An Industry View of the Organic Baby Food Market Essay

The constitutive(a) niche for baby- diet processors and retailers may continue to be a window of opportunity for change magnitude gross revenue in an some otherwise stagnant industry. There atomic bit 18 limited studies through on the thoroughgoing baby solid food niche, but it is proven by some(prenominal) studies that its popularity and market share continue to grow at a double digit charge per unit when compared to established baby food products. * Organic baby products averaged around 7. 7% total market share in 2010, and expected to be 10. 9% by 2014. * Growth is partially contributed to the expanding sector of consumers buying only organic products.* It is authoritative to note that Individual manufactures and retailers are never again expected to achieve growth rate like that in recent years (since 2000) due to the saturation and leveling of the market. A growing number of baby food consumers are realizing the benefits of organics over conventional counterparts, and a re in close to cases willing to soften a premium for organic products. However being organic or not organic has in time to become a major determinate in making baby food purchasing decisions.* The most(prenominal) important factor influencing the decision to purchase organic vs. conventional remains nutrition. Organic or not organic comes in a very distant 4th according to a study done by Bond, Thilmany, and Bond. * The same study concluded that although most people are willing to pay a premium for organic baby food, it is not considered to be a dominate purchasing factor. * On the other hand, when looking specifically at consumers who purchase only organic food, organic baby food is among the most popular items purchased.Illustrations below produced by Agriculture and Agri-Food of Canada show that per capita dollars spent on organic baby food and the compound annual growth rate for organic baby food is second only to organic ice cream. With the increasing number reputable compa nies starting to produce organic baby food, reliance on trendy advertising, product innovation & development, SEO, a constant effort to educate consumer awareness, and acquiring shelf pose everywhere possible is recommended to stay competitive.* Eating at home and eating healthy are important trends that are likely to increase demand for organic foods in general. * The misconception that organic food is only favorable and purchased by wealthier consumers is fading. Organic products are still considered to be a niche market, but organic package food has increasingly penetrated mass market grocery retailers such as Wal-Mart and Whole Foods. * On-line sales will continue to increase as people become more connected and comfortable with technology. oddly true for the next generation of mothers who are already experts in convenience and on-line shopping. Continue to instruction on developing your e-commerce capabilities. * The organic food retail industry is highly fragmented and comp rised of many subaltern local and regional chains. Focusing on expanding into these stores will allow you access to additional locations therefore increasing brand recognition and influence on consumer decisions. * Develop relations with suppliers. Major competitors manufacturing organic baby food include * Earths Best- Gerber.* Hain Celestial Group Happy Family * Happy Baby- Kamut International More at http//www. theorganicpages. com Bottom line with the national influx of local health food stores and the expanding selection available at grocery stores and boutiques, organic baby food should provide for a steady market increase in the years to come. People are increasingly requesting organic products, and like most adopted trends, these parents will crystallise on their buying habits to their children who will also become devoted patrons. The key to long term mastery will be to stay on top of your industry.This includes aggressive marketing strategies, developing good dividing line relations with you suppliers and retailers, and actually understanding what your consumers want rather than telling them what they want. 1 . Demand for Organic and courtly Baby Food Victoria S. LeBeaux, James E. Epperson, Chnng L. Hnang (March 1, 2009) 2 . Agriculture and Agri-Food of Canada 3 . Demand for Organic and ceremonious Baby Food Batte et al. (2007) 4 . Datamonitor, Whole Foods Market, Inc Market Profile.