Organic Food Market Analysis
Over the past decade, the organic food market in the U.S has witnessed significant growth. The growth of this market is driven by fundamental factors such as developments in the organic farming sector, consumers’ awareness of the advantages of organic foods, and the implementation of favorable government regulations. Though several new opportunities are expected to accelerate the shift from a niche to a more mainstream market segment, certain factors still pose major challenges for players in the US market. This not only indicates the high-level of competitiveness in the organic food market but also hints at the fact that new opportunities will eventually help players to overcome such challenges. The challenges in the organic food market generally revolve around the following factors:
Pricing: High prices of organic food, when compared to their conventional counterparts coupled with their short shelf life, are expected to hinder the growth prospects of organic food store.
Inflation: With evolving customer preferences, global organic food stores must stay updated with the latest trends and evolve strategies to meet the customers’ needs.
Why Supply Market Intelligence is Important for Businesses?
With increasing uncertainty in economic markets, organizations across industries are looking at leveraging supply market intelligence to closely monitor the supply market. By analyzing the supply market and enhancing awareness of market challenges, companies will have the data they need to build accurate market strategies and business plans. Also, the strategic use of supply market intelligence paves way for organizations to confront the accelerating procurement challenges.
About the Client
The client is one of the world’s foremost organic food manufacturer and supplier. The company is based out of the US.
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The client, a prominent organic food store with business units spread across the globe, had a primary objective of improving efficiency and productivity of their procurement function. With the help of SpendEdge’s supply market intelligence, the client wanted to migrate from their current multiple stage procurement process to a robust and automated procurement approach, with the aim of achieving improved productivity and higher savings. Moreover, the organic food market client wanted to enhance integration with the suppliers and manage indirect spend across the supply chain.
With the help of SpendEdge’s supply market intelligence solution, the organic food store achieved- tighter control and compliance across their business units, obtained better visibility on corporate spend across suppliers and subsequently improved their overall capability and productivity. The supply market intelligence engagement also helped the client cut down direct and indirect costs across their business units by establishing a centralized sourcing and procurement process. The solutions and recommendations altogether helped the organic food store enhance market share, improve ROI and achieve an annual cost savings of $15 million.
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