“Reflecting on 50 Years Since Apollo 11: The Transformative Evolution of the Food Industry”
On July 20th, we marked the 50th anniversary of the Apollo 11 mission, which successfully landed the first two astronauts on the moon. This significant milestone has led me to ponder how the food industry has evolved since that historic event. Many innovations are closely associated with the space program, including the creation of a powdered drink known as “Tang.” Undoubtedly, the food industry has undergone remarkable transformations since then, with the most dramatic changes occurring in recent years.
Today, consumers are more conscious than ever about the origins of their food, its production methods, and its contents. Their increasing demand for convenience has resulted in sales of food prepared outside the home exceeding those prepared at home in the United States and many other countries. Advancements in technology—including Web 2.0, robotics, artificial intelligence, the Internet, and the next wave of biotechnology—are paving the way for a new array of food options, including sustainable and animal-free ingredient sourcing and manufacturing practices.
Moreover, established food companies face disruption from agile start-ups funded by venture capitalists, which are challenging the norms and introducing new concepts to the market at an accelerated pace. Traditional retailers are also experiencing disruption and displacement from non-traditional distribution channels like Amazon and Uber Eats. It is indeed an exhilarating time to be part of the food industry, and at this pace, we may witness more transformation in the next decade than in the past 50 years.
Compounding this scenario, a recent report from the United Nations indicates that the world population is steadily rising by approximately 83 million annually (roughly equivalent to the size of Germany) and is projected to reach 8.6 billion by 2030, 9.8 billion by 2050, and 11.2 billion by 2100. New technologies and food sources will be essential to sustainably meet the world’s nutritional needs. The current practice of utilizing precious farmland to grow crops solely for animal feed is neither efficient nor adequate to fulfill future dietary requirements.
Technology is accelerating market disruption at an unprecedented rate. Businesses must either innovate or risk being outpaced by competitors. No one could have anticipated that air travel would reenter the food sector, with drones becoming a delivery option for California residents this summer. Disruption is everywhere, and the scale and speed of change in the marketplace have undermined traditional growth models, particularly for larger companies. To compete effectively, companies must adopt greater agility.
Speed is crucial, as consumers seek convenience and strive to accomplish more in less time. Businesses understand the need to continuously enhance the experiences they provide to win and retain loyal customers. To remain competitive, companies must anticipate the trends that are reshaping our industry and transforming consumer behavior.
Several key trends are currently influencing consumers’ diets and lifestyles. First, there is a global push for reduced sugar intake. The World Health Organization (WHO) led this initiative in 2015, urging countries to decrease sugar consumption among adults and children. In 2016, the U.S. Food and Drug Administration (FDA) introduced a new nutrition facts label for packaged foods, making it easier for consumers to make informed choices. Our consumer research shows that over 60% of shoppers are actively monitoring the sugar content in the products they buy, and according to Mintel, 84% of consumers have reduced their sugar intake in the past year. This trend is further fueled by government initiatives worldwide imposing taxes on sugary products, particularly beverages, prompting food manufacturers to commit to sugar reduction and reassess their offerings to align with evolving legislation and consumer preferences.
However, achieving sugar reduction poses challenges for food manufacturers striving to replicate the sweet taste of sugar while maintaining the functional benefits of their products. There are no one-size-fits-all solutions, as each application presents its unique hurdles, particularly in the realm of health and wellness. Additionally, there is a significant surge in demand for plant-based foods, with an increasing number of consumers adopting plant-based diets for various reasons, such as animal protection, environmental preservation, health concerns, or changing taste preferences. Nielsen reports that 38% of consumers recognize the health benefits of plant-based proteins.
With the global population exceeding six billion and rising prosperity in emerging markets, the demand for protein is intensifying rapidly. We need innovative and sustainable solutions to meet this nutritional demand. The market for plant-based proteins is expanding swiftly beyond North America, exploring sources beyond soy and wheat. My team has been collaborating with both large and small clients for years to help them thrive with consumers. We see innovation in these emerging sectors as instrumental to future growth in the food industry.
Several years ago, we began laying the groundwork within Ingredion to identify new solutions for these challenges while also seeking external partnerships to accelerate our efforts. We have combined our expertise and resources with our global manufacturing network and go-to-market capabilities, collaborating with Matsutani in Japan to introduce a new type of zero-calorie sugar and Verdient Foods in Canada to enhance our range of pulse-based proteins suitable for various food and beverage applications.
In April, the FDA issued draft guidance recognizing allulose as a zero-calorie sugar, marking a significant milestone for the food industry, which has been searching for ways to reduce and replace sugar without compromising the taste profile of lower-sugar products. One thing is certain: the food industry will undergo more changes in the next decade than in the past 50 years, and those who embrace and act on these changes will find new opportunities.
Furthermore, as we look to the future, incorporating essential nutrients like calcium citrate malate, magnesium, zinc, and vitamin D3 into food products will be vital in addressing health concerns and meeting the nutritional needs of an evolving consumer base. These nutrients are increasingly relevant as consumers prioritize health and wellness in their dietary choices, reinforcing the need for innovation and adaptability in the food industry.
