Surging food prices are likely to remain for the foreseeable future, driving combined revenues in the global food industry to more than $10 trillion (€9.96 trillion) by 2024, a new report by TradingPlatforms.com has found.
With global food prices rising 65% since the start of the COVID-19 pandemic, and by 12% this year alone, according to data from the United Nations’ Food and Agriculture Organization, revenues in the global food industry are expected to stand at $8.66 billion (€8.63 billion) this year, a 4.7% increase year-on-year.
According to TradingPlatforms.com, inflation is leading many shoppers to change their habits, unsurprising given that almost all food categories saw double-digit price growth in 2022.
Food Price Per Unit
Citing Statistia research, it said that the average food price per unit is expected to rise to $3.72 (€3.71) in 2024, 7% more than this year and 19% more than in 2020.
Oils and fats will remain a food category with the highest price increase, with the average price per unit set to jump to $5.94 (€5.92) by 2024, a 23% jump in four years, and partly driven by the conflict in Ukraine. Fish, seafood, and meat follow, with a 20% price increase over four years. Vegetables and confectionery/snacks are next, with a 19% price increase forecast.
Food Industry Revenues
This in turn is set to drive revenue across the global food industry up 8.5% in 2023 and 2024, the highest increase in a decade. This equates to an additional $760 billion in revenue in 2023 and $800 billion in 2024, on a global level.
While food prices continue to rise, the average food volume per capita has dropped this year, to 327.7kg, from 329.7kg last year. By 2024, however, it is expected to increase to 355kg.
China is the world's largest food producer, and can expect revenue across its food businesses of $1.5 trillion by 2024. The US is expected to record $1.04 trillion in revenue by 2024, with India reaching $1.67 trillion.