Global Natural Product Market Resists Recession

2010-03-11 | 11:15

Kline finds a 15% CAGR during the past five years.

The natural products market has managed to thrive during the worst recession in decades. According to a new study by Kline & Company, the segment even managed to post double-digit gains in 2009. Growth has been spurred by consumer awareness, better raw material supplies, and wider availability of more affordable products, according to Kline.

Naturals Here to Stay

With more than a 15% CAGR over the last five years (see chart), the naturals trend seems to have solidified its position as more than just a passing fad. Moreover, the natural movement is a global exercise, with gains measured in the U.S., Europe, Asia and Brazil.

With overall growth in the naturals industry expected to average just over 12% through 2014, the trend will no doubt spark even more product innovation as marketers reformulate products to capitalize on consumers’ interest.

Most critical for marketers, however, is developing a thorough understanding of the nuances of each individual market. In Asia, for example, the long-standing tradition of Ayurvedic and herbal remedies makes the naturals concept more familiar, but, as it turns out, most products available here are not all that natural after all. In the United States, consumer demand for naturals is growing, but so is the skepticism that should incite marketers to develop truly natural products that deliver more than marketing hype.

Looking ahead, Kline analysts predict that the industry is moving toward a critical mass of acceptance and demand during the next five years.

More info: www.klinegroup.com