LONDON — (BUSINESS WIRE) — A well-known market intelligence company, Infiniti Research, has announced the completion of their latest article on the major challenges faced by companies in the organic food industry and the ways to address them.
Despite exhibiting impressive growth, companies in the organic food sector are still concerned about maintaining a steady pace of growth. Rising consumer awareness is forcing consumers to question the certifications appearing in the product packaging. Different seals and certifications used by food manufacturing companies for the authenticity of products are enabling consumers to ask companies regarding the relevance of organic labels. Not keeping the organic label on top creates distrust among customers and may negatively impact food manufacturing companies. Moreover, food movements like gluten-free, flexitarian and non-GMO are all relatively new and they need to reach the targeted audience to increase organic food sales for the food industry.
The inability of food manufacturing companies to analyze dynamism in the organic food market is depriving companies of the sales and necessary ROI. To know how to address such business challenges and increase sales, Get in touch with our experts!
Challenges faced by food manufacturing companies in the organic food industry:
Higher prices
Organic production covers a small fraction of the total agricultural sales in the U.S. food industry and across the globe, and the area of land certified as organic accounts for less than one percent of the total agricultural land, resulting in lower rates of production. Intensive management and labor used in organic production further elevates the costs of organic farming.
Not available globally
The production cycle of organic products is usually longer than the conventional one. This makes it difficult for farmers to shift from conventional farming to organic farming techniques. It hampers the availability of organic products among customers and is considered to be one of the significant disadvantages of organic food.
Lower longevity
The absence of preservatives in organic products makes the lifecycle of products shorter. They spoil faster than conventional foods and increase consumer spending. This makes it difficult for customers to adhere to the grocery budget and serves as one of the major disadvantages of organic food, leading to a decline in profits and ROI.
Some businesses cut their prices to the cheapest to sustain in the market. However, this can lead to heavy revenue losses. Request a free proposal and know how our experts can help you devise a competitive pricing strategy based on the latest trends and data of the food industry.
Factors contributing to the growth of the organic food industry:
Presence of healthy nutrients
One of the most significant benefits of organic food for the food industry is the presence of antioxidants. Organic fruits and vegetables contain 40% more antioxidants when compared to conventional food items. They reduce the risk of health hazards such as heart attacks, cancer, and stroke. Companies in the organic food industry have the advantage of creating market awareness regarding their products and expand their market growth. They just need the right marketing strategy to gauge potential customers.
Healthy for consumption
Health is a major factor behind the growth of organic products. Organic products are free from any kind of chemicals, reducing the risk of illness, disorders, and diseases. This is forcing customers to switch towards the use of organic food products. Moreover, the market analysis done by our experts predicts an impressive growth for the US organic food market, reflecting new sales for the food industry firms. Therefore, companies just need to increase their market penetration into the total food market to enhance sales.
Promotes a healthy environment
At present, colossal amounts of chemicals are used to treat non-organic produce, leading to long-term damage to the surrounding soil. The increased use of organic products will motivate farmers to take up organic farming and prevent the leeching of synthetic pesticides into the water sources and the soil. This is one of the crucial benefits of organic food products for the food industry.
Wondering how such factors can increase the market penetration rate of food manufacturing companies and escalate sales? Request more information.
About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit:https://www.infinitiresearch.com/about-us
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Infiniti Research
Anirban Choudhury
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