Growth Patterns in the U.S. Organic Industry

In: Business and Management

Submitted By yelia
Words 1431
Pages 6
United States Department of Agriculture
Economic Research Service

Growth Patterns in the U.S. Organic Industry by Catherine Greene

U.S. consumer demand for organically produced goods has grown continuously since USDA established national standards for organic production and processing in 2002. And, while Americans economized on their food purchases during the 2007-09 recession, including purchases of organic products, growth in demand for organic products rebounded quickly following the recession. Industry analysts estimate that U.S. organic food sales were $28 billion in 2012 (over 4 percent of total at-home food sales), up 11 percent from 2011. USDA has begun organic regulation of nonfood agricultural products—for example, laundry detergent with organic coconut oil, aloe vera, and other ingredients—which accounted for another $2.2 billion in organic sales in
2011, according to the Organic Trade Association.
Although USDA does not maintain official statistics on U.S. organic food sales, industry data suggest that the market share of organic sales held by various food categories has been remarkably stable over the last decade. Produce (fruits and vegetables) and dairy are still the top two organic food categories, accounting for
43 and 15 percent of total organic sales in 2012; their standing has been relatively unchanged in recent years. Packaged foods, beverages (including soymilk), and breads/grains have 9-11 percent market shares, down slightly from a decade ago. The meat, fish, and poultry category, which is dominated by poultry sales, gained the most over the last decade but still represents just 3 percent of total organic sales.

U.S. Certified Organic Acreage Rebounded in 2011
USDA set a uniform organic standard in 2000 to provide consumer assurance, and farmers with organic sales over $5,000 in a given year must obtain independent…...

Similar Documents

Opportunities and Difficulties in Organic Growth

...Table of Content 1 What is organic growth? 1 2 Why organic growth? 1 Preparing for organic growth 2 3 How organic grow 3 The models included 3 4 Growing pains in organic. 6 5 Transition in organic growth 7 6 Conclusion 8 7 References 9 What is organic growth? In growing process for entrepreneurial business, internal (organic) growth is one of the most important steps for a firm to sustain the growing process. Through the definition and research from Barringer and Ireland (2010), most of the entrepreneurial business use organic grow as their first main growth strategy, when it doesn’t rely on outside intervention. The rate of entrepreneur failure was also mentioned by Scott Shane (2008) that only 50% of the entrepreneur business still alive after the first 5 years. Thus focusing into internal growth would be a strong strategy not only for standing in the competitive market but also is a sustain way of growing for a company in the first step. Why organic growth? In entrepreneur business, the theories from Schumpeter (1962) about the competitive process of capitalism which was not created by timid elements of reducing price but the innovation and creative from inside the firm itself generated overall economic growth and development, have been attracting the attention from even modern economists. Also based on Schumpeter (1962) as the changes are the key factors for growing. A newly start-ups company are more dynamic and making......

Words: 5643 - Pages: 23

Survival in the U.S. Funeral Industry

...Abstract The funeral industry, one of the oldest and among the most stable of industries regardless of economic trends, is facing one of the biggest challenges of its existence, and the threat is coming from an unlikely source – their own customers. People’s attitudes towards funerals have been changing and as a result, the number of traditional funerals has been declining. "Show me the manner in which a nation cares for its dead and I will measure with mathematical exactness the tender mercies of its people, their respect for the laws of the land, and their loyalty to high ideals." -- Sir William Gladstone Survival in the U.S. Funeral Industry: A PESTEL Analysis The funeral industry, one of the oldest and among the most stable of industries regardless of economic trends, is facing one of the biggest challenges of its existence, and the threat is coming from an unlikely source – their own customers. People’s attitudes towards funerals have been changing and as a result, the number of traditional funerals has been declining. Funeral customs and services are as old as civilization itself. Throughout the history of mankind, every culture and civilization studied has attended to the proper care and disposition of their dead by way of three common things: some type of funeral rites, rituals and ceremonies, a sacred resting place and memorialization (Whittaker, 2005). Researchers have discovered Neanderthal burial grounds dating back to 60,000 BC along with......

Words: 2287 - Pages: 10

The Role of Technology in the Growth of the Philippine Textile Industry

...By: Janina Mae Almirez Industrial Analysis International Master of Business Administration Chung Yuan Christian University November 15, 2012 ABSTRACT The rise of globalization has shifted the manufacturers of textile and apparel to many different parts of the world in search for cheaper labor and maximization of profits. Trade liberalization also means that the world can be your market, and that everyone can be your competitor. We examine the current state of the Philippine textile industry in this context, and the role that technology plays in an industry that is struggling to survive in the face of stifling competition. The Philippines textile industry has suffered steady decline in the past several decades despite starting out strong in its early stages. This study aims to explore the potential for growth of the Philippine’s textile industry given a boost in more advanced technology and innovation. The author focuses on technology because this is the one thing that other countries have already adopted, and with which the Philippines has still yet to fully embrace, partly due to lack of funding and government support. This study will look at the Philippine textile industry’s production output from the year 2000-2010, and aims to establish a relationship between the production volume and the number of patents awarded to innovators within the Philippines, which will be used as a measure of the country’s technological advancement. This research used regression......

Words: 2166 - Pages: 9

Expected U.S. Gdp Growth Rate Going Forward

...Shylinda Graystreete Dr.Davis - Unit 2 Individual Project 29 July 2012 Expected U.S. GDP growth rate going forward The Gross Domestic Product (GDP) is a major factor that shows how the economy will either get better or worse. The GDP is how we can measure the spending and production of the U.S. The GDP is a total measurement usually calculated quarterly (Russell, 2012). These calculations show change to the economy even if products and services increased or decreased, According to Russell, (2012) regardless of changes in the purchasing power of the currency. There are many things that affect our economy such as international debt, increase in taxes, the effect to interest rates, the rise in unemployment, the poor failing real estate market, lack of investing, lack of spending by consumers, which is directly affected because of lack of employment. Some believe that the economy will eventually recover. This may be a slow process, however. Those in the business world believe this will most likely put inflation at a standstill. (TBQ, 2012). It is predicted that the GDP will continue to go up and down for years to come as the US tries to recover from the economic slump that it has found itself in unless congress and the president can pull us out. There are three different methods of determining GDP. The first one is estimating each industry’s gross output or production (Wells and Krugman, 2009). Second would be to measure income (Wells et al). Third would be expenditures...

Words: 672 - Pages: 3

Mnc Growth with Small Industries

...Price War Between MNC’S, Growth of Ghari Threatens Small Detergent With Washout The company that has been operating primarily in Uttar Pradesh for two decades started distribution in eight new states last year. It now covers 20 states across the country. "We are also setting up a new plant in Karnataka to cater to newer markets," Gyanchandani added. This may help Ghari challenge Hindustan Unilever's Wheel as the largest detergent brand in the country. But the multinational giant is in no mood to cede any ground. "We have taken several actions to strengthen our leadership position," a company spokesman says. "We have invested on our brands, be it in terms of innovation, product quality or marketing spends." Last year, Hindustan Unilever added more than 600,000 outlets despite having the largest network of a million retail outlets already. It increased its sales across the portfolio. Wheel reported the highest growth. Its multinational rival P&G too gained the most from Tide's low-priced variant launched a year and a half ago. Meanwhile, the fall in regional brands fortune is dramatic because many of them were seen as a threat to national brands just two years ago. Market experts expect them to return to the market when the crude oil prices bottom out. That will help them sell cheaper detergents. The trend of strong and established players gaining momentum is similar to 2004 when Nirma, the second largest detergent brand then, found itself caught in the crossfire between HUL......

Words: 296 - Pages: 2

Geography for Growth Patterns

...Don’t blame geography for growth patterns There is a well-known economic growth debate whether geography affects growth patterns directly or merely through an indirect channel affecting the choice of economic policy and institutions. The view that geography is at the center of the story in shaping the rhythms of economic development dates back to Montesquieu and has been recently revived by Jared Diamond in his book “Guns, germs and steel: The fates of human societies.” This perspective was applied to explain long term patterns of economic growth by Jeffrey Sachs, who argues that growth is related to geographic variables like climate, disease ecology and distance from the coast (Sachs 2003). On the other hand, economists like Acemoglu, Johnson and Robinson, and Engerman and Sokoloff argue against simple geographic hypothesis and illustrate that geography can only affect patterns of growth through the choice of institutions that influence economic performance. Looking at the current situation, one can observe tremendous differences in living standards between developed and developing countries. There is a variety of explanations why economic performances have diverged so extremely. However, the two main candidates to explain the causes of the big divergence are geography and institutions. The geography hypothesis emphasizes nature forces and geography as the main factors determining economic performance. Acemoglu, Johnson and Robinson (2002), however refute this hypothesis...

Words: 1689 - Pages: 7

Growth of Namkeen Industry

...Growth of the Namkeen Industry There is no denying the fact that the namkeen industry, a sub-segment of the snacks industry, has been growing at a tremendous pace in the country. This has been due to the rising income levels, growing urbanisation, and busy lifestyle of the urban Indians. The namkeen industry in India has been going through a highly impressive growth rate of 25 percent year on year. The growth of the namkeen market can be amply indicated from the growth of the salty snacks market in India. Salty snacks market stood at Rs. 7,698.70 crore during the period July 2010-June 2011, which went up to Rs.9,364.10 crore for the period July 2011-June 1012. According to Neilson, 52 percent of the sales of salty snacks was accounted by branded namkeens. The figure pertains to June 2012. Branded namkeens can be regarded as one of the fastest growing sub-segments in the packaged food segment in India. In the total salted snacks market in India, the branded namkeen segment accounts for 40 percent market share. One can say that in the branded salty snacks segment, packaged namkeens are now gaining greater popularity as compared to western snacks. This trend is getting visible for the first time in India, since the last two decades. Not only ago the namkeen market had the presence of only regional players, but now it is no longer the case. PepsiCo India can be credited with the distinction of being the first multinational to take on the regional players in the Indian......

Words: 774 - Pages: 4

Growth and Challenges of Hospitality Industry for Global

...Abstract This article presents findings of growth and challenges that hospitality industry might fact in the year ahead respectively through globalization. Globalization is becoming increasing important these years in international hotel industry. When hotels flag their properties in a new country, they must localize their products and service in order to adapt the culture traditions of that country strategy. Differentiation strategy is also useful or hotel companies to become competitive in the global environment. Top issues that will influence the global hospitality industry in the year ahead include sustainable development calls for green hospitality, labor cost, multicultural issues and higher education. Challenges that facing hospitality include will include operating issues, such as labor shortages; marketing issues and economic issues. Introduction Hospitality industry has booming like never before. After Second World War, the practice of Hospitality became professional and wide spread, therefore it will acquire a knowledge base so that can improve its operation and develop the manager of the future (Ingram, 1999). The rise in the global travel, market and environmental trends led to the internationalization of the hospitality industry. The globalization of business and lifestyles is characterized by communicating over vast distances in foreign languages, frequent travel to overseas countries, dealing in many currencies, and coping with a variety of political...

Words: 2770 - Pages: 12

Organic Growth at Walmart

...Incorporating an organic philosophy into to Wal-Mart’s megastores is a question that comes down to a number of internal and external factors. In order to if launch this plan effectively, all factors must be considered. The problem with organic food products is not that it matches the wants of Wal-Mart’s current target market, but that it fails to match the customer’s price point. Despite Wal-Mart providing organic food 20% less than their competitors, a majority of their current target market would still choose the cheaper alternative. This is mainly due to the nature of their cliental, paired with a lack of knowledge in the benefits of healthy food itself. For these reasons - Wal-mart must look past their dedicated customer base and instead focus on a new niche entirely: a food-savvy, health conscious middle to upper class demographic that is keen about healthy food, enough to notice the affordable price in comparison to competitors. According to a Organic Consumers.com, this demographic is normally willing to pay up to 50 percent more for organic food-products. One of the biggest hurdles that Wal-Mart must overcome in order to achieve this is to upscale their image in order to appeal to the up-scale consumer. Degn, Walmart’s executive vice president has considered solutions such as executing an environmental sustainability plan, re-altering marketing campaigns, and adapting new floor plans and design. All of these solutions would have significantly high costs.......

Words: 528 - Pages: 3

Historical Transitioning and Growth of the U.S. Health Care System

...This paper will explain how the past health care has change and the dynamics behind the changes in the health care industry today. Also in this paper the importance of financing and technology in the health care. The discussion of the complexities that is associated with changing demographics and emergent diseases, and the fluctuating and daunting challenges that management mortality trends that the Baby Boomers generation predicate. Summarize the key milestones involved in the past and present shaping and transitional dynamics behind changes in the present healthcare industry. 1850-1900 was a time were the environment condition such as water sewage disposal, contaminated food, inadequate housing were the cause of illness of infectious disease in the United States. People had to rely on home remedies, or woman who took care of the ill and no medical care was available. Doctors had little training in the scientific technology field and hospital was dirty run down which bought about a threat to life because of the diseases. Public health problems came about with such epidemics of acute infectious diseases. Before World War II military families and officers could get free of charge medical care. The federal government was not involved, they left it up to the states and the states had little to do with it. They left it up to private and programs that were voluntary. By 1930s hospitals were giving services to individuals on a pre-paid basis which, allowed for members......

Words: 1552 - Pages: 7

Historical Transitioning and Growth of the U.S. Health Care Systems

...Historical Transitioning and Growth of the U.S. Health Care Systems Strayer University Historical Transitioning and Growth of the U.S. Health Care Systems Abstract I found four articles that talked about the milestones in healthcare, financial and technical structure, changing demographics and the baby boom generation. Some of the authors include James Kirkman, Emily Snell, Rick Ratliff, S. Smith and the European Commission Decision. As time moves forward, health care continues to change and evolve in order to keep up with the growing population. If we did not constantly analyze each health care system to see where we need improvements, we would not be able to successfully fulfill our patient’s needs. First we must examine the key milestones involved in the past and present shaping and transitional dynamics behind changes in the present health care industry. Ratliff et al. (2012) stated that “Where central governments have traditionally implemented whole-system change, we also can see similar attempts to connect healthcare providers as part of a single system. A national culture and the relationship between government and its citizens are also influencing factors. Accenture’s previous research into citizen perspectives on healthcare quality has shown that the balance of trust, confidence and communication between citizens and government can vary tremendously across nations”. By having this type of arrangement and effective communication, when it is time to move to......

Words: 934 - Pages: 4

U.S. Airline Industry Regulation

...Hasan Sukkar Professor Gray AVSC 2150-X2 3/22/2015 U.S. Airline Industry Regulation Aviation industry has been traditionally marked by continuous change. As other industries, the airline industry required stages of development, with every stage it has its own pros and cons, the stages of development I will discuss are the regulation, deregulation, and re-regulation stages in the aviation industry. The airlines industry during the regulation era, Civil Aeronautics Board was created and had the power to price tickets and the the routes airlines flew, with the goal of serving the public interest. The main factor driving to those pros were the limited markets served, limited competition on routes, high ticket prices, and limited city-pair frequency.(Wensveen). The issues with aviation industry regulation is putting the industry in the hands of lawmakers with no experience in the business is a risk. That will cause higher costs and higher prices, because it reduces all competitor to the level of the least efficient company. Government regulations increased taxes on the airlines which resulted in reduced airline services. In a deregulated environment, government controls like entry and price restrictions for air carriers are removed allowing airlines to serve any given route and freely compete with other carriers.(Wensveen). The deregulation move realized that a politically controlled economy served no continuing public interest. Many benefits for the airlines......

Words: 589 - Pages: 3

Expected U.S. Gdp Growth Rate Going Forward

...recessions, should be going forward and getting better, but is it? According to statistics from Bureau of Economic Analysis (BEA), the United States is still trying to recover. The gross domestic product rate keeps going up and down; it does not keep going up, as it did in past recessions. What is to become of the United States if President Obama cannot get us out of the recession? EXPECTED U.S. GDP GROWTH RATE GOING FORWARD The gross domestic product (GDP) growth rate is an important indicator of the U.S. economic health. The slope of the yield curve – the spread between long and short - term interest rates – is a good predictor of future economic activity. As these slopes shift, you will get periods of high and low growth in GDP. There are three different methods of determining GDP. The first one is estimating each industry’s gross output and subtracts intermediate inputs from other industries to derive each industry’s residual value-added, which is sometimes called the production approach (Wells and Krugman, 2009). The second method is the income approach, which measures the income earned by the different factors of production (Wells et al). The third method is the final expenditures approach, which shows what is happening across different types of spending throughout the economy, usually done annually (Wells et al). The calculation is GDP = C (Consumption) + I......

Words: 785 - Pages: 4

Economics of the Organic Farming Industry

...farmer’s decision to get into organic farming. A farmer may decide to get into organic farming for personal health related reasons. For example, if the farmer is on a strict organic diet, he or she may prefer to enter the organic market in order to share the benefits with their consumers. An economic reason why a farmer may choose to enter the organic farming market is for the supplier surplus. Organic farmers tend to follow a differentiation market strategy rather than a cost leadership strategy. Therefore, their products usually warrant a higher price point. Consumers tend to pay more for a good that they perceive is higher in quality. Although the higher price point is an incentive to enter the organic market, higher profits are not guaranteed. The cost of transitioning from conventional farming to organic farming could be rough for a smaller firm. When a farmer leaves the conventional market to enter the organic market he gives up the opportunity to sell a higher volume of products at a lower price point. The trade-off is whether to sell a higher volume at a lower price or to sell to a specific market for a higher price. Organic farmers also spend more time on hand weeding crops than non-organic farmers; this time could be spent elsewhere in the firm’s value chain. Production cost—including the cost of the organic certification fee—is slightly higher compared to non-organic farms. Therefore, profit margins may take a hit in the short-term. Organic farmers can......

Words: 2427 - Pages: 10

Growth and Challenges in Hospitality Industry

...ISSN 1913-0341 Vol.3 No.4 2009 Canadian Research & Development Center of Sciences and Cultures 12/20/2009 Http://www.cscanada.org Http://www.cscanada.net E-mail: cscanada.mse@gmail.com; caooc@hotmail.com Issues, Challenges, and Trends, that Facing Hospitality Industry WANG Jin-zhao1 WANG Jing2 Abstract: This article presents findings of issues, challenges and trends that hospitality industry might fact in the year ahead respectively. Top issues that will influence the global hospitality industry in the year ahead include sustainable development calls for green hospitality, labor cost, multicultural issues and higher education. Challenges that facing hospitality include will include operating issues, marketing issues, technological issues and economic issues. Identified ten key trends that, taken together, we believe will shape the hospitality sector this year and for years to come include rapid growth in vacation ownership, integration & globalization, new management. Key words: Issues; Challenges; Trends; Hospitality Industry 1. ISSUES IN HOSPITALITY INDUSTRY 1.1 Sustainable Development Calls for Green Hospitality Going green is a white-hot issue in the hospitality-design industry. People are beginning to look at sustainable solutions in a whole new way. The perception of green has changed; it has gone from a fringe movement to mainstream. As a sign of its sweeping popularity, one of the best attended sessions at the recent......

Words: 2650 - Pages: 11

[WIP - Full] | トキの歌 | Decoder Satellitare Dvb-S2 Tivusat Humax 6800S-Hd Tivumax Pro 2 - Con Tessera