According to a recent report "World Organic Foods And Beverages Report (2006)" published by RNCOS, it has been found that in comparison to the world organic food market’s present growth rate, US organic food market will decelerate, but the region would remain the highest revenue generator globally even in the future.
Parents, at present, are more concerned about the health hazards of conventional food their children are exposed to. This worry is causing them to drive the sales of organic baby food, consequently encouraging more and more, firms to either join or expand their present offerings in this sector.
Further as various studies confirmed the fact that organically grown foods contain more nutrients in comparison to their conventional version, customers spent about US$ 13.8 Billion on organic food during 2005. Sales of organic food showed an annual growth of about 20% during the same year, as per a study.
Though organic food still contributes a tiny share in the overall baby food market, but this doesn’t imply that it’s not growing at all. Sales of organic baby food soared about 21.6% to reach US$ 116 Million mark in the year that ended on February 24, 2007 – after jumping almost 16.4% a year ago (2006), said The Nielsen Company. In-between, overall baby food sales grew nearly 3.1% to reach US$ 3.7 Billion during the same period. The data was gathered from the US grocery, mass and drug market retailers (this doesn’t include Wal-Mart).
RNCOS report on "World Organic Foods And Beverages Report (2006)" notifies that, "The organic food market in the US generated US$ 15.9 Billion in revenues during the year 2006, representing a CAGR of 16.61% for the five year period spanning 2002-2006. Sales of fruits & vegetables proved most advantageous for this market. Total revenues generated by this segment reached the level of US$ 6.6 Billion, equivalent to almost 41.4% of overall value of the market, in 2006."
Key issues addressed in the report comprise of: market size of the world organic foods and beverages industry, total organic food market segmentation by product, what and where are the growth prospects and issues related to the industry, what are the factors driving growth in the organic food market, etc.
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