Organic Ingredients as Key Drivers of Product Differentiation in Manufacturing

The demand for organic products – generated using fewer toxins and more eco-friendly and ethical models and techniques – is increasing. In a historic record, organic foods in the United States exceeded USD 60 billion for the first time in 2022, doubling sales over the past decade. Ten states comprise 73% of the category, with California dominating with a third (32%)1. Driving the segment is a growing emphasis on personal health and animal and environmental welfare.
Consumers are convinced of organic benefits, such as the produce and products being better for you, causing less harm, and supporting local communities through the farm-to-fork movement. Many are willing to pay a premium for certified products, with a 2020 McKinsey survey indicating that 60% would pay more for sustainable labeled products2. This inclination is especially true for millennials3.
For manufacturers wanting to shine among competitors, organic ingredients demonstrate ethical standards and an understanding of consumer preferences. They are vital differentiators and powerful motivators.
Ethical Organic: The Secret to Differentiation
Pushing beyond existing minimum regulation standards to produce organic food and beverages combined with ethical messages can position your product above the rest. The growth of ethical consumerism means user preferences and expectations are increasingly becoming more discerning and demanding.
According to research, consumers seek better animal welfare, locally-based production, and fair trade prices4. Around 80% of consumers are likely to prefer brands that reflect their values and beliefs. At the same time, seven in every ten claimed an affinity with brands actively communicating sustainable and ethical standards5. According to Statistica, approximately 30 percent of US adults purchased organic products in 2022, rising to around three-quarters of consumers in 20236.
Brands Differentiating With Organic Innovations and Marketing
A strategy of ethical ingredient branding allows a manufacturer to market one specific ingredient, such as organic elements, as a unique selling point (USP). Singling out a healthy and consumer-centric component can boost your brand and product image, build above-average consumer equity, and differentiate you from competitors in the market.
The ingredients, especially highly regarded organic elements, symbolize authenticity and quality. By association, the product and brand offer superior quality and performance.
High-profile examples include Nestle’s “Made with Nestle Cocoa Plan” campaign, highlighting the company’s commitment to supporting cocoa farming communities using only sustainable cocoa. Another successful example is Hershey’s “Simple Ingredients” campaign, which focused on the brand’s dedication to using high-quality yet simple ingredients.
Examples emphasizing organic ingredients include Serenity Kids’ recently launched World Explorer Pouches. These baby and toddler food solutions offer regeneratively farmed organic vegetables and meats showcasing traditional dishes from Japan to Mexico.
Their wild-caught, grass-fed, and free-range portfolio includes salmon teriyaki, beef chimichurri, and chicken coconut curry. Another collaboration between California-based Once Upon a Farm and Alexandre Family Farms has launched a no-sugar-added organic A2/A2 Whole Milk Shake product.
Crucially, when providing organic options to knowledgeable consumers, manufacturers must ensure their finished product boasts an overall clean label. Purity and transparency mean adding only the best quality, 100% natural organic flavor and aroma ingredients to enhance taste and odor.
Driving Product Differentiation With Advanced Biotech’s Organic Flavor and Aroma Ingredients
Our extensive range of pure and natural EU-certified ingredients includes pyrazines, thiazoles, distillates, absolutes, essential oils, oleoresins, and other extracts. Contact us today to speak to an expert, request samples, or place your order.