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Organic Food Market in the US 2012-2016

United States organic food market: 7% CAGR forecast between 2012-2016

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2014-02-12 15:17:02 - Organic Food Market in the US 2012-2016 - a new market research report on

The United States Organic Food market is to grow at a CAGR of 7.4 percent over the period 2012-2106. One of the key factors contributing to this market growth is the increased number of health conscious consumers. The market has also been witnessing an increase in the adoption of private label brands. However, the high cost of organic food products could pose a challenge to the growth of this market.

Private label products are products manufactured and sold by retailers. Private label brands of organic food are becoming prominent in the US because these products are priced lower than branded organic food products because of their operational efficiency. In the US, store brand sales have outpaced sales of food manufacturers´ brands,



generating gross margins of more than 35 percent especially in food categories such as dairy products. Thus, because of the increase in private label brands of organic foods, there has been an increase in the sales and consumption of organic food. Also, many large retailers such as Wal-Mart, Tesco, and Safeway have entered in this market to target the health food and organics shopper with their special organic food products. Thus, the availability of private label brands is a new trend that is expected to drive the growth of the Organic Food market in the US during the forecast period.

One of the main drivers in this market is the growing health concerns as well as awareness among the US consumers. This is attributed mainly to the proliferation of information that has led to the increased awareness among consumers about the benefits provided by organic food over conventional food.

One of the main challenges in this market is the high cost of organic food, which makes them unaffordable for many US consumers. Further, the US economy is still recovering from the 2008-2009 recession and high prices of organic food products restrict consumers from buying them.

The key vendors dominating this space include Amy´s Kitchen Inc., Hain Celestial Group Inc., Nature´s Path Foods Inc., and Organic Valley Family of Farms. The other vendors mentioned in the report are Danone S.A., Dean Foods Co., General Mills Inc., Kraft Foods Group Inc., Nature´s Path Foods Inc., Newman´s Own Inc., and Starbucks Corp.

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Mike King
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