Is 2024 the Year Regenerative Agriculture Takes Root?
This article first appeared in Presence Marketing’s January 2024 newsletter.
By Steven Hoffman
In 1942, J.I. Rodale first popularized the term organic in the U.S. with the launch of Organic Farming and Gardening Magazine. Some 45 years later, in the 1970s, J.I.’s son Robert Rodale introduced the phrase “regenerative organic.” Robert’s goal was to describe an approach to farming that combined organic practices with a more holistic approach to land management and a focus on rebuilding soil health. Yet it’s only been in the past few years that the term has gained more widespread traction.
With the release in 2023 of two full-length feature documentary films, Common Ground and Organic Rising, along with increased adoption among farmers and producers, awareness of regenerative agriculture is set to gain ground in the coming year among large-scale food manufacturers, policymakers, researchers, the general public and more. Today, advocates of regenerative agriculture say it is the best way to produce healthier food and promote local and rural economies. And, by sequestering carbon back into soils, it can also play a significant role in mitigating climate change.
“2024 indeed will be marked as the year of regenerative agriculture. Why? We are closing in on a tipping point of awareness and collective action is being realized on a huge scale. Not only is soil and regenerative agriculture finally making its way as a leading climate, water and health solution, but we are also showing up as one of the biggest economic solutions for rural economies and businesses across the world,” said Finian Makepeace, Co-founder and Chief Strategy Officer of the nonprofit organization Kiss the Ground and Producer of the films Kiss the Ground and its sequel Common Ground.
“With the recent film Common Ground, and many other feature films and shows in this space sharing the story along with the incredible build of awareness brought on by Save Soil and others, we are seeing a dramatic increase in people comprehending the soil solution. With brands and businesses, there are huge commitments around regenerative agriculture for 2030. I believe 2024 will be a year of turning on those actions and increasing the integrity of their proposed programs. Regarding regenerative agriculture, I feel that 2024 will be the year that the world’s regen leaders find common ground and agree upon a definition that will allow for many more to work and support this space functionally,” Makepeace added.
“I do think that 2024 could be the best year yet for regenerative agriculture. While there is still disagreement over the definition, there is significant consensus that it includes a keen focus on building soil health, enhancing biodiversity, humanely integrating livestock and including worker fairness. New certification and verification programs like Regenerative Organic Certified, Certified Regenified, and Soil & Climate Health provide a lot of support and tools for farmers who want to incorporate more regenerative practices,” said Elizabeth Candelario, Director of Strategic Partnerships for MAD Agriculture, an organization that works with farmers and industry to advance regenerative practices.
In addition, Candelario said, “While their motivations may vary — from mission alignment to strengthening supply chains to mandatory ESG reporting — food companies are (finally) paying attention to the agriculture that is producing their ingredients. And food was finally on the table at the recent COP28 climate summit. The conference opened with a declaration on sustainable agriculture, signed by more than 130 countries, and ended with a final agreement that acknowledges for the first time that sustainable agriculture needs to be included in climate change solutions.”
Regenerative Products Sales Take Off
Now, the marketplace is responding. According to the Regenerative Organic Alliance Impact Report 2022 – 2023, sales of Regenerative Organic Certified (ROC®) products grew an average of 22% from EOY 2022 to EOY 2023, with sales totaling nearly $40 million in 2023. Companies including Dr. Bronner’s, Patagonia, Lundberg Family Farms, Manitoba Harvest, Bonterra and others are leading the certification efforts and serving as role models for other brands.
According to the Impact Report and based on SPINS data, revenue from sales of ROC® products in natural and multi-outlet grocers increased by one-third compared to the same period in the previous year. In addition, the number of ROC® SKUs in the market increased nearly forty-fold in 2023, “indicative of continued growth potential,” the report said. “By offering Regenerative Organic Certified products, brands are responding to the consumer desire to have their purchase make a positive impact at every level: environmentally, ethically, and socially,” the report concluded.
Globally, the market size for regenerative agriculture reached US$975.2 million in 2022, and is projected to be worth US$4.3 billion by 2032, poised to grow at a CAGR of 15.97% from 2023 to 2032, according to a June 2023 report from Precedence Research. North America generated more than 37% of the revenue share in 2022, Precedence Research reported.
While regenerative agriculture practices aren’t yet familiar to most Americans (just one in five consumers surveyed by Food Insight in 2022 said they’d heard of regenerative agriculture), 73% of consumers agreed they would be more likely to trust retailers and brands that implement regenerative agriculture programs, and 72% agreed that they would be more like to purchase from them, Supermarket Perimeter reported in October 2023.
Major retailers are taking notice. In December 2023, Whole Foods Market announced that it had implemented new standards to protect pollinator health. As such, the retailer will now require all fresh produce and floral suppliers to implement supply chain practices that help protect honeybees and other native pollinators.
Speaking to executives at Progressive Grocer’s Grocery Impact conference in November 2023, Whole Foods CEO Jason Buechle said, “Whole Foods Market invites you to help us start a ripple effect of change that will fix our broken food system. The decisions we make as a business — even the smallest ones — in how food is raised and grown today can have a profound and lasting impact on nourishing people and the planet for future generations to come. One of the biggest challenges our food system is facing now and will continue [to face] in the future is the climate crisis. If we continue farming in the large-scale, mechanized way that much of the industry currently does, our topsoil is not going to have the nutrient density it needs to grow the foods we know and love today,” Buechle said.
To address this challenge, Buechle reported that the retailer is working with farmers, ranchers, suppliers, scientists and other experts, as well as leading organizations, to leverage regenerative agriculture to evolve the practices used to grow, raise and produce the products that it sells. A focus on regenerative agriculture and responsible sourcing is an essential part of the retailer’s value proposition, which remains strong despite the mainstreaming of natural foods and the effects of inflation on consumer spending, according to Buechle.
Regenerative Food and Agriculture in 2024
In October 2023, Forbes reported that water stewardship will one of the biggest food trends in 2024. “As the tides of environmental consciousness continue to shape consumer choices, it is no wonder that water stewardship is set to become one of the top food trends for 2024,” wrote Senior Contributor Daphne Ewing-Chow.
“The global agri-food industry— valued at $6 trillion— is one of the most highly exposed to water risks, with water stress impacting many of the world’s largest food-exporting countries. Paradoxically, despite mounting perils to both food and water security stemming from water depletion, pollution, and climate-induced droughts, the food and agri-business sector is a chief contributor to the problem, accounting for a substantial 70% of all freshwater withdrawals,” she continued.
According to Ewing-Chow, “Regenerative agriculture plays a pivotal role in enhancing soil health, facilitating nutrient retention, bolstering natural resilience to environmental challenges, and mitigating erosion. This contributes to the conservation of water resources and the enhancement of ecosystem water quality, reducing the volume of water required for farming activities and decreasing harmful water and nutrient runoff from agricultural lands.”
Forbes also reported that in September 2023, SAI Platform, a network comprising 170 major food companies dedicated to sustainability, unveiled a global framework outlining the transition to regenerative agriculture for food businesses. A number of mainstream food brands such as Unilever, Nestlé, McDonald’s, Danone, and General Mills have already committed their support for regenerative agriculture, Forbes reported.
Greater technical innovation and research into regenerative agriculture will continue over the coming year, the Global Ag Tech Initiative predicted in its December 2023 report, 5 AgTech Trends to Watch in 2024. “Essentially mimicking natural process and biodiversity on agricultural land, the ultimate aim of regenerative agriculture is to improve soil health in order to boost yield. To address the challenges of climate change and feed a global population of over 8 billion, regenerative agriculture is vital. Digital tools use accurate, up-to-date data to create tailored regenerative agriculture solutions. These consider soil conditions, weather conditions, microclimates, and current crop growth or land use, as well as individual budgets and local regulations. Platforms offering site specific data will likely reign supreme in 2024. A view of sustainability that extends beyond simple carbon metrics and one-size-fits-all solutions is necessary and will enable the establishment of realistic, actionable objectives for growers, promoting sustainability and formulating strategies tailored to local environments,” the report said.
Beyond Food – Regenerative Fashion Threads the Needle
On the textile and fiber front, companies including fashion leader Mango will begin incorporating regeneratively grown cotton into its 2024 fashion collections, the Fashion Network reported in December 2023. The company has partnered with Materra, a British-Indian company specializing in regenerative cotton cultivation, and said it will be able to ensure complete traceability across the value chain of its cotton, from seed to final garment.
“As a global fashion company, our intent is clear: to contribute to creating a fairer society and reduce the fashion industry’s impact on the environment. This is why we ally ourselves with key partners like Materra, which will help us accelerate our path to ensuring that 100% of the fibers we use are sustainable by 2030,” said Andrés Fernández, Mango’s director of sustainability and sourcing.
Other fashion brands driving regenerative agriculture initiatives include J.Crew, Prana, Terra Thread and other textile and fiber companies that are members of the Regenerative Organic Alliance. “Big fashion brands and independent labels are embracing regenerative agriculture as a win-win solution that could allow them to source climate-positive materials. The challenge is that the concept doesn’t have a singular definition, and without clear standards it risks becoming a tool for greenwashing,” Business of Fashion reported in August 2023.
California Could Define Regenerative
Speaking of a definition, beginning in January 2024, the California Department of Food and Agriculture (CDFA), in collaboration with the State Board of Food and Agriculture, will host a series of public listening sessions to receive comments to help define “regenerative agriculture.”
“As interest in ‘regenerative agriculture’ continues to grow, we are seeing the introduction and evolution of the term in California policies and programs,” CDFA said. “Incorporating a definition of regenerative agriculture for state policies and programs provides a science-based criterion for the designation or recognition of the term ‘regenerative’ in agriculture-related policies of the state. By defining ‘regenerative agriculture’ and its associated practices, we are working to formalize holistic methods of farming that are designed to protect, sustain and enhance natural resources on our farms and farming communities throughout California,” the agency said.
Max Goldberg, Editor and Publisher of Organic Insider, commented, “If California codifies or legally defines ‘regenerative agriculture’ … it will certainly raise the profile of this term among consumers and farmers may end up paying more attention to the way they manage their soil, which is a real positive. However, both the opportunity for greenwashing and the consequences for organic could be severe,” he cautioned.
“At its core, the regenerative agriculture controversy stems from the question of whether a farming practice can be truly ‘regenerative’ if super-toxic chemicals, such as glyphosate or dicamba, are applied to the crops. There is no question that the regenerative movement has brought incredible attention to soil health … and that it has led to very important steps forward in farming practices around the world. But with all of the positive developments, ‘regenerative’ is ripe for abuse and greenwashing, and the multinational chemical companies, who have no intention of minimizing the importance of GMO seeds and synthetic pesticides, are eagerly embracing the term,” Goldberg added.
Elizabeth Whitlow, Executive Director of the Regenerative Organic Alliance, which manages the Regenerative Organic Certified program, told Organic Insider that she believes that California needs to act with real caution. “There are many groups and farmers advocating for ‘regenerative agriculture’ that are doing some excellent and extremely vital work. My concern, however, is that if the state defines ‘regenerative agriculture’ and it excludes organic, it could have the unintended effect of actually doing a lot more harm than good. Bad actors greenwashing the term is a real threat, and all stakeholders in California’s organic industry need to be fully engaged and on board with how the state is going to define ‘regenerative agriculture.’ The stakes are very high, for both California and our entire country, and this process cannot be rushed,” she said.
Woody Harrelson’s Regenerative Reason for Hope
Three-time Oscar nominated actor and environmental activist Woody Harrelson, in a December 2023 Op-Ed in The Wrap, expressed that, after serving as a co-narrator on the film Common Ground, he is “no longer hopeless for the future.”
Harrelson writes:
We stand at a crossroads, facing two paths. One leads to climate chaos, food shortages, deserts expanding and a biodiversity crash. The other involves rethinking our relationship with nature by choosing regenerative agriculture. The regenerative path can give us abundant, nutritious food, thriving ecosystems and a future for generations to come.
I had a surreal moment when I met King Charles and he said he loved “Kiss the Ground” so much he personally sent it to 1,000 people. I hope the same is true of “Common Ground” – I hope thousands of people send the new documentary to thousands of their friends.
I’ve never been a big believer in the political process in this country, but I believe in people. Congress is currently debating something called the Farm Bill. There are a lot of good people in America, who deserve to eat clean food, and it would be refreshing to see Washington prioritize communities over commodities.
I’m no longer hopeless. I’m actually inspired. In fact, I’m committed to using my voice and activism to make the regenerative agriculture movement spread far and wide.
We don’t just need to support soil in the Farm Bill — we need to make the effort in every way we can, from turning our lawns into food gardens and our food waste into compost, to buying food from local regenerative farmers and ranchers. We all eat and we can all support the people who are doing the hard work to feed the world with healthy regenerative food. We can vote with our dollars.
One thing is for certain, it’s time for a change. Soil is our common ground.
Let’s make regenerative agriculture our priority.
Learn More
Growing Life: Regenerating Farming and Ranching, by André Leu, December 2021
Food Climate and Nature FAQs, The Nature Conservancy, Sept. 1, 2023
Regeneration International, a global nonprofit organization and educational resource
44th Annual EcoFarm Conference, Pacific Grove, California, Jan. 17-20, 2024
Regenerative Business Live, United Nations, New York, NY, May 7, 2024
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Exclusive Invitation: 'Focus on the Farmer' Webinar Offers Tools for Transitioning to Organic
Compass Natural Presents
Focus on the Farmer
On behalf of USDA and the Great Plains TOPP, you're invited to join us for a free educational webinar:
'Navigating the Transition to Organic:
A Roadmap for Success'
Opportunities are there for transitioning and existing organic farmers. But what are the obstacles and where are the resources, technology and assistance to support hemp farmers and others who are transitioning to organic?
For producers interested in learning more, join us for the first event in the Focus on the Farmer education series.
Aug. 29 from 10:30 am to 12 pm MDT
All registered webinar guests will receive a FREE PDF DOWNLOAD of the presentation with links to key resources.
ABOUT:
This series is a collaboration between Compass Natural and USDA’s Transition to Organic Partnership Program (TOPP). The mission of TOPP is to foster organic agriculture and make much-needed resources and technical assistance available to transitioning and existing organic farmers. Compass Natural is a Colorado-based communications agency specializing in natural and organic food and agriculture.
We encourage you to share this with friends, family and fellow farmers!
For questions about the webinar or to nominate a speaker for a future event, please email news@compassnatural.com
Compass Natural Marketing Partners With USDA in Major Organic Farming Initiative
Leading natural and organic marketing communications agency selected to manage a series of key events to support farmers transitioning to organic
BOULDER, Colo. (Aug. 11, 2023) — Compass Natural, a Boulder, Colo.-based PR and communications agency with a deep commitment to organic and regenerative food, agriculture and the environment, has entered into a cooperative agreement to support the USDA’s Transition to Organic Partnership Program (TOPP). This $100 million, five-year program is a critical part of the USDA’s Organic Transition Initiative — the largest single investment in organic agriculture ever made by the USDA.
TOPP is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers. TOPP is building partnership networks in six regions across the U.S., working with trusted organizations like Compass Natural to create and administer farmer mentorship, education and community-building programs.
“We are thrilled to partner with Compass Natural on the Transition to Organic Partnership Program,” says Brandon Hill, OCIA International’s program director for the Plains Region TOPP. “As the agency has a deep connection to organic markets, it is a great fit to help make the connections producers will need to successfully transition to organic.”
Compass Natural is one of 16 select organizations partnering with OCIA International in TOPP’s Plains Region, encompassing Colorado, North Dakota, South Dakota, Nebraska, Kansas and Oklahoma. Compass Natural will manage a series of key events for farmers throughout the Plains Region during the second half of 2023. Using a contact list of more than 25,000 industry leaders, decision-makers, producers and major media members involved in organic food and agriculture, Compass Natural will bring together key experts and farmers to support the mission of the TOPP program.
‘Focus on the Farmer’ Fall Series Kicks Off With Aug. 29 Webinar
Compass Natural will kick off a Fall “Focus on the Farmer” education program on Aug. 29, 2023, with the first of a series of monthly webinars. Registration is now open. Farmers can sign up here.
August panelists will include:
· Dr. Gene Kelly, professor of pedology, deputy director of the Colorado Agricultural Experiment Station and the associate director for research in the School of Global Environmental Sustainability at Colorado State University (CSU).
· Tina Owens, senior fellow of Regenerative Agriculture, leading the Nutrient Density Alliance, a program within the Soil & Climate Alliance at Green America. Tina has been working as a sustainability leader within the organic sector since 2008 for several of the largest organic brands in the world, including enabling on-farm transition to organic and regenerative practices.
· Mark Retzloff, a pioneer in the organic and natural foods industry with a 47-year career including co-founder of Alfalfa’s Markets, co-founder of Aurora Organic Dairy, co-founder of Horizon Organic Dairy and former chairman of the Organic Food Alliance.
Live Symposium Planned for November 2023
The Fall Series will conclude with a live, one-day networking and education event in November. It will bring together world-class experts and farmers to discuss subjects related to transitioning to organic. Topics will include key organic resources, the regeneration of soil and carbon sequestration, best practices in pest control, organic farming and ranching production, and handling, financing alternatives, value-added product development and more.
Upcoming events will also highlight community-building initiatives like TOPP for Indigenous Producers; Linking Organic Consumer Packaged Goods Brands With Organic Producers in Transition; and Financing, Grant and Funding Options for Organic Producers. Technical assistance and training initiatives include TOPP for Hemp/Grain Farmers in the Plains Region, TOPP for Specialty and Produce Growers, and TOPP for Western Slope Fruit and Specialty Crop Producers.
“Compass Natural is honored, grateful and excited to be partnering with TOPP on such an important program focusing on supporting farmers as they transition to organic,” says Steven Hoffman, founder of Compass Natural. A former agricultural extension agent and graduate of Penn State University, a land grant college, Hoffman adds, “We look forward to educating farmers about the true value of organic in building resiliency in their farm operations.”
About Compass Natural
Based in Boulder, Colo., the “Epicenter of the Natural Products Industry,” Compass Natural is a boutique communications agency serving the rapidly growing market for natural, organic, socially responsible, eco-friendly and other healthy lifestyles products. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
About TOPP
Transition to Organic Partnership Program (TOPP) is a program of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP).
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042
Getting Your Brand to Expo East Is Just Half the Battle
Planning to get your brand to exhibit at Natural Products Expo East is quite a feat. As you prepare to exhibit in Philadelphia this September, make sure key players know where to find you so you can maximize your time at the show.
Over the past 20 years we have curated a proprietary email list of more than 15,000 retailers, distributors, brokers, manufacturers and others in the healthy lifestyles market. If you are interested in a pre-Expo East campaign, to make sure these players visit your booth in Philly, we'd love to connect!
Our Exclusive Offer for Expo East 2023:
Our team will be accepting only 10 new clients to help prepare for Natural Products Expo East and will extend a $500 discount off the following publicity package:
One (1) Press Release:
Compass’ veteran writers and editors will craft a custom press release specific to your brand’s newsworthy announcements.
Distribution:
Your release will be sent to leading media contacts and influencers across all major U.S. markets who report on natural, organic and eco-friendly products.
Verified Journalist Pitch:
To maximize earned media potential with each PR campaign, and to encourage meetings with media for your brand at Expo East, Compass Natural utilizes a highly regarded professional PR and media relations platform. By creating a custom pitch to verified journalists who cover topics specific to your brand’s focus, your news receives further promotion, including an invitation to set up interviews for stories, podcasts and TV/radio coverage, as well as product reviews and sample requests.
Package Cost: $3,500
Expo East Discount: $3,000
We look forward to connecting with you!
Best,
Steven Hoffman
Founder & CEO
steve@compassnatural.com
Our Clients*
*Partial list
Compass Coffee Talk Podcast to Feature Ibraheem Basir, Founder & CEO of A Dozen Cousins
Compass Coffee Talk™, a popular live webinar series featuring conversations with business leaders in the natural, organic and sustainable products industry, welcomes Ibraheem Basir, founder & CEO of A Dozen Cousins, a top Black-owned natural food brand.
What: Compass Coffee Talk™
When: Wednesday, July 19, 2023, 8:30 am PT; 9:30 am MT; 10:30 am CT; 11:30 am ET
Presented by: Compass Natural, Connecting Media and Markets in Natural and Organic Products
Sponsored by: Presence Marketing, Naturally Boulder, Naturally New York and Naturally San Diego
Register: Register for Free Here
BOULDER, CO (June 15, 2023) —Ibraheem Basir, founder and CEO of A Dozen Cousins, a natural food brand making beans, rice, sauces and more, will appear on July 19, 2023, on the popular Compass Coffee Talk™ podcast, which features lively conversations with natural products industry leaders, innovators and experts designed to help guide entrepreneurs and businesses to succeed in the market.
A Dozen Cousins, whose offerings hark back to the traditional Creole, Caribbean and Latin American dishes that Basir enjoyed in his childhood in the culinary melting pot of Brooklyn, N.Y., is named after Basir’s daughter and her 11 cousins.
Ibraheem Basir of A Dozen Cousins
Basir grew up in a large family where food was at the center of all celebrations and gatherings. After observing a gap in the market for authentic, nutritious cultural foods, Basir launched A Dozen Cousins to provide the comforting, flavorful recipes he grew up eating with his family. The brand’s flagship beans have become the No. 1 item in their category on Amazon and are sold nationwide at retailers including Whole Foods, Sprouts and Target, among others.
Hosted by natural and organic products industry veterans Bill Capsalis and Steven Hoffman, Compass Coffee Talk is produced by Compass Natural Marketing, a leading public relations, branding and business development agency serving the natural, organic, eco-friendly and hemp products industries. Capsalis and Hoffman will interview Basir to learn more about his and his company’s story.
Helping the Natural Foods Industry Evolve
Basir is a passionate advocate for Diversity, Equity and Inclusion in the consumer packaged goods industry and seeks to help the natural foods space evolve and grow to reflect the diversity of the United States. He is a founding board member of Project Potluck, a nonprofit that provides a range of mentorship and education programming in support of its mission to help people of color build successful companies and careers in the CPG industry.
Basir holds a BA from the University of Pennsylvania and an MBA from the university’s Wharton School of Business. He lives in Los Angeles with his wife and daughter.
Project Potluck
While breaking into the natural and organic products industry isn't easy for anyone, Black, Indigenous and other people from diverse racial and ethnic backgrounds can find it especially challenging to attract investors, find the right co-packers, refine recipes and garner placement on retail shelves. Enter Project Potluck, established by Ibraheem Basir, CPG veteran and founder and CEO of A Dozen Cousins, a leading Black-owned natural food brand, to provide the support that minority entrepreneurs in the natural products space need to succeed. In March 2022, Project Potluck won New Hope Network’s inaugural Justice Award for its efforts to promote justice, equity, diversity and inclusion in the natural and organic products industry. Read about the organization in Forbes magazine.
Register for Compass Coffee Talk with Ibraheem Basir
Register here for free to participate in the upcoming Compass Coffee Talk, Wednesday, July 19, 2023, 11:30 am – Noon ET.
About Compass Coffee Talk
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry.
Previous Episodes of Compass Coffee Talk
View the entire library of Compass Coffee Talk episodes on YouTube. Co-hosted by natural products industry veterans Steven Hoffman and Bill Capsalis, Compass Coffee Talk has featured notable professionals such as Jared Polis, governor of Colorado; Steve Hughes, co-founder of Sunrise Strategic Partners; John Mackey, CEO and co-founder, Whole Foods Market; Miyoko Schinner, CEO and founder, Miyoko’s Kitchen; John Foraker, CEO of Once Upon a Farm; Emerald-Jane Hunter, founder of the MyWhy Agency; Heather Terry, CEO of GoodSAM; Milton Zimmerman, executive vice president, Presence Marketing; Jennifer Maxwell, founder and CEO of JAMBAR®, and more.
Contact
Steven Hoffman, Compass Natural, steve@compassnaturalmarketing.com
Natural & Organic Industry Set to Surpass $300 Billion in Sales in 2023, Despite Slower Growth, Inflation
This article first appeared in Presence Marketing’s May 2023 newsletter.
By Steven Hoffman
The U.S. natural and organic products industry is on pace to surpass $300 billion in total industry sales in 2023, despite slower growth and inflation, according to early estimates by Nutrition Business Journal.
Presenting the data at Natural Products Expo West in March, New Hope Network SVP and Market Leader Carlotta Mast said, “This would represent a doubling of industry sales over the last decade. That’s huge. We are a sizeable, impactful, meaningful industry. We’re not a fad anymore. We’re not this niche industry.”
Photo: Unsplash
U.S. consumer sales of natural and organic products reached $278 billion in 2022, with growth slowing from 7% in 2021 to 5.4% in 2022, according to preliminary research by Nutrition Business Journal, based on data provided by market research firm SPINS. This follows an unprecedented spike of 10% growth in 2020, as a result of the pandemic. Sales growth is expected to recover somewhat going forward, according to Mast, and is projected to reach 6% in 2024 and 2025.
The bulk of the growth in 2022 was driven by natural, organic and functional food and beverage sales, led by carbonated drinks, dairy alternatives, “better-for-you” sweeteners, baby products and canned and dried soups. These categories outperformed the overall natural and organic products industry, Mast noted. In functional foods and beverages, sports and energy drinks, soft drinks, frozen desserts and snack chips that include functional ingredients such as mushrooms, adaptogens, electrolytes, prebiotics and healthy fats helped drive sales in the category.
Hitting a milestone in 2022, as well, were sales of organic food and beverage products, with sales estimated at more than $50 billion. According to Mast, this figure represents a doubling in organic food and beverage sales since 2014. Product categories that performed strongly in the organic sector last year included organic baby formula, candy, dips, soft drinks and yogurt, according to New Hope and SPINS data.
However, after seeing record growth in 2020, most impacted by inflationary pressures was the dietary supplements category, which rose only 1.7% in 2022 to $60.9 billion in sales, based on the data presented at Expo West and reported on by Food Navigator-USA.
Kathryn Peters, Chief of Staff at SPINS, shared with attendees at Expo West that natural and organic foods are continuing to expand into the mainstream, with sales of natural products in conventional grocery and convenience outpacing growth in traditional natural food stores. Growth in sales of natural products in 2022 increased 9.2% in convenience, followed by a 7.4% increase in “conventional multi-outlet,” and a 4.1% increase in regional grocery, compared to 2.5% growth in the natural channel, based on SPINS data and reported by Food Navigator-USA.
While shoppers continue to look for deals and best prices across multiple channels including supermarkets, mass retailers, club stores and online to help reduce the impact of higher food prices, according to The Hartman Group and FMI — The Food Industry Association, 32% of shoppers concerned about rising food prices reported buying fewer items as a strategy to save money in February 2023. That’s down from 41% of shoppers who reported buying fewer items to save on food costs in October 2022.
“Our national survey reveals persistent consumer concern about food and beverage prices, as the weekly spend for groceries increased in late 2022 and early in 2023,” Leslie G. Sarasin, president and CEO of FMI, said in a statement. “To address higher prices, shoppers are visiting more stores and seeking deals to stretch their dollars but are now less likely to cut back on the number of items purchased compared to six months or a year ago. This is an opportunity for our industry to continue connecting with shoppers on food-inflation-mitigating solutions.”
According to FMI and The Hartman Group’s findings, food price concerns cut across shopper demographics, however, “Boomers are more worried about rising food prices than any other group, with 80% showing concern in February 2023 versus 69% in October 2022. Millennials polled close behind with 76% saying they are concerned, 5% more than one year ago. Such concerns about food costs coincide with an increase in spending in this inflationary environment. In February, on average, consumers spent $164 per week on groceries, up from $148 in both October and February of 2022,” FMI said.
Natural and organic food shoppers, in particular, may be less sensitive to price than traditional shoppers, but they still want quality, taste, nutrition, value … and sustainability. Younger consumers are driving demand toward brands that reduce waste and minimize carbon footprint and environmental impact. “The values-oriented shopper is a really important and valuable shopper,” Peters of SPINS noted, and according to Nutrition Business Journal, organic products are one of the last places consumers say they are willing to trade down to fight food inflation.
In a Chicago Tribune feature article published on April 3, 2023, Tonya Lofgren, Marketing Manager of Ciranda, a leading organic ingredient supplier based in Hudson, WI, said, “What’s cool about the natural and organic shopper is that if they value that, they’ll prioritize it over other ways to adjust spending because they realize how important it is.” Ciranda CEO Doug Audette added, “We are seeing consumers rationalizing their spending decisions. Overall, that has tempered the growth in organic. But we see no letting up in the long-term growth of organic, sustainable and fair-trade ingredients.”
In a March 2023 organic market report, USDA reported that, after a surge in pantry stocking pushed sales to record heights in 2020, organic food sales declined for the first time in decades in 2021 on an inflation-adjusted basis. However, “more than 15 million new customers entered the organic and natural foods market between early March and mid-April 2020,” USDA said. Time will tell if these consumers stick with organic.
According to USDA’s market report, organic consumers are diverse in terms of race, ethnicity, education, and income, though millennials purchase organic food at larger rates than other generations. Households with children are also more likely to purchase organic food than households without children, USDA noted.
Yet, challenging new and dedicated organic consumers alike is the fact that organic foods are seeing some of the steepest price hikes amid stubbornly high food inflation. Prices for organic fruit and vegetables rose 13.1% over the past year, compared with just under 10% for conventional produce, according to a February 2023 analysis of USDA retail pricing data by Lending Tree.
Among all the food groups included in Lending Tree’s analysis, organic chicken prices increased the most, at 19.5%. “That's more than three times the price jump for conventionally raised chicken, which rose 5.9% over the last year, the report shows. For households already struggling with the nation's worst bout of inflation in 40 years, such spikes could force many consumers to opt for nonorganic options instead,” CBS News reported.
Sales data for 2022 show organic fruits and vegetables growing in revenue but declining in sale volume, according to the Organic Produce Network. However, that’s a common theme across the food industry as consumers pay more for less in the face of heavy inflation, the Chicago Tribune noted.
According to the Tribune, a quarter of consumers surveyed by Nutrition Business Journal over the past year said they’re unlikely to stop buying organic produce, packaged food and meat to save money on groceries. Fewer than half of respondents said they are likely to cut those products out.
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We Are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Compass Coffee Talk™ Gets Its JAM On: Podcast to Feature Jennifer Maxwell, Creator of the Original PowerBar® & Founder of the New, Artisan Organic Energy Bar, JAMBAR®
Compass Coffee Talk™, a popular live webinar series featuring conversations with top business leaders in the natural, organic and sustainable products industry, welcomes Jennifer Maxwell, Co-Founder of the original PowerBar® and Founder and CEO of the new Certified Organic, Artisan Energy Bar Brand, JAMBAR®.
What: Compass Coffee Talk™
When: Wednesday, April 5, 2023, 8:30 am PT; 9:30 am MT; 10:30 am CT; 11:30 am ET
Presented by: Compass Natural, Connecting Media and Markets in Natural and Organic Products
Sponsored by: Presence Marketing, Naturally Boulder, Naturally New York and Naturally San Diego
Register: Register for Free Here
BOULDER, CO (February 17, 2023) — How do you top being the person who created the entire energy bar category? By taking that category to the next level. Jennifer Maxwell, inventor of the original PowerBar and founder and CEO of JAMBAR, is doing just that.
Maxwell will appear on April 5, 2023, on the popular Compass Coffee Talk™podcast, which features lively conversations with natural products industry leaders, innovators and experts designed to help guide entrepreneurs and businesses to succeed in the market.
Jennifer Maxwell, founder and CEO of JAMBAR®
Jennifer, along with her late husband Brian Maxwell, literally invented the entire energy bar category in the mid-1980s. Today, the energy bar category, valued at nearly $5 billion globally, is one of the most vibrant product sections in any retail food store.
Jennifer launched JAMBAR using her food and nutrition science skills first learned at the University of California, Berkeley, to create a line of artisan energy bars with certified organic, whole food ingredients, high-quality protein and fiber.
Considered the “next generation” of energy bars, JAMBARs boast one of the cleanest labels in the category. In addition, Maxwell’s commitment to philanthropy is at the forefront of the brand’s mission – JAMBAR donates 50% of all after-tax profits to support music, active living and community connections in Marin County, California, where the company is based, and around the country.
Hosted by natural and organic products industry veterans Bill Capsalis and Steven Hoffman, Compass Coffee Talk is produced by Compass Natural Marketing, a leading public relations, branding, and business development agency serving the natural, organic, eco-friendly and hemp products industries. Capsalis and Hoffman will interview Maxwell to learn more about her comeback story.
A Legacy of Athletics, Entrepreneurship … and Music
A lifelong long-distance runner, Maxwell studied food science, nutrition and exercise physiology at U.C. Berkeley, where she met her husband, Brian. After developing the original PowerBar energy bar recipe in their kitchen, they began building the business from a small apartment, growing the company to more than $150 million in annual sales before selling the company in 2000. When Brian passed away unexpectedly in 2004, Jennifer focused on raising her six children and, over the years, discovered the healing power of music. Today, in her free time, she performs regularly as a drummer in bands in the San Francisco Bay Area.
“We’re thrilled to host Jennifer Maxwell on Compass Coffee Talk,” said Steven Hoffman, Managing Director of Compass Natural and co-host of Compass Coffee Talk. “As musicians in our spare time ourselves, Bill Capsalis and I appreciate JAMBAR’s mission and Jennifer’s passion for supporting music and active living. Jennifer invented the energy bar category and we look forward to hearing her perspective on this growing food segment, her comeback in the natural foods industry, and her continued entrepreneurship.”
Register for Compass Coffee Talk with Jennifer Maxwell
Register here for free to participate in the upcoming Compass Coffee Talk, Wednesday, April 5, 2023, 11:30 am – Noon ET.
About Compass Coffee Talk
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry.
Previous Episodes of Compass Coffee Talk
View the entire library of Compass Coffee Talk episodes on YouTube. Co-hosted by natural products industry veterans Steven Hoffman and Bill Capsalis, Compass Coffee Talk has featured notable professionals such as Jared Polis, Governor of Colorado; Steve Hughes, co-founder of Sunrise Strategic Partners; John Mackey, CEO and Co-Founder, Whole Foods Market; Miyoko Schinner, CEO and Founder, Miyoko’s Kitchen; John Foraker, CEO of Once Upon a Farm; Emerald-Jane Hunter, Founder of the MyWhy Agency; Heather Terry, CEO of GoodSAM; Milton Zimmerman, Executive Vice President, Presence Marketing; and more.
Contact
Steven Hoffman, Compass Natural, steve@compassnaturalmarketing.com
Compass Natural Adds Talent to Boutique PR, Brand Marketing Agency Serving Natural, Organic, Regenerative and Hemp Products Businesses
Compass Natural Adds Talent to Boutique PR, Brand Marketing Agency Serving Natural, Organic, Regenerative and Hemp Products Businesses
November 9, 2022
Compass Natural, a boutique public relations & brand marketing agency serving businesses in the market for natural and organic foods and related products, is pleased to announce the addition of seasoned talent to its team.
Compass Natural, a Boulder, CO-based boutique public relations and brand marketing agency serving businesses in the market for natural and organic foods, industrial hemp and cannabis-related products, regenerative agriculture, and sustainable and eco-friendly products and services, is pleased to announce the addition of seasoned new talent to its team.
“Going into the new year, we are excited to offer our clientele a diverse, talented team with expertise in brand marketing, public relations, social media influencer marketing, digital communications, content development, business development, and trade show, conference and event planning — all focused on serving businesses and brands in the natural, organic, and healthy lifestyles market," said Steven Hoffman, Founder and Managing Director of Compass Natural.
“When Compass Natural’s longtime associate Evan Tompros moved on in September to further career opportunities after seven years of service to our clients in the natural and organic channel, it provided an opportunity for us to reorganize our agency. As such, we’ve been fortunate and successful in attracting an incredible lineup of professionals to serve our client companies into the future,” Hoffman added.
Joining the Compass Natural PR, Communications and Brand Marketing Team
Allison Salvati (top left) — Natural products brand marketing veteran Allison Salvati joins Compass Natural as “Creator of Opportunities.” Having worked with such leading natural and organic brands including Bhakti Chai, noosa yoghurt, Honey Smoked Fish Co., and others, Allison will help lead brand strategy and marketing, social media influencer marketing, media outreach, and client services. Allison proudly claims her superpower is building and nurturing relationships. Human connection is her core value and she is passionate about curating meaningful experiences for clients and brands.
Hope Keller (lower left) — Hope Keller joins Compass Natural to assist with digital marketing and communications, production, editorial and web, blog and related content. A veteran journalist, Hope has worked at the Baltimore Sun, the Philadelphia Inquirer and the International Herald Tribune, among other newspapers. She also served as director of communications for the University of Baltimore School of Law. In addition to her work with Compass Natural, she works as a writing tutor at Mitchell College in New London, CT, and as a freelance reporter for The Daily Record in Baltimore.
Elizabeth Lunt (top right) — Co-founder of Spark Events, Elizabeth Lunt joins Compass Natural as a contributing writer and to assist with trade show and conference planning, educational programming, booking speakers and other related services. Spark Events produces business networking and educational events for the cannabis industry in Maryland, where Elizabeth also has been active as a dispensary agent and cannabis advocate. She is fascinated by the development of the industrial hemp industry and has been a volunteer with the US Hemp Building Association as well as a writer for HempBuild Magazine.
Rachael Carlevale (lower right) — Rachael Carlevale joins the Compass Natural Marketing team with more than 10 years of experience directing sales and marketing in the natural products industry. The co-founder of Suelo Vivo, a certified regenerative hemp farm and brand, and founder of Ganjasana Plant Medicine School, Rachael develops and teaches cannabis and hemp courses. Rachael is a certified Mindfulness Educator, yoga instructor and DEM Pure Educator who contributes to Skunk Magazine with her “Cannabis + Wellness Column.”
Advisory Board — In addition to new team members, Compass Natural’s distinguished Advisory Board includes the following members: Mark Retzloff, co-founder of Alfalfa’s Market and Horizon Organic Dairy; Michael Schall, former VP of Global Business Development for Whole Foods Market; Ari Adams, CEO of ShiftCon, the nation’s largest community of eco-wellness social media influencers; and marketing and branding veteran and current director of Naturally Boulder, Bill Capsalis.
New Clients in 2022-2023
In addition to working with longtime clients -- including We Are for Better Alternatives, producer of NoCo Hemp Expo and Southern Hemp Expo and publisher of Let’s Talk Hemp; Presence Marketing, the nation’s leading independent natural products brokerage; BeyondBrands, a leading collective of branding experts serving the natural, organic, and healthy lifestyles market; and others -- Compass Natural welcomed a number of new clients in 2022. Such new brands include JAMBAR®, a certified organic, artisan-made energy bar created by Jennifer Maxwell, the inventor of the original PowerBar®; the Glyphosate Residue Free certification program, administered by the Detox Project; Bay State Milling, provider of certified organic grain ingredients; Franny’s Farmacy, an Asheville, NC-based producer of hemp-derived CBD consumer products and operator of a chain of dispensaries in the Eastern U.S.; and more. In addition, Compass Natural founder Steven Hoffman serves on the Advisory Board of ShiftCon Media, the country’s largest community of “eco-wellness” social media influencers.
About Compass Natural — Connecting Media & Markets in Natural, Organic Products
Based in Boulder, CO, and founded in 2002 by natural products industry veteran Steven Hoffman, Compass Natural is a boutique agency serving the public relations, brand marketing, social media, and business development needs of companies and organizations in the $500 billion market for natural, organic, regenerative, socially responsible, and eco-friendly products and services. Compass Natural also is the producer of the popular business podcast Compass Coffee Talk, which in November 2022 featured Colorado Governor Jared Polis talking about sustainability and the growth of natural and organic products, as well as the hemp and cannabis industries in the state and the nation. Visit Compass Natural’s fully illustrated client deck here. Also, learn more at www.CompassNatural.com and on Facebook and LinkedIn.
Contact
Steven Hoffman, info@compassnaturalmarketing.com, tel 303.807.1042