Food industry comprises companies that operate by manufacturing, producing, packaging, retailing and distribution of food products in various forms. The food industry has evolved greatly over the past two decades thanks to technological advances, keeping pace with growing demand for convenience foods. This sector calls for greater demand for packaging to ensure safe, fresh, easy-to-use products. Demand for better quality foods and in greater quantity means the food industry drives several other industries such as convenience stores, supermarkets, hypermarkets and gasoline outlets with grocery sections. Supermarkets and hypermarkets represent the biggest market share in terms of sales.
Food retail is dominated by outfits in the EU and the US, growing their market share in emerging nations and small retailers accounting for an increasing share of food sales. The 15 leading global supermarket companies represent around 30% of global supermarket sales. The industry is not concentrated, with the 50 leading food manufacturers representing less than 20% of the global packaged food sales. Food manufacturers are developing specialized product lines to remain competitive and direct growth rather than the traditional approach of diversifying product portfolios. Regional markets and product lines may be concentrated, though the global food industry is not. Areas exhibiting market concentration include sales of branded goods such as baby food and breakfast cereal. Natural highs, convenience, foraged ingredients, flavor-full benefits and next generation proteins are the five key food and drink trends to watch in the near future.
The global food retail sales generate over $4 trillion per year. The food industry encompasses several categories of food including: dairy, seafood, eggs, fruit and vegetables, luxury foods, organic food, meat, packaged food, condiments, and cereal-based products. There is the spotlight on sustainability efforts, but the focus has shifted
toward food loss and waste. Many consumers are continuously looking at how they can derive ingredients from their waste streams, while food waste at the consumer and retailer end of the food chain is also set for increased scrutiny. And when negative impacting issues such as the horse meat scandal that kept the food industry in the news for all the wrong reasons in 2012, and food and out of stock scares take their toll on consumer confidence, lately companies have finally understood and worked a cut out in order to regain consumer trust. And as a result, more manufacturers are looking to highlight the origins of their products and ingredients. Therefore, in 2014, consumers can expect to see manufacturers begin to incorporate foraged, hyper-local ingredients into accessible formats and recognizable products.
There is a reason why consumers of late are looking at back to basics pleasures, pleasures such as home-cooked food. To tap into this trend, manufacturers are adapting what is known as value packaging, and good value claims on the products. An increasing global population and a shift towards convenience food has continued to push the industry forward and that is why changing habits in food culture have come to mean varied tastes while increasing demand for ethnic foods and newer formats, newer formats such as microwaveable food products. More than anything, convenience is a key as consumers have started to demand and started to focus on processed, ready-to-eat, packaged goods, that is the reason demand has exceeded supply in certain food markets.
According to MarketLine, the world fruit and vegetables market is predicted to reach in excess of $736 billion by the end of 2015, which will record a massive 25% growth by the end of 2018. Vegetables lead the segment at almost 64%. The Asia-Pacific region accounts for over 45% of the overall market. Meat leads the segment at over 40% of overall market value. The EU holds close to 38% of the market. Brazil Foods is the world leader in the frozen foods market, accounting for 5% of overall market share. According to Global Industry Analysts, the world market for muscle food packaging, which encompasses meat, seafood and poultry packaging, is expected to exceed $31 billion by 2017. Technological advances, better packaging practices and packaging facilitating smaller portions are fueling the market.
Major players in the food industry include Nestle, Kraft, AppleBee's, SodaStream, BrightFarms, Kind Snacks, Brazil Foods, Bon Apetit Management, ITC, Brittania, Mondelez International, General Mills, Scanavert, and Capilot Labs.