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πŸ“Š Market Sizing Analysis

TAM β€’ SAM β€’ SOM Framework for Circular Food Hubs

Understanding the Market Opportunity

A comprehensive market sizing analysis for neighborhood-scale circular food hubs addressing food access challenges, local economic development, and community resilience across the United States.

🌡 The Food Access Crisis

19M
Americans in Food Deserts
6,500+
Food Desert Census Tracts
$1.1B
Annual Food Hub Revenue (US)
450+
Active Food Hubs Nationwide
🌍

TAM

Total Addressable Market
$12.5B–$50B

All U.S. neighborhoods facing food access challenges β€” approximately 25,000 census tracts classified as low-income with limited healthy food access. Includes infrastructure, operations, and programming costs.

🎯

SAM

Serviceable Addressable Market
$1.5B–$6B

Sunbelt cities (AZ, CA, TX, NM, NV) with climate suitable for year-round growing and high population growth β€” approximately 3,000 target neighborhoods with similar demographics to Phoenix.

🌱

SOM

Serviceable Obtainable Market
$2.5M–$20M

Realistic 5-7 year capture with 5-10 pilot hubs in the Phoenix metro area and regional expansion. Based on $500K-$2M capital investment per hub plus ongoing operational revenue.

Market Funnel Visualization

TAM ~$31B 25,000 neighborhoods
SAM ~$3.75B ~3,000 Sunbelt neighborhoods
SOM ~$10M 5-10 pilot hubs

How These Estimates Were Derived

🌍 TAM Methodology

Based on USDA Food Access Research Atlas data identifying ~25,000 census tracts as food deserts. Average hub investment of $500K-$2M per location for infrastructure, land, and initial operations.

25,000 tracts Γ— $500K-$2M = $12.5B-$50B

🎯 SAM Methodology

Focused on Sunbelt states with year-round growing seasons, rapid population growth, and significant food access disparities. Represents ~12% of national food desert tracts.

3,000 tracts Γ— $500K-$2M = $1.5B-$6B

🌱 SOM Methodology

Conservative estimate based on 5-10 hub pilot program over 5-7 years, starting in Phoenix metro. Includes capital costs plus 3-year operational runway per hub.

5-10 hubs Γ— ($500K capital + $150K/yr ops) = $2.5M-$20M

πŸ“‹ Market Sizing Summary

Metric What It Represents Estimated Value
TAM All U.S. food desert neighborhoods (~25,000) $12.5B–$50B
SAM Sunbelt region target neighborhoods (~3,000) $1.5B–$6B
SOM 5-10 pilot hubs in 5-7 year horizon $2.5M–$20M
Per Hub Capital + 3-year operational budget $500K–$2M

Arizona's Food Access Landscape

🌡 Phoenix Food Deserts

Maricopa County has 200+ census tracts classified as food deserts, with South Phoenix and West Valley communities experiencing the highest rates of food insecurity.

πŸ“ˆ Population Growth

Phoenix is the fastest-growing U.S. city, adding 25,000+ residents annually. New developments often lack food infrastructure, creating immediate demand.

🌑️ Climate Advantage

With 300+ days of sun and potential for year-round growing (with proper shade/water), Arizona is ideal for urban agriculture innovation.

πŸ’° Funding Landscape

Arizona has $50M+ in available grants for food access initiatives through USDA, state programs, and private foundations focused on food equity.

πŸ’‘ Key Strategic Insight

The circular food hub model addresses multiple funding categories simultaneously: food access, economic development, education, sustainability, and community health. This multi-benefit approach qualifies for diverse grant streams and creates compounding community value that traditional food retail cannot match.

Sustainable Revenue Model

πŸͺ Vendor Revenue

10-15 food vendors paying $500-$1,500/mo in stall fees, plus percentage of sales. Projected: $100K-$200K annually per hub.

πŸŽ“ Education Programs

Cooking classes, farm tours, school field trips generating $50K-$100K/year through fees, sponsorships, and grants.

πŸŽͺ Events & Venue

Farmers markets, cultural festivals, private events bringing $75K-$150K/year in rental fees and vendor commissions.

πŸ₯¬ Fresh Produce Sales

On-site garden produce sold direct to consumers and local restaurants: $25K-$75K/year depending on scale.

πŸ“š Research Sources