The Irish food and drink market is set to increase by almost 40% and be worth more than €15billion by 2020, driven by an expanding population and rising incomes. This figure could rise to over €18billion, representing a 63% increase, if Irish food suppliers can successfully anticipate and respond to emerging consumer needs as set out in a new Bord Bia report entitled Anticipating Tomorrow.
The Bord Bia-commissioned report assesses current trends and the sociological and environmental factors likely to shape the future evolution of the market. Anticipating Tomorrow also identifies the strategic priorities for the sector that will enable it to compete successfully in the period ahead.
Today’s report presents the food and drink sector with four potential future scenarios and a challenge to ensure the sector continues to evolve and innovate as society does. These scenarios are entitled
- Round the Table
- From the Greenhouse
- Off the Menu
- In the Lab
The fifth scenario, or preferred vision, has been based on the four future scenarios outlined above. In this vision, great importance is placed on the health-enhancing functional benefits of food and drink. Consumers also have high levels of concern for the environment and try to minimise their own environmental impact and that of the food and drink they consume. Where possible, consumers prefer to buy high quality products sourced either locally or within Ireland and some even grow their own super foods. This environmentally responsible, healthy behaviour prevails approximately 80% of the time, with forays into indulgence at the weekends or on special occasions.
In the preferred vision, the food and drink industry has found solutions to improving food yields and using natural and environmentally friendly techniques of preserving foods that enhance their nutritional value. Food processing is about finding all the best possible combinations of fresh, natural foods to create ‘super products’ packed with health boosters that meet the needs of an increasingly on the go society. The health of the nation has vastly improved and obesity has declined rapidly amongst children.
The focus on growing locally is good for Irish branded food and drink products but the high demands of ensuring both traceability and functionality means that some foods are more limited in supply and consequently, more expensive: a price the consumer is more than prepared to pay for the preservation of the environment and better health.
“The pace of change in Ireland has been frenetic - looking back over the past 13 years, the phrase ‘Celtic Tiger’ was just invented and much of what we now accept as ‘normal’ was only beginning to emerge. At a time when the Irish food and drink industry is under significant pressure, with increasing costs of doing business and global competition, it is more important than ever that the industry is proactive in looking forward, interpreting and adapting to new trends in consumer demands and opportunities presented by technological advances” commented Aidan Cotter, Chief Executive, Bord Bia.
“The achievement of the preferred vision would lead to a significant increase in the value of the Irish food and drink market, not because the era of cheap food is at an end (and it may well be) but because consumers perceive significantly increased benefits and an enhanced role for food in their daily diets. Household expenditure on food in these circumstances would then remain closer to its current level of 18%, notwithstanding rising incomes, rather than converge towards the European average which is currently at 13%”.
The vision for the Irish domestic food and drink market in 2020 recognises that while thirteen years is not far off, the world will have changed in significant ways between now and then. Although the vision is about the longer term future of the industry, it is also about action. The right actions in the short and medium term need to be identified in order to set the industry on the path to achieve this vision.
Anticipating Tomorrow identifies five strategic priorities that the food and drink industry must address going forward in order that the preferred vision can be achieved. These are:
- Strong consumer connections – in order to more effectively address consumers’ needs, offer reassurance on quality and safety and aid their decision making
- Flexibility, creativity and innovation – new alternatives are more crucial than ever with consumers being offered more and more choice
- Improving efficiency – making further efficiencies will be critical in light of the increasing costs of conducting business in Ireland
- Effective routes to market – meeting consumers’ changing lifestyles and evolving shopping habits
- Visionary leadership – is required in order to remain competitive in the global economy
Bord Bia is committed to integrating the report findings and strategic priorities into its plans and programmes for the industry. Initiatives under consideration include;
- Developing closer relationships with schools to increase awareness of where food originates, nutrition and cooking skills
- Participating in the university job fairs and ‘milk round’ as a coherent and unified industry group in order to reach those with low awareness of the industry
- Developing a skills training scheme across the industry which raises standards and encourages more talented people to enter it
- Focusing more specifically on ‘celebrating winners’ to encourage innovation and maintain industry morale
- Providing guidance and industry benchmarks to companies that wish to understand and reduce their environmental footprint, and improve transparency
- Identifying best practice in the industry in other countries, as well as from other sectors (e.g. pharmaceuticals, retailing, logistics) and how we can learn from it
- Increasing financial support for consumer research, thereby helping industry to track evolving consumer trends and the resultant implications for the market in a cost effective and timely manner