A new study on the natural foods market says the market is growing "exponentially" but can reach its full potential only if it makes "strong connections with the mass market foods industry."  The retail market for natural foods is increasing at five times the rate of the total retail food market.

The Henry A. Wallace Institute for Alternative Agriculture report reveals results of a 1998 survey for which about 300 food industry businesses were interviewed.  Included were farmers, manufacturers, wholesalers and retail supermarkets.

Three major obstacles to success for the natural foods market were identified: there are no widely accepted standards for defining and producing natural foods; natural foods and mass market foods companies view the natural foods market and conduct business in "critically different ways," and many natural foods and mass market foods businesses "do not have the information they need to market and price natural foods."

"While some of these obstacles will fade as the natural foods market matures, several public policy actions could enhance the market's potential benefit to private and public interests," says the Wallace institute.  "They include developing commonly recognized standards for natural foods, collecting market and price information for natural foods and creating generic marketing channels for natural foods."