Essay on Structure Of The Natural And Specialty Food Industry
This environmental analysis outlines the structure of the Natural and Specialty Food industry by analyzing how the industry functions, the markets it serves, and the competition it faces. It is important to understand what is considered as “natural” or a “specialty” food. The U.S Food and Drug Administration (FDA) does not define the term “natural food”, but the agency has not objected to the use of the term if the food does not contain added color, artificial flavors, or other synthetic substances (FDA, 2014). Often “natural” is synonymous with “organic.” The Environmental Protection Agency (EPA) defines organic food as “food grown and processed using no synthetic fertilizers or pesticides (EPA, 2012). Specialty food on the other hand, includes but is not limited to, organic foods, specialty candies, baked goods, and gourmet foods. Since organic foods are considered as part of the Specialty foods, Natural food was referred to as a sub-industry or a segment in the Specialty industry throughout the report. After analyzing the industry, market and competition, it was determined that Portland, Maine is a viable option for a natural and specialty food store.
Specialty foods industry represents 13.7 percent of the total sales in the food industry. In 2011, the industry rose 6.9 percent generating $75 billion (The Gourmet Retailer, March 2012). By 2015 it is expected to almost double and reach $104.5 billion. This growth is driven by trends in consumer…