As part of Natural Foods Merchandiser’s 2023 Market Overview, we talked with five independent natural products retailers to provide a more colorful, nitty-gritty picture of the forces and trends influencing business so far this year. These retailers’ stories are being published online on consecutive Tuesdays: Kimberton Whole Foods on Sept. 10; Earth Fare, Sept. 17; Bi-Rite on Sept. 24; St. Vrain Market on Oct. 1; and Bristol Farms on Oct. 8.
Pennsylvania’s revered Kimberton Whole Foods started in 1986, when Terry and Pat Brett began selling house-made organic yogurt from a farm store. Nearly 40 years later, the company includes seven stores in the Philadelphia area and enjoys a sterling reputation for strict product standards, nimble curation and community.
While KWF stocks a vast assortment of packaged foods and beverages, whole foods drove more growth for the retailer in 2023. “COVID opened the eyes of people to eat better and become healthier,” says Rich Greenblatt, perishables category manager at KWF. “Whole foods are more nutrient dense and have no added ingredients, which all processed foods have.”
Meat, eggs and raw milk filled grocery carts, Rich Greenblatt says. Industrywide, the meat, fish and poultry category expanded 5.8% in 2023, and projections peg growth at 6.1% in 2024.
Beef sales especially picked up at KWF in 2023, says Rich Greenblatt, calling it a “thriving” category. “Red meat was stigmatized for years, and it’s being realized now that it is actually healthy,” he adds. “It’s one of the most nutrient-dense foods available.”
While meat is a primary sales driver, it also presents a hurdle for KWF in 2024. The opportunity, says Rich Greenblatt, “is to increase our fresh meat offerings, and the challenge will be to find enough space in [our] stores to expand.”
A surprise breakout category over the past 12 months is personal care products featuring tallow, or beef fat. Sales of fluff cream, soap, shampoo and other items made from tallow grew considerably during the past year, says Julia Greenblatt, KWF’s health and beauty and gifts category manager.
For example, she points to a whipped tallow fluff from Vellum Street, a local Philadelphia company. KWF sold 263 jars of the product in 2023, Julia Greenblatt says. But by May 7 of this year, the retailer had already sold 490 jars. That’s serious growth.
KWF’s grocery department is also witnessing rising demand for tallow, as well as products cooked in tallow, Julia Greenblatt adds. Plus, the perishable department now is selling more beef bones than ever before.
“With the continuing interest in the keto lifestyle and the rising interest in the carnivore lifestyle, consumers are searching for products such as tallow—high in saturated fat and zero carbs,” Julia Greenblatt says. “That includes body and beauty items. Not everyone can tolerate a plant-based diet, and many can be sensitive to plant-derived ingredients in body care products.”
Looking ahead, Rich Greenblatt says sales of A2/A2 regenerative and grass-fed dairy products are spiking. Also, regeneratively grown ingredients “are showing up in many more products now,” he says, including eggs, dairy, ice cream and other packaged items.
Beyond animal products, Rich Greenblatt says the store can “never have enough functional drinks.” That includes beverages with probiotics, prebiotics or adaptogens. And lately, sea moss-spiked drinks have been “taking on kombucha’s spot as top drink,” he says.
In addition, grain-free products still appeal to customers. And anything with avocado oil as a primary oil is growing in all categories, Rich Greenblatt says, including chips and condiments.
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