Financial investigation of entire food Market

Company and Industry Overview

Whole food Markets is America's large-scale string of links of natural and organic food supermarkets. The products it deals are free of additives, colorings, preservatives, pesticides, hormones, antibiotics and any genetically changed ingredients. In 2005, the group has 159 stores in joined States, 7 shops in United Kingdom and 2 shops in Canada. The business will extend to pursue opportunities in Canada and eventual expansion all through Europe.

The global organic food commerce has been growing at over 20% per annum along with a boost in accessibility. The world market was calculated to be worth over $14.4B in 1999. The largest markets of organic food exists in the USA, with sales of $6.5B, Germany $2.4B and Japan $1.4B. Buyers of organic food are affluent, better educated, in the age bracket of 18-34 or 45-54. They reside in small households and have reduced self-assurance in food security regulation. Products range from baby food, beef, dairy, non-dairy beverages, bakery, make to Ready to proceed Meals.

In joined States, the retail sales of natural goods grew to over $18.3B in 2003, an 8% development compared to former year contrasted to a somewhat flat growth in the customary food store industry. This development reflects a broadening of the natural goods consumer base. While the USA organic market is still growing in absolute terms, the market is forecast to fall somewhat as the industry matures and consolidates over the next 5 years.

Europe accounted for 45-50% of global organic food sales. Food doubts such as Mad Cow infection, industry-related promotions and government subsidy programs have been the major person driving of the commerce in Europe. For most of the last decade, Europe had the largest market however it has been overtaken by North America. Market growth slowed down to 7% in 2002. The German market was strike by the Nitrogen food scandal and development rates in nations like the UK are slowing. Slowing development rates are imitating the organic beef & dairy parts to bear from over-capacity in some countries. The commerce has coordinated numerous crusades against biotechnology and genetically changed food, endeavoring to conceive another wave of development for the industry. Nevertheless, organic food sales extend to rise at a healthy rate in some European countries like Italy and Switzerland.

Australian organic output for household retail and trade goods has been increase two-fold between 1995 and 1999. Currently, it is treasured at roughly $250M and growing fast at 25% per year. In Asia, with the exclusion of Japan, Korea and Turkey, the development of the community and expertise has driven the once-mainstream organic farming commerce to a declining stage. Inorganic and mass agricultural practices have mostly restored organic practices. The latest prosperity in ceramic has reinvigorated the cycle to early "introduction".

It is significant to note that while organic food is the fastest growing segment of food sales in numerous countries it still comprises only 1-2% of total food sales in USA, Europe and Japan in 2000 . When contemplating development of ...