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In the face of adverse economic conditions, natural and organic products are holding their own in the marketplace. According to the most recent SPINS market research, the Natural Products Industry (NPI) has posted a 13.4 billion dollar growth from 2007, well over a 10% gain in sales. Overall, organic products showed the most upward momentum, gaining 13% over the last year, while subsections like body care products (+28.5%), frozen (+12.8%) and refrigerated products (14.7%), and general merchandise (+24.3%) all continued to show strong growth.

While markets have tightened and conventional retail has seen a sudden drop-off in sales over the past three months, the NPI has remained resilient, posting a steady growth of 8% over the last twelve weeks, some of the most dire in recent financial history. The quickest growing sectors of the industry are body care products and pet products, neither of which show any signs of slowing down at all, with new products entering the field every week. A huge key to sales growth that was noted was authenticity. Here is what SPINS CEO Tony Olsen had to say on the subject:

“As evidenced by the performance in the natural channel, authenticity of natural brands and retailers continue to be one of the key factors in product performance. Authenticity extends beyond whether a product is free of artificial flavors and ingredients and moves into the realm of overall health and wellness, social and environmental sustainability, nutritional benefits and other leading factors. A brand or retailer’s ability to resonate with a consumer on this level is a strong indicator of success in the conventional food, drug, mass channels.”

There are certainly hard times ahead for the economy. With that in mind, the current unflagging strength of the natural and organic products is certainly a bright spot, and health never goes out of fashion. By producing products which aid health and well-being, the industry may also bring a little health to a badly ailing economy.

For more details about SPINS, and about the most recent SPINS research, please follow the links below: