As we enter 2025, consumers remain cautious and price-led when shopping for staple foods. However, willingness to look beyond cost is returning, and this trends briefing identifies the key factors that will drive positive sales in future. This report works alongside the World Market for Staple Foods briefing to provide a full picture of the most important data updates and the most important consumer trends, providing a holistic view of where the industry is headed.
Delivery
This report comes in PPT.
Key findings
Food costs continue to drive consumer choices
Cheaper staple foods and cheaper channels in which to purchase continue to be favoured by consumers – sales via discounters and warehouse clubs are growing, and high value for money foods such as rice are seeing sales increase.
Baked goods price pressure remains, but the reasons have shifted
Baked goods (almost half of all staple foods sales) had seen costs increase significantly through grain prices growing after Russia’s invasion of Ukraine. While this impact has tempered, the soaring cost of cocoa (and higher sugar costs) have seen sweet baked goods increase in price.
A warming world has increased supply fragility
Extreme weather events, alongside greater probability of drought, flood or unseasonable cold snaps have made harvest reliability more doubtful; the increased fragility of supply is now a fact of food systems.
Consumers are prioritising health from food
While budgets remain tight, consumer willingness to pay more for food they deem healthy remains – and is even increasing, following a prolonged period of being primarily concerned with cost-saving.
Unprocessed food is increasingly sought-after
Consumers are increasingly seeing processed (and especially ultra processed) food as inherently unhealthy; some staple foods are thus in the firing line (for example, breakfast cereals, cakes, pastries etc). Other staples are likely to benefit compared to foods like snacks or ready meals – for example, frozen fruit, rice, shelf stable vegetables, etc.
Our expert’s view of Staple Foods in 2024
Key findings
Staple foods sales are set to grow but challenges still lie ahead
Top five trends in staple foods
Top five trends uncovered
Inflation slows, but food costs continue to drive consumer choices
FNB and Pick ‘n’ Pay partner to offer affordable bread in South Africa
Opportunities exist through demonstrating value; price competition remains high
New commodity price shocks take over from grain
Kerry launches Cocoa Taste Solutions in the face of soaring costs
Cocoa price growth creates opportunities for alternatives
Climate change persists with unpredictable predictability
Move to -15°C coalition increases membership with aim to reduce carbon emissions
Sustainability in production is becoming a necessity
Health interest creeps back as price growth slows
Brennans unveils fortified bread to support physical and cognitive health
Opportunities return for healthier options
Increasing fear of processed food hits various staples
Major food companies face blame and legal fight in US
Opportunities exist as some staple foods fit well with ultra-processed concerns
Future implications
Opportunities for growth
Staple Foods
NOTE: Couscous, polenta and quinoa are excluded from staple foods.
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