Implications to ICT, Retail, and Agriculture Ecosystem for Planned Amazon Acquisition of Whole Foods

Demand-side Economics of Food Ecosystem to Continue Evolution

Consumer spending on food has evolved significantly over the last few decades.  In the 1960’s, consumer spend on food was roughly 60% of income.  Today, about 40% is spent on food.  While we continue to see a move in lower food prices due to small incremental changes in cultural expectations and technology advancements, additional substantive changes will only occur due to changes in paradigm. We see the acquisition of WFM as one such shift.

Amazon and Whole Foods to Impact Demand-side Food Economics

If the acquisition is allowed, Amazon will have access to Whole Foods’ 460 locations in 42 states.  This would allow Amazon to leverage store-front locations for an entirely new dimension of its Amazon Fresh business.

Amazon+WholeFoods

Copyright Amazon and Whole Foods

This will likely provide the retail giant with a very important transition capability to facilitate a change in consumer habits from the predominate in-store grocery purchasing to almost exclusively online buying.  There are many aspects to consider about how this move will impact the demand-side of the food ecosystem.

Supply-side of Food Ecosystem Impacted by Technology and Logistics

There are many technologies to consider that impact the supply-side of the food ecosystem.  Annual investment in Agriculture Technology (AgriTech) is increasing every year, dominated primarily by large commercial agriculture operations.  However, democratization of AgriTech solutions will eventually benefit medium-sized farming operations as well.

AgriTech includes Artificial Intelligence, Broadband Wireless, Cloud Computing, Data Analytics, and the Internet of Things

The Internet of Things (IoT) alone is anticipated to generate substantial savings on the supply-side of the food ecosystem as IoT in Agriculture enables significant cost savings due to operational efficiency improvements, which translate into lower labor costs as well as more efficient use of inputs to production such as fossil fuels, water, fertilizer, etc.

Mind Commerce Food Ecosystem Research

For more information about the impact on the Information and Communications Technology (ICT), Consumer Retail Shopping, and Agriculture ecosystems see our IoT in Agriculture report.

IoT in Agriculture: Market Outlook and Forecasts 2017 – 2022 assesses the technologies, companies, and solutions for IoT in agriculture. The report evaluates the overall marketplace and provides forecasts for sensors (and other devices), services, solutions, and data analytics globally, and regionally for the period 2017 to 2022. Forecasts include precision agriculture, indoor farming, livestock, and fisheries.

Forecasts cover IoT in Agriculture solutions globally and regionally including: Intelligent Farm Equipment, Smart Sensor Systems, Intelligent Drones, Smart Farm Robots, and Software. Within the Smart Sensor area, the report forecasts the following: Sensors for Detecting Physical Properties, Sensors for Chemical Analysis and Applications, Sensors for General Monitoring, Sensors for Quality, Sensors for Autonomous Agriculture, and Others.

About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s