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Industry Forecast for Natural Products Released

New Hope Natural Media and Sterling-Rice Group have released the 2015 version of NEXT: The Natural Products Industry Forecast 2015, which identifies and details the macro forces, trends, opportunities, companies, brands, products and people defining the natural marketplace today and helping to shape the future of this growing consumer products landscape. With all new content and growth projections built out through 2019, this report builds off the insights featured in previous NEXT Forecast reports and serves as a guide to where the natural, organic and healthy products market is now and where it is headed.

As is detailed in the NEXT Forecast 2015, continued strong growth is expected for natural products, as the natural industry moves to claim a larger piece of the overall consumer packaged goods pie. According to NEXT Forecast estimates, U.S. consumer sales of natural, organic and healthy products are forecasted to expand 64 percent from $153B in 2013 to $252 billion by 2019. This is a compound average growth rate (CAGR) of 8.6 percent, which is more than double the projected growth rate of mainstream consumer packaged goods.

“The natural products market is a true bright spot in the world of consumer packaged goods,” said Carlotta Mast, Senior Director of Content & Insights and Chief Author of the NEXT Forecast 2015.

A convergence of forces is helping to propel natural products industry growth. Following are the top three macro forces shaping the future of natural food and beverage; dietary supplements and ingredients; and natural beauty, personal care, household and pet products, as identified in the NEXT Forecast 2015.

Innovation at the Edges: The dramatic success story of Suja, the two-year-old cold-pressed juice company poised to make $50 million in 2014, is emblematic of where innovation can be found in today’s food and beverage world. For the most part, the true innovation that will fuel future growth is flowing from the “little guys” such as Suja versus the large, traditional CPG players.

Ancient Wisdom: Consumer hunger for nutrient-dense ingredients is growing, even as new markets develop along the fringes of this motif. The proliferation of “ancient wisdom,” coupled with new beliefs about what constitutes good food and how it is made available to more people, is creating new opportunities for everything from bug protein-packed nutrition bars to plant-based egg alternatives that cost a fraction of their conventional counterparts.

Technology to the Rescue: We’ve entered the era of “food tech,” and with it, the prospect of bringing the best of culture and science together in closer harmony with consumer packaged goods. The influence of Silicon Valley on natural products will be direct and dramatic in the coming years. In addition, social media and mobile technologies continue to play central roles in the wave of transparency washing over our food system.