Food industry in transition

Between fears surrounding climate change and the coronavirus pandemic, a topic that is one of the most pressing challenges of our time has faded into the background of public perception somewhat: how to feed an ever-growing global population in a healthy, sustainable manner.

Outstanding challenges

In 2050, 9.8 billion people will inhabit the earth – about 2 billion more than at present. This population growth is problematic in two respects: On one hand, we will have 2 million more people to feed. On the other hand, this population increase inherently means the loss of additional agricultural land and an even higher demand for natural resources of every kind. Added to this is the fact that hundreds of millions of people will climb into higher income brackets, which means that their diets will become more varied and their eating habits will change. It is sometimes easy to forget that, even in Europe, it was not all that long ago that large parts of the population could only afford to eat meat occasionally. At the same time, greenhouse gas emissions have to be reduced and further environmental damage prevented despite growing food production.

New concepts and trends …

In order to overcome these challenges, it will require new concepts – in terms of our diet as well as for agriculture and the food industry – to be able to feed all of humanity in a more sustainable and healthier manner in the future. Researchers all over the world are working on this. Another factor to keep in mind is that food products are not just consumed to provide nourishment. They are also a luxury item, and this aspect becomes more and more significant as one’s standard of living increases. The less a person has to worry about whether they can satisfy their hunger, the more they will be willing and able to figure out how it can be satisfied in the best way.

Along with nourishment and enjoyment, more and more people are paying attention to other important aspects: quality, fair and transparent trade practices, production under ethical and environmentally friendly conditions, and many more. And as people’s awareness of problems and their health increases, many voluntarily reduce their consumption of meat, use more organic products, and prefer locally produced food. For example, 52% of the German population is already “flexitarian”, which means that they do not eat meat three or more days a week. In Austria, spending on organic food products increased by more than 20% to EUR 714 million in 2020 (according to AMA Marketing). The average Austrian household spent over EUR 190 on fresh organic products last year.

... also mean new (investment) opportunities and risks

The topic of food and the associated growth opportunities are also attracting more and more attention on the financial markets.This growth trend especially encompasses foods that have a positive impact on one’s health and well-being. This includes organically grown products, vegan and vegetarian foods, certain dietary supplements, and special sports nutrition products such as energy bars and protein shakes.

Companies such as DSM and Kerry Group are global leaders in the production of dietary supplements such as vitamins, enzymes, flavouring agents, and probiotic cultures. In this way, they not only ensure that our food tastes better, but more importantly that it contains less fat and sugar and is thus healthier.

One particularly hot topic in the area of smart food right now is lab-grown meat. However, there is no listed company that specialises in this segment, and these products are still a long way off from being market-ready. At the same time, one should never underestimate how quickly new technologies and products can develop and establish themselves. At any rate, things will certainly never get boring in the smart food segment!