A recent survey in collaboration with the Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) studied changing consumer patterns in the food and beverages industry. The survey brought to light the following factors that are responsible for our changing food choices:
1) Change in value drivers
Consumers are now driven by factors like safety, health and wellness, social impact, and transparency in production, rather than just taste, price, and convenience. This radical change in perception is not limited to the millennial generation alone; even baby boomers prefer buying food products that are a healthier substitute to the traditional fare. Keeping tabs on this shift in consumer mindset, vendors are reassessing their product strategy and trying to find ways to overcome the apparent challenges.
This change in value drivers has also resulted in a high demand for organic baby food, snacks, and drinks.
2) Climatic factors
Climate change is more than just a point to debate among politicians. Families, communities, and self-help groups are diligently working to create a safer environment for future generations. In North America alone, 35-50% of GHG emissions are generated from energy-intensive, chemical-intensive food and farming systems. Organic farming, on the other hand, requires less energy and emits less GHG, thus producing a much smaller carbon footprint.
3) Accepting that the consumers will decide the trends
The desire to eat right is prompting consumers to dictate the market’s core leanings, and enforce crucial changes in the food manufacturing and distribution processes. Vendors must sync-in with this updated checklist and correspondingly revamp existing systems and competencies.
Our latest market research reports find that major stakeholders in the food industry have not only accepted this ‘new normal, but are also diligently working towards creating highly customized food products for various age groups. Hence, consumers are firmly in control- more so than just a couple of years ago.
Organic farming: shaping the future of global food systems
The World Economic Forum on Food Security and Agriculture states that the four pillars on which the future of the global food systems can be built are:
- Inclusivity – This entails bringing together all the actors in the food system, especially smallholders, women, and youth, to ensure economic and social inclusion.
- Efficiency – An efficient food system will meet the global demand for food, while at the same time focussing on reducing post-harvest loss.
- Nutrition – Highly nutritious and healthy food is imperative for the overall well being of humanity.
- Sustainability –It is crucial that the food systems of the future are sustainable in nature and enable conservation of scarce natural resources, are resilient against future shocks, and reduce the negative impact on the environment.
Organic farming is a small but very strong step towards building the framework for highly inclusive, healthy, efficient, and sustainable food systems. The implications of switching to such practices are huge, and the switch requires the involvement of governments, think tanks, technocrats, and agrocrats – in short, a holistic approach to address the challenges and make the most of opportunities in the most systematic manner.
