Ajinomoto to expand in North America through acquisition with More Than Gourmet
- Published | 04 September 2019
Japanese food and ingredients company Ajinomoto is acquiring 50.1% of More Than Gourmet Holdings which will influence the global organic food market
Global:
Ajinomoto, which specializes in the food and amino acids business, the U.S. B2B
market for prepared takeout foods, foodservice and restaurants is worth $18.3
billion, or about 40% of the global market. The company estimated the growth
rate between 2011 and 2025 at 3.2%. Through the expansion of its Integrated
Food Solutions business, Ajinomoto offers high added value products adapted to
local eating habits and food culture in the prepared take-out foods,
foods ervice and restaurant markets.
Ajinomoto highlights that MTG’s liquid seasonings
business, encompassing broths and sauces, is familiar with the trends and
preferences of US consumers and has strong connections with processed food
manufacturers and foodservice and restaurant companies.
According
to BlueWeave Consulting, the global organic food market is expected
to witness the momentous growth rates over the forecast period. Owing to
changing food habits, mass catering, and globalization of the food supply.
Furthermore, increasing demand for fresh and appropriate forms of food products
among consumers is helping the market grow significantly. Technological
advancements in supply chain and logistics have given pace to the market to
expand globally. E-platforms gaining popularity among consumers due to its home
delivery service and it also allows online orders. It also permits consumers to
compare the prices and help them to choose the best as per the ratings are
given by overall consumers. Online platforms offer consumers various other
benefits such as gift vouchers, cash back's, free delivery, etc. Implementation of various regulations on food
safety, particularly by governments of a developed country, hinders the growth
of the global food market.
According
to BlueWeave Consulting report titled “ U.S. Organic Food Market By Type(Dairy, Bakery Products, Fruits & Vegetables, Snacks, Meats/Fish &Poultry, Sauce & Condiment, Processed Food, Packaged Food And Other), By Distribution Channel (Online Channel, Offline Channel, Supermarkets And Departmental Stores); Size And Forecast By 2018- 2026”
U.S. organic food market is expected to grow at a CAGR
of over 15% during 2018-2026 in terms of value. This growth is driven by
several factors, including growing consumer awareness for health and
well-being, coupled with stringent government regulation to maintain safety and
quality standards in food. In the U.S., the Meat, Fish and Poultry segment is
the largest Organic food type due to the consumer demand for Pasture-raised
egg, which is more healthy and nutritious. Moreover, major producers of Meat
and Poultry producers are offering their customers natural, grass-fed and
hormone-free meats and poultry products.
Global Organic Food Market is expected to grow at a
CAGR of over 15% during 2018-2026 in terms of value. This growth is driven by
several factors such as the rise in consumer awareness towards health and food,
increasing disposable income, major lifestyle changes among the younger crowd
and emerging concerns for environmentalists, etc. Rising disposable incomes and
increasing awareness of health and wellness aspects, consumers are opting for
healthier alternatives, especially for children and in the post, the mid-age
group would propel the product growth.
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