Food prices have surged 65% worldwide since the start of the Covid-19 pandemic and by 12% this year alone, according to data from the United Nations’ Food and Agriculture Organisation.
With the Food Prices Index at its highest-ever level, buying even basic groceries has become an issue for households around the world. However, swelling food costs also drive revenue growth for the entire industry.
According to data presented by TradingPlatforms.com, the global food industry is expected to generate $8.66 trln in revenue this year, 4.7% more than in 2021. The increasing trend is set to continue in the following years, with revenues jumping to over $10 trln by 2024.
Revenue to jump by $1.5 trln in 2 years
Food price inflation has become a new major problem across the world. Although low- and middle-income countries are getting hit hardest, many consumers across are changing their spending habits.
That doesn’t come as a surprise, considering almost all food categories witnessed double-digit price growth in 2022, with the negative trend expected to continue in the next few years, according to a Statista survey.
Statistics show the average food price per unit is expected to rise to $3.72 in 2024, 7% more than this year and 19% more than in 2020.
Oils and fats will remain a food category with the highest price increase, with the average price per unit set to jump to $5.94 by 2024, a 23% jump in four years. Fish, seafood, and meat follow with a 20% price increase in four years.
Vegetables and confectionary snacks follow with 19%.
Statista expects the surging food costs to continue driving entire industry growth, with revenue rising by CARG of 8.5% in 2023 and 2024, the highest increase in a decade.
In 2023 alone, global food revenue is projected to jump by a staggering $760 bln. However, 2024 is expected to witness an even higher increase, with revenues swelling by $800 bln on a global level.
Food consumption down
The Statista survey also showed that while food prices continue rising, the average food volume per capita dropped in 2022.
Between 2014 and 2019, this figure decreased from 341.9kg to 326.5kg.
Last year, it rose to 329.7kg, then slipped to 327.7kg in 2022. However, statistics show the average food volume per capita will jump to 355kg by 2024.
By geography, China remains the world’s largest food producer, with its food industry revenue expected to hit $1.25 trln or 15% of total revenue in 2022. This figure is set to jump by 22% in the next two years and reach over $1.5 trln.
However, statistics show that by 2024, two other food industries will hit a one-trillion benchmark.
The United States is expected to generate $1.04 trln in revenue by 2024, up from around $965 bln this year.
The Indian food industry is set to witness a 23% growth in the next two years, with revenues rising from $866 bln in 2022 to $1.67 trln in 2024.