In a set of articles, I try to systemically look at the food industry and analyze the FoodTech phenomenon (see here and here). In order to understand what prospective ideas and trends influence this particular industry segment, it is crucial to see the broader context in the food, agriculture, and food processing industries.

So, here I would like to describe some high-level global trends that distinguish and define the current situation in the food industry and food consumption. Please note that all the observations in this article are based on the United States Department for Agriculture (USDA) data and research. These data are available on the USDA website and can be accessed there.

Trend 1: Developed World Spends a Lot of Dollars on Food

Of the two distinct global food consumption patterns the first one describes the behavior of people in developed countries. They spend a lot of food in absolute terms but at the same time, the share of food in consumer spending is quite low. Basically, the average US consumer spends more than 3000 US dollars on food per year, but at the same time, it’s less than 5% of total consumption expenditures for this particular average consumer.

Trend 2: Developing World Spends Most of Its Dollars on Food

The second trend is for consumers in emerging markets. In contrast to the developed world, they spend much less on food in absolute terms. At the same time, but the share of spending on food in their total expenditures is extremely high.

There are some exclusions from these two general patterns. For example, Argentina, Brazil, or Russia and some other countries that at once spend a lot of food in absolute terms and the food share in their consumption is quite high. Nevertheless, in general, the patterns are quite distinct.

Trend 3: The Whole World Doesn’t Spend Enough on FoodTech

While both of the above trends draw a distinction, it is fair to say that food spending will stay a crucial part of global consumption in the coming decades. At the same time, we have seen a technological revolution in recent decades. And this revolution is a broad one with digitalization changing and re-formatting industries of all types.

Nevertheless, with this much innovation in the world going on, there are relatively so few new ideas sprouting out in food production. The segment that is usually called FoodTech is not growing as spectacularly as other technological fields. We could say that there is the FoodTech paradox: innovation in food has been lagging behind compared to other consumer sectors, e.g. finance, travel, or communication.

In conclusion, these are just the three basic directions of food consumption and food industry development. However, it is important to understand this broad picture when thinking about a global business strategy. Moreover, these trends are only a few examples of what drives agricultural and food production nowadays. Further research is required for any meaningful look at the strategic options in this business segment.