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Niq Global Intelligence — NielsenIQ — Organic Produce Network Presentation (2024)

28 slides from Niq Global Intelligence's conference presentation, Jul 10, 2024

Slide 1: Changing Consumer: Impact on Organic Produce Opportunities
Changing Consumer: Impact on Organic Produce Opportunities Sherry Frey, NielsenIQ Sherry.frey@nielseniq.com © 2024 Nielsen Consumer LLC. All Rights Reserved. © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 2: Consumer view of wellness beyond personal, includes planet and others
Consumer view of wellness beyond personal, includes planet and others Personal Planetary Social © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 3: NIQ Better For: short-term pull back on wellness
NIQ Better For … Consumers had short-term pull back on all things wellness YOU $ % Chg YA | Food & Beverage vs Better For 14% 12% 10% 8% 6% ENVIRONMENT 4% Inflation drove short-term 2% shifts from wellness 0% -2% -4% Better For -6% Food & Beverage -8% SOCIETY Source: NIQ, Retail Measurement Services
Slide 4: Organic, especially organic produce, is performing better than non-organic
Organic, especially Share of Organic sales in Total US Index to Total Channel Sales organic produce, is performing better 37% Conventional Grocery 109 than non-organic +20%| -8% 19% Warehouse Clubs 186 Total non-organics 17% Mass Merc w/ Supers 60 +23% | -1% Organic stated 13% Premier Fresh/Natural
Slide 5: Organic produce leads the list of organic categories and consumer searches
Organic produce leads the list of organic categories and consumer searches Organic is Top Searched Categories Top 15 Categories for Organic in 736 for Organic categories across the store Vegetables Vegetables Fruit Fresh and frozen fruit Beverages Herbs and spices Milk products Milk Prepared foods N
Slide 6: Transparency is increasingly important to consumers and they look for signals
Transparency is increasingly important to consumers and they look for signals How you determine if a brand is being transparent: If a brand or manufacturer provides… 91% A complete list of ingredients Importance of Transparency 87% A plain English description of ingredients 86% Certifications (such
Slide 7: Consumer engagement with sustainability varies
Consumer engagement with sustainability varies 34% 14% 22% 11% 19% Skeptics Idealists Minimalists Healthy ‘me’ & Evangelists ‘Planet’ Low awareness and priority Passionate but struggle to put Basic awareness of Embrace importance with a “Walk the talk” into practice sustainability but no strong focu
Slide 8: Produce is a key department for sustainability-minded and strong organic consumers
Produce is a key department for sustainability-minded and strong organic consumers 134 Organic Index 125 Organic Index 138 Organic Index Skeptics Idealists Minimalists Healthy me & planet Evangelists 1 Meat Grocery Meat Produce Seafood 2 Grocery Produce Bakery Deli Produce 3 Frozen Dairy Deli Dairy
Slide 9: Life stages prompt organic produce consumption
Life stages prompt organic produce consumption Source: NIQ Homescan Panel; NIQ Product Insight, powered by Label Insight; All Outlets; NIQ Life Moments survey 2023; Total Food & Beverage, Organic Produce; 52 weeks ending 6.15.2024 © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 10: Formative and current life experiences shape generational priorities
Formative and current life experiences shape generational priorities Gen Z GenY/Millennial Gen X Boomers (1965 – 1980) (1946 – 1964) (1997 – 2012) (1981 – 1996) 12- 27 years old 44- 59 years old 60- 78 years old 28 – 43 years old • ½ not working age (N= approx. • Most are retired • Peak earning year
Slide 11: Unique and overlapping health and wellness priorities across generations
Unique and sometimes overlapping health and wellness priorities across generations Gen Z Gen Y / Millennials Gen X Boomers Greatest Animal welfare-related Sustainable packaging Environmental All of Gen Z but to lesser degree • Less packaging sustainability • Cruelty Free, Humane • Sustainable packag
Slide 12: Share of sales is shifting; millennials and Gen Z increasing in importance
Share of sales is shifting and millennials and Gen Z continue to increase in importance Current CPG Spending Future Total US Spending Total Store Share Total Store Growth By 2050, millennials will Percentage of Total Nominal Spending 34% 29% be 54 – 69 years old 28% 43% 33% 29% 6% % of Dollars % of
Slide 13: Share of produce fairly split across millennials, Gen X and boomers with Gen Z growing
Share of produce fairly split across millennials, Gen X and boomers with Gen Z growing Gen Z saw the highest growth in share of organic produce spending from prior year Percentage point change of organic $ share year-over-year Gen Z Greatest Boomers represent greatest Gen Z Gen Z (1995 or later) +0.
Slide 14: Understanding aging will be key opportunity: health span is the new life span
Understanding aging will be key opportunity: health span is the new life span © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 15: Younger consumers index higher for organic; older prefer pesticide-free
Younger consumers index higher for interest in organic while older consumers have slightly higher preference for pesticide-free Which of the following claims are important to you when purchasing a food or beverage? Other standout claims for younger 82% shoppers 78% Allergen-free 71% Regenerative 55%
Slide 16: Understanding meaning of organic key to meeting unique priorities of generations
Understanding meaning of organic key to meeting unique priorities of generations USDA Organic Seal Attribute Association Younger consumers associate 36% environmental aspects to 34% USDA organic seal while older 31% 28% consumers tend to associate health/nutrition and 24% 22% chemical avoidance Gen
Slide 17: Consumers, especially younger, care most about USDA organic for fruits and vegetables
Consumers, especially younger, care most about USDA organic for fruits and vegetables above other categories How Important is it to you that these products are labeled as the ‘USDA organic’ when you make a purchase? 81% 67% Fruits and/or Vegetables Snack Foods 74% 58% 77% 56% Dairy Beverages (Alcoho
Slide 19: Born 1997 - 2012...far from a monolith: Gen Z is in many life stages
Born 1997 - 2012...far from a monolith: Gen Z is in many life stages Headed to the store Picking up snacks? Yep, for tonights game Meet you at the dorm 27 Yrs Old 12 Yrs Old 18 Yrs Old © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 20: The duality of Gen Z
The duality of Gen Z Global Connectivity........... ................. Local Culture Mass Access........................ ..................... Individualistic Needs .......................... …...................Values © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 21: To capture lifetime value, appeal to Gen Z values
Individuality Morality To capture the 1/5 57% lifetime value of of Gen Zers can't of Gen Zers purchase find Brands they a product that values this consumer, can relate to & supports social equality or supports you must appeal at risk communities to their values or minorities throughout their lifetim
Slide 22: Gen Z expects information to be ubiquitous across media
Gen Z – the first true digital natives and highly connected – expect information to be ubiquitous across media direct-to-consumer apps influencers in-store live events social media social commerce word-of-mouth/friends online podcasts information hybrid-channel shopping out-of-home chat/support © 20
Slide 23: Gen Z's influence will get more complex
Gen Z's influence will get more complex: Delaying Life Stages Evolving Households Multi-generational Caregiving <10% 4X (from 1971) Live with spouse (vs. ~ 20% in 1991) Now ~1 in 5 US HHs © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 24: Gen Z is most ethnically diverse generation, driving different engagement with food
Gen Z is most ethnically diverse generation which is driving different engagement with food Race and ethnicity distribution of the population, by generation Gen Z 50 25 15 6 5 Millennials 54 21 15 8 3 Gen X 59 19 13 7 2 Social media like Tik Tok and Instagram has become a major vehicle for food expl
Slide 25: Watch for in-store influence of Gen Z
Watch for in-store influence of Gen Z Surprisingly, Gen Z more in-store while Millennials are the online powerhouses Total CPG Total CPG – U.S. Share of Sales Online Spend Online In-Store 5.1% Gen Z $318MM 5.6% 36.3% Gen Y 31.6% $2.1B 27.6% Gen X 28.2% $1.6B 31.0% Boomer 34.7% $1.8B Source: NIQ Omni
Slide 26: Translating Gen Z values to Gen Z relevance
Translating Gen Z values to Gen Z relevance Morality Flexibility Individuality is at the heart of the Gen Z Individuality value system r Wellness Relevance = Revenue © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 27: Organic produce sits at the epicenter of the evolving lens of wellness
• Recognizing the prioritization of health with all consumers, Organic produce especially older sits at the consumers. epicenter of the • Instill confidence in younger generations, evolving lens of consistent with their values of social and wellness: health, sustainability, to drive planet and socia

NielsenIQ — Organic Produce Network Presentation (2024) on 6ix

Niq Global Intelligence — NielsenIQ — Organic Produce Network Presentation (2024)

Slide 1: Changing Consumer: Impact on Organic Produce Opportunities

Slide 2: Consumer view of wellness beyond personal, includes planet and others

Slide 3: NIQ Better For: short-term pull back on wellness

Slide 4: Organic, especially organic produce, is performing better than non-organic

Slide 5: Organic produce leads the list of organic categories and consumer searches

Slide 6: Transparency is increasingly important to consumers and they look for signals

Slide 7: Consumer engagement with sustainability varies

Slide 8: Produce is a key department for sustainability-minded and strong organic consumers

Slide 9: Life stages prompt organic produce consumption

Slide 10: Formative and current life experiences shape generational priorities

Slide 11: Unique and overlapping health and wellness priorities across generations

Slide 12: Share of sales is shifting; millennials and Gen Z increasing in importance

Slide 13: Share of produce fairly split across millennials, Gen X and boomers with Gen Z growing

Slide 14: Understanding aging will be key opportunity: health span is the new life span

Slide 15: Younger consumers index higher for organic; older prefer pesticide-free

Slide 16: Understanding meaning of organic key to meeting unique priorities of generations

Slide 17: Consumers, especially younger, care most about USDA organic for fruits and vegetables

Slide 18: What we know

Slide 19: Born 1997 - 2012...far from a monolith: Gen Z is in many life stages

Slide 20: The duality of Gen Z

Slide 21: To capture lifetime value, appeal to Gen Z values

Slide 22: Gen Z expects information to be ubiquitous across media

Slide 23: Gen Z's influence will get more complex

Slide 24: Gen Z is most ethnically diverse generation, driving different engagement with food

Slide 25: Watch for in-store influence of Gen Z

Slide 26: Translating Gen Z values to Gen Z relevance

Slide 27: Organic produce sits at the epicenter of the evolving lens of wellness

Slide 28: Coming into view