Natural Products Industry Update: Growth, Trends, and Consumer Shifts in 2025
A recap of a webinar held on January 28, 2025
The natural products industry is experiencing transformative shifts, driven by evolving consumer behaviors, emerging trends, and new market dynamics. Whether it's the rise of organic foods, innovative functional ingredients, or shifting retail strategies, 2025 is shaping up to be a pivotal year for natural and specialty products.
On January 28, Naturally Network brought industry experts together to discuss and share valuable insights and strategies for the trends shaping the CPG market in 2025. Read on for key takeaways and the full recording of the webinar.
INDUSTRY EXPERTS
“Being able to provide an update to the Naturally Network is such a great opportunity. The (Naturally) Network represents those who are directly a part of or directly aligned with the organic community and keeping them well informed, with accurate updates, is an important aspect of maintaining the strength of organic.”
Key Takeaways
1. Natural Products Industry Growth & Market Trends
Natural & Specialty Products Outpacing Conventional: The natural channel is growing faster than conventional retail.
Increased Consumer Demand for Organic: Over 95% of households purchased organic products last year, with 2 million new buyers added.
Retail Shopping Trends Shifting:
Online shopping and direct-to-consumer sales are increasing.
Club stores & Walmart lost ground for the first time in years.
Younger shoppers (Gen Z & Millennials) prioritize values-driven purchasing.
Decline in Innovation & New Product Launches:
Brands are being more strategic rather than launching multiple new flavors or product extensions.
Expect a possible increase in new launches in 2025.
2. Functional & Emerging Ingredient Trends
"Healthspan" Over Lifespan: Consumers want long-term health & longevity, with a rise in personalized nutrition & biohacking.
Popular Functional Ingredients:
Magnesium, berberine (touted as “Nature’s Ozempic”), creatine, lion’s mane, colostrum
Non-alcoholic functional beverages (digestive health, mood support, detox)
High-Protein & High-Fiber Products on the Rise:
Consumers are looking for protein-enhanced products in all grocery aisles.
High-fiber could be the next big trend.
Sustainability & Packaging Innovation:
Brands are interested in sustainable packaging, but co-manufacturers struggle to implement it.
Smaller portion sizes are emerging due to GLP-1 weight-loss drugs.
3. Retailer & Consumer Behavior Insights
Price Sensitivity is at an All-Time High:
Shoppers switch brands easily based on discounts & promotions.
Private label is gaining traction as a cost-saving option.
Where Consumers Are Still Spending:
Produce, meat, organic/healthy products, dairy.
Where They Are Cutting Back:
Snacks, sweets, processed foods, household/cleaning products.
Biggest Influences on Trial & Purchase:
Price promotions (50% off & BOGO are the most effective).
Sampling & in-store discovery (end caps & impulse purchases).
Word-of-mouth & social media recommendations.
4. Emerging Retail & Brand Strategies
Retailers Like Walmart Are Competing for Better-For-You Brands
Walmart is actively positioning itself as an alternative to Whole Foods.
International & Cultural Flavors on the Rise:
Korean, Filipino, African, Indian, & Middle Eastern flavors are entering mainstream grocery aisles.
Multi-Pack Formats Growing in Demand:
More brands are offering multi-pack options, but co-manufacturers struggle to support it.
Sustainability & Regenerative Practices Matter:
Regenerative farming & upcycled ingredients are gaining momentum.
5. Regulatory & Industry Policy Changes
New U.S. Administration Policies Could Impact the Industry:
Potential tariffs on imported dietary supplement ingredients (which could affect supply chains).
FDA & commerce regulations could shift towards protectionism & increased oversight.
On-Demand Webinar
Miss the event or want to rewatch? Check out the full recording below:
Further Resources
Thank you so much to our our amazing speakers and partners for making this event possible! Check out further resources offered by our speakers and partners below:
