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educated devising their own tailored approaches, such as flexitarian diets and movement towards functional foods, drinks, beauty and personal care products. Retail education, particularly at pharmacy and health food stores, will become increasingly important as consumers’ questions become more complex. “Another big evolution is that consumers are becoming more aware of their interconnected body systems, are owning their self care, and prioritising healing and restorative practices as essential components of a healthy lifestyle. They’re starting to understand the complex relationship between physical, mental, environmental, emotional and even spiritual wellbeing, and so we’re seeing heath brands ‘pivot to wellness’ to take an active role in helping address some of these more broader concerns.” The demand for organic and natural Whether products are classed as “organic” or “natural”, consumers are looking for the next best thing in alternatives to conventional fare. DJB Food Group founder David Burns says the demand for natural and organic products has changed “dramatically” over the years as more people become health focused and, more recently, conscious of their obligations regarding sustainability. “It’s staggering today to see how many alternatives there are to mainstream staples,” he said. “You just need to look at the dairy industry over the past 10 to 15 years. Today over 50 per cent of coffee is drunk with an alternative to cow’s milk – almond, soy, rice, coconut milk, and the list goes on. All the businesses we’ve worked with over the past three years have had a health, natural or organic focus. The next 10 years are very exciting.” Anastasia Lloyd-Wallis, General Manager Consumer Insights & Projects at Retail Doctor Group, also believes that consumer demand has changed “significantly” in recent years. This, she says, is because consumers now have information at their fingertips via the “vast array” of online sources available. “Consumers are tech savvy and able to research all products,” she said. “Therefore, it means they have a large amount of choice available to them. This has increased the ability to make decisions on what products to choose, by opening up the amount of natural and organic product available to them. “Consumer trends are also leaning towards transparency in the production of products, and this means customers are very aware about how products are made and sourced. Some retailers are now showing the end-to- end transparency in the production of a product, as this assists consumers in making a decision on what to purchase.” Addressing organic specifically, Australian Organic CEO Niki Ford says consumers can’t get enough of Australian certified organic products. Referencing the ‘Australian Organic Market Report 2019’, she said: “Eighteen out of 20 categories of organic products saw gains in 2018, with the strongest gains seen in skin care/cosmetics, non-alcoholic beverages and organic packaged meals. “Organic consumers are no different to non-organic consumers; they are looking for convenience as well as wanting to ensure general health and wellness. Products such as non-alcoholic fermented beverages, frozen meals and beauty products fulfil these needs. “More recent organic shoppers say they began purchasing organic because of the positive personal health impacts, with 47 per cent saying the key prompt to begin was ‘becoming more aware of the impact of food, fibre or cosmetics had on personal health.’ Forty-nine per cent of shoppers said their awareness of the impact on the environment prompted them to start buying organic. “The top three perceived benefits of organic food among shoppers are ‘chemical free’, ‘environmentally friendly’ and ‘additive free’.” Advice for retailers With consumer demand for natural, organic and other perceived healthy benefits from products expected to increase at a more rapid rate, the Naturally Good speakers were more than happy to share some advice with retailers on expanding their ranges. Ms Crawford Jones advises that retailers should understand their consumers and how they view the store, which is “key to delivering both a range that anticipates their needs and an experience that helps grow an engaged and connected community”. On a similar note, Nielsen Director Sarah McKee suggests that once you’ve identified the consumers who will likely purchase organics, you can then ensure that product, brand and messaging are specifically relevant and likely to reach these consumers. As consumers become more focused on what is ‘better for me’ and ‘better for the planet’ and expand their organic purchases, Ms McKee advises retailers to ensure they have organic coverage across a wide range of categories that matter to consumers. “Positioning and availability of products in-store is also crucial to embed organics as a frequent part of repertoire, not just as something that’s purchased a few times a year,” she said. Mr Burns, on the other hand, advises retailers to combine strategic partnerships with key suppliers, as well as seeking out start-up and SME brands that are often “more nimble and innovative”. “Retail buyers can get on the front foot and understand what’s trending in the US and Europe and seek out those offers locally (or import) to delight consumers with innovation that will meet a current or future consumer need,” he said. “Collaborative planning between retailers and suppliers is key in relation to in-store promotions and marketing campaigns, to highlight new ranging, creating consumer awareness and sales.” TO PAGE 36 NATURALLY RETAIL APR, 2020 RETAIL WORLD 35