The bull market continues as the S&P 500 posted record gains this past year and is off to a good start in 2020. One of the industries that has been fueling the market’s record push is the food industry. On average, the food and beverage industry has been growing by about 5 percent per year. This is one of the most stable markets in the entire economy. The global expenditure on food products should push $20 trillion by 2030. There are a number of major trends in the market that are pushing the boundaries of the food industry. Some of these include sustainability, health, convenience, and the demand for an “all-natural” approach to food. There are numerous examples of these trends at work.
One of the major trends has been to eliminate food waste. Even though expiration dates are required on all perishable items, the amount of food that is thrown away that would otherwise benefit those who need it is startling. There are still millions of people all over the world who struggle to figure out where their next meal is going to come from. Yet, there are countless households who still throw away a tremendous amount of food. Fortunately, there has been a push to develop new technologies that can deal with food waste. There are food waste decomposers that can now turn someone’s food waste into a positive for the environment.
There is also new technology being developed that can help farmers better manage their livestock and crops. For example, systems have been designed to help cows and calves produce milk in a more sustainable manner. Milk is one of the major staples of nearly every household. In addition to providing calcium for bones, milk is also a common ingredient in baking, sauces, and more. With new technology and software that can help farmers rotate their cows, this is going to make the industry even more efficient. The results have already been more milk, more calves, and easier dairy management.
Much of the developments in the food industry have been an outshoot of something called the “health halo.” This is the idea that natural products and ingredients made from fresh crops are intrinsically safer and healthier for consumers. Numerous food companies have capitalized on this push in their marketing campaigns. They know that most consumers are going to be okay with paying a little bit more for something they feel is going to help their bodies. The result has been higher profit margins for numerous food companies and the growth of an essential corner of the economy. As these technological advances continue, it will be interesting to see how the market responds. The food industry is going to continue to expand in the coming years.