2022 Trends in Natural and Organic Industry: Growth and Insights
The natural and organic industry continues to evolve at a rapid pace. In 2022, we witnessed significant shifts in consumer behavior, product innovation, and market dynamics. These changes have reshaped how brands connect with health-conscious consumers. Let’s explore the key trends and insights from New Hope Network’s comprehensive analysis of this thriving sector.
Market Growth and Performance
Despite economic challenges, the natural and organic products industry showed remarkable resilience in 2022. The sector achieved approximately $278 billion in sales, representing a growth rate of 7.7% compared to the previous year. This outpaced conventional grocery growth, highlighting consumers’ ongoing commitment to health and wellness products.
Several factors contributed to this impressive performance. First, consumers continued to prioritize personal health following the pandemic. Additionally, sustainability concerns drove purchases across multiple categories. Finally, innovation in plant-based alternatives expanded market reach substantially.
Category Performance Breakdown
Not all segments within the natural and organic space performed equally. The standout categories included:
- Functional beverages (11.2% growth)
- Supplements and herbs (9.4% growth)
- Natural personal care (8.3% growth)
- Organic foods (6.8% growth)
Functional beverages led the pack due to consumer interest in products offering specific health benefits. Drinks containing adaptogens, probiotics, and immune-supporting ingredients saw particularly strong demand. Meanwhile, organic food sales maintained steady growth as more households incorporated organic options into their regular shopping habits.
Consumer Behavior Shifts
The pandemic fundamentally changed how consumers approach their health and shopping habits. These changes became more entrenched throughout 2022, creating both opportunities and challenges for brands.
Health Prioritization
Health consciousness reached new heights in 2022. According to New Hope Network’s consumer research, 64% of Americans reported taking a more proactive approach to their health compared to pre-pandemic levels. This shift manifested in several ways:
- Increased interest in immune-supporting products
- Greater attention to ingredient transparency
- Rising demand for functional foods and beverages
- More research before purchasing health products
Consumers now actively seek products that deliver specific health benefits rather than general wellness claims. This has prompted brands to develop more targeted formulations backed by scientific evidence.
Omnichannel Shopping
Another significant shift involved purchasing channels. The natural products industry experienced strong e-commerce growth while maintaining brick-and-mortar relevance. In fact, 2022 saw a hybrid shopping model emerge as the new norm:
- Online sales of natural products increased by 21% year-over-year
- Specialty retailers reported foot traffic recovery near pre-pandemic levels
- Mass retailers expanded natural and organic selections significantly
- Direct-to-consumer brands gained market share through subscription models
This omnichannel approach reflects consumers’ desire for convenience without sacrificing product quality. Brands that successfully integrated their online and offline presence gained a competitive edge.
Sustainability Takes Center Stage
Environmental consciousness strongly influenced purchasing decisions throughout 2022. The natural products industry responded with increased focus on sustainable practices across the supply chain.
Packaging Innovation
Packaging emerged as a key differentiator for eco-conscious brands. Innovations included:
- Compostable packaging materials
- Refillable container systems
- Plastic-free alternatives
- Minimalist designs that reduce material usage
According to industry data, 72% of natural products consumers reported considering packaging sustainability when making purchase decisions. This represents a 14% increase from 2020 figures.
Climate Commitments
Beyond packaging, brands embraced broader climate initiatives. Carbon-neutral and climate-positive claims gained traction, especially among younger consumers. Notable trends included:
- Regenerative agriculture partnerships
- Carbon footprint labeling
- Renewable energy investments
- Zero-waste manufacturing processes
These commitments resonated particularly strongly with Millennial and Gen Z shoppers, who increasingly align their purchases with their environmental values.
Product Innovation Trends
Innovation continued to drive growth across the natural products landscape. Several key product trends emerged as particularly influential in 2022.
Plant-Based Evolution
The plant-based category evolved beyond simple meat alternatives. New developments included:
- Hybrid products combining plant and animal ingredients
- Whole-food plant proteins rather than highly processed options
- Plant-based dairy alternatives with improved nutritional profiles
- Global cuisine inspirations bringing new flavors to plant-based options
This evolution addressed previous consumer concerns about taste, nutrition, and processing. As a result, the plant-based category attracted more flexitarian consumers rather than just vegans and vegetarians.
Functional Food Mainstreaming
Functional benefits moved beyond supplements into everyday food categories. Products featuring adaptogenic mushrooms, nootropics, and targeted probiotics appeared across grocery aisles. Consumer education improved substantially, with 56% of natural product shoppers reporting familiarity with terms like “adaptogens” compared to just 23% in 2019.
Popular functional ingredients in 2022 included:
- Ashwagandha for stress management
- Lion’s mane mushroom for cognitive support
- Postbiotics for gut health
- Specialized electrolytes for hydration optimization
This mainstreaming of functional ingredients represented one of the most significant crossover trends between natural products and conventional grocery channels.
Retail Channel Dynamics
The natural products retail landscape continued evolving throughout 2022. Several important channel shifts influenced how brands reached consumers.
Specialty Retail Resilience
Independent natural retailers showed remarkable resilience despite competition from mass channels. These stores leveraged their strengths through:
- Enhanced customer education and service
- Community engagement initiatives
- Curated product selections featuring local brands
- Experiential shopping environments
Many specialty retailers successfully implemented hybrid models combining in-store shopping with online ordering and delivery options. This flexibility helped them maintain customer loyalty amidst changing shopping habits.
Mass Channel Expansion
Conventional grocery and mass retailers significantly expanded their natural and organic selections. Major chains created dedicated sections for specialty natural brands while also integrating organic options throughout the store. This expansion made natural products more accessible to mainstream consumers.
Price compression between conventional and natural products also accelerated. The average price premium for organic products decreased from 30% to 22% across several key categories. This narrowing gap further supported category growth by removing price barriers for cost-conscious shoppers.
Challenges and Opportunities Ahead
Despite positive growth, the natural products industry faced several challenges in 2022 that will continue to shape the market moving forward.
Supply Chain Pressures
Supply chain disruptions affected ingredient availability and product distribution throughout the year. Brands responded with various strategies:
- Localizing production where possible
- Diversifying ingredient suppliers
- Investing in vertical integration
- Implementing transparent communication about challenges
These pressures led to increased costs, with raw material prices rising an average of 18% across key natural ingredients. However, supply chain innovation also created opportunities for brands willing to invest in resilience.
Regulatory Landscape
Regulatory changes created both challenges and opportunities. The FDA increased scrutiny of label claims, particularly around immunity and mental health benefits. Meanwhile, several states implemented extended producer responsibility laws affecting packaging requirements.
Forward-thinking brands prepared for these changes by:
- Strengthening scientific substantiation for claims
- Participating in industry advocacy efforts
- Proactively redesigning packaging for sustainability
- Implementing transparent communication policies
These regulatory considerations will likely intensify in coming years, requiring ongoing attention from industry stakeholders.
Looking Forward: 2023 and Beyond
Based on 2022 trends, several projections can be made about the natural products industry’s future direction. Key areas to watch include:
- Continued integration of technology and wellness (digital health platforms connected to supplements and functional foods)
- Personalization becoming mainstream rather than premium
- Regenerative agriculture moving from marketing term to supply chain imperative
- Increased focus on bioavailability and absorption efficacy
The industry is projected to reach $300 billion by 2024 if current growth trajectories continue. Categories expected to lead this growth include functional beverages, mental wellness products, and sustainable home goods.
Conclusion
The natural and organic products industry demonstrated remarkable resilience and innovation throughout 2022. Despite economic headwinds, consumer commitment to health, wellness, and sustainability drove continued category growth. The blurring lines between conventional and natural retail channels expanded market reach while creating new competitive dynamics.
For brands and retailers, success moving forward will depend on adapting to changing consumer expectations around efficacy, transparency, and environmental responsibility. Those who combine authentic mission with science-backed products and omnichannel availability will be best positioned for long-term growth.
What natural and organic trends have you noticed in your shopping habits? Are there specific categories where you’ve increased your natural product purchases? Share your thoughts and experiences in the comments!