Saturday, February 27, 2021

Sustainable foods space set for new growth phase

Amazon’s acquisition of Whole Foods Market pre-empts the beginning of a new growth phase for the organic and sustainable products market, says Ecovia Intelligence.

Indeed, the company predicts that distribution will continue to move towards online retailing and home delivery schemes.

Sustainable foods and natural cosmetics were initially introduced in health and natural food retailers, with distribution expanding to the mass market over the last two decades.

Mainstream retailers now make up the lion’s share of organic food sales in almost all leading country markets.

Every large food retailer in North America and Europe is now marketing organic foods under their private labels. The next growth spurt is envisioned to come from mobile apps linked to delivery services.

Since acquiring Whole Foods Market, its 365 Everyday Value brand has become the number two selling private label on Amazon.

The online retailer is reported to have sold $10 million in Whole Food snacks, canned foods and frozen fruits and vegetables in the first few months.

The private label is projected to show over $40 million sales from Amazon this year.

Other natural food retailers are looking to actively market their private label ranges via home delivery schemes.

Organic food marketing under private labels are attractive to consumers as they typically sport lover prices, as well as generating higher margins for retailers.

As will be demonstrated at the forthcoming Sustainable Food Summit, most demand for organic and sustainable products is coming from millennials.

They are the fastest growing buyers of organic foods in the US, generating half of total sales. They are also digital consumers, buying 40% of their groceries online.

Research shows that 58% of millennials say they will shop at a store because of their private label ranges.

Amazon is capitalising on the aforementioned trends in North America, but Ecovia Intelligence said Amazon will find it more difficult to build the same footprint in Europe.

The organic food and natural cosmetics markets are highly fragmented with large retailers having the most successful private labels.

Whole Foods Market has just seven stores in the UK. Whilst there are over 20 chains of organic food shops in Europe, none have a regional presence, meaning Amazon would have to acquire and integrate several chains if it is to have a similar impact in Europe.

With the ubiquitous use of mobile devices and the growing influence of millennials, the next growth phase for sustainable products is likely to be with online retailer. The question is how will brands compete in the digital marketplace?

Whole Foods Market is already showing signs of moving away from small producers, as it focuses on private labels and high volume items. The future maybe digital, however will it be sustainable for small producers?

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.
















Latest news

Online courses explore storage, discharge and handling of bulk materials

The issues surrounding the safe handling and storage of bulk materials is examined during 2 on-line short courses; one looking at the difficulties encountered...

Integrated solutions for plant-based production

Understanding individual machines, coupled with how they integrate and contribute across a food production line, is a philosophy on which Interfood has built its...

Israeli foodtech start-up enters commercial production with chickpea isolate

Israeli foodtech start-up ChickP Protein is entering full commercial production of its 90% chickpea isolate. The company is simultaneously expanding its global activities, having kicked-off...

Danone boosts plant-based portfolio with Earth Island acquisition

Danone is bolstering its portfolio of plant-based brands with the acquisition of Earth Island, the US company behind the egg-free mayonnaise brand, Vegenaise. Founded in...

Givaudan launches AI tools for next-gen product development

Givaudan Taste & Wellbeing has launched of its Advanced Tools for Modelling (ATOM) which use state-of-the-art AI to optimise food and flavour formulation and...

Deaths from food allergy declining in the UK, study shows

Deaths from serious allergic reactions due to food have declined over the past 20 years, despite an increase in hospital admissions for food-induced anaphylaxis...

Related news

Online courses explore storage, discharge and handling of bulk materials

The issues surrounding the safe handling and storage of bulk materials is examined during 2 on-line short courses; one looking at the difficulties encountered...

Integrated solutions for plant-based production

Understanding individual machines, coupled with how they integrate and contribute across a food production line, is a philosophy on which Interfood has built its...

Israeli foodtech start-up enters commercial production with chickpea isolate

Israeli foodtech start-up ChickP Protein is entering full commercial production of its 90% chickpea isolate. The company is simultaneously expanding its global activities, having kicked-off...

Danone boosts plant-based portfolio with Earth Island acquisition

Danone is bolstering its portfolio of plant-based brands with the acquisition of Earth Island, the US company behind the egg-free mayonnaise brand, Vegenaise. Founded in...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close