As a specialist retailer of natural and organic products Whole Foods Market is aiming to bring greater integrity and trust to the UK natural food market. However, busy consumers may still choose the convenience of the supermarket ahead of niche retailers when it comes to buying organic.
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Whole Foods Market is the leading natural and organic retailer in North America with a network of 146 stores across the US and Canada, and sales of US$3.1bn in 2003. The retailer aims to meet consumer demand for healthier food that is free from artificial additives and more environmentally friendly.
The natural food and drinks market was worth €12.7bn across Europe in 2002, of that organic products accounted for €9.1bn. The boom in the natural and organic market has been driven by consumers’ desire for trusted food sources as confidence in the food industry has been shaken by health scare scandals and the controversy over GM foods.
Despite concerns that the market’s growth is levelling off, future expansion will remain strong at a CAGR of 10.2% to 2007. Whole Foods Market is aiming to capitalise on this continued growth and take advantage of the fact that there are few retailers specialising in this market specifically.
In the UK, 82% of organic food and drink retail sales go through non-specialist supermarket and convenience store channels. In other parts of Europe these channels account for 40-50% of sales with the remainder going through direct sales and specialist and health food retailers.
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By GlobalDataResearch shows that consumers do not always trust the authenticity of organic products sold in supermarkets. People have greater trust in the integrity of organic food sold through specialist and health food stores, and Whole Foods Market will be hoping to exploit this perception to its advantage.
Highly time-pressed, young, professional consumers prefer the convenience and product range that a supermarket provides. Therefore Whole Foods Market will need to balance the convenience needs of busy consumers with maintaining the integrity and image of natural and organic foods.
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