The document discusses emerging trends in consumer expectations for natural and organic products. It outlines 3 main trends: 1) Growing health and safety concerns are driving demand for reassurance. 2) Health has become a greater priority due to longevity and social norms emphasizing self-control. 3) Consumers are more educated due to access to information, and now demand transparency from brands. The document also warns of potential pitfalls like greenwashing that brands must avoid to meet rising consumer standards for natural and organic claims.

1. Meeting Consumer Expectations for Natural & Organic Michel Gutsatz [email_address] October 9th 2008

2. TREND 1 New threats: a growing concern … Risks on my health Food: conservatives and artificial flavors, allergens, trans fats,… Beauty: parabens, phtalates, etc… UV rays Quality of water Quality of air Diffusion of germs AIDS Risks on nature Global warming Cloning Risks on biodiversity Nanotechnologies Bioengineering Pollution Catastrophes September 11 and terrorism Tankers sinking: Erika – Exxon Valdez Financial crisis Tchernobyl The Asian tsunami Hurricanes (Katrina…) Uncontrolable change Unemployment Relocations and closures of sites The retroactivity of some laws New laws and rules Medias Medias

3. New sanitary threats : from AIDS to obesity Complexity of the world we live in: We do not understand Environmental risks : depletion of resources… … consumers need to be reassured Ideals disappear : find a meaning to life MEDICALISATION OF FOOD Banning GMOs COSMETICS “ WITHOUT” In search of zero risk TRANSPARENCY Make information understandable In search of references ORGANICS Natural ingredients SUSTAINABLE DEVELOPMENT Osmosis with nature In search of an ideal GREEN LIVING A positive collective ideal A CRAVE FOR REASSURANCE

4. TREND 2 Health is a growing concern because of longevity & new social norms Question: what can guarantee social order in troubled times when everything is changing ever so rapidly ? Answer: New Social Norms SELF CONTROL HEALTH AS A DUTY I must be in good health SELF IMAGE BEAUTY AS A DUTY I must be beautiful MEDICALISATION OF FOOD Functional Foods I eat so as to be in good health HOLISTIC VISION HEALTH – FOOD - BEAUTY I eat to keep healthy Being beautiful is a question of harmony

7. This new collective ideal is called GREEN LIVING Green Living : way beyond “green”, a way of life at the service of an ideal that will drive a new ethics of consumption A new positive collective ideal is back

8. This new ideal is structured in 3 concentric circles ME My Health My beauty My emotions My well-being US My children The Planet My friends My country OTHERS Animals Third World countries It all starts here…. Egoistic motives are better predictors of purchase of organic products than are altruistic motives

9. … and their related expectations ME Nutrition, Functional food, Organics , spas, vacations… US Protecting the planet, recycling local production… OTHERS Ethical Trade, “free range” protection of endangered species …

11. To understand the Beauty issues… keep your eyes open on Food categories

18. “ Enriched” products Tropicana: fruit juices with health claims With Selenium, Vitamin C & Vitamin E With Probiotics With Omega 3 – vitamin C Potassium & Folates

19. “ Enriched” products (with antioxidants: aloe vera, apple and grapes) A Mineral water with health & beauty claims

22. Two major marketing pitfalls

30. Thank you ! www.michelgutsatz.com

31. back

32. Business Issue n°1: will this be your future ?

33. Business Issue n°2: will this be your future ?

34. Green Living: consumers will have different concerns and levels of involvement * Source: The Hartman Group, 2007 “ Periphery” Concerned primarily by “Me” By price By convenience: accessibility & functionality Follow family advice USA 17% * “ Medium involvement” Concerned by “Me” & “Us” By their experiences By the knowledge they have of brands & products Follow expert advice USA 65% * LOHAS Concerned by “Me”, “ Us” & “Others” By authenticity & values By transparency By production methods By packaging Holistic vision of the world Follow peer advice USA 18% *

35. Market trends (in food) prove this… “ Without” “ Naturally rich” “ Naturally rich” “ Enriched in” “ Naturally rich” “ Enriched in” “ Naturally rich” “ Without” “ Without” “ Without”