Key Insights:
- Natural and organic grocery stores grew over 6% in 2024, totaling $32 billion in sales.
- Clean beauty is becoming a key focus as grocery stores aim to expand from food to holistic wellness.
- By prioritizing natural grocery retail, brands can connect with loyal, health-focused shoppers.
In recent years, health-centric grocery stores have gained traction, outpacing traditional supermarkets. This growth is largely driven by consumers looking for premium, healthy options that fit their busy lives. The idea of “food as medicine” is changing how shoppers choose products, leading them to trust these markets for beauty and wellness as well.
Many natural grocery chains—like Sprouts and Whole Foods—are thriving due to this trend. According to NielsenIQ, US sales of organic products hit $100 billion in 2024, with these stores capturing about 30% of that figure. For context, in just a year, the market for natural groceries grew by $4 billion, reaching nearly $32 billion overall.
Shoppers are increasingly interested in maintaining healthy lifestyles. To meet this demand, stores are exploring new formats and product options. Whole Foods is trying out smaller stores for quick trips, while Erewhon is expanding to major cities like Miami and New York.
Sprouts has seen impressive growth, boasting 464 locations across 24 states by the end of 2024. They reported over $2 billion in sales, marking a 13% increase from the previous year. Matt Hamory, a partner at AlixPartners, notes that Sprouts is one of the fastest-growing retailers, achieving a 10% increase in comparable store sales, far exceeding the average 2% growth of traditional grocers.
Sprouts plans to open 35 new stores this year, driven by consumers focused on wellness. Their core customers are typically affluent, with many earning over $100,000 yearly. Unlike traditional grocers that chase budget-conscious shoppers, Sprouts caters to those willing to invest in their health and wellbeing.
The grocery sector is evolving, with beauty and personal care becoming vital growth areas. Kayla Villena from Euromonitor International highlights that wellness-driven grocers fill a gap by merging clean food with clean beauty. “What we put on our bodies should be as safe as what we eat,” she emphasizes.
Notably, beauty regulations in the US are not as strict as in Europe. As a result, grocery stores are becoming significant players in showcasing clean beauty brands. Erewhon, for instance, carefully selects products based on eco-friendly practices and natural ingredients, aligning with the values of health-conscious consumers.
Nima Jalali, founder of Salt & Stone, explains that stores like Erewhon attract shoppers who might not visit traditional beauty outlets but are interested in premium personal care. “When you’re already in a wellness mindset at a place like Erewhon, you become open to products that enhance that experience,” she notes.
Beauty-focused brands fit seamlessly into these grocery stores’ missions, providing the necessary goods for health-driven customers. According to Villena, 37% of US consumers purchase skincare products at supermarkets, a trend pointing to a shift in how shoppers view beauty products as part of a wholesome lifestyle.
While beauty might not be the primary reason shoppers enter grocery stores, it increasingly adds value for those focused on wellness. As consumers look for clean, transparent brands, grocery stores have a prime opportunity to meet these needs, transforming shopping into a holistic experience.
