It's Only Natural: Are Consumers Desiring Plant-Based Products? — Plus a Way to Trade It?

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

With the recent news surrounding phthalates — the unsafe microplastics in many household products that lead to a host of serious illnesses and diseases — American consumers are becoming increasingly aware of the dangerous substances that surround us.

These phthalates, dubbed “everywhere chemicals” because of their ubiquity, are found in all kinds of products from companies as diverse as Dow Inc. (NYSE:DOW) to Johnson & Johnson (NYSE:JNJ). They are just one more in a line of artificial chemicals that have been found to be dangerous if humans consume or are exposed to them.

Consumers could be growing tired of this. They may want products that are manufactured with natural ingredients — products they can trust are safe to use for themselves and their families.

The industry is reportedly booming. Last year, the U.S. natural and organic products industry pulled in $259 billion in revenue, according to the Nutrition Business Journal. That is up almost 13% from the previous year. The industry is expected to surpass the $300 billion mark by 2023. With this growth, businesses are scrambling to get a slice of the pie.

As critical as a focus on natural ingredients is for players in the space, businesses often say that focusing on the consumer, not the ingredient, is paramount. Brands that build themselves solely around a single product or ingredient could get left behind if consumers’ attitudes shift.

Michael Cammarata, CEO and President of Neptune Wellness Solutions Inc. (NASDAQ:NEPT) holds this as a core philosophy for his business. “When we’re looking at building a company, we didn’t want to build a company that would be based on an ingredient. We want to build a company that would last for hundreds of years and continue on that journey of helping the consumer,” Cammarata said in a recent interview with Benzinga. “So we’re focusing on the day-to-day habits of consumers and the next generation and seeing how we can align ourselves and our brands.”

Neptune says that this consumer focus allows it to continue to be nimble and diversify. Despite being associated with the cannabis industry, it is not a cannabis company. Neptune is a health and wellness company with 4 vertices: nutraceuticals, food and beverage, personal care and beauty, and cannabis. With this business model, the company aims to be able to continue to provide consumers with what they want — now and into the future.

When businesses get hyper-focused on a single ingredient, their view risks becoming myopic. They can become unable, or unwilling, to see what consumers are demanding. But when a company focuses on the consumer, trends can clear up, and the company is better positioned to be able to adapt. That could be just good business.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.