Sizzling Changes in the Food Industry, 3-22-2007
The entire food industry, from growing to processing to retailing, is an extremely competitive field where profit margins are typically so low that it is often challenging to maintain profitability. Meanwhile, throughout much of the world, technology and globalization have revolutionized the way that we grow, transport, process, package, purchase and cook food. According to a recent report from Plunkett Research, Ltd., the largest and most important factors affecting this evolving industry are:
- Wal-Mart Dominates as the World's Biggest Retailer (and now America's Biggest Grocer).
Wal-Mart is the world's largest non-oil company, based on revenue ($312 billion during 2006). One way in which the company has expanded dramatically is through its revolutionary entry into the grocery business, and Wal-Mart is now America's biggest grocer, with $93.7 billion in grocery department sales during 2006. Its Supercenters have immense, well-stocked, supermarket-like grocery departments that work on profit margins much lower than those of traditional supermarkets.
- gricultural Biotechnology Scores Breakthroughs but Causes Controversy.
In 2006, over 42 billion acres of genetically modified crops were planted worldwide (a 14% increase over 2005)-mostly in the U.S., but large amounts were also planted in Argentina, Canada, Mexico, Romania, Uruguay and South Africa.
- Exacting Organic Standards Create Consumer Demand for Products.
Organic farms provide about 2% of the food supply in the U.S., and sales of organic foods hit an estimated $15 billion in 2006. In fact, organic food is one of the fastest-growing segments of the U.S. food industry, along with nutritionally-enhanced foods and energy drinks.
- Functional Foods Promise Health Benefits.
Worldwide sales of foods that claim to foster nutrition, health, weight loss or other advantages are enjoying immense sales. The U.S. accounts for about one-third of the market for such foods, followed by Europe, Japan and the rest of Asia.
To find out more about these exciting trends and more, check out Plunkett's Food Industry Almanac 2007, just released, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett's completely up-to-date online database!
About Plunkett Research, Ltd.
Plunkett Research, Ltd. is a leading publisher of complete business research and analysis resources, designed to enable professionals in marketing, research and finance to access complete trends analysis, statistics, technology analysis and financial analysis of the world's most exciting industries. For more information, visit www.plunkettresearch.com, or call 713.932.0000.