Market Analysis, ‘Garbage to Garden inc.’
Target Market
The target market for Garbage to Garden’s organic waste collection service
consists of Philadelphia businesses that produce large volumes of organic waste,
including universities/schools, grocery stores, bakeries, restaurants/bars, cafés/coffee
shops, hospitals, hotels, churches/temples, and catering companies, for food scraps;
florists for plant trimmings; hair salons for hair trimmings; lumber yards and home
improvement stores for sawdust/wood chips; and Laundromats for lint.
The City of Philadelphia produces 129,000 tons of food waste each year.3 An
average Whole Foods Market generates an average of 7.8 tons of organic waste a week, 4
while a single restaurant, on average, disposes more than 50 tons of organic waste every
year.5 There are over 2,000 restaurants and approximately 600 grocery stores in
Philadelphia.6
We will target “green” businesses or businesses interested in eco-friendly
practices. The Green Restaurant Association is a great resource in identifying businesses
that might be interested in our waste collection service.
Garbage to Garden’s target market for compost sales is comprised of customers
who purchase compost in bulk, including farms, orchards, nurseries, gardens, landscaping
companies, and vineyards. We will target bulk customers as opposed to the home
gardener market. Competition is intense in the home gardener market, and the market is
saturated with low-priced products.7
Nurseries require higher quality compost and will pay more than other markets;
however, they are high risk, and careful management of nutrient content is important.7
Other markets are more forgiving. On average, landscapers are willing to pay $11.60 per
cubic yard, farmers $12.10 per cubic yard, and nurseries $12.17 per cubic yard. 8
Farmers use, on average, 10.5 cubic yards (14,175 lbs or over 7 tons) of compost
per acre. 9 According to the 2007 Census of Agriculture, there are 1,733 farms in Chester
County with an average size of 96 acres, 79 farms in Delaware County with an average
size of 55 acres, 719 farms in Montgomery County with an average size of 58 acres, 934
farms in Bucks County with an average size 81 acres, 17 farms in Philadelphia County
with an average size of 15 acres. 10 We will target organic farms, in particular, since the
use of compost is an important component of sustainable organic production systems.
We hope to mirror a successful partnership in the San Francisco area between
compost suppliers and vineyards by targeting vineyards in the Philadelphia area for
compost sales. Currently, there are only eight vineyards in the Philadelphia Area (Bucks,
Chester, Delaware, and Montgomery counties); however, there is much potential for
growth. In the last ten years, the Pennsylvania wine industry has experienced significant
growth with the most growth seen in southeastern Pennsylvania. 11
Competitive Landscape
There are only three businesses in Philadelphia that collect organic waste for composting:

Servicing both businesses and households, Pedal Cooperative operates mainly in
Center City and West Philly. They handle collection of both compostable waste
and recyclables. Compost collection began in January 2008. They compost any
green or brown materials, from grains to wood chips to vegetable scraps. All
waste is transported by bicycle-drawn trailers to community gardens for
composting. Pedal Cooperative charges $0.80 per gallon for their collection
service. Currently, they have approximately 50 clients, both commercial and
residential.

Philly Compost services restaurants only and operates in Northwest
Philadelphia.12 Eventually, they would like to provide a pedal-powered curbside
pick-up service and offer screened compost.13 They compost kitchen scraps, wood
chips, leaves, and any other outdoor yard items.

Bennett Compost is a new competitor (began operation June 2009) that targets
both residential and commercial markets, offering weekly pick-up in South
Philadelphia, Center City, Fairmount, Northern Liberties, Fishtown, and Lower
North Philadelphia. According to Temple-News.com, Bennett Compost charges
$10 a month and already has 36 customers.14 Customers are given a 5-gallon
container with lid for their organic materials. Bennett Compost will collect both
green and brown materials.