Global trends – food industry insights

This article is available for reading in Trade magazin 2024/12-2025/01

 This special research with an international focus sheds light on the fundamental changes shaping the industry, at the same time trying to interpret the results in a kind of optimistic context for food industry actors.

Although the goal of a sustainable food industry is clear, the path thereto is not always easy

Europe is saving money

Food prices reached a historic peak over the past two years, often going above the rate of general inflation. As consumer spending was rising, shoppers left stores with lower basket values: 53% of European consumers are looking for discounts and promotions, while 35% prefer more affordable private label products. In Germany hard discounters with a strong local presence have become particularly popular. SIAL’s report highlights that 44% of consumers plan to save more money in 2023 and will be even more frugal in 2024, adopting increasingly savvy strategies to get the best deals. Despite more than 18 months of slowing inflation, rising wages and gradually falling interest rates, consumption has yet to pick up in Europe. Even if 65% of the global population say they are willing to pay more for healthier products, this commitment isn’t always reflected in actual purchases. Online FMCG sales have grown by 12.7%. Online is the only channel to show an increase in volume sales (+0.9%). 70% of those surveyed reckon that cooking at home is a great way to save money compared to pre-cooked or processed food (a 4 percentage point rise compared to 2 years ago). In the aftermath of the pandemic people were eager to sit down in restaurants, and accordingly the out-of-home dining sector is showing sustained year-on-year growth. However, sales have remained below pre-Covid levels.

Although two-thirds of consumers say they are willing to pay more for healthier products, this commitment is not always reflected in actual purchases

Three main trends

According to the SIAL survey, the food industry is currently influenced by three main trends: feeling, connecting and caring. Feeling – the taste, colour, texture and enjoyment value of food is more and more important. Connecting – the community-building and tradition-preserving role of food has become important again. Caring – growing consumer concern about their own health and sustainability. The value of enjoyment is important: culinary enjoyment plays an increasingly important role in the food industry, not only in expectations but also in innovation, especially in the context of ongoing crises (e.g. Covid, inflation). The affordable indulgence that food provides is a priority: 4 out of 10 consumers focus on comfort when eating out and nearly half of Europeans are looking for simple but filling and enjoyable solutions, in order to feel better in their skin. A lot of people easily succumb to temptation and opt for quick bites, even instead of a meal. Comfort foods continue to feature prominently in innovation rankings and are achieving strong sales results.

Convenience products are the last bastion against record high inflation over the past two years

Connectivity is key: the community dimension of eating has become particularly important in the post-pandemic period, with 30% of respondents associating eating together with a sense of belonging and connection. 40% enjoy cooking not only for themselves, but also for others. New-generation food courts and community tables also strengthen this sense of connection. There is growing interest in traditional food and recipes. Non-alcoholic beverages continue to become more popular in a global market of over EUR 10bn. Globally more than one in three consumers love to discover new flavours. As regards innovation trends, international cuisines are still a safe choice and show steady growth. Ethnic fast food – such as tacos, kebabs and Asian fast food – is also making inroads into the burger market, accounting for 27% of the growth in fast food restaurant visits in 2023. Health and sustainability: consumers are increasingly health-conscious, with the younger generations already focusing on staying healthy as a primary motivation to change their eating habits. 74% of consumers believe that some of the food they eat is unhealthy, and this kind of critical attitude is growing. Food safety expectations remain high. People pay more attention to product ingredients (44%, +7 percentage points), prefer less processed products (72%, +2 percentage points) and local and seasonal foods (53%). While interest in organic food is on the rise (+5 percentage points to 66%), prices remain a deterrent: 67% of respondents say organic foods are too expensive.

Thirty per cent of respondents associate eating together with a sense of belonging and connection

The taste, color, texture, and sensory appeal of food are becoming increasingly important

Plant-based dishes aren’t only targeting vegans or vegetarians, but also a wider consumer base that is open to using vegetables and pulses creatively. 58% of those surveyed would like restaurants to take into account their specific dietary needs. Consumers are increasingly aware of the impact of carbon emissions and 40% have already made great changes for environmental or ethical reasons. Expectations have grown significantly, with a 5 percentage point increase in the importance of carbon footprint reduction and a 3 percentage point hike in the urgency of packaging recyclability and reduction compared to two years ago. //