4 Trends Impacting Global Food Industry
May 4, 2017
Restaurants are an ever-evolving business. As you grow and change, you may find that you’ll need to adjust your menu, layout, brand, or business practices to stay at the top of your game. Tides started shifting for many industries earlier this year, and food service is no exception. What trends are moving the needle in 2017? You might be surprised to hear that China, coffee, chicken, and technology are four factors leading to the biggest trend shift in the food industry.
Emerging regions like China are driving steady growth to the global value of foodservice. Total foodservice value sales have grown 5 percent in 2016, with similar growth projected for 2017. Value and transactions are moving consistently through the forecast period, suggesting that the industry is stabilizing. This means more consumers are willing to spend more money on food service, so long as it remains affordable. China is profiting most from this trend. Over the next five years, Chinese consumers are expected to spend nearly double of the projected amount as the United States for food service. As a key component to many corporate growth strategies, China will remain on analyst’s minds for the foreseeable future.
Coffee’s Continued Growth
Last year, specialist coffee shops were ranked as the second fastest-growing format in food service by value. Traditionally, the coffee industry has performed well in all world regions, proving that the format has universal appeal, and that people truly love their coffee. Latin America and the Asia Pacific are emerging markets with the greatest demand for coffee shops. This demand is driven by consumers with greater disposable income and appeal to those living busier, more urban lifestyles.
Chicken’s Universal Appeal
Everybody loves it. In fact, chicken fast food was the strongest performing format in 2016 with 8 percent value growth and $65.6 billion in total global sales. Unlike region specific favorites like pizza or hotdogs, chicken can be found worldwide on any menu. It has a global appeal and can be adapted to local preferences. Although chicken is a familiar staple, modern fast food chicken concepts are still being driven by influencers today.
The food service industry benefits more from improved technology than most industries. In fact, some of the fastest-growing global restaurants also happen to be the most technically-driven. Chains like Starbucks and Chipotle take advantage of mobile marketing, rewards programs, and digital payment options. Similarly, delivery chains like Domino’s Pizza invest in technology that enhances ordering, preparation, and delivery convenience. As a result, in 2016, they became the fastest growing company in the top 10 global rankings.
Consumers are leading digitally connected, urban lifestyles. Businesses need to cater to their needs and preferences in order to survive. This is where Boxman Studios comes to play. What kinds of new restaurant concepts are you looking forward to in the market?