What are the most challenging agriculture trends? One could argue that the biggest challenge of the agri food industry is providing a sustainable food supply to an increasing population. Food demand is expected to increase anywhere between 59% to 98% by 2050 (source). This will shape agricultural markets in ways we have not seen before. What are currently the most pressing challenges the sector faces, and what upcoming trends will define its future?
The world population is growing significantly. By 2050, global food production will have to be increased between 59% to 98% in order to feed the growing population (source). However, deforestation causes rapid and irreversible losses of biodiversity. For that reason, farmers and trading companies need to commit to deforestation-free supply chains. Which means they must grow more on the land they currently operate through “sustainable intensification” by using precision farming tools.
Naturally, this presents agri food companies with ample opportunities to grow. But how are they planning on increasing their production capabilities, entering new markets and competing with other global competitors? And what kind of insights do they need in order to give a complete answer to the question how to seize the opportunities?
Besides a lot of opportunities, the increased global demand also causes an important challenge: how are we agri food companies going to meet these increased demands in a sustainable way?
Within the agri food sector there is an increased understanding that our current food system is not sustainable anymore. This, on one hand, has to do with the way we produce our food products, but it also has to do with our current diet.
In order to make the necessary improvements before it is too late, production companies will have to change. Agri food companies that find a way to make their production processes more sustainable, will most-likely have a greater chance of benefiting from the increased global demand in the future. But how do you determine if you are sustainable enough? And how do you determine if your partners are sustainable enough?
Both the increased urgency to look for more sustainable solutions as well as more and more consumers wanting to know where their food comes from, has led to supply chains in the agri food industry getting shorter. Buying locally does not only reduce gas emissions emitted by transportation, it also aligns with the increased demand of consumers for local, unprocessed foods.
This development allows supply chains in the agri food industry to be shortened. That forces agri food companies to evaluate their current position within that supply chain. What and will I still have a valuable position within this supply chain in the future? And what data is out there to make a decision?
The agri food industry is ever-evolving. In order to keep-up with the competition, it is of vital importance to know how the industry is evolving so you can act accordingly. In our trend reports about the European Bakery, Dairy, Fruit & Vegetables, and Meat industry, we highlight the most important trends in the agri food industry based on our industry analysis.