Updated: December 15, 2020

Without a doubt, the Food Industry plays a crucial role in the global economy. It is one of the most regulated, subsidised and dynamic markets. Let‘s take an in-depth look at the Food Industry and Markets in the Past and Present and check the latest trends that will shape their future.

The History of the Global Food Industry

Evidence for long-distance food trade was recorded, as early as the emergence of the city-states in the Middle East, Ancient China and Mexico. However, the global food trade and the specialisation of regions to produce particular goods begun during the Iron Age and the Roman Empire . The standardised measures and weight were established, while the monetary system developed rapidly.

During the Middle Ages , the merchant class expanded, as until then it was perceived as an occupation suitable only for the lower levels of society. Banknotes started to replace the coins, first in China and later in Europe. With the colonisation came a lot of new food products, spices and possibilities.

The biggest changes by far started with the beginning of the Industrial Revolution. Thanks to the invention of many new tools and machines, the manual labour was reduced which resulted in growth in productions . Food preservation and transport evolved now allowing products to be sold in an almost-fresh state.

In the XIX century , the concept of annual trade fairs, where different sellers showcase their production gained traction. Various events started to be organised all over the world, attracting more and more foreign producers.

During the First and Second World Wars , food shortage was felt in many places around the globe. The consumer demand raised and new sectors were invented, like the broiler industry, for example.

After 1945 most countries looked internally to solve their food security needs. This fuelled by the “Cold War” led to over-production, not only in Europe but also in the USA. However the global food market provided the opportunity for those countries to trade their products and boost the economy. A lot of new laws were established to protect domestic producers from foreign competition and keep the market in balance.

The 60s, 70s and 80s characterise with a boom in many food-related industries, as production methods evolved.

By now, specialised companies have been created to organise and manage trade fairs. Almost every big capital in Europe had at least one expo centre built. Trade shows were and still are essential for the growth of the food industry as they represent a safe place for the exchange of ideas and innovations, investment and product presentation.

Present Day Events in the Global Food Industry

The Food industry is a dynamic system that changes fast due to natural, demographic, technological, political and economic reasons. Nowadays, the consumer has the power to shape and change the whole branch, and companies spend millions every year to cater to the needs of their customers.

The food industry continued to develop throughout the 90s as well. The economic boom in Southeast Asia sped up the expansion of the Global Market in the early years of the 21st Century. The fast industrialisation of the continent reflected on the trade show industry as well. Now some of the biggest food expos are held in the Asian countries with China dominating the market .

Exports are also shifting rapidly, following up on the global demand trends.

Traditional export leaders as the USA (corn, soybean and wheat) and the EU (dairy products) are losing market share rapidly. In some cases, they are even giving up their dominant position to developing countries like Brazil (soybean and corn) and the Cairns Group countries. In fact, non-tropical exports are currently dominated by the latter, reshaping entirely the international food market. It is best showcased, at the latest editions of the major food trade shows and expos.

The 2020 pandemic had a serious impact on the international food market . All industries worldwide were affected, and many businesses were forced to close or file for bankruptcy. The health crisis has changed the consumers’ preferences in unexpected ways. Specialist note that:

• People search for foods and beverages that naturally enhance their immune system. Vitamins and minerals are amongst the most searched ingredients. An interesting peculiarity is a preference for brightly coloured products like yellow or orange as they are associated with Vitamin C.
• A major factor in food selection plays how environmentally friendly the product is. The majority of consumers want to leave a positive imprint and seek sustainably produced foods.
• The demand for plan-based goods has increased this year.
• Consumers start focusing on “experiencing” food more than ever. Different tastes, textures and innovative culinary techniques gain popularity at a rapid pace.

The Future of the Global Food Industry

The shift in the consumer’s habits and needs will immensely change the industry in the future. Personalised DNA analysis-driven diets and nutrition programs, currently untapped food sources and new technologies looking to reduce time and energy on a bigger scale are some of the features the industry gurus are discussing. Some of these trends are already establishing a stronger foothold in the normal life of consumers. “Pure” products and local eco-friendly foods are taking a bigger share of the total market value. Luxury and exclusive foods are on high demand in developing countries. Next-generation technologies and innovations are premiering on the global trade fairs year after year, pushing the industry forward.

The global food and beverages market is experiencing some frictions due to the COVID outbreak. However, it is expected to slowly recover as the compound annual growth rate (CAGR) will reach 7% in 2021 and $7,527.5 billion in 2023 . China will keep its leading position as the largest food and grocery market globally, generating a stunning revenue of $152,445 million in 2020.

The African Development Bank estimates that Africa already has a consuming class of around 300 million people and a rapidly increasing demand for processed and luxury food. This notion was confirmed during the many conferences held at the leading food expos in Europe.

Being the main driver of trends, technology and international business, they are showcasing and exploring the vast potential in Asian, African and South American markets. Global Food venues like SIAL, Anuga and Alimentaria, established outlets in these regions, predicting the change of direction of the Global Food Industry and Markets. In the Middle East, business hubs like the UAE are hosting Gulfood, as a key international food marketplace, connecting Asia with Europe and the Americas.

Take a look at the most influential food trade fairs worldwide and plan your next business travel. We will help you organise your accommodation and offer you great deals. Save up to 30% of your costs by booking in advance and benefit from our many partnerships with exquisite hotel chains all across the globe.