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US Sales of organic foods and beverages

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U.S. sales of organic foods and beverages have grown from $1 billion in 1990 to $24.8 billion in 2009. Sales in 2009 represented 5.1% growth over 2008 sales (Industry Statistics and Projected Growth, 2010). These trends are having a significant impact on the food market industry as a whole, and in particular the organic foods markets.

â?¢ Provide a discussion of the trends in the organic foods industry and how these trends will impact the organizations that sell organic foods.
â?¢ Examine the competitive environment that organic foods can create for an organization and apply Porter's model, providing an analysis of each factor relative to the industry.
â?¢ Identify the opportunities and potential threats to the organic foods industry by completing a SWOT analysis.
â?¢ How can a competitive advantage be achieved using the strengths and opportunities identified in the SWOT?

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U.S. sales of organic foods and beverages have grown from $1 billion in 1990 to $24.8 billion in 2009. Sales in 2009 represented 5.1% growth over 2008 sales (Industry Statistics and Projected Growth, 2010). These trends are having a significant impact on the food market industry as a whole, and in particular the organic foods markets.

â?¢Provide a discussion of the trends in the organic foods industry and how these trends will impact the organizations that sell organic foods.

The trends in the organic food industry are that organic food and beverage sales represented 4 percent of overall food and beverage sales in 2010. The main items being sold were fruit and vegetables, which were 11 percent of US fruit and vegetable sales. The organizations that sell organic foods should concentrate on selling organic fruit and vegetables. The mass market retailers in 2010 sold 54 percent of organic food. The natural retailers were next with 39 percent of organic food sales. The implications are that organizations that sell organic food should market their products through retailers like mainstream ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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