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Competition Could Lower Cost Of Organic Produce


As the popularity of buying organic has gone up (organic sales have increased 13 percent in the U.S. over the past year alone), big food vendors are vying for a share of the increased demand.

Take two publicly-traded organic markets, Whole Foods (WFM) and Sprouts Farmers Market (SFM). Sprouts is a southwestern chain that is steadily encroaching on Whole Foods' turf, expanding across the southeast. Sprouts is new to the publicly-traded market, and made an impressive showing its first day earlier this month.

Whole Foods, meanwhile, is attempting to undermine Sprouts' cheaper produce by offering special sales announced on social media. Kroger has also announced it will cut prices on organics to entice consumers.

While all this competition may have company execs sweating, it's good news for the customers, who are seeing prices fall.

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