This trend is projected to grow further. Consumers are becoming more health conscious. The natural and organic foods industry is promising. Whole Foods Market uses a focus differentiation strategy that focuses on high-quality products, brand reputation, strong supply chain, commitment to the social ethics of organics and developing a private label of organic products. The company’s strategy is to produce the healthiest products in the market.
In addition, the number of people who prefer to eat organic food is increasing and demand for organic food is probably going to be large in future as well. Hence, it is very important to understand the consumer-oriented approach towards the organic food market. Moreover, consumers’ attitude towards organic food and their purchase behavior plays a vital role in the
The world has decided to go organic! Have you? There is no doubt about the fact that the organic industry is booming. According to the Hartman Group, a market research firm ‘About 70 percent of Americans buy organic food occasionally and nearly one quarter buy it every week. For most of us, the reason is simple: We want natural food that 's better for us and for the environment.’ The rise in sales of organic foods in the last two decades has been $3.6 billion in 1997 to $21.1 billion in 2007, in 2012 $28.4 billion and approaching $35 billion in 2014.
Organic markets are establishing themselves within numerous U.S. cities, and in which makes it easier for consumers to buy such foods. However, the case for China is different. Although China 's organic production scene is on the rise, it is still a slow process that much of its large population know nothing of. With the shocking
• The growing wave of health campaigns in US has increased the supply and demand for organic foods. However, the organic food industry is quite fragmented, which creates a lot of options for the consumers. Bargaining Power of Suppliers: • The bargaining power of supplier is LOW. • Store brands and private label brands are becoming increasingly popular in all the major retailers, which gives the retailers negotiation power over suppliers. The store brands typically cost 25% less and hence enjoying increasing demand.
Natural and organic brands, as well, as small labels buying from local farms, have become an essential part of the consumer lifestyle (Tarkan, 2015). With the increase in health awareness across the globe it has resulted in an increase in demand for nutritious and trans-fat free products (Tarkan, 2015). Growing the company’s baby food market can present another opportunity KHC can strategize to remain an industry leader. With the increase in incomes and changing lifestyle, the baby food market is growing around the globe. The global baby food market is expected to grow at a CAGR of 8% till 2019 (Markets, 2017).
This type of organic food that is popular among many people is produced on organic farms. Farms belonging to this group foster recycling, speak for promotion of ecological balance concept and represent the direction of conserving environment. The process of growing organic food implies refusal from use of synthetic pesticides as well as other chemical stuff that increases fertility. According to the Food Marketing Institute, “Organic livestock must have access to the outdoors and be given no antibiotics or growth hormones” (Natural And Organic Foods). What is also speaking for consumption of organic food is the fact that this kind of foods does not contain genetically modified organisms, which is nowadays an important concern for many people who would like to stay healthy for longer.
Action must be taken by the food industry in order to start eliminating the problems that are causing the society to deteriorate. There are countless health issues within America that continue to grow due to the fact that the food industry is not regulating the food being provided and sole enough. Obesity and being overweight are one of the many social issues that can be linked back to the food industry. While it is true that there are cases of obesity and being overweight due to lack of exercise or genetics, it is primarily the food that cause people to gain excess weight. So many foods nowadays contain surplus amounts of calories, fats, and sugar which have a direct correlation to weight gain.
, n.d.): 1. Clean to clear labels: Now with increasing awareness and demands manufacturers, consumers, retailers, specialists are seeking more transparency in the labelling of the products. This is now a demand in the market to provide more information about the ingredients constituted in the product. 2. A good start: Sales of breakfast foods have been estimated to grow almost 20% from 2007-2011, reaching $12.5bn, according to Mintel, which predicted the category to grow nearly 26% in the period of 2012-2017 to $15.7bn.