Organic products maintain strong growth in fast-moving consumer goods industry

Organic sales in the fast-moving consumer goods (FMCG) industry continue to surge, accounting for over $21 billion in sales and up 9 percent in dollars and 8 percent in units, according to a Nielsen report, “Tops of 2018: Organic.”

Organic food as well as health and beauty, baby care, and alcohol have hit the mainstream. Millennials spent 14 percent more on organic purchases last year; Hispanic buyers spent 13 percent more. “The pace of purchasing …among organic goods is exceptional and is breathing life into otherwise flat or contracting aisles of the store,” read the report.   

Organic cow’s milk and eggs accounted for $2 billion in sales last year; the functional probiotic beverage kombucha sold 42 percent stronger in 2018, totaling $412 million. While organic cow’s milk is the highest selling category, sales are actually down 2.3 percent—price differentials between organic and non-organic may be too large.

Almond and lactose-reduced milks are also up. Milk buyers are the “least engaged” shoppers—often on autopilot—so manufacturers need to focus on brand awareness.

The organic label is most robust when alongside other health and wellness needs; brand reputation is becoming an increasingly important factor.

Source: Nielsen

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