MarketLine Blog

Organic food sales on the rise, while the food industry shows a contraction in value

While the overall US food industry contracted by -1.4% in 2011 to reach $664.1bn, after a period of unexciting growth, the organic foods market increased by 9.5%, reaching $29.2bn.

As organic products sales are becoming a more and more lucrative business in North America, due to rising health awareness, strong growth rates are expected in the coming years and the market should see increased competition. Traditional grocery stores and supermarkets (i.e. Kroger, Walmart, Safeway) are still pulling in the lion’s share of organic profits, over smaller natural food stores (i.e. Trader Joe’s or Whole Foods Market) and specialty stores. Market players also include warehouse membership clubs, farmers’ markets and restaurants.

Market players compete on the basis of store ambiance and experience, product selection, quality, customer service, price, commitment to natural and organic products, high quality standards, emphasis on perishable product sales, and healthy eating.

To find out about opportunities and threats in the US food retailing market, who is the largest organic food retailer in the world and why they continue to thrive in the competitive food market, read our case study “Whole Foods Market: The biggest retailer of organic and natural foods in the world”.

Posted in Consumer, Food.

1 Comment

  • I just came onto your post and found it quite interesting. I am also associated with organic beauty products, modern organic products, natural and organic products and love to enjoy the stuff on the same as its rarely found on internet. Thanks again for writing such a good post.

    organic products on 8 January 2013 at 1:30pm

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