WHOLE FOODS MARKET

Whole Foods Market

Whole Foods Market

Company and Industry Overview

Whole Foods Market is the largest U.S. supermarket chain of natural and organic foods. The products that have the ingredients free of additives, dyes, preservatives, pesticides, hormones, antibiotics and some GM. In 2005, the group has 159 stores in the United States, 7 stores in the UK and 2 in Canada. The company will continue to look for opportunities in Canada and eventually expanding throughout Europe.

The global organic industry is growing annually at over 20%, along with increased accessibility. The world market is estimated to be worth over $ 14.4B in 1999. The major markets for organic foods in the U.S. with sales of $ 6.5B, $ 2.4b, Germany and Japan $ 1.4B. Buyers of organic foods are rich, better educated, in the age group of 18-34 or 45-54. They live in small houses and have little confidence in food safety regulation. The products range from baby food, meat, dairy products, go dairy-free beverages, baked goods ready meals.

In the U.S. retail grew from natural products to over $ 18.3B in 2003, an increase of 8% over the previous year with a relatively flat growth in the traditional food industry. This growth reflects the expansion of the customer base of natural products. While the U.S. market continues to grow organically in absolute terms, the market is expected to decline slightly as the industry matures and consolidates in the next 5 years.

Europe accounted for 45-50% of sales of organic foods. Food fears of mad cow disease, such as, actions in connection with industry and government programs have the most important drivers of the industry in Europe. For most of the last decade, Europe has the largest market, but has been overtaken by North America. Market growth slowed to 7% in 2002. The German market was supplied from nitrofen-food scandal and growth rates in countries like the UK slowed affected. Reduced growth rates lead to organic meat and dairy sectors suffering from overcapacity in some countries. The industry has developed numerous campaigns against biotechnology and to create genetically modified food and tried a new wave of growth for the industry. However, organic sales continue at a healthy rate in some European countries like Italy and Switzerland to grow.

Australia's organic production for the domestic trade and exports doubled between 1995 and 1999. Today is estimated at approximately $ 250,000,000 and fast growing 25% per year. In Asia, out with the exception of Japan, Korea and Turkey, the population growth and technology into the mainstream instead of organic agriculture to a slowdown. Measure inorganic and organic agricultural practices have been mostly replaced practices. Recent prosperity in China has the cycle until the start of the revitalized "Introduction".

It is important to note that while organic food the fastest growing segment of food sales in many countries still represents only 2.1% of the total, with food sales in the U.S., Europe and Japan in 2000. In considering the development of the organic industry on a global scale, organic foods ...