Demand for organic foods continues to increase.
This seems to be one of the major trends in the food industry for the next decade. It’s an area of growth overall, but especially for small businesses such as small farms and small farms that want to sell directly to consumers via their own websites.
The growth is a good thing. But there are some other trends to pay attention to that will likely affect these companies…
#1. Food Price Inflation
Certain areas of the economy are hit by inflation at various times. In the last couple decades, for example, inflation has dramatically hit the education and healthcare industries. The cost to attend colleges is through the roof. The same for any type of traditional healthcare.
The food industry has gone through various inflationary periods. In general, organic and natural foods have come with higher price tags. Certain customers are more than willing to pay a higher price for better quality.
But should more regulation come to the organic food industry, inflation will likely follow.
The strategy should be to look for efficiencies throughout the entire business. The lower your prices, the more likely you are to win customers.
The pet industry has been growing every year since 1994. That trend is likely increasing. Young adults are not having as many children anymore for various reasons. But they are still seeking pet ownership opportunities. And they are willing to spend so their pets have the best of the best.
Including food and organic food.
Many baby boomers and those in Generation X are also pet owners and will continue to be as they approach mid and late life. They are also willing to spend on their pets. Sometimes even more than they do on themselves.
Experimenting in various pet food products is a wise strategy.
#3. Baby Boomers Age 75+
Baby boomers are retiring in record numbers. This has been discussed for many years. We have seen many of the changes already and we’re going to see more in the coming decade.
The oldest boomers are already in their 70s and many will likely live throughout the next decade. Their spending habits and preferences are likely to change as it does for most moving from their 60s to their 80s.
Those that are 75 and older typically spend less on food than those ages 65 to 74. Other priorities such as healthcare and self care take over priority.
If your business has a high number of boomer customers, it’s a good time to start looking at how to reach the younger audience. Millennials are reaching middle age, which is typically when many are able to spend a little more than they were as young adults.
Millennials are not as healthy as previous generations. They haven’t been able to afford traditional healthcare. They don’t trust traditional healthcare.
This presents and interesting situation for organic food businesses…
There is a certain portion of Millennials that prefer self-care. They want to take ownership of their own health. That is a positive. They look to blogs, videos and social media for insight into what to eat, including organic foods.
Those are the people you want to reach. You may never be able to get through to the ones that take a devil-may-care attitude toward health.
#5. Rising Nationalism
For a variety of reasons, there is rising nationalism around the world. Another label may be a preference for all that is local.
In previous decades, globalism has been a preference. People have been open to trying foods from all over the world. Food industries have been built on the ability to do business around the world.
Now the demand seems to be shifting…
This can be a great thing for local, organic food companies. The focus can be on the local consumers. Then you can expand from there if the demand is there and the business is viable.
Focus should still remain on efficiency and finding ways to bring good, local products to local consumers at the best price possible.
There are big changes coming in the world in the 2020s. Most of those changes are unknown. We look at the information available and do the best we can to position our businesses for success.
In general, try different things. Experiment at every level of your business. Experiment in small ways. Ways that won’t break the bank.
When you see positive signs with something, dive deeper and consider investing as much as you can.
That’s where success comes from for most businesses, including those in organic foods.