CHICAGO (PRNewswire) — Today's major foodservice and retail food brands, along with their suppliers, face increasing challenges in recognizing and responding to ever-more-diverse consumers and their rapidly changing expectations. At the same time, companies must remake their businesses to leverage emerging channels and technology platforms. According to "Food Industry Transformation: The Next Decade," a groundbreaking report from Technomic Inc., the developing upheaval in the food industry will affect every aspect of the business from farm to fork, including sourcing processing, distribution, operations and marketing.
Technomic, the leading food research and consulting firm, has analyzed these complex challenges in order to visualize the coming decade in the food industry, which is projected to grow by more than $700 billion to reach more than $2 trillion in annual sales by 2025. In the Food Industry Transformation report, Technomic experts forecast the myriad ways the industry will shift over the next decade and offer a detailed roadmap for industry players to navigate the future. Technomic breaks out new "FIT Models" to help brands reinvent themselves in response to the challenges of labor, food production and distribution, consumer psychographics and demographics and the economy in the years to 2025.
"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. "Technomic's detailed projections pinpoint food industry opportunities and imperatives for the upcoming decade." Findings of the Food Industry Transformation report include:
- Traditional retailers, such as supermarkets and supercenters, will lose 10 points of market share to nontraditional retail channels by 2025.
- Consumer trends over the next decade will be less favorable to the largest restaurant chains. Technomic projects a compound annual growth rate of 5 percent for independent restaurants and small chains, compared with 3.5 percent for large chains. Significant expansion will also be seen for fresh prepared foods at supermarkets, a segment expected to grow at 7.5 percent annually.
- The entire supply chain must be re-tooled to respond to or pre-empt 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.
Technomic's report includes 10-year projections for every food and foodservice industry segment, offering executives in each area of the business the best game plan for capturing their share of expanding sales. To unlock your company's growth potential with the help of this unique report, please visit Technomic.com or contact one of the individuals listed below.
View Food Industry Transformation report HERE
Only Technomic delivers a 360-degree view of the food industry. We impact growth and profitability for our clients by providing consumer-grounded vision and channel-relevant strategic insights. Our services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Our clients include food manufacturers and distributors, restaurants and retailers, other foodservice organizations, and institutions aligned with the food industry. For Technomic updates, please follow us on Twitter or LinkedIn, or visit us at technomic.com