Food and Drinks in the Coming Era of Food Insecurity

Delivery

This report comes in PPT.

Key Findings

Food insecurity is on the rise globally, and this is likely to continue for decades

After gains in global food security in the 1990s and 2000s, trends have reversed, and larger numbers of people in the world are becoming food insecure, as prices rise under pressure from climate, geopolitics, demographics and de-globalisation. This situation is very likely to continue to worsen in the coming decades, as these underlying drivers strengthen.

Food inflation is not a transitory phenomenon and will be a basic reality of the future

The growing population of the world will increase demand for food, even as climate change ravages growing areas, transport becomes more expensive and difficult, and labour forces shrink from ageing populations. All of this points to a future in which food prices are significantly higher in the long term.

Food will be dragged into the increased geopolitical conflicts of the coming decades

The new era of multipolarity will mean jostling among the great powers as a basic feature of global politics. Although there is a risk of serious military conflict among them, using food as a tool for geopolitical influence below the threshold of armed conflict will be also common, and export bans, prioritisation of allies for exports, cyber disruption, threats to shipping, and other aspects of this competition will challenge the food and beverage industry’s ability to operate.

Supply chains are going to have to be shorter and more resilient

With the new global realities, companies in the food and drink space will need to prioritise reliability. This means a world with fewer SKUs available and with more products made using local ingredients or using new food tech, like advanced fermentation methods.

Consumers will seek to economise, and optimise their health

With food prices high, consumers will naturally seek cost-effective options, but the consumer reaction to food insecurity will be more complex than that. For those who can afford to splurge a bit, optimising one’s health will take top priority in an era of uncertainty, while small, “permissible” indulgences will play a major role.