Euromonitor has released today new research on the global fresh food industry.
According to the new research, global demand for Fresh Food increased by nearly 3% in volume terms in 2016 – very much in line with average growth achieved over the last five years.
Middle East and Africa and Asia Pacific – were the most dynamic regions displaying growth above global average and driving global consumption. Here growing populations and improving disposable budgets are behind strong performance. Developed regions of Australasia, Western Europe and North America show limited growth due to high levels of maturity and saturation. In these regions packaged food and drink pose serious competition to fresh food due to offered convenience and time-saving.
Anastasia Alieva, head of fresh food research at Euromonitor International comments, “Demand in Western Europe started to change to positive in 2016 departing from a negative growth sustained in the previous 5 years. Consumers concerned about obesity, diabetes and heart disease become increasingly aware of the need to review their diets and eat healthily. In response, grocery retailers, such as supermarkets and discounters accelerated their investments in fresh food supply across the borders. Many have re-vamped fresh produce sections, including fresh meat and seafood, fresh fruit and vegetables. Revival of demand for fresh food was also driven by positive media coverage and popular cooking programmes that show the audiences how to cook from scratch in a short period of time.”
The research also showed that organic fresh food is outperforming its conventional offering in every core market. Consumers who chose to eat healthily, allergy sufferers, parents with young children continue to seek organic products despite their higher price tag. Demand for more natural, cleaner and healthier products drives organic sales not only in developed markets such as US and UK but also developing markets.
Alieva continues, “In China, sales of fresh organics increased by almost 30% in 2016 and by over 16% in South Africa despite their high unit prices. Broader availability of organic fresh food through store based retailers, on-line companies and direct sellers made it easier for consumers to find the organic option. Fruits and vegetables performed particularly well. However, the uptake of organic meat was somewhat constrained by price and fish and seafood by a lack of availability.”
Global demand for Fresh Food increased by nearly 3% in volume terms in 2016 – very much in line with average growth achieved over the last five years. Our recently published Fresh Food database estimates retail sales of organic products not only by retail volume, but also by retail value. For the first time we are not only able to measure share of the stomach taken by organic products but also share of the wallet.