas Needing Improvement as per Consumers
| 36.0% | Food Selection |
| 27.5% | No Improvement Needed |
| 20.5% | Parking Space |
| 18.0% | Clerk's Product Knowledge |
| 17.5% | Educational Information |
| 7.5% | Store Appearance |
| 7.5%% | Supplement Section |
| 7.5% | Checking Out |
| 3.5% | Service |
Source: Whole Foods Magazine, August 2000
Frequency of Shopping at Natural Products Stores 1999
| Frequency | % of Shoppers |
|---|
| Twice a Week or More | 19.8% |
| Once a Week | 34.5% |
| Three Times a Month | 11.7% |
| Twice a Month | 14.7% |
| Once a Month | 12.7% |
| Less Than Once a Month | 6.6% |
Change in Frequency 1999 vs 1998:
| Increased: | 40.6% |
| Decreased: | 5.6% |
| No Change: | 53.8% |
Source: Whole Foods Magazine, August 2000
Frequency of Shopping at Natural Product Stores 1998
10% of consumers shop at natural food supermarkets once a week or more.
13% of consumers say they will increase their shopping frequency in natural food supermarkets.
12% of consumers have already increased their shopping frequency at health/natural food stores.
Source: NMI, The 1999 Natural Marketplace Trends Report
Improvements That Would Lead to More Frequent Visits to Store
| 71.0% | Lower Prices |
| 45.0% | Coupons |
| 41.5% | Special Sales |
| 31.5% | Better Selection |
| 25.0% | More Product Information |
| 20.0% | Cooking Demonstrations |
| 16.0% | More Frequent Newspaper Ads |
| 11.0% | Cleaner Store |
| 7.0% | Better Customer Service |
| 7.0% | No Answer |
Source: Whole Foods Magazine, August 2000
Demographics of Health Food Shoppers
| Demographic | 1998 | 1999 |
|---|
| Average Shopper | 52 | 54 |
| 46 years or older | 62.4% | 64.7% |
| 26-45 years old | 32.3% | 32.3% |
| Married | 60.0% | 49.0% |
| One child | 9.1% | 6.1% |
| Two children | 4.6% | 7.0% |
| Three children | 3.0% | 2.0% |
| Four or more children | 0.5% | 1.0% |
| Own dogs or cats | 47.2% | 42.8% |
| College-educated | 77.1% | 78.9% |
| Gross family incomes of up to $20,000 per year | 24.0% | 22.8% |
| Gross family incomes of $21,000 to $40,000 per year | 31.8% | 30.0% |
| Gross family incomes of over $41,000 per year | 44.2% | 47.2% |
| Gross family incomes over $70,000 per year | 16.2% | 15.0% |
Source: Whole Foods Magazine, August 1999 and 2000
36% of customers are male
63% are female
Source: Health Products Business, April 1999
Percent of households with a member using a vitamin, mineral or supplement/herbal product:
| Ages 60+ | 30% |
| 40-49 | 22% |
| 30-39 | 21% |
Source: Food and Drug Administration, Wingate Study
Total Store Sales by Category
| Category | 1997 | 1998 | 1999 | 1999 |
|---|
| Dietary supplements | 44.8% | 44.7% | 42.4% | 44.6% |
| Foods | 15.7% | 18.5% | 14.6% | 12.6% |
| Herbs | 20.6% | 18.0% | 21.7% | 16.8% |
| Health and Beauty | 5.4% | 6.2% | 3.5% | 5.6% |
| Homeopathy | 3.5% | 3.2% | 3.6% | 3.4% |
| Books/tapes/videos | 2.7% | 2.5% | 2.4% | 3.6% |
| Other | 7.3% | 6.9% | 11.8% | 13.4% |
Source: Whole Foods Magazine, June 1998, 1999, 2000, 2001
Type of Stores Where Natural Products are Purchased
| Natural food supermarkets | 44.1% |
| Supplement chains | 20.8% |
| Natural food stores | 19.1% |
| Supplement stores | 12.0% |
| Natural food cooperatives | 03.8% |
Source: Packaged Facts
| Full Service | 30% |
| Supplement Oriented | 48% |
| Supermarket | 05% |
| Other | 17% |
Source: Health Products Business, April 1999
Types of Dietary Supplements Sold
| Category | 1997 | 1998 | % Change | 1999 | % Change | 2000 | % Change |
|---|
| Multiple Vitamin/Mineral Supplement | 28.4% | 29.7% | +4.6% | 29.6% | -0.3% | 30.8% | +4.0% |
| Single Vitamins | 21.7% | 18.4% | -15.2% | 20.8% | +13.0% | 18.2% | -12.5% |
| Formulas Combining Herbal/Non-Herbal Ingredients | 11.7% | 12.6% | +7.7% | 11.5% | -8.7% | 12.1% | +5.2% |
| Single Minerals | 11.8% | 11.9% | +0.8% | 12.8% | +7.6% | 11.8% | -7.8% |
| Specialty Supplements | 9.7% | 10.5% | +8.2% | 8.5% | -19.0% | 9.5% | +11.7% |
| Sports Nutrition | 9.2% | 8.9% | -3.3% | 10.2% | +14.6% | 12.4% | +21.6% |
| Amino Acids | 5.3% | 4.0% | -24.5% | 5.7% | +42.5% | 3.9% | -31.6% |
| Other Dietary Supplements | 2.2% | 4.0% | +81.8% | 0.9% | -77.5% | 1.3% | +44.4% |
| Herbs | 20.6% | 18.0% | -12.6% | 21.7% | +20.6% | 16.8% | -22.6% |
| Homeopathy | 3.5% | 3.2% | -8.6% | 3.6% | +12.5% | 3.4% | -5.5% |
Source: Whole Foods Magazine, August 1999 and June 2000
Single Vitamin Sales
| Vitamin | 1999 | 2000 |
|---|
| Vitamin C | 26.7% | 28.8% |
| Vitamin E | 22.8% | 22.2% |
| Vitamin B Complex | 15.4% | 13.8% |
| Vitamin A/Beta Carotene | 7.4% | 7.0% |
| Vitamin F (Unsaturated Fatty Acids) | 5.6% | 4.5% |
| Vitamin B-12 | 4.6% | 5.5% |
| Vitamin B-6 | 4.5% | 4.9% |
| Vitamin D | 4.2% | 4.8% |
| Folic Acid | 2.7% | 3.4% |
| Niacin | 2.3% | 3.4% |
| Other | 3.8% | 1.7% |
Source: Whole Foods Magazine, June 2000, 2001
Specialty Supplement Sales
| Category | 1999 | 2000 |
|---|
| Bone and Joint | 15.9% | 13.8% |
| Weight Loss Products | 9.2% | 7.5% |
| Antioxidants | 8.3% | 7.2% |
| Stress Formulas | 8.1% | 6.5% |
| Energy Supplements | 5.5% | 6.4% |
| Digestion Support Supplements | 4.9% | 3.8% |
| Enzymes | 4.5% | 3.6% |
| Mood/Brain | 4.4% | 5.0% |
| Cold and Flu | 4.0% | 4.3% |
| Immune Support | n/a | 4.0% |
| Probiotics | 3.9% | 4.9% |
| Cartilage Products | 3.9% | 3.6% |
| Female Support Supplements | 3.6% | 4.7% |
| Fish Oil/GLA Supplements | 3.6% | 3.8% |
| Heart Health | 3.2% | 2.4% |
| Green Food Supplements | 3.1% | 3.6% |
| Bee Pollen/Propolis/Royal Jelly | 3.0% | 1.7% |
| Children's Vitamins | 2.7% | 2.7% |
| Male Support Supplements | 2.4% | 3.9% |
| Hair, Skin, Nail Support Supplements | 2.1% | 3.7% |
| Mixed Carotenoids | 2.0% | 1.3% |
| Glandulars | 1.3% | 1.5% |
| Other | 0.4% | 0.1% |
Source: Whole Foods Magazine, June 2000, 2001
Top 10 Herbal Products Sold
| Herb | 1999 | 2000 | 1999 Rank |
|---|
| Echinacea | 7.93% | 7.93% | 1 |
| Garlic | 4.40% | 6.3% | 4 |
| Gingko Biloba | 6.11% | 6.10% | 2 |
| Saw Palmetto | 3.07% | 5.00% | 8 |
| St. John’s Wort | 5.46% | 3.71% | 3 |
| Top Five Herbs | 27.60% | 29.04% | |
| Ginseng | 2.63% | 3.67% | 11 |
| Green Tea | 1.43% | 3.17% | 26 |
| Ma Huang/Ephedra | 2.16% | 2.89% | 17 |
| Goldenseal | 2.20% | 2.82% | 16 |
| Milk Thistle | 2.27% | 2.45% | 15 |
| Second Five Herbs | 15.27% | 15.00% | |
| Top Ten Herbs | 42.87% | 44.04% | |
Source: Whole Foods Magazine, October 1999 and 2000
How Herbal Supplements Are Taken
| Format | 1998 | 1999 | 2000 |
|---|
| Capsules | 46.8% | 44.0% | 45.0% |
| Tablets | 17.6% | 19.9% | 20.0% |
| Herbal Teas | 12.7% | 9.7% | 14.0% |
| Tinctures | 7.8% | 7.6% | 6.3% |
| Extracts | 7.1% | 7.2% | 6.5% |
| Bulk Herbs | 5.0% | 6.6% | 3.3% |
| Sublinguals | 1.2% | 1.6% | 1.5% |
| Sublinguals-Chewable | n/a | n/a | 1.9% |
| Liposome Sprays | 0.8% | 1.0% | 0.7% |
| Inhalants | 0.2% | 0.8% | 0.7% |
| Other | 0.8% | 1.6% | 0.1% |
Source: Whole Foods Magazine, October 1998, 1999 and 2000
How Herbal Supplements Are Used
| 1999 | 2000 |
|---|
| Single Herbs | 44.1% | 44.7% |
| Herb Combinations | 39.6% | 39.7% |
| Herbs Combined With Non-Herb Ingredients | 14.3% | 12.4% |
| Other Herbal Supplements | 2.0% | 3.2% |
Source: Whole Foods Magazine, October 2000
How Vitamins are Taken
| Format | 2000 | 2001 |
|---|
| Tablets | 29.0% | 33.5% |
| Hard-Shell Capsules | 21.9% | 20.8% |
| Softgel Capsules | 20.1% | 19.4% |
| Powders | 7.2% | 8.1% |
| Liquids | 6.0% | 6.4% |
| Chewables | 4.4% | 3.6% |
| Sublinguals | 3.6% | 2.3% |
| Lozenges | 2.5% | 4.0% |
| Liposome Sprays | 1.7% | 1.0% |
| Inhalents | 0.9% | 0.7% |
| Other | 2.7% | 0.2% |
Source: Whole Foods Magazine, June 2000, 2001
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Demographics and Consumer Behavior
Consumers in the United States spend $66 billion on wellness products.
14% of the market is comprised of high-level consumers, 55% of mid-level
consumers, and 30% of low-level consumers. The wellness market includes
healthy foods and beverages, dietary supplements, organic products, sports
nutrition, diet aids, and alternative health care and services (excluding
prescription drugs and over-the-counter medicines). Source: The Hartman Group,
The Wellness Lifestyle Shopper Study, September 2000
Many consumers shop multiple channels to find the wellness products
they need. They select products by price and availability far more than by
brand.Source: The Hartman Group, The Wellness Lifestyle Shopper Study,
September 2000
Consumers obtain information for purchasing decisions through books
and magazines (64%), doctors (57%) and friends and relatives (48%). They use
the Internet primarily to research information rather than for purchases. Source: The Hartman Group,
The Wellness Lifestyle Shopper Study, September 2000
Children's vitamin sales were 4% of the total vitamin and mineral market in 1999, accounting for sales of $286 million. Source: The Hartman Group, "Opportunities in Children's Wellness," April 2001
Multivitamins account for 43% of vitamins used by children, while vitamins specifically formulated for children make up 38% of sales. Source: The Hartman Group, "Opportunities in Children's Wellness," April 2001
Vitamin C and echinacea are the most frequently-purchased products for children under 12. 5% of sales for children's supplements are due to colds, but 75% are for general health and wellness. Source: The Hartman Group, "Opportunities in Children's Wellness," April 2001
$8.65 billion dollars was spent on sports nutrition and weight loss in 2000 by U.S. consumers. The market grew 12.4% for the year, versus 6.5% growth in the nutrition industry overall. Source: Nutrition Business Journal, "Sports Nutrition and Weight Loss Report 2001"
29% of weight loss supplements are sold through retail stores. Mail order, multi-level marketing and direct response television make of the majority of sales. Source: Nutrition Business Journal, "Sports Nutrition and Weight Loss Report 2001"
By 2015, almost 50% of the U. S. population will be over 50 years old. Source: The Senior Network
The aging baby boomer population, numbered at 78 million people, will significantly influence store design and product choices in the near future. Boomers place a high priority on store convenience and design, location, product availability, speed at checkout, and ease of parking. By 2005, boomers are expected to command over 53% of total U.S. household income. Source: Promar International
Americans describe their eating preferences almost equally between "meat and potatoes" and "chicken and broccoli". Close to 12% eat brown rice and vegetables regularly, and 10% eat pasta and salad. Source: The Gallup Poll
More than 75% of U.S. consumers have dropped the "three square meals" tradition in favor of "grab and go" foods. Less than one-quarter of the population eats breakfast, lunch and dinner and nothing else. Source: Grocery Manufacturers of America
Almost half of children between the ages of 9 and 17 prepare meals on a regular basis for themselves, an increase of 15% from 1988 to 1998. Over 25% prepare meals regularly for their families. Source: Yankelovich Partners
Grocery shopping is the primary responsibility for 67% of women. Source: Working Mother
9% of married men have primary responsibility for grocery shopping, and 37% of married couples share the task equally. People under the age of 25 are more likely to share grocery shopping (45%), and people over 65 are least likely to share the task (15%). Source: FMI, "Trends in the United States: Consumer Attitudes and the Supermarket, 1998"
75% of male shoppers use coupons when they do the grocery shopping. 57% plan their shopping lists around coupons. Source: NCH/NuWorld Marketing Limited
57% of consumers who use natural personal care products indicate that they buy them because they work well. They also purchase for health reasons, because the products are not tested on animals, and for environmental reasons. Source: The Hartman Group, "Understanding the Natural Personal Care Market," June 2001
68% of consumers who do not use natural personal care products indicate that they are unaware that such products exist. An additional 31% do not buy them due to price considerations. Source: The Hartman Group, "Understanding the Natural Personal Care Market," June 2001
Foods
Sales of prepared foods in grocery stores increased 10.6% in 1998, totaling $12 billion. Consumer demand for quick, fresh meal solutions at the grocery store rather than in traditional food service retail continues to grow. Source: Grocery Manufacturers of America
Pre-packaged convenience vegetarian foods are growing at 20% per year. The category includes veggie burgers, frozen tofu desserts, veggie burritos, and soy-based frankfurters. Source: Grocery Manufacturers of America
Families with children under age 17 are most likely to buy bulk products, private-label store brands, and prepared convenience foods. Source: USDA, "Expenditures on Children by Families 1997 Annual Report"
73% of families with children eat takeout or home-delivered foods. About half eat these meals at fast food restaurants, and about 20% take out foods from either the supermarket or a restaurant. Source: USDA, "Expenditures on Children by Families 1997 Annual Report"
60% of dinner-party hosts use prepared foods. Source: The Gallup Poll
In the first ten months of 1999, shoppers in the U.S. purchased 190 million pounds of oatmeal. This 16% increase over the past five years is attributed to recent studies showing oatmeal’s beneficial effects in lowering blood cholesterol levels. Source: Grocery Manufacturers of America
Rice consumption increased almost 6% to 26.9 pounds per capita in 1998. The increasing popularity of ethnic cuisine (particularly Asian, Mexican and northern Italian) and the perception that rice is healthy and versatile has helped boost sales. Source: USA Rice Federation
Shoppers who read the labels on food packaging get 30% of their calories from fat. Those who skip label reading get 35% of calories from fat. Source: American Dietetic Association
Organics
People who use organic products are 50% more likely to shop in a natural products store than the general public.
Over 40% of shoppers who do not shop at natural products stores have used organic products within the past twelve months.
Books and the Internet have the greatest influence on organic product purchases by regular users.
People who use organic products are 21% more aware of leading natural brands than the general public.
More than 50% of U.S. organic product users live in coastal states with a quarter located in the west.
Source: Natural Marketplace Trends Report 2000, Natural Marketing Institute.
Organic foods sell best to older, more affluent consumers. Typically, these shoppers are 45 years old, have a college education, and earn household incomes of $60,000 or more.
80% of consumers who bought organic products purchased at least some of them at a regular supermarket.
Packaged organic food sales grew 14% from 1997 to 1998. 10 million U.S. households purchased these products during the 12-month period.
Source: SPINS/ACNielsen "1999 Organic Report"
Nearly 50% of the natural foods market is from sales of organic produce and packaged grocery products such as organic vinegars, pastas, chocolates, cereals, spices, and sauces.
Source: Nutrition Business Journal
Pet Products - United States Market
65% of the U.S. population owns a dog, cat, bird or horse.
66.1 million people own cats and 58.2 million people own dogs.
12.7 million people own small animals such as rabbits, ferrets and rodents.
21.3 million people own birds.
10.8 million people own fish, and 7.5 million people own reptiles.
22.5% use at least one type of natural pet care product. Use is evenly divided between foods, supplements and pet care products with 14% each.
27.3% are considering using a natural pet care product.
Source: Whole Foods Magazine, July 2000
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