Where does the food industry see the strongest growth?

The food industry is reorienting itself towards sectors with more growth potential, as traditional segments struggle with low volume growth and strong private label competition. According to Nandini Roy Choudhury, principal consultant at Future Market Insights, and Matthew Barry of Euromonitor, companies are focusing on four key areas: premiumisation, convenience, health and wellness, and proprietary technology.

Premiumisation
This trend has expanded into confectionery, drinks, and pet food. It offers a route to growth even when volume expansion is limited, by justifying higher prices through artisanal positioning, ethical sourcing, clean labels, or quality. Premium products can better pass on cost inflation to consumers.

Convenience
Convenience formats respond to busier lifestyles, smaller households, and increased snacking. Ready-to-eat, frozen, and single-serve options add value through time-saving and portability. To succeed, convenience must also tap into affordability, sustainability, and health.

Health, Wellness and Functionality
Health claims shift consumption from discretionary to need-based, providing a stronger justification for purchase. Functionality positions food as a solution for specific needs like energy, sleep, or stress support. This helps nullify price comparisons and creates resilient demand.

Proprietary Technology
Technology such as fermentation platforms or sugar-reduction methods allows companies to do what competitors cannot. It creates defensible margins and reduces commodity dependence, making these businesses attractive to investors.

In summary, food businesses are moving where value is highest—categories that offer pricing power, differentiation, and consumer loyalty.