Staple foods players are facing a complex period; sales growth has decelerated as consumers return to busier lifestyles post-pandemic. Value growth was high in 2022, however this was distorted by supply chain issues affecting key commodities in the industry. Competition intensified, with Grupo Bimbo solidifying its lead through innovation. Looking ahead, companies like Ting Hsin, Barilla and Nissin will benefit from the high growth in the rice, pasta and noodles space.
This report comes in PPT.
In 2022, the supply chain issues that emerged during the pandemic period were exacerbated by the invasion of Ukraine, helping production costs and inflation rates to skyrocket across the globe. With purchasing power shrinking, volume growth significantly decelerated, up by 0.4% globally. Meanwhile, value sales, supported by high price increases, rose by 3.4% in current terms.
Competition in staple foods continues growing globally as top players keep losing shares to smaller local brands. As the market is increasingly fragmented, and the top players continue relying on their top brands, potential for growth greatly depends on consumer behaviour and the ability of brand owners to restore a solid supply chain in the forecast period.
Emerging markets are expected to drive growth in staple foods between 2022 and 2027, pushing top players such as Grupo Bimbo, Barilla and Kellogg Co to continue expanding their presence in these markets. While developed markets such as North America and Western Europe remain the largest and highest value, a balanced presence will likely shape the future rankings in the staple foods market.
Health and sustainability remain two major areas for growth potential in staple foods. Sugar and fat reduction, as well as fortification and increased fibre/protein are expected to lead innovation in the health and nutrition space. On the other hand, the development of new meat and seafood substitutes as well as the reduction of production costs and increasing production capabilities are set to shape the competitive landscape in staple foods.
NOTE: Couscous, polenta and quinoa are excluded from staple foods.See All of Our Definitions
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