NEXT 10 YEARS MEAN VITAL CHANGE FOR FOOD INDUSTRY

Technomic forecasts changes that will ‘make or break’ companies.

May 6, 2015

​CHICAGO – Today's major foodservice and retail food brands, along with their suppliers, face increasing challenges in recognizing and responding to ever-more-diverse consumer expectations, according to a new report from Technomic. The rapid change in consumer habits coincides with the equally fast-paced technology changes that businesses must embrace, leading to upheaval in the food industry that will affect every aspect of the business, according to Technomic’s report, "Food Industry Transformation: The Next Decade."

By analyzing these complex challenges to visualize the coming decade in the growing food industry, Technomic experts forecast myriad ways that the industry will shift over the next decade – and offers a roadmap for industry players to navigate that future.

"To grow their share of industry sales, food providers need to continually reimagine, reinvent, and reallocate resources to align their offerings with the evolving technology-enabled supply chain and the changing needs of consumers," said Technomic Executive Vice President Bob Goldin.

The report offers projections that pinpoint food industry opportunities and imperatives for the upcoming decade, including:

• Traditional retailers, such as supermarkets and supercenters, will lose 10 points of market share to nontraditional retail channels by 2025.
• Significant expansion will be seen for fresh prepared foods at supermarkets, a segment expected to grow at 7.5% annually.
• The entire supply chain will need to be re-tooled to respond to consumer and regulatory demands for foods that are good for people and the planet. The winning products of 2025 will include not only those that can legitimately be labeled as "natural" or "local," but also those with "clean" labels, fewer ingredients, less processing and a favorable carbon footprint.