Emerging Industry Overview: Natural and Organic Groceries
Natural and organic food continues to be a successful and growing category in the grocery industry. The largest consumer of natural and organic food and beverages was the United States, which claimed almost 50 percent of the market. The European Union and Japan were also important markets.
While the natural and organic grocery market continues to be very promising, companies wanting to get in the game have to contend with a number of challenges, including products that have shorter shelf lives, complicated marketing strategies, having to compete with conventional food products, higher production costs, and selling higher priced products to cost conscious consumers. In fact, the high cost of organic foods remains one of the main roadblocks to industry growth.
The industry's phenomenal growth rate has been driven by increased awareness of organic and natural foods, rising consumer concern about the conventional food supply, available disposable income, and conventional food manufacturers and groceries introducing and selling organic and natural food products to increase their sales growth.