Failure to act on the climate and personal health anxieties of Canadians could be a “brand breaker” for businesses in the farm and food sector, according to the 2022 consumer trend report from Nourish Food Marketing.
Its authors argue that the coming year will see competing generational perspectives and shifting preferences in a post-pandemic reality. Companies and operations won’t survive unless they consider the acute environmental concerns of younger generations and the desire for healthy aging by older ones.
Why it matters: Public focus on climate change, particularly by younger generations, could have major ramifications for those in the farm, food and food service sector.
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In a Nov. 24 presentation, Nourish president and founder Jo-Ann McArthur said older generations including baby boomers hold most of society’s wealth.
When it comes to food, that wealth will increasingly be spent on products perceived to support healthy aging. Opportunity lies in developing products that provide better nutrition, for example.
“Done right, the payoff is there,” McArthur said, adding that food companies, retailers and restaurants should remember to “bump up the font size” in foodservice apps to better serve aging clientele.
For younger generations, climate change looms large. McArthur said it dominates their food purchasing decisions, particularly for those born since the late 1990s.
“Now climate change is getting real. I mean really real, not just predictions and statistical modelling,” says McArthur in an excerpt from the 2022 report.
“After a summer of crazy weather events, conversations and actions around climate change are growing… In our sector, we see climate change directly contributing to rising food prices.
“For example, an ‘out of control’ durum wheat market is expected to cause a pasta shortage as Canada’s durum wheat harvest is down by over a third due to severe heat and drought, causing prices to spike by 90 per cent. Smaller crops are also anticipated across most commodities due to climate issues, whether drought, flooding, disease, or fire,” she says.
“The proportion of Canadian consumers who believe that Canada’s food system is headed in the right direction has significantly declined compared to 2020. And, for the first time, climate change made the top five list of issues.”
Food products that don’t harm, and perhaps even help the perceived global environmental crisis, are the name of the game.
Demand for plant-based foods continues to grow, though a split has occurred between those embracing plant-forward products (those not trying to be meat) and those who want technology to develop products closer to animal-derived counterparts.
Alternative sources of food are also gaining popularity, including those based on seaweed and other aquatic plants. Even pet food trends are shifting, with more people opting for plant-based and premium products for animal companions.
Genetically modified organisms, long maligned by older generations, are gathering support among the climate-conscious, McArthur says. Biotechnology is seen by some as a useful tool to address environmental challenges.
There are more intense demands for “radical transparency” as the public wants proof of good environmental, social and animal welfare practices.
“It’s no longer acceptable for companies just to make money. They must also have a positive impact on society,” says McArthur.