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World Market for Fresh Food

December 2022

This report offers a global overview of the fresh food industry, highlighting major trends and developments. It looks at the state of the industry, examining the comparative performance of the fresh food categories across regions and markets. For each category, 5-year forecasts are explored. The development of fresh food globally over the forecast period is also examined, focusing on five key trends.

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Examining Five Trends Shaping Fresh Food

Issues in supply chains exacerbate inflation in fresh food

An energy crisis, labour shortages and the increasing cost of raw materials and shipping, further fuelled by the war in Ukraine, the outbreak of animal diseases and adverse weather conditions, have all contributed to strong increases in the production cost of fresh foods. 

Addressing rising costs through sustainable production

The supply chain crisis highlights the importance of sustainability commitments of fresh food processors regarding energy saving projects, sustainable packaging and food waste reduction. 

Localising supply chains to secure future food supply stability

The rising concern over future food security is accelerating the governmental and voluntary initiatives of fresh food processors and retailers to support locally-produced and organic/fair trade fresh foods. 

Increased competition between fresh and processed food

With consumers returning to their pre-pandemic mobility habits and the urbanisation trend growing, the rising demand for more convenient food solutions is intensifying the competition between fresh and processed food. 

Flexitarianism driving demand for alternative sources of protein

Increasing interest in the flexitarian diet is shifting consumers away from meat in some key markets, creating an opportunity for other animal-based and plant-based sources of protein that are perceived as healthier. 

Scope
Examining five trends shaping fresh food
Retail sales maintain growth, but foodservice and the institutional sector underperform
Sales of eggs are growing fastest across emerging markets
Asia Pacific drives the growth of fresh food sales
Trend towards carb reduction challenges the outlook of starchy roots and sugar
Gradual easing of zero-Covid policy in China set to drive fresh food sales in the forecast period
E-commerce sales accelerate while grocery retailers dominate
Examining five trends shaping fresh food
The global supply chain crisis drives fresh food to strong inflation
Case Study: Talaadthai launches its online platform to capture the B2C segment
Sustainable production can better weather rising costs
Case Study: Morrisons plans to introduce “ carbon-neutral” eggs from insect-fed hens
Supply chain crisis accelerates the interest in locally-sourced products
Case Study: Australian Egg launches traceability tool for egg farms
Convenience is pushing demand from fresh food to processed counterparts
Case Study: Fresh Creations partners private label and brands to offer quick meal solutions
The demand for alternative protein sources to meat boosts sales of eggs, pulses and nuts
Aldi sets goals to improve animal welfare in husbandry
Global snapshot of eggs
Global snapshot of fish and seafood
Global snapshot of fruits
Global snapshot of meat
Global snapshot of nuts
Global snapshot of pulses
Global snapshot of starchy roots
Global snapshot of sugar and sweeteners
Global snapshot of vegetables
Regional snapshot: Asia Pacific
Regional snapshot: North America
Regional snapshot: Latin America
Regional snapshot: Western Europe
Regional snapshot: Middle East and Africa
Regional snapshot: Eastern Europe
Regional snapshot: Australasia
Definitions

Fresh Food

Fresh Food refers only to fresh uncooked and unprocessed foods (packaged and unpackaged). Packaged sugar products and natural sweeteners (e.g. brown sugar, table sugar, molasses) are also included. For Fresh Food, we research total sales across distribution channels including retail, foodservice and institutions. For a selected 18 markets, we have a breakdown of total fresh food sales according to the following formats: • Retail • Foodservice sales • Institutional sales Retail Retail sales is defined as sales through all legal establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. Retail sales excludes sales to hotels, restaurants, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition excludes the purchase of food products from foodservice outlets for consumption off-premises, eg grilled chicken/meat/fish bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. We estimate sales through the following channels: Modern Grocery Retailers • Supermarkets • Hypermarkets • Discounters • Convenience stores • Forecourt retailers Traditional Grocery Retailers • Independent small grocers • Food/Drink/Tobacco Specialists • Other grocery retailers (morning/speciality/open/wet/farmers’ markets, stalls and kiosks, etc) Non-grocery retailers • Health and beauty specialist retailers • Other non-grocery retailers Non-store retailers • Homeshopping • Internet retailing • Vending • Direct selling Foodservice Foodservice sales are defined as sales TO consumer foodservice outlets that serve the general public in a non-captive environment. In other words, this means that the foodservice volumes track sales of all fresh food going into restaurant kitchens, regardless of what the restaurant actually does with that food. Foodservice outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semi-captive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. • Retail refers to foodservice units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. • Leisure refers to foodservice units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. • Travel refers to foodservice units based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Institutional sales Institutional sales is defined as sales to captive foodservice units that serve captive populations such as in hospitals, schools, prisons, military camps, hotels, hostels, nursing homes, homes for elderly people, religious houses, etc.

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