News

Technomic paints portrait of future restaurant industry

According to "Food Industry Transformation: The Next Decade," a report from Technomic Inc., the developing disruptions in the food industry will change every aspect of the business, including sourcing processing, distribution, operations and marketing.

May 12, 2015

According to "Food Industry Transformation: The Next Decade," a report from Technomic Inc., the developing disruptions in the food industry will change every aspect of the business, including sourcing processing, distribution, operations and marketing, according to a company press release.

Technomic, a food research and consulting firm, analyzed these challenges to paint a picture of the coming decade in the food industry, which the company forecasts will grow more than $700 billion, and reach more than $2 trillion in annual sales by 2025. In the Food Industry Transformation report, Technomic experts analyze expected shifts in the industry for the next decade, detailing a roadmap for industry players to navigate the future. Technomic employs new "FIT Models" in the study to help brands reinvent themselves in the face of labor challenges, food production and distribution, consumer psychographics and demographics and the economy up to 2025.

"To grow their share of industry sales, food providers need to continually reimagine, reinvent, and reallocate resources to align their offerings with the evolving technology-enabled supply chain and the changing needs of consumers," said Technomic Executive Vice President Bob Goldin in a statement. "Technomic's detailed projections pinpoint food industry opportunities and imperatives for the upcoming decade."

Findings of the Food Industry Transformation report include:

• Traditional retailers, such as supermarkets and supercenters, will lose 10 points of market share to nontraditional retail channels by 2025.
• Consumer trends over the next decade will be less favorable to the largest restaurant chains. Technomic projects a compound annual growth rate of 5 percent for independent restaurants and small chains, compared with 3.5 percent for large chains. Significant expansion will also be seen for fresh prepared foods at supermarkets, a segment expected to grow at 7.5 percent annually.
• The entire supply chain must be re-tooled to respond to or pre-empt consumer and regulatory demands for foods that are good for people and the planet. The winning products of 2025 will include not only those that can legitimately be labeled as "natural" or "local," but also those with "clean" labels, fewer ingredients, less processing and a favorable carbon footprint

Technomic's report includes 10-year projections for every food and foodservice industry segment, offering game plans for expanding sales.