Ancient Wisdom and Botanical Acquisitions: The Rise of Naturals – Part One

No clear definition for “natural” yet

The description of “natural” is a very much self-governed practice; there is no conclusive and scientific definition for the term “natural”. The lack of clear definition is causing confusion and harming the believability of natural claims.

“Natural” fits consumers’ desire for health and wellbeing

In view of the mindful eating trend, consumers are paying more attention to product labels and showing a preference for those that use natural ingredients. Manufacturers are compelled to explore various new ingredients for NPD and nurture the next big thing following the success take-off of coconut water.

Things from the planet

Some consumers in developed markets practice pro planet and pro animal consumption. Certain ingredients such as natural mineral water and botanicals bode well for the concept of “natural” and consumers’ perceptions. As R&D develops, technology is able to extract or turn ancient grains and botanicals into palatable and convenient food and beverages. An NH product has a better chance to be viable if the story about its specific ingredient and market strategies are adequately explained.

Natural mineral water and NH RTD tea

Nestlé leads the global NH market thanks to its wide brand portfolio of natural mineral water, which generates the largest value sales. The high penetration of RTD tea in China and Japan means that brands originating and popular in the two markets also enjoy prominent position in the global ranking. China is set to lead global NH growth.

Natural ingredients as a ingredient

Start-ups constantly release new products with natural image backed by growing interest from investors, distracting consumers’ attention from existing products. This has meant existing products have had to reformulate to keep up or else risk being shunned by consumers. Popular ingredients such as green tea, honey, coconut water and olive oil are increasingly used as ingredients to infuse a natural and healthy feel.