Food Industry Revenue Jumped by 20% YoY to $8.2T in 2020, the Biggest Increase in Years. The COVID-19 had a significant impact on the global food and beverage industry, causing supply chain disruptions, closure of food production facilities, and huge changes in consumer demands.
During the coronavirus pandemic, the containment measures have drastically impacted the flow of food from farms and producers to consumers. At the same time, consumer demands surged, causing excess purchases and empty store shelves especially at the beginning of the crisis.
According to data presented by AksjeBloggen.com, the revenue of the global food industry jumped by 20% year-over-year, reaching $8.2trn in 2020, the most significant increase in years.
Convenience Food Sales Surged by 76% Amid Pandemic, the Biggest Jump Among All Market Segments
Consumers generally do not think about how the food on their tables is produced. But concerns about food safety amid the coronavirus pandemic have drawn attention to the enormous infrastructure and workforce responsible for creating a reliable and safe food supply chain.
In 2012, the global food market’s revenue amounted to $5.65trn, revealed a Statista survey. Over the next three years, this figure rose to $6.14trn. The increasing trend continued in the following years, with the global food sales generating $6.95trn in revenue in 2019.
However, the coronavirus pandemic triggered an unprecedented surge in consumer demand, with revenues rising by $1.32trn in a year and reaching $8.27trn in 2020. Statistics show this figure is expected to slip to $8.22trn in 2021. However, by 2025, the global food market is forecast to hit $9.16trn value.
Statistics show the convenience food segment witnessed the most impressive sales growth amid the COVID-19 pandemic, with revenues surging by 76% year-over-year to $763.5bn in 2020. This figure is expected to drop to $683.2bn in 2021.
Bread and cereals sales also significantly increased last year. Statistics show this segment of the global food market hit $1.2trn value in 2020, a 27% jump in a year.
The confectionery and snacks segment sales rose by 16% YoY amid the coronavirus pandemic and hit over $1.4trn last year, the third-largest increase in the food market.
Statistics show that sales in all the other market segments, including meat, fish and seafood, fruits and vegetables, jumped approximately 14% in 2020.
The Statista survey also revealed that brick-and-mortar stores, grocery shops, and supermarkets still dominate global food sales. Only 2.4% of total consumer spending on food, drink, and tobacco products in 2020 was made in online retail. This figure is expected to rise to 3% by 2023.
Chinese and Indian Food Markets to Continue Growing, the US Market to Drop by 1.4% YoY
Analyzed by geography, China represents the world’s largest food industry. Statistics indicate the Chinese market’s revenues jumped by 13% YoY amid the COVID-19 crisis reaching $1.28trn in 2020. The increasing trend is set to continue this year, with revenues rising by 3.2% year-over-year to $1.32trn.
As the second-largest globally, the United States food market increased by 12.7% in 2020 and hit $970.4bn value. Statista data show this figure is expected to drop to $957.1bn in 2021.
However, the Indian food market, as the third-largest globally, witnessed the most impressive growth, with revenues surging by 36% YoY to $633bn in 2020. Statistics show the Indian food industry is expected to continue growing and reach $645.8bn value in 2021, a 2% increase year-over-year. Japan and Russia follow with $425.2bn and $275.8bn in food sales revenue, respectively.
by Jastra Kranjec
ph. © Enrico Rainero