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Roadmap of U.S. Organic Food Markets - An Industry Outlook
Frost & Sullivan, September 2007, Pages: 66
This Frost & Sullivan Industry Outlook titled Roadmap of U.S. Organic Foods Market provides an overview of U.S. organic foods market across various segments. The study identifies key challenges and drivers for this market. In this research, Frost & Sullivan's expert analysts identify the market trends; identify key and niche industry participants for the following market segments: organic dairy products, organic confectionery products, organic snack products, organic bakery products, organic non-dairy beverages, organic meat products, organic baby foods, and organic multi- ingredient processed foods.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Product:
-Organic dairy products
-Organic confectionery products
-Organic snack products
-Organic bakery products
-Organic non-dairy beverages
-Organic meat products
-Organic baby foods
-Organic multi- ingredient processed foods.
Market Overview
Consumers’ Changing Preferences for Healthy Food Present Several Growth Opportunities in the U.S. Organic Foods Market
Today, consumers are increasingly leaning toward healthier food and since organic food is known to be free from pesticides, antibiotics, and harmful chemicals, they are gaining preference. Organic foods’ added advantages such as no genetic modification (GM) or allergens has helped organic food sales to outpace traditional food sales. Moreover, increased occurrence of diseases such as diabetes and obesity combined with a general perception that the adoption of a healthier lifestyle including organic products can reduce the development of diabetes, particularly in obese people, has further boosted the sales of organic products.
"Demand for organic food is growing immensely in the United States and motivating the giants in the food industry to enter this lucrative market," remarks Sneha Pasricha, analyst of this study. "Several multinationals are vying for strong positioning in this market by either offering new organic food products or by strategically acquiring or partnering with flourishing major organic brands." Rising retailer interest in this niche market is also encouraging for the market’s future. For instance, Wal-Mart is trying to capitalize on the new organic trend by investing a lot more in private label new product development and offering a wide range of branded organic products to satisfy increasing consumer demands.
Participants Must Achieve Greater Economies of Scale to Make Organic Products Available to the Masses
The organic food and beverage market is rapidly strengthening its presence in the United States both in terms of mounting sales and more access to customers. However, these products are still not affordable to the masses of the United States due the premium charged on them. To make these foods available to all, companies will have to aim for economies of scale and scope.
The market also has to deal with the inadequate amount of organic ingredients available to manufacture organic foods. "In this case, strategic alliances with ingredient suppliers and farmers can be instrumental in bringing stability in the ingredient supply," explains Pasricha. "Also, initiatives by food processors to establish their own farms can aid in addressing quality issues related to the organic ingredients."
-1. Executive Summary
--1. U.S. Organic Foods Market : An Introduction
---1. Introduction
--2. Scope and Methodology
---1. Scope of the Study
---2. Research Methodology
-2. Introduction to the Market
--1. Market Overview and Definitions
---1. Conventional Vs Organic Vs GM
---2. Market Overview
---3. Examples of Key Market Participants
--2. Market Dynamics
---1. Market Framework
---2. Examples of Key Mergers and Acquisitions
--3. Legislation
---1. Legislation
-3. Industry Challenges
--1. Identification of Challenges Facing the U.S. Organic Foods Market
---1. Challenges Facing the U.S. Organic Foods Market
-4. Market Forces
--1. Market Drivers
---1. Key Market Drivers
-5. Strategic Analysis of U.S. Organic Foods Market
--1. Organic Dairy
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--2. Organic Meat
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--3. Organic Bakery
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--4. Organic Non-Dairy Beverages
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--5. Organic Confectionery
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--6. Organic Snacks
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--7. Organic Baby Foods
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
--8. Organic Multi - Ingredient Processed Foods
---1. Introduction
---2. Key Market Trends
---3. Key and Niche Market Players
-6. Strategic Market Recommendations
--1. Strategic Recommendations and Conclusions
---1. Strategic Recommendations
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