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Companies belonging to the Food, Beverages & Tobacco sector will be affected directly and indirectly by a number of disruptive opportunities and challenges that will jeopardize their corporate longevity over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:
- First off, by 2050, the world’s population will balloon far past nine billion people; feeding that many people will keep the food and beverage industry growing into the foreseeable future. However, providing the food necessary to feed that many people is beyond the world’s current capacity, especially if all nine billion demand a Western-style diet.
- Meanwhile, climate change will continue to push global temperatures upward, eventually far beyond the optimal growing temperatures/climate of the world’s staple plants, like wheat and rice—a scenario that can endanger the food security of billions.
- As a result of the two factors above, this sector will collaborate with the top names in agribusiness to create novel GMO plants and animals that grow faster, are climate resistant, are more nutritious, and can ultimately produce far greater yields.
- By the late 2020s, venture capital will begin investing heavily in vertical and underground farms (and aquaculture fisheries) that are located close to urban centers. These projects will be the future of ‘buying local’ and have the potential to significantly increase the food supply to support the world’s future population.
- The early 2030s will see the in-vitro meat industry mature, particularly when they can grow lab-grown meat at a price less than naturally raised meat. The resulting product will eventually be cheaper to produce, far less energy intensive and damaging to the environment, and will produce significantly safer and more nutritious meats/protein.
- The early 2030s will also see food substitutes/alternatives become a booming industry. This will include a larger and cheaper range plant-based meat substitutes, algae-based food, soylent-type, drinkable meal replacements, and high protein, insect-based foods.These broad trends will have far-reaching effects on the Food, Beverages & Tobacco sector that will influence the sector’s long-term development.To stay informed about these and other trends, as well as the emerging opportunities and threats facing the Food, Beverages & Tobacco sector, consider investing in Quantumrun Foresight sector forecast reports. Contact us today to learn more.
