America’s Health Craze Leads to Healthy Margins

Healthy Lifestyle Entrepreneur News from The Startup Garage
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Though America still tops the charts in diabetes, the country is increasingly becoming concerned with the negative health effects of certain foods.  As a result, the food industry has seen an influx in healthier food options, both from new companies as well as large manufacturers.

Higher Margins

Given that health-conscious consumers are generally willing to pay more for healthier food, this segment of the industry typically experiences higher margins.  The growth in health-conscious shopping as well as the higher margins associated with these products has fueled a surge in the industry over the past few years.  The graph below, provided by IbisWorld  depicts  the profitability of various food groups:

Healthier foods tend to be sold at higher margins. The Startup Garage. TSG Enterprise

Growing Expectations

As the media continues to highlight the benefits of eating healthy and as more and more American adopt this new lifestyle, manufacturers will continue to product healthier foods.  Furthermore, with food commodity prices projected to be less volatile, the industry is projected to experience even higher margins.  Most notable is the price of corn, which is an input in all 10 of the most profitable food industries.  During the five years to 2018, the price of corn is anticipated to decline at an annualized rate of 2.6%.

Moderate Risk

Despite such high margins and growth projections, the industry experiences some risk.  The primary drivers of risk include demand from retailers and the price of commodities.


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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.