Term Paper on "Shifting Trends in the Food Sector: Organic"
Term Paper 9 pages (2541 words) Sources: 10
[EXCERPT] . . . .
Shifting Trends in the Food Sector: Organic Food Versus Fast FoodIntroduction:
Trends in the food industry are continually in flux. Changing
tastes, dietary guidelines, cultural phenomenon, and more are all forces
that are constantly changing the food industry. One of the more prominent
changes in today's industry is the increasing popularity of the organic
food sector, with the decreasing popularity of fast food. This phenomenon
will be explored in this paper. The importance of food as a social aspect
will be talked about, in general. In addition, so will how this social
aspect changes with the general behavior of society. Included in this
exploration are the causes that have been the catalyst of this change, as
well as the public's reaction to it. Whether this has been a social change
will be examined.
These social changes are facilitating innovations in the restaurant
industry. Aspects such as how restaurants are dealing with this issue will
be discussed, as well. In the end, each of these interconnected facets, as
a result of the societal shift from fast food to organic food, will be
investigated.
Food Industry Overview: Organic, Fruits and Vegetables, and Fast Food
Sectors
The food industry is made up of a variety of disparate parts. For
the sake of the discussion of the changing level of acceptance of organic
foods versus the decline in fast foods, two key sectors will be focused
upon, in addition to the general organic food industry. The fruits and
veget
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been positively impacted by the increase in demand for organic foods, and
the fast food sector, specifically in the United States, since this is the
sector that we are comparing the effects of organic food to and the United
States comprises a majority of this sector.
Organic food is defined as produce that has been independently
certified to have been produced without the use of chemicals. In the Asia-
Pacific and Japanese markets, this nomenclature also refers to some 'green
food'. Green food is uncertified produce and therefore could contain a
limited amount of chemicals. To be labeled as organic, "produce must
have been grown without the use of synthetic pesticides, herbicides or
fungicides on land that has been free from such chemicals for at least
three years"[1]. The global organic food market has exhibited strong
growth over the last five years. In developed markets across Europe, Asia-
Pacific, and the United States, organic food has evolved beyond its
original niche market and become mainstream. In Europe, the demand for
raw organic materials and processed goods has outgrown the supplies
available, especially in the United Kingdom, France and Germany[2].
The global organic food market has exhibited strong growth over the
last five years. Europe, Asia-Pacific, Canada, and the United States have
all seen substantial market expansion, with the US receiving the lion's
share, with a market share increase of 5.2 percentage points, to stand at
46.6 percent in 2005. Overall, the global organic food market generated
$36.2 billion, in total revenues, in 2005 and a compound annual growth rate
(CAGR) of 15.5 percent for the five-year period between 2001 and 2005 (See
Table 1). $16.9 billion in total revenues was generated in the United
States alone, in 2005, equating to a CAGR of 18.9 percent for the same
period. In comparison, the Asia-Pacific market generated $4.5 billion in
2005, with a CAGR of 15.9 percent, for 2001 through 2005[3].
Other sectors of the organic food industry have performed well, too.
The National Cattlemen's Beef Association reported a 17.2 percent growth in
organic beef sales in 2005, despite only a 3 percent growth in the sector
as a whole. Organic beer sales saw an astounding 40 percent increase in
2005, making organic beer and coffee the fastest growing organic
beverages[4].
Specialty stores are responsible for approximately half of the sales
in the organic sector. However, supermarket chains are becoming an
increasingly utilized distribution point. In May of 2006, Wal-Mart
announced that it would be increasing the sale of organic fruit and
vegetables in it stores, in hopes of modernizing the retailing powerhouse's
image, as well as broadening its appeal to urban and other upscale
customers.
The fruit and vegetables sector is the leading revenue source for the
global organic market. $14.2 billion was generated in total revenue, in
this sector, in 2005. This is equivalent to 29.6 percent of the entire
market value. In contrast, the bread and grains sector was only worth $6
billion, representing only 16.4 percent of the market value share[5] (See
Table 2)[6].
Growth is anticipated to remain strong between the 2005 to 2010
period. The CAGR is anticipated to be 12.9 percent, with the global total
resource value of $66.3 billion, by the end of 2010 (See Table 3). The
United States is expected to have even stronger growth with an anticipated
CAGR of 15.8 percent, and a value of $35.1 billion by 2010[7].
As noted, the fruit and vegetable segment is the largest segment of
the organic food industry. In the United States, the fruit and vegetable
market grew by only 4 percent in 2005, to reach a value of $70.3 billion.
This growth is reflective of market volume growth of 1.8 percent, in 2005,
enabling the market to reach a volume of 23.8 million metric tonnes. By
2010, the American fruit and vegetable market is anticipated to reach a
value of $85.4 billion[8].
The fast food industry has also demonstrated growth, albeit much
smaller growth than the organic food market, recently. In 2004, the
American fast food industry grew by 2.6 percent to reach a value of $50
billion. By 2009, the industry is anticipated to have a value of $56.2
billion, an increase of 12.4 percent. Quick service restaurants, such as
McDonalds, Burger King, and Taco Bell, are the bulk of the industry,
accounting for 72.6 percent of the United States market's value. Globally,
the United States accounts for 50.2 percent of the fast food market's
value. The CAGR of the market volume, for the period of 2004 to 2009 is
anticipated to be a scant 1.1 percent[9].
Factors in the Changing Tastes of Society: From Fast Food to Organic:
The introduction of organic products has been increasingly accepted
by consumers. Food, and the changing demands for certain foods, is
socially driven. Diet crazes, such as low-carb or low-fat diets, can
affect entire industries as society jumps on the latest food bandwagon.
Organic foods are much the same. Changing societal needs and desires has
made organic foods an increasingly attractive option for many. Organic
foods are not something new to society, in fact, it's a reversion to the
old. Eighty years ago, before the introduction of insecticides and
pesticides, everyone was an organic consumer[10].
The current demand for organic foods stems from a variety of sources.
In Asia-Pacific, this demand has risen partially in response to a number of
food scares.
Incidents have involved milk contamination, dioxins in Chinese
vegetables, mislabeling fraud and BSE. Organic foods are viewed to be
healthier and safer than conventional foods, and a recent survey
conducted by the Japanese government showed that food safety had
overtaken price, a balanced diet, and taste as the most important
consideration for consumers[11].
Consumers place a greater amount of trust in organic foods, as opposed to
traditional consumer packaged goods[12].
In addition, the desire to reduce the potential hazards to human
health, due to pesticide exposure, as well as minimizing the environmental
impact of production, has served as a catalyst for increased demand for
organic produce. An increasing number of consumers are demonstrating a
preference for organically produced fruits and vegetables[13]. Consumers
are beginning to question the impact that conventional food production
methods have on the environment and natural resources[14].
Much of the societal shift to organic food also has to do with the
increased societal demand for a healthier lifestyle. Fast foods, in
particular, have created high levels of concerns due to the dangers to
health posed by high calorie density products like burgers. In response,
McDonald's has phased out their 'supersize' products[15].
Concerns about the potential hazards of genetically modified crops
also have consumers turning to organic foods. In March 2004, Mendocino
County, California, became the first region in the United States to ban
genetically-engineered crops. In April of 2004, Vermont's Governor James
Douglas signed into law legislation that required the labeling of all
genetically modified seeds, the first state in the nation to do so. Europe
also followed suit in 2004, with the passing of new regulations that
required genetically-engineered labels on products containing as little as
0.9 percent of genetically-engineered ingredients[16]. Again, consumers
trust organic foods more than traditional foods, and with the growing
concern regarding genetically-engineered foods, organic foods offer
assurance against these modified foods.
Companies like Green Mountain Coffee Roasters have gone one step
beyond organic foods and beverages. With the assistance of International
Paper, Green Mountain Roasters has recently launched an all-natural and
biodegradable hot beverage cup[17].… READ MORE
Quoted Instructions for "Shifting Trends in the Food Sector: Organic" Assignment:
Innovation Paper:
Thesis: The food industry is shifting trends everyday. The organic food sector is becoming more popular and *****fast food***** is becoming obsolete for many. I would like to explore what caused this change and how people are reacting to it. Has it become a social change? Have people become more social or even healthier? How are restaurants dealing with this issue?
In my paper, I would like to discuss the importance of food as a social aspect and how this social aspect changes with the general behavior of the society. Innovations that are happening in the restaurant business are the results of a social change. To sum up, I would like to explore all these different issues that are closely related to one another in my paper.
"The goal of the final assignment is for everyone to contribute a new perspective on the topic of innovation to the course. Rather than focus on the lineage of one innovation as we did in the midterm, each paper is expected to define the term "innovation" through the description, analysis, comparison, and explanation of cases that are related by some criteria (defined by you in your paper). The final paper and presentation will consist of a "theme" within which the topic of innovation can be understood. This theme needn't be a typical industry nor goal, it could focus on the method of diffusion, historical context, guiding principle, culture of the creator... anything, as long as you are able to introduce it coherently and explain the topic of innovation via your presentation and paper."
The paper is a performance of your understanding of the topic of innovation and your capacity to apply it to a group of examples chosen by you. The thesis, examples, and discussion should be derived from your own notes as well as from qualified sources. Keep in mind that a source is worthless without an explanation of its relevance to your thesis and the concepts within the paper. Along the same lines, a source should not only be relevant to your topic but should also address the topic with some authority.
I am reading your thesis statements and find that many of you are on the right track. Keep in mind though, that the goal of this paper is NOT to focus on one innovation or lineage but rather to explain how innovation works in the context of some theme, such as "government and innovation"... or "legislation and innovation".
Also, the length of the final paper should be a minimum of 7-10 pages (not including images, appendices, interviews, bibliographic references, etc). In order to develop a cohesive argument with enough supporting examples and explanation, your paper will have to be at least 7 pages but I give a lot of credibility and pay more attention to the writing and content than I do to the length of your paper. Try to keep this in mind as you develop an appropriate outline for your papers.
*** Just be honest and reasonable with yourselves and with me as you develop these papers... does the writing reflect the important issues and address them in a way that makes sense? Does the thesis make a critical point about innovation? Does it address innovation in a meaningful way? If so, you on the right track and will likely be submitting a successful paper... if not, re-read, review and re-write until it does. ***
How to Reference "Shifting Trends in the Food Sector: Organic" Term Paper in a Bibliography
“Shifting Trends in the Food Sector: Organic.” A1-TermPaper.com, 2006, https://www.a1-termpaper.com/topics/essay/shifting-trends-food/8696458. Accessed 6 Jul 2024.
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