The Trend of the Food Industry in 2021
The compound annual growth rate of the global food and beverage industry is estimated to reach 5% by 2020. From a geographic perspective, the top two markets are the Asia-Pacific region and the European region, each accounting for 33% and 27%. If the overall market is segmented, 36% of automation investment is concentrated in the dairy and beverage industries, and 16% in the meat and seafood industries.
Food and beverage industry characteristics
The food and beverage industry faces a very dynamic mass consumer market with many competitors, and its products must continue to be innovative and cost-competitive. Therefore, in response to the short product life cycle, and small and diverse production requirements, the manufacturing process must be able to adjust flexibly in a short period of time, and quality must be maintained. From the perspective of the raw material supply and sales market of the food and beverage industry, due to the large selection and high substitution options of food and beverage, the general public has a large price elasticity. A small price change may cause a sharp drop in short-term demand. However, for the supply of raw materials, the price elasticity of the food and beverage industry is small. Most manufacturers choose to absorb costs on their own and do not pass them on to consumers for the time being. The main reason for this is consideration for the possible loss of consumers.Future trends in the food industry
Trend 1: In the next 3 years, plant-based products will grow at a rate of 10 to 20% each year
Since 2019, plant-based foods have begun to develop rapidly, and today the food industry believes that this trend will continue. Plant-based foods refer to foods made by replacing animal protein with plant protein. Among the plant-based foods currently on the market, plant dairy products, plant meat, and plant eggs are more mature. The main raw materials include beans, nuts, oats, coconuts, etc.
It is estimated that by 2024, plant-based foods will grow at an annual rate of 10 to 20%. Health, diversified diet, sustainable environment, and diversified tastes are the reasons that promote the continuous growth of plant-based foods. In the future, there will be more new and different types of plant-based products, such as snacks, sauces, cheese, creamer, and other plant-based products will gradually appear on the market.
Trend 2: Good prospects for functional foods such as immune system products and probiotics
Functional food is another development trend in the food industry in 2021. The line between health supplements and grocery products is getting blurred, which means that suppliers are adding probiotics, vitamin C, and other ingredients into foods to support the better immune system and other functions.
Sixty percent of consumers are looking for more foods and drinks that can enhance immunity, and one-third of them said that they would pay more attention to the health of the immune system in 2020 than in 2019. Therefore, consumer demand for food that supports the immune system and relieves stress will further increase in 2021.
In addition to immune-enhancing foods, another high-profile functional food area is probiotics. ADM said that probiotic-related products will be an important area for food and beverage innovation in the future.
- Trend 3: Sustainable development is the focus. 65% of consumers hope that their daily actions will have a positive impact on the environment.
Sustainable development is still the focus of industry development. If food companies want to continue to develop in the next 30 years, increasing sustainability is one of the things that must be done.
Based on sustainability considerations, consumers will be affected to purchase foods such as cereals, beans, and algae. When buying fruits, aquatic products, and other foods, consumers will also consider whether they can reduce waste and recycle. Whole Foods also pointed out that recyclable food is one of the top 10 trends in 2021, and more and more packaged foods are beginning to use waste as raw materials.
Trend 4: Product transparency is critical to consumer trust, and consumers expect more transparency throughout the supply chain.
Transparency is one of the most important trends in 2021, which also includes product sustainability. Transparency builds consumer trust, and consumers expect food brands to be more transparent throughout the product supply chain. Consumers want to know where their food comes from, how it is made, and how it is classified.
While consumers look forward to more diverse choices, they also hope that food has more functions, and the requirements for food sustainability are becoming more stringent.