threat of new entrants in supermarket industry

Even if there is a desire from a greater number of consumers to turn to these products on a daily basis, the fact remains that 70% of the products sold come from traditional food. Organic food products currently account for around 30% of food sales across the EU. To this day, there are still too many new players who 'cheat' on the origin of their products, which is harmful for the entire sector. The series of labels that frame the profession allow both to reassure consumers but also to give more credibility to the entire market. However, the barriers to entry remain relatively numerous, since the organic world is highly regulated and the laws increasingly strict. The players already in place are already under the threat of very strong competition, and every year new players try to carve out a place in the market. The threat is rather high on the sector, given that it is part of a trend, a desire of a large number of people to transform both their lifestyle and their eating habits. The European Union is the second internal market the European market amounts to 52 billion euros. In France that we find the most extensive organic area which spans millions of hectares. Moreover, it is in Italy that we find the highest number of organic producers. Market growth stands at 15.1% in 2022, with the highest growth recorded in Germany, at 22.3%.

Retail businesses specialising in the organic food sector generate a turnover of 44.8 billion euros with an average of 102 euros spent per household, an increase of nearly 20 euros in the space of two years.

In Europe, there are currently 349,499 organic producers and 78,262 organic processors. Indeed, consumers are increasingly looking for a healthier and more balanced diet, and in 2022 more and more of them are turning to the organic market. The organic food industry has grown significantly in recent years.

Threat of new entrants in supermarket industry