Industry: Organic Retail Food Industry Essay

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The last couple of decades have seen an American consumer who has kept on being knowledgeable about the kind and quality of food he consumes. This fact has created a healthy trend of organic retail food industry in the United States, which is the main focus of discussion in this paper. First, the paper will highlight the specific changes discerned in the organic retail food industry in the United States in the past five years. Second, the discussion will dwell on the type of industry the organic retailing is currently in (e.g. emerging, maturing, fragmented, or declining industry), using a portfolio matrix to portray industry attractiveness and competitive strength. Third, the discussion will shift towards the best and leading competitor, strategically, in the industry and the driving forces as well as the industry projections for the next five years. A conclusion then will follow by summarizing the major points discussed in the whole paper. According to American Resource Center, organics have grown at a rate of nearly 20 percent per year for the last five years, and industry experts are continuing to forecast slowing but steady growth. The United States is both the largest retail market for organic foods and is one of the three major countries with big agricultural acreage in the world, alongside Australia and Argentina. In his article, Spackman notes that “the largest organic market, the US, grew by 7.7% despite the same economic pressures” (Spackman, 2012) as in Europe in 2011. The North American organic food and beverage market has, therefore, overtaken Europe to become the biggest organic market in the world. Why has the market for the organic foods trended upward in the U.S. even during economic slow-downs? Few factors are worth mentioning. Firs, consumer demand for organic food rose sharply over the past decade—according to the USDA Economic Research

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