Food Startups Taking Market Shares of Big Business

Big food corporations have been holding on to their dominance of the market. However, the progress that startups have made is phenomenal. This is the result of a combination of factors but mainly by a shift in consumer demand for certain types of food. The NY Times reports this shift in consumer buying habits and the steady hold of new players on market shares.

Big food companies are notorious for their use of high sugar, salt, and fat in their products. Consumer awareness of health implications of these ingredients have made startups with organic and healthy options a much bigger hit than big companies expected.

The quick rise of small companies with specialized products clearly overtakes the big companies' efforts to bring back consumers into their fold. This is proven by the decline in market share of big brands to startups. In particular, 42 of 54 food categories sold by big companies suffered losses in the past five years.

Also, positive sales are no longer completely connected with shelf presence in groceries. This is proven by Zevia, a natural soda manufacturer. According to Paddy Spence, chairman of Zevia, a large part of their revenue is coursed through Amazon and to direct selling to consumers.

And in terms of shelf space in groceries, startups can actually access them in ways which would have been impossible even just a decade ago. The Financial Times reported that contract manufacturers are able to produce quality goods inexpensively. Coupled with demand for healthier products, startups get their space in grocery shelves much easier.

Social media has also helped mold company identities in a way that big companies cannot. In this way, startups are able to identify with their markets and vice versa. The numbers already point to the truth of this statement. Digital marketing eliminates the need for outrageous marketing and advertising budgets to the point that practically anyone with a good food idea can make it into reality-and profit from it.

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