Overview
As incomes have risen in many countries during the past
few decades, consumers have begun purchasing fewer staples
(like rice and wheat) and more high-value food items (such
as meat, dairy, pasta, and frozen vegetables). Global
sales of high-value products have been growing, with sales
increasing by a quarter since 1998. Food suppliers have
responded to this expanding consumer demand by importing
high-value foods from around the world. Moreover, food
manufacturers have invested in processing facilities in
many host countries. The choice to import or produce locally
depends on the nature of the product, trade and domestic
policy issues, and other factors affecting transaction
costs. Global food markets have become more competitive
and trade in high-value products has slowed as more high-value
products are produced locally. More
overview...
Features
Converging Patterns in Global Food Consumption and Food Delivery Systems (February 2008) reports that across countries and income levels worldwide, consumers are choosing to spend their additional income on some combination of increased quality, convenience, and variety of foods. Food delivery systems and consumption patterns in middle-income countries like China and Thailand are converging, or "catching up" to countries with higher income levels. Income growth has been a primary force behind converging global consumption patterns, but globalization of the food industry is also contributing. For the full report, see Convergence in Global Food Demand and Delivery (March 2008).
Processed
Food Trade Pressured by Evolving Global Supply Chains (February 2005) reports that many factors affect the choice of locations
to produce and sell food products. Patterns of food trade
are strongly influenced by the changing nature of competition
in the global food industry—from shifting consumer
preferences to the growth in multinational food retailers
and the ways they manage their global supply chains. Consumer-driven
changes are increasingly pushing food suppliers to meet
consumer demand and preferences at a local level, even
as the food industry becomes more global.
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