Trends in the packaged food industry: A macro perspective

The changes in food consumption patterns are largely driven by income growth and demographic factors, particularly lifestyle changes brought about by urbanization, away-from-home employment of women, and increased levels of information. While income growth, which affects the purchasing power of consumers, is one of the most important factors contributing to demand changes, urbanization has been equally important in changing the composition of the food basket consumed. Urban areas are generally associated with higher income levels, larger number of women in the away-from-home workforce, higher levels of education, and a wider array of food products available. Economic growth can continue indefinitely and go in cycles. Living longer, fitter and still working, an aging population means grocery store shelves will contain foods that come with added health claims, predicts UK-based market research group Leatherhead Food Research 1. Among developing countries with a large share of rural population and rapid rates of urbanization, urbanization is expected to significantly alter consumers’ diets with a greater consumption of meat, fruit, vegetables, and processed food products. We analyze these trends for India and globally.