Key Takeaways:Natural and organic grocery retailers outpaced traditional grocers in 2024, growing more than 6% and achieving $32 billion in sales.Clean beauty is proving to be a strategic focus as grocery stores seek to grow from food-first to holistic wellness destinations.By making natural grocery retail a priority channel, brands can unlock scale while growing trial and awareness with high-frequency, loyal shoppers. Over the past five years, health and wellness-focused grocery stores have outpaced traditional grocers, driven by premium assortments and compact stores designed for urban shoppers looking for convenience and better-for-you products. With the growing shift towards “food as medicine,” grocery shoppers are increasingly prioritizing healthier choices and not just in the food department. Shoppers are trusting these retailers with their beauty assortments as well, giving clean beauty brands a significant opportunity to cater to consumers who echo their values around transparency, natural ingredients, and sustainability.The Boom of Premium, Health-Focused Grocery StoresNatural grocery chains, capturing supermarkets like Sprouts, Whole Foods, and Erewhon, are enjoying strong momentum thanks to continued demand for healthier, more natural products. Based on NielsenIQ data, sales of organic products reached $100 billion in 2024 in the US (with roughly 30% attributed to these chains), up $4 billion year over year. The natural and healthy grocery channel as a whole grew to nearly $32 billion, with the vast majority captured by Whole Foods and Sprouts.