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Organic Food Industry Analysis

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Organic Food Industry Analysis
Organic Industry Analysis

Managerial Economics

Abstract The organic products industry has shown consistent growth over the last 25 years, growing 3,400% (Flynn, 2014). The organic industry earned $35 billion in 2014 up from $1 billion in 1990 (Flynn, 2014). Credited with being the primary market force drivers, food safety and health concerns have been driving the industry since the end of the 2009 recession. This research paper examines the organic products industry and identifies how supply and demand affects future prices of organic products.

Organic Industry Analysis This paper provides a succinct market analysis of the organic food and product industry. The paper provides background and description of the organic product market. The paper examines U.S. and global market trends of the organic food and product industry by examining demand and supply for organic products. This paper identifies key box store retailers and describes their roles in driving the organic food industry. Analyzing various studies from the USDA and its Economic Research Section (ERS) identified the driving market forces behind the popularity of the organic foods and products, which are the improvement of health and reduction of pesticides from individual diets. The purpose of this paper is to identify market trends and the driving forces behind the global organic food and product market. The driving forces behind the organic food market are health conscious millennials and new mothers who want to reduce chemicals from their diet. Background and Description
The term organic has been the topic of controversy for academics and business leaders since the 1940s. The controversy involves several sub-topics such as lack of international standards for organics, cross contamination of organic products during transport, genetically modified organisms (GMO), chemicals and pesticides, and costs to produce organic goods. The definition of organic



References: Aggarwal, P. (2014). Supply chain management of locally grown organic food: A leap toward sustainable development. Retrieved from http://www.cognizant.com/InsightsWhitepapers/Supply-Chain-Management-of-Locally- grown-Organic-Food-A-Leap-Toward-Sustainable-Development-codex928.pd Dimitri, C., & Oberholtzer, L. (2009). Marketing U.S. organic foods recent trends from farms to consumers. USDA, Economic Research Service, (58). Retrieved from http://www.ers.usda.gov/media/185272/eib58_1_.pdf Flynn, D. (2014). Report: Organic industry achieved 25 years of fast growth through fear and deception, Food Safety News. Retrieved from, http://www.foodsafetynews.com/2014/04/report-fast-growing-organics-industry-is- intentionally-deceptive/#.VL0ILWd0xjo Greene, C. (2013). Growth patterns in the U.S. organic industry. Retrieved from http://search.proquest.com/docview/1518534011?accountid=35796 Hopkinson, J. (2014). Will Wal-Mart gobble up organic food supply? Retrieved from http://www.politico.com/story/2014/04/walmart-organic-food-105631.html Lohr, L. (n.d.). Factors affecting international demand and trade in organic food products. USDA, Economic Research Service. Retrieved from http://www.ers.usda.gov/media/293617/wrs011j_1_.pdf Organic. (2015). In Merriam-Webster.com. Retrieved from http://www.merriam-webster.com/dictionary/organic Research and markets adds report: 'United States organic food market report 2013-2018 '. (2014). Manufacturing Close - Up, Retrieved from http://search.proquest.com/docview/1498350288?accountid=35796 Young, T. (2014). Organic check-off. Retrieved from https://ota.com/organic-check

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