CPG Natural Products: What to Expect at Retailers in 2025

​The consumer packaged goods (CPG) industry is poised for significant evolution in 2025, driven by shifting consumer behaviors, technological advancements and innovative product developments.

According to our data partner SPINS‘ “2025 CPG Outlook: Industry Update & Trends Predictions” report, several key trends are set to shape the landscape for brands and retailers alike.​

Natural Products: A Catalyst for Growth

The natural products sector continues to outpace conventional product growth across all channels. Sales of natural products were projected to approach $320 billion in 2024, with an annual growth rate of 5% expected to propel this figure to $384 billion by 2028.

This expansion is evident across various departments, underscoring the sector’s resilience and adaptability. The Natural Channel, encompassing specialty health stores and independent retailers, has consistently demonstrated robust growth, reflecting a sustained consumer preference for wellness-oriented products. ​

Emerging Consumer Demographics and Preferences

A new cohort of values-driven consumers is reshaping the market landscape. Younger Millennials and Generation Z are at the forefront of this shift, exhibiting heightened interest in natural, wellness-focused and values-based products.

Over 2 million new shoppers have recently engaged with natural product industry (NPI) brands, and the frequency of NPI purchases is on the rise. This demographic is not only expanding the consumer base but also influencing product development and marketing strategies to align with their values and preferences.

Innovation Amidst a Changing Landscape

While the number of new product launches in the food and beverage sector has declined in recent years, this trend does not signify a reduction in innovation. Instead, brands are adopting more disciplined research and development strategies, focusing on quality over quantity.

This approach involves streamlining product lines and exploring new categories with higher impact potential. Notably, three of the top five innovation categories are within the beverage sector, highlighting a dynamic area ripe for growth and experimentation. ​

Healthspan and Personalization: The New Frontiers

Consumers are increasingly prioritizing healthspan—the period of life spent in good health—over mere lifespan extension. This shift has led to a focus on lowering biological age through various means, including maintaining cellular health and muscle strength to age gracefully.

Advancements such as proteomic and epigenetic clocks are emerging as tools to predict biological age, offering deeper insights into health optimization. As consumers become more proactive in managing their health, there is a growing demand for personalized nutrition and wellness solutions tailored to individual needs and goals.

Functional Ingredients on the Rise

The supplement space is experiencing a surge in emerging functional ingredients that cater to specific health concerns. Magnesium, creatine and collagen are leading this growth, with magnesium sales increasing by 31.6% and creatine by 32.8%*. Collagen, known for its benefits to skin, hair and joint health, continues to maintain popularity.

Additionally, nicotinamide mononucleotide (NMN) is gaining attention for its potential to reduce inflammation and support cellular health, particularly in age-related wellness products. Vitamin K has also seen a 47% increase in sales, reflecting a broader consumer interest in proactive health strategies targeting cellular aging, muscle maintenance and cognitive support. ​

Flavor and Texture Innovations

Consumers’ palates are evolving, with a growing curiosity for bold and novel flavors, often with global influences. Ingredients such as yuzu, ube, harissa and gochujang are gaining popularity, offering unique sensory experiences and celebrating diverse culinary traditions.

This flavor curiosity is driving product innovation, encouraging brands to experiment with new tastes and textures to captivate consumers seeking adventurous eating experiences.

The Impact of Artificial Intelligence on Shopping Behavior

Artificial intelligence (AI) is transforming how consumers search for and discover products. Shoppers are increasingly utilizing AI-powered tools and social media platforms to receive personalized recommendations, product reviews and health guidance.

Short-form videos, influencer-led discussions, and peer-to-peer recommendations are influencing purchasing decisions, prompting brands to adapt their marketing strategies to engage consumers in these digital spaces effectively. ​

Strategic Focus Areas for Brands

Looking ahead, brands are prioritizing several strategic areas to navigate the evolving market landscape:

• Product and Portfolio Expansion: Brands are focusing on expanding their product lines into new categories and retail channels to capture emerging opportunities and meet diverse consumer needs.
• Media and Marketing Investments: There is an increased emphasis on enhancing marketing effectiveness through investments in media and market research, aiming to deepen understanding of consumer trends and preferences.​
• Operational Efficiency: Brands are investing in operations to improve efficiency and scalability, supporting growth and innovation in a competitive market.​

These investment trends indicate a proactive approach among industry leaders to allocate resources effectively, adapt to market changes and meet evolving consumer expectations. ​

The Importance of Food Industry Trends for Manufacturers

To stay ahead in the competitive food industry, manufacturers must stay informed about evolving trends. Understanding these shifts allows them to anticipate consumer preferences and refine their product offerings accordingly.

“Monitoring these trends enables manufacturers to maintain a competitive edge and foster innovation within the industry,” said Gary Royal, Executive Vice President at Bay Food Brokerage. “At Bay Food, staying informed about grocery trends is a top priority. This knowledge ensures we provide the strongest support possible to our manufacturer clients.”

The Value of a Strong Food Retail Broker Partnership

Choosing the right retail food broker is essential for manufacturers looking to make informed decisions about the future of their brand.

A key advantage of working with a knowledgeable broker, like Bay Food, is access to reliable data that highlights industry trends and future projections.

At Bay Food, we collaborate with SPINS, a leading data and analytics provider for the natural, organic and specialty products sector. This partnership gives us valuable insights into:

• Emerging product categories
• Competitive performance comparisons
• Future trends shaping the grocery industry

Even with access to data, interpreting its true meaning can be challenging. To address this, we leverage technology from Bedrock Analytics and Crisp that helps us translate complex data into actionable insights.

“Manufacturers need to stay ahead of trends to drive future innovation,” Gary said. “As a leading grocery broker serving major Southeast retailers, we provide our clients with strategic guidance to support long-term success.”

Looking for a broker partner to help you leverage the latest trends in natural CPG products? Contact us today to learn how we can serve you.

* Source: SPINS Natural Channel, SPINS Conventional Channel (powered by Circana) data 52 Weeks Ending 10.8.24. Vitamins & Supplements Department