Overview
Long-term consumer spending trends in most foreign markets indicate declining expenditure shares on staples (like rice and wheat) and increasing shares on higher valued food items (such as meat, dairy, fruits, and vegetables).
- Food trade is often categorized based on the level of processing (see Excel table):
- traditional bulk commodities such as wheat, rice, and corn;
- horticultural products such as fresh fruits and vegetables;
- semi-processed products such as flour and oils; and
- processed food products such as pasta and prepared meats.
- Horticultural, semi-processed, and processed products are considered high-value products. Unlike bulk commodities, high-value products are often ready to eat and are generally more perishable by nature.
- These characteristics make high-value products subject to greater quality and safety scrutiny compared with bulk agricultural commodities.
- Given these characteristics, food suppliers sometimes choose to meet consumer demand through locally processed food products rather than through imported food. Sometimes domestic and trade policies can be impediments for trade in high-value products.
Trends in food demand have increased trade in high-value foods, and reshaped food marketing globally.
- Food suppliers and retailers have responded to demand by importing food from around the world and modifying their products and retail formats to better meet consumer needs.
- Large multinational retailers have expanded in the developing countries, and top 15 companies account for more than 30 percent of global supermarket sales.
- Multinational food manufacturers have invested in a variety of industries in many host countries.
ERS analyzes data collected by various national and international organizations and a commercial vendor to examine the ongoing evolutions in global food markets and the impact of trade regulations.
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