Soaring food prices continue to drive income growth as global food industry hits $10 trillion in value by 2024 – London Business News

Global food prices have jumped 65% since the start of the Covid-19 pandemic and 12% this year alone, according to data from the Food and Agriculture Organization of the United Nations.

With the food price index at its highest level on record, buying even basic groceries has become a problem for households around the world. However, rising food prices are also driving revenue growth for the industry as a whole.

According to data presented by Trading Platforms, the global food industry is expected to generate $8.66 billion in revenue this year, 4.7% more than in 2021. The upward trend is expected to continue in the coming years. come, with revenues reaching more than $10 billion by 2024.

Global food industry revenue to jump $1.5 trillion in two years

Food price inflation has become a major new problem in the world. Although low- and middle-income countries are the hardest hit, many consumers around the world are changing their consumption habits.

That’s no surprise, given that nearly every food category saw double-digit price growth in 2022, with the negative trend set to continue for the next few years, according to a Statista survey.

Statistics show that the average food price per unit is expected to reach $3.72 in 2024, 7% higher than this year and 19% higher than in 2020.

Oils and fats will remain a food category with the largest price increase, with the average price per unit expected to climb to $5.94 by 2024, a 23% jump in four years. Fish, seafood and meat follow with a price increase of 20% in four years. Vegetables and confectionery snacks follow with 19%.

Statista expects soaring food prices to continue driving growth across the industry, with revenue rising 8.5% in CARG in 2023 and 2024, the biggest increase in a year. decade. In 2023 alone, global food income is expected to jump by $760 billion. However, 2024 is expected to see an even bigger increase, with revenues swelling by $800 billion globally.

US and Indian food industries to reach $1 trillion in value by 2024

The Statista survey also showed that while food prices continue to rise, the average food volume per capita has fallen in 2022. Between 2014 and 2019, this figure fell from 341.9 kg to 326.5 kg.

Last year, it rose to 329.7 kg, then slipped to 327.7 kg in 2022. However, statistics show that the average food volume per capita will increase to 355 kg by 2024.

Geographically analyzed, China remains the largest food producer in the world, with food industry revenues expected to reach $1.25 billion or 15% of total sales in 2022. This figure is expected to jump by 22%. over the next two years and reach more than $1.5 billion. .

However, statistics show that by 2024 two more food industries will reach the trillion mark. The United States is expected to generate $1.04 billion in revenue by 2024, up from about $965 billion this year.

India’s food industry is expected to grow by 23% over the next two years, with revenues increasing from $866 billion in 2022 to $1.67 billion in 2024.