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Opportunities to drive additional growth for natural and organic products

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As consumers increasingly prioritize their health, natural and organic products are emerging as powerful growth drivers across all channels. A recent Acosta Group natural and organic study reflects that 75% of all shoppers purchased at least one natural or organic product in the six months prior to the survey, with 59% responding that they think it’s important that their groceries and/or household products are natural and/or organic. The study, conducted with Acosta Group’s proprietary U.S. Shopper Community, identifies several key learnings to support additional category growth just in time for Expo West.

“Our natural and organic shopper study reflects opportunities for brands and retailers to build increased shopper trust, loyalty, and sales,” said Kathy Risch, SVP, Thought Leadership and Shopper Insights, Acosta Group. “Three key learnings include the growing role of natural and organic products for consumers, especially related to health, the value of product placement in the natural channel, and the need for education on the definition and benefits of natural and organic products.”

Natural and organic products align with consumer health goals  

In its recent 2025 consumer predictions, Acosta Group stated that empowered shoppers will drive change in health and wellness and individualized health management is on the rise. This new study confirms that the primary driver for natural and organic product sales is a prioritization of health, as the overall category continues to grow.

  • 58% of shoppers purchase natural and/or organic products because they “are better for them” (healthier) and they “tend to have fewer synthetic chemicals and additives”
  • Younger consumers are even more likely to be natural and organic shoppers, with 89% of Gen Z and 85% of Millennials reporting they have shopped for natural and organic products in the prior six months  
  • Shoppers report purchasing more natural (23%) and organic (22%) products in the prior six months
  • The “food as medicine” movement is expected to gain traction 

Sales for these products are projected to grow 5% across all channels, to $348B by 2028, according to New Hope Network Industry Projections and SPINS. Of note, as consumers are shopping more natural and organic products, conventional shopping has not been negatively impacted, with natural and organic shoppers saying that half of their carts consist of conventional products.

“The natural and organic shopper is now considered mainstream,” said Andrew Fleming, SVP, Impact Natural, a division of Acosta sales agency offering deep expertise in natural and organic brands and retailers. “To drive expanded sales for brands and retailers, we need to highlight the specific health benefits of natural and organic products, paying special attention to Millennials and households with children.”  

Natural channel product placement adds value   

The new Acosta Group study outlines the value of prioritizing placement of natural and organic products in natural stores, while maintaining a presence across other retail channels.

  • Seeing a brand in natural stores boosts perception of that brand for 53% of natural channel shoppers and 37% of all shoppers
  • 82% of natural channel shoppers strongly agree that natural stores offer the best selection, 71% believe the quality of products is superior in these stores, and 66% believe the associates are better suited to assist with questions     

Interestingly, natural and organic shoppers shop at a broader range of channels than conventional shoppers, primarily mass merchandisers, traditional grocery, and warehouse/club. These shoppers are also five times more likely to shop at farmers markets, three times more likely to shop online, and two-and-a-half times more likely to shop at convenience stores.  

“Emerging and established brands benefit from natural channel distribution, which elevates brand perception and trust,” said Fleming. “Distribution across other retail channels ensures that all natural and organic shopper needs are met.”  

Education on natural and organic products is critical

The new study finds that shoppers today have no more clarity on the differentiation of “natural” and “organic” than they did when surveyed in 2022. And while the industry defines the terms separately, there is no difference to many shoppers, leading to confusion on product benefits and misperceptions regarding taste and price.      

  • 40% of all shoppers believe natural and organic mean the same thing or are unsure of the difference, increasing to 50% for conventional shoppers
  • Confusion contributes to 18% of conventional shoppers not purchasing natural and organic products because they don’t know enough about the difference
  • 72% of conventional shoppers cite affordability as the No. 1 reason for not purchasing natural or organic in the prior six months
  • Natural and organic shoppers have a positive perception of product taste, while conventional shoppers do not    

“This is the time for natural and organic brands and retailers to build direct connections with consumers, informing them of the facts and benefits of the products, dispelling misperceptions, and driving trial and loyalty,” said John Carroll, President, Digital Commerce and Advanced Analytics, Acosta Group.  

“We know from our studies that transparency is highly important to health-conscious consumers who no longer trust brand marketing messaging they believe is healthwashed,” said Carroll. “Shoppers are turning to digital tools and online communities to gather product information.”

Consumers discover new items most frequently via social media, friends or family (52%), and search engines (43%). After discovering a new item, most shoppers (57%) look for more information and availability via search engines.

“To educate consumers, we need to develop customized messaging for target audiences, implementing a toolkit of retail media, product detail page (PDP) content management, and in-store strategies to create an informative, seamless experience,” said Carroll. “We know that consumers are willing to pay more when they understand the benefits and value of natural and organic products, and they are looking for trusted resources to gain product knowledge.”

Shopper research for this study was conducted Oct. 18-29, 2024, with 1,521 shoppers, members of the company’s proprietary Shopper Community. The Acosta Group Shopper Community is comprised of over 40,000 demographically diverse shoppers across the U.S. and is the company’s proprietary community for survey engagement.  

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Affordable and accessible: dollar stores meet shoppers’ needs

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Faced with lingering inflation and higher prices on routine purchases, shoppers seek value wherever they can find it. The dollar channel and club and mass retailers are reaping the benefit. According to Kantar, dollar store channel sales have risen 150% since 2018, accounting for $68.9 billion in sales in 2023 and are expected to reach $87.5 billion by 2028.

The channel struggles with media reports of shrinkflation, store closures, and restrictions on new store openings in some towns. Despite these challenges, the dollar store channel is thriving.

Acosta Group’s proprietary Shopper Community research shows how dollar stores have become more relevant, meeting the evolving needs of today’s consumers.

Dollar stores emerge as essential stops for everyday shopping

No longer just a place for party or project supplies, dollar stores are now an essential part of routine shopping for many consumers, with 69% shopping this channel for more than five years.

  • Dollar stores are now a routine grocery shopping destination. One in three dollar store shoppers buy at least half of their groceries at dollar stores. 32% shop the channel once a week or more, and more than a third (36%) shop two or three times a month. Men are more likely to buy groceries at their local dollar store.
  • Trips are planned and purposeful. Almost half plan regular trips every week or two, primarily for groceries and household needs. Seven out of ten plan quick trips to grab something they need.

Price and convenience are at the heart of dollar store shopping

What is driving the rise of dollar stores as an essential channel? Consumers tell us that it’s convenient locations (72%), everyday lowest prices (68%) and the best value for their money (53%). Dollar stores are also:

  • Attracting new-to-channel shoppers: 30% of dollar store shoppers are new to the channel within the past four years. According to Kantar, 44% of new dollar channel shoppers (within the last three years) already use dollar stores as their primary retailer.
  • Bringing in more frequent shoppers: One in four make more trips than a year ago, as dollar stores appeal to Americans with strained household budgets.

Making it easy to shop. Dollar store shoppers who prefer the channel for grocery shopping do so because it is easy, convenient, fast and offers everyday low prices.

What’s the opportunity? Cover the basics:

  • Optimize and increase consumable assortments as shoppers look beyond grocery stores to dollar stores for lower prices on regularly bought items.
  • Ensure clean, organized, uncluttered stores with in-stock products for a fast, easy trip.

Shoppers stock up on family treats and household basics

As more shoppers turn to dollar stores for their routine shopping, what are they buying? Snacks, pantry, and household items for the family top the list, while there is an opportunity for more fresh offerings:

  • Treats and pantry items are top food purchases. Two in three shoppers buy candy, and three in five buy salty snacks, cookies, and crackers. Pantry items such as canned food, condiments, and spices are also a draw. Candy and snacks are also a favorite impulse purchase.
  • Household and family items are top non-food purchases: About half of shoppers buy oral care, paper products, cleaning supplies and batteries, which are also among the top products bought exclusively at dollar stores.
  • Fresh foods are an opportunity. Most dollar store shoppers go elsewhere for fresh food. Only 15% of dollar store shoppers buy fresh fruit, produce or freshly prepared foods at dollar stores, but they want to see more offerings.
  • Shoppers experiment with new items. They are willing to try new products at dollar stores that may be cost-prohibitive elsewhere.

What’s the opportunity? Gain more share of basket:

  • Offer an expanded assortment of items currently bought elsewhere, such as fresh produce and freshly prepared foods. Through in-store displays and digital activations, remind shoppers to pick up items like coffee and pet supplies.
  • Provide a deeper assortment of popular and impulse snack and candy items, including healthy options.

Name brands, natural and organic products elevate quality perceptions

Dollar stores meet most customers’ expectations, but there is an opportunity to raise their perceptions of store quality with name brands and natural or organic products. Shoppers tell us that:

  • Product quality meets expectations. Seven out of ten shoppers think the products at dollar stores are medium quality, while almost one in four consider them high quality.
  • Name brands offer good quality at a good price. Many shoppers buy name brands at dollar stores all or some of the time because they provide good value. However, more of these shoppers also buy them elsewhere, indicating an opportunity for dollar store retailers. 25% buy name/national brands on all or most trips to dollar stores, compared to 39% at any channel.
  • There is a demand for more natural and organic items. A Boomer shopper told us, “I like to eat healthy, but dollar stores do not have much selection.” About a third of shoppers buy natural or organic products at dollar stores at least some of the time. There is an opportunity gap for dollar store retailers as shoppers satisfy this need elsewhere; 43% buy these products in any channel.

What’s the opportunity? Expand offerings to drive quality and trial

  • Name or national brands drive value and quality.
  • Natural and organic offerings meet more of shoppers’ needs and encourage trial.
  • New items encourage experimentation.

In-store signage drives deal hunting; Digital is an opportunity

With price and value driving shopper demand, in-store signage is critical to communicating deals. Yet, dollar retailers can do more to integrate digital fully. Our research shows that:

  • In-store communications are crucial for highlighting deals. For many shoppers, sales and deals are discovered in-store. 44% discover offers from price tags highlighting deals on the shelves, while 32% learn from signage in the store.
  • Loyalty apps are untapped. A third of dollar store shoppers belong to a retailer’s loyalty program, and two in five have downloaded the app to receive alerts on sales, promotions, or weekly specials. Yet less than a third (29%) discover promotions or deals this way.
  • Millennials like a deal. They are more likely to belong to a dollar retailer’s loyalty program and to have downloaded the app. They are also more likely to buy a familiar item on a deal, even if they don’t immediately need it.

What’s the opportunity? Emphasize value:

  • Ensure prominent in-store signage to communicate price changes and deals.
  • Promote loyalty programs to deepen relationships and stay top of mind, especially through apps.

Key takeaways

The surge in new dollar store shoppers underscores a shifting retail landscape. Brands must recognize dollar stores as essential retail outlets. These stores:

  • Satisfy real needs: Dollar stores are part of shoppers’ weekly shopping routines.
  • Offer real brands: The presence of national brands is raising perceptions of quality and value, as shoppers trust familiar labels and name brands.
  • Provide a real opportunity: Dollar store shoppers are open to new offerings such as natural or organic products, and fresh, frozen, and refrigerated foods. Dollar stores also offer a low-risk environment for shoppers to test innovative or niche products at a lower price point.
  • Must deliver on table stakes’ expectations: To continue to retain and attract new customers, dollar stores need to ensure they offer an easy, enjoyable in-store experience that covers the basics. Ensure clean, organized, uncluttered stores with in-stock products, for a fast, easy trip.

Sources

  • Fortune, Business Insider, USA Today
  • Acosta Group Dollar Shopper Community Study, January 2024
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Simplifying the complexities in your Order to Cash

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By Mark LaBorne, Acosta SVP, Order to Cash Solutions

Who doesn’t love a good bargain? For many consumers, finding a great deal is not just a fun hobby but a necessity in today’s inflationary market. Shoppers are spending more time searching for deals. As a result, many brands are scrutinizing their budgets to see where they can drive efficiencies to invest more dollars into their trade promotion strategy.

One critical area that brands often overlook and don’t measure? Your order to cash.

Some may think of the order to cash as a necessary evil. Promotional contract generation, order and claims management, trade fund reconciliation—this isn’t the most glamorous work. With each brick-and-mortar and online retailer having its preferred processes, timelines, and systems to navigate, sales teams spend an excruciating amount of time performing these administrative back office functions.

That’s why outsourcing order to cash management to a trusted partner can be a game-changer for your brand. But this is only an effective strategy if you choose a partner with the end-to-end functional expertise, national reach, and cutting-edge technology to save you time and money and amplify your relationships with retailers.

A strong order to cash partner will measure their effectiveness against the KPIs that matter to you and the retailers you work with. Imagine:

  • Order automation rate of 82%, with non-automated orders processed within 24 hours (not to exceed client lead time)
  • 80% of claims are processed with no sales team intervention.
  • Deductions are touched within five days and processed with the client in less than 30 days. Customer Check Requests are touched within 2 days and processed within the customer’s timeline.
  • Presenting promotional contracts and price changes to retailers within their required timeline.

With the right partner, you’ll realize ROI through reductions in working capital, infrastructure, benefits, equipment, technology, and training. That means your sales team can confidently spend more time selling and growing revenue.

Acosta has a proven track record of success. Our Order to Cash team is rooted in our proprietary technology, Acosta Relay, which acts as an extension of your sales team by efficiently processing orders and claims (deductions and check requests) for promotional activity. We process 1.5 million claims and 1 million orders annually, and manage $3.2 billion trade dollars utilizing Acosta Relay.

Our clients have seen impressive results through our standardized Acosta Relay process.

  • We helped a client reduce order processing errors at Walmart and Sam’s Club by using clean data and 80% order automation.

We’ve reduced another CPG client’s greater than 60-day deduction balance by 31%, going from 68% to 99%.

Our technology streamlines tasks like promotional contract generation, order, and claims processing through automation. Acosta Relay utilizes a vast library of over 1,250 individual brand and retailer SOPs to ensure order and claims processing is done based on individual brand and retailer requirements. Plus, the system integrates with leading business service technologies, ensuring data security and pulling claims data from existing brand and retailer platforms.

We strive to measure what matters so our clients earn the greatest return on their investment. We’re not just a vendor – we’re an extension of your team. And don’t just take our word for it:

“Our partnership with Acosta began 17 years ago with a need to manage the retail business in a more structured and routine manner. Over the years, they have proved to be a valuable resource and have been instrumental in helping us achieve our joint performance goals. Together we achieved process simplification utilizing upload automation of daily files and robotics, valuable insights and testing of a new Trade Promotions Management system, continuous updates of pricing rules and controls to avoid misbilling, and robust financial roundtables to review performance and opportunities for improvement.”
Group Director
Deductions from Revenue, Coca-Cola North America Operating Unit Finance

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Nearly 90% of pet parents willing to adjust budgets to afford pets’ expenses

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Two out of three U.S. households own at least one pet, creating a valuable opportunity for brands and retailers selling pet food, treats and health care products.

Acosta Group released a new study conducted with its proprietary Shopper Community highlighting pet parents’ shopping habits. With two in three U.S. households owning at least one dog or cat, shopping for food, treats, and health care needs for pets has become a significant part of household budgets. According to the study’s findings, 96% of pet parents consider their pets part of the family, and 86% are willing to adjust their budgets to afford their pets’ expenses, reflecting a valuable opportunity for retailers and brands to prioritize this audience.

“Our study validates the deep bonds people establish with their pets as true members of their families. These connections drive informed decisions on the ongoing purchases made throughout their pets’ lives,” said Kathy Risch, SVP of Thought Leadership and Shopper Insights, Acosta Group.

Pet Food Dietary Choices

Acosta Group’s study found that when thinking about food for their dogs and cats, 42% prioritize high-protein content, closely followed by joint care at 40% and probiotics (gut health) at 38%. Additionally, 36% of pet parents are interested in fresh, minimally processed foods and supplements. This data mirrors shoppers’ personal health interests, which reflect that 41% of consumers are thinking about high-protein foods, 41% are thinking about freshness, and 41% are considering probiotics.

QUOTE: “We find it highly informative that when considering pet food, pet parents tend to look for many of the same health benefits that they are seeking in their own food. This further confirms the fact that pet parents are prioritizing the health and wellbeing of their dogs and cats when making these purchase decisions.” – Lisa Goff, VP, Acosta Pet

Product Research and Brand Loyalty

While most pet parents get their pet food and health information online, vets are still considered the most trusted source for information related to their pets’ diets and health needs. Additionally, according to 52% of dog and cat owners, they primarily rely on online research to review ingredients, packaging, shopper reviews and prices.

Brand loyalty is also key to pet purchasing decisions, with 57% of dog owners and 59% of cat owners selecting brands they’ve previously purchased. However, there is some impulse purchasing within the category, as 58% of millennials indicated that they are influenced by in-store promotions for pet products. Furthermore, 58% of dog owners buy treats on impulse.

According to Acosta Group data, most pet owners are turning to mass retailers, pet specialty stores and online retailers for their pet care purchases.

Pet Expenses

Affordability is becoming more challenging, with 80% of pet parents believing that veterinarian care and insurance prices have been rising, as 82% noted the rise in the cost of medicine, vaccinations and supplements. When asked, pet parents say they are willing to pay between $2,000 and $3,000 to care for their furry family members when they become unexpectedly ill. The study notes that as these care costs rise, pet insurance is gaining in popularity.

Key Insights for Brands and Retailers

Pet parents are doing their research online prior to any purchasing trips – reviewing ingredients, reading the packaging, and making price comparisons. With this trend in mind, brands should highlight on-trend packaging that calls out fresh and natural ingredients or other health benefits. For retailers, it is important to create a truly seamless in-store and online experience to foster brand loyalty, educating associates as they also elevate successful digital experiences, create personalized marketing campaigns and develop informative social media content to drive social connections and engagement.

“These consumers are highly committed to making the right choices for their pets, prioritizing health over the cost of products,” explains Goff. “Pet parents are looking for trusted and educated resources, providing brands and retailers an important opportunity to strengthen that relationship and subsequently grow their business.”

Acosta Group’s Pet Ownership Shopper Insights Study was conducted from Jan. 11-17, 2024, with 1,137 primary household shoppers who own dogs and cats ages 18+. Respondents are part of the company’s proprietary Shopper Community.

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Exponential growth opportunities in grocery for health & beauty care and general merchandise sales

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87% of Grocery Store Shoppers Usually Purchase HBC and GM Products Outside Grocery Channel

Acosta Group has shared the results of its recent proprietary Shopper Community study on Health and Beauty Care (HBC) and General Merchandise (GM) sales in grocery. Every month, 114 million households are purchasing food and beverages at grocery stores, according to NIQ. The Acosta Group study reflects grocery shopper behaviors and perceptions, and outlines strategies to convert a percentage of consumers that are currently purchasing HBC and GM in other channels to shop for these items at grocery. “We identify the biggest challenges grocery retailers face in this study related to HBC and GM purchasing, and present solutions for how to reset shopper perceptions and expectations, addressing category opportunities, pricing, promotion, and product selection,” said Kathy Risch, SVP of Thought Leadership and Shopper Insights for Acosta Group.

Consumer Behaviors and Perceptions

Shoppers think of grocery stores as being just for food and beverage purchases. Nearly 70% of those surveyed say that they typically do not visit the general merchandise, household products, personal care, or health and beauty products aisles at their traditional grocery stores. Most of these shoppers are choosing mass merchandisers for their non-food and beverage products, with a smaller percentage purchasing these products online or at drug stores.

Top shopper considerations for HBC and GM purchases are price and selection. 47% of consumers surveyed say that they shop at their favorite retailer for the lowest everyday prices, while 45% say that it’s because their preferred retailer offers the selection of products they want to buy.

Conversely, 48% of these shoppers say that it’s because of their negative perceptions of price and promotions at grocery that they do not currently shop for these products frequently when making their food and beverage purchases.

Overcoming Challenges to Grow HBC & GM Sales at Grocery

HBC and GM shopping habits are admittedly hard to break. The Acosta Group study focuses on ways retailers can help to shift habits and capitalize on opportunities.

The study identifies the top ten ‘gateway categories’ that represent 85% of volume for HBC and 76% of volume for GM in grocery, per NIQ Panel data, including over-the-counter (OTC), nutrition, oral care, bath/shower, kitchen, outdoor recreation, batteries and others. “In addition to understanding the critical gateway categories for conversion, we’ve identified three key strategies to shift shopper behaviors and perceptions and drive expanded sales at grocery for HBC and GM,” said Shannon Hodock, SVP, Client Development, Acosta Group.

  • Overcome perceptions of high prices and take credit for good prices: 80% of shoppers say that better prices and promotions could help grocers gain more business, and grocers have some good stories they need to tell on competitive pricing.
  • Drive shopper impulse purchasing: While 90% of shoppers are planners when purchasing food, HBC and GM, 70% admit to buying products on impulse. Shoppers are interestingly far more open to impulse purchases in HBC and GM (27%) vs. food (8%). And if consumers see that an item is on sale, 1/3 are prompted to purchase before or during their shopping trip.
  • Expand selection of HBC & GM products and brands: Customers want better variety, selection, and brand availability. Of note, national brands are the fastest path to conversion and trip growth, but 59% of retailers say that they will continue to prioritize private label.

Get on the Grocery List

“We believe grocery retailers have an exciting and expansive opportunity to capture and grow HBC and GM sales,” said Hodock. “Strategically, retailers need to create a targeted ‘get on the grocery list’ campaign for their shoppers, incorporating a holistic omnichannel strategy and a customized marketing plan as they tackle the three key challenges to overcome current perceptions and shopping habits.”

The promotional goal for grocery retailers should be to build their shoppers’ total basket at grocery, focusing on their key gateway categories for conversion. Implementation of simple promotions, such as discounts or temporary price reductions, buy one get one free (BOGOs), and loyalty/rewards programs will drive the greatest shopper interest. Customization of offer types, features, or displays, will help to drive the strongest results.

“Retailers will want to optimize their selections in HBC and GM merchandise, especially in the gateway categories where selection is highlighted as most important to shoppers,” said Hodock. “Harnessing the power of national brands can also assist in driving growth.”

Acosta Group’s Accelerating Growth of HBC & GM at Grocery Study was conducted from Sept. 1-7, 2023, with 1,017 primary household shoppers. Respondents are part of the company’s proprietary Shopper Community.

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Clean label products driving retail sales as they gain preference among consumers

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Acosta Group’s recent Clean Label Insights Study, conducted with its proprietary Shopper Community, provides brands and retailers with insights into the growing value shoppers place on clean labels in purchasing decisions and their attitudes on regulations pertaining to product ingredients, including the California Food Safety Act of 2023.

Clean Label Key Attribute in Shoppers’ Purchasing Decisions

Acosta Group’s deeper dive into clean label comes shortly after the release of its five retail predictions for 2024, one of which stated that consumers will prioritize what’s NOT in their products.

While all consumers may not be aware of recent regulatory legislation, 83% of shoppers are already knowledgeable about clean label products or have heard the term. Not officially defined, clean label products are described in the industry as having as few ingredients as possible, easy-to-recognize ingredients, and no artificial ingredients or synthetic chemicals.

“Our research further defines shopper priorities, preferences and generational differences around clean label products,” said Kathy Risch, SVP, Thought Leadership and Shopper Insights, Acosta Group. “It’s clear that shoppers consider the absence of negatives, or an emphasis on what’s not in the products, to be the most important attribute in their clean label purchasing choices.”

When informed of the term, shoppers say clean label is important or very important for their purchasing decisions, with nearly 8 in 10 shoppers believing the products are better for them/their families and for the environment.

Shopper attitude is reflected at checkout, with clean label sales outperforming total store sales by a compound annual growth rate of 8% versus 6%, respectively, over four years, according to NIQ.

Without a doubt, legislation is accelerating the clean label trend as it forces significant changes to be made to foods that are consumed every day. Brands are reinventing the classics and taking steps to remove chemicals, but more can be done based on product changes that have occurred abroad. Specific to food and/or beverage, 55% of all shoppers believe more regulations are needed. That number increases to 72% for Gen Z and 62% for clean label buyers.

The biggest challenge to clean label purchases is cost, with some shoppers saying the products are “too expensive” or that they “don’t believe the hype.” When prices are higher, 40% of men are willing to pay for clean label products, compared to 28% of women, according to the recent study.

Clean Label Products Skew Younger Overall

Over the past six months, most consumers knowledgeable about clean label purchased some of these products, led by plant-based milk, plant-based meat, and baby food sales. But clean label products skew younger overall, with Gen Z and Millennials stating that they expect to buy more of these products in the future, positioning them as clean label’s strongest advocates.

For younger consumers, clean label purchasing decisions are distinctly driven by health benefits for themselves and their families. In the case of Gen Z and Millennials, a higher value is placed on natural or Certified Organic products.

The Acosta Group study revealed that today, younger buyers are more likely to notice clean label brands or retailer-led clean label programs, both online and in-store, at the retailers they shop most frequently.

Takeaways for Retailers and Brands

Importantly, 57% of shoppers trust retailers’ clean label efforts, with that number rising to 77% for households with kids, according to the Acosta Group study. In addition, 70% of all shoppers want retailers to help them understand clean label products.

We know that many consumers – especially younger consumers – care about clean label, support legislation, and trust retailers to offer them true clean label products as they also inform them about these products. This lays a solid foundation for ongoing sales growth, supported by savvy, integrated and strategic programming to continue to build consumer trust, allay cost concerns, and educate shoppers about these better-for-you products.

“It’s essential that clean label programming meets consumers as they shop seamlessly in-store and online, through digital and social media campaigns and retail media, in addition to packaging, signage and shelf management. Understanding the differences in key label attributes is valuable to building campaigns, and retailers should leverage AI to provide shoppers with recommended products based on the absence of ingredients, a differentiating attribute we know is key,” said Andrew Fleming, SVP, Natural, Acosta Group.

Shopper research was conducted Jan. 19-22, 2024, with 1,257 U.S. shoppers, members of the company’s proprietary Shopper Community. The Acosta Group Shopper Community is comprised of over 40,000 demographically diverse shoppers across the U.S. and is the company’s proprietary community for survey engagement.