THE GROWING NATURAL FOODS MARKET: OPPORTUNITIES AND OBSTACLES FOR MASS MARKET SUPERMARKETS

Seven serious obstacles hinder the success of mass market grocery stores that try to succeed in the natural foods market. Finding timely and complete market information, linking with natural foods suppliers, and pricing and marketing natural foods are the three most important. Uncertainty about future standards for natural foods is the only major obstacle for natural foods stores. The problems facing mass market stores trying to succeed in the natural foods market are related to the market structure for natural food, to compatibility between standard operating procedures in the mass market and natural foods market, and to inadequate data collection about prices and other market characteristics. The problem for natural food stores is due to policy, primarily the lack of strong standards for natural foods. In the survey that forms the basis for these conclusions, almost half of mass market retailers had increased the scale of their natural foods operations and diversified their natural foods offerings. But few were satisfied with the degree of success of this approach. More successful strategies included developing labels (i.e. brands) for natural foods and hiring special staff for natural foods. These strategies are uncommon among mass market stores. Natural foods retailers tried them more often. Both mass market and natural foods retailers considered these strategies to be successful. How can mass market retailers overcome the obstacles they face and take advantage of the opportunities that the natural foods market provides? One key requirement for a healthy market is consumer confidence. There are two steps that mass market retailers can take to bolster consumer confidence. First, they can work to ensure that the natural foods in their stores are consistent with the standards that natural foods consumers demand. Second, they can make the effort to incorporate the concepts behind the natural foods movement into their strategic planning (e.g. adding organic product promotions to advertising plans, and by taking account of the environmental implications of their own operations). In addition, by working in concert with other retailers, trade organizations and appropriate non-profit organizations and governmental agencies, mass market retailers can help create a healthy business environment for natural foods in the long term.Agribusiness, Demand and Price Analysis, Marketing,

THE GROWING NATURAL FOODS MARKET: OPPORTUNITIES AND OBSTACLES FOR MASS MARKET SUPERMARKETS

Seven serious obstacles hinder the success of mass market grocery stores that try to succeed in the natural foods market. Finding timely and complete market information, linking with natural foods suppliers, and pricing and marketing natural foods are the three most important. Uncertainty about future standards for natural foods is the only major obstacle for natural foods stores. The problems facing mass market stores trying to succeed in the natural foods market are related to the market structure for natural food, to compatibility between standard operating procedures in the mass market and natural foods market, and to inadequate data collection about prices and other market characteristics. The problem for natural food stores is due to policy, primarily the lack of strong standards for natural foods. In the survey that forms the basis for these conclusions, almost half of mass market retailers had increased the scale of their natural foods operations and diversified their natural foods offerings. But few were satisfied with the degree of success of this approach. More successful strategies included developing labels (i.e. brands) for natural foods and hiring special staff for natural foods. These strategies are uncommon among mass market stores. Natural foods retailers tried them more often. Both mass market and natural foods retailers considered these strategies to be successful. How can mass market retailers overcome the obstacles they face and take advantage of the opportunities that the natural foods market provides? One key requirement for a healthy market is consumer confidence. There are two steps that mass market retailers can take to bolster consumer confidence. First, they can work to ensure that the natural foods in their stores are consistent with the standards that natural foods consumers demand. Second, they can make the effort to incorporate the concepts behind the natural foods movement into their strategic planning (e.g. adding organic product promotions to advertising plans, and by taking account of the environmental implications of their own operations). In addition, by working in concert with other retailers, trade organizations and appropriate non-profit organizations and governmental agencies, mass market retailers can help create a healthy business environment for natural foods in the long term

The Natural Foods Market A NATIONAL SURVEY OF STRATEGIES FOR GROWTH

Sales of "natural" foods are rising much more rapidly than any other segment of the food market. Evidence of this leading edge of growth comes from a variety of indicators - the exponential rise in farmers' markets, the expansion in natural foods grocery stores, consistently strong stock market showings, and investment by venture capitalists. Many mainstream supermarkets have joined the trend, offering an array of organic and other natural foods. Although natural products now comprise about two percent of total food sales, the rapid growth rate, if sustained, will quintuple its influence on the farming, processing, distributing, and retailing food stream over the next decade. Despite impressive growth through the 1990s, achieving the full potential of the natural foods market is not assured. This immature market requires careful policy actions to fulfill its capacity to help satisfy private and public objectives. While the growth in natural food sales holds obvious rewards for the business sector, contributions to public policy objectives should not be overlooked. Scientists and practitioners of sustainable agriculture know that economic viability is key to farming and food systems that leave a lighter environmental footprint across the country. The spread of such systems could contribute to important national environmental objectives; for example, reduced water pollution. However, adoption of these alternative systems of food production has been slow. The strong growth in consumer demand for natural foods offers an economically viable opportunity for wider adoption. In 771e Natural Foods Market: A National Survey of Strategies for Growth, Nessa Richman identifies the obstacles to achieving the hill potential of this market development, and presents private and public strategies to reduce key barriers. Prominent on the list of obstacles is the uncertainty over standards for natural foods products, which would guide the actions of all market participants, from farmers to consumers. Both industry and government agencies have roles in alleviating that uncertainty. The report's comprehensive analysis combines and interprets a diverse array of private and public information, to help experts and novices understand this developing market. It uses the latest information to chronicle the growth and diversity of the sector. The identification of obstacles draws upon the findings of a new national survey of farmers, food processors, distributors, and retailers. The responses of those already involved in natural foods are contrasted with those who are not already involved, ill order to assess the obstacles perceived by each group. Private and public strategies to foster durable market growth are built from the survey findings and from the insights gained from interviews with food industry leaders. The Henry A. Wallace Institute for Alternative Agriculture offers this report to encourage effective actions in the private and public sectors, which will lower obstacles to growth in the natural foods market. With the report, the Institute's Policy Studies Program undertakes a new initiative centered on analysis of the marketing of sustainable agriculture products. We hope that this report and following publications stimulate a dialogue within and among private and public circles, which moves society toward a sustainable food system

Transgenic Crops: An Environmental Assessment

The report focuses on the environmental impacts of transgenic crops, and covers biosafety regulations in the US and EU, intellectual property rights, and market and trade developments