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4 Industry Insights from the Natural Products Expo East

Written by Linda Sellers on September 28, 2012

The Natural Food industry is big business, projected to reach $104.50 billion by 2015. Browse through just about any grocery store, and you’ll probably notice the organic section, which was once non-existent, getting more and more real estate each time you shop. The trend toward a natural and organic lifestyle is tough to ignore.

Last week, Create Digital had the pleasure of attending the Natural Products Expo East in Baltimore, MD, which boasted over 1550 exhibitors and 21,000 attendees from 96 different countries. The expo attracts a variety of new business ventures and established brands showcasing a mix of products from natural foods and beverages to eco-friendly housewares and organic supplements.

With this level of attendance at the Expo East (the West Coast Expo hosts 3x the attendees) we were particularly interested in how products were getting to market and what the promotional strategies are for this growing natural industry.

Straight from the Farmer’s Market

There was an entire area of the expo hall devoted to new product launches. In talking to many of these brands, we found that they got their start at the local farmer’s markets. For many this was their first time testing the waters to see if they could get placement on store shelves or in online shops.

Ties to Social Good

Since this is an industry based on life-betterment, it makes sense to see businesses with a social good tie-in. We were inspired by companies like Bob’s Red Mill, whose founder celebrated his 81st birthday by giving his employees an Employee Share Ownership Program, and Honest Tea whose charitable partners include National Arbor Day Foundation and Susan G. Komen Foundation.

The Dr. Oz Effect

Similar to the effect seen by a mention in “Oprah’s Favorite Things”, when Dr. Oz mentions a food or ingredient, sales skyrocket. It’s part of the branding now. “As Seen on Dr. Oz” placed prominently on your displays can give sales a huge boost. If a product includes ingredients Dr. Oz promotes, like dandelion tincture or raspberry ketones, it may easily find its way onto the shelves of organic or mainstream stores or see the door open to enter into partnerships with larger brands. It doesn’t stop at Dr. Oz either, as celebrities throw their name and money behind these organic and natural brands.

Word of Mouth – Real Social Media

So, where does social media play in this space? In addition to expanding a customer base and creating online advocates, social media is also an effective way to attract investors. Naked Pizza owners Robbie Vitrano and Jeff Leach, through creative, funny and pointed messaging on Twitter, gained attention that lead to over 8000 inquiries from potential investors in about a year and a half. They say around one quarter of those lead to some form of investment.

As a digital firm where our weekly delivery of organic fruit goes faster than the cookies and chips, we’re personally excited to see such tremendous industry growth. Gone are the days where a business has to choose between healthy customers and a healthy bottom line. And in an industry where endorsements and word-of-mouth have such an impact, social media is the perfect springboard to help propel natural foods to that magic $100 billion mark.

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