Next year promises to be one of the most exciting in the history of food and retailing as technology takes a bigger role in food production, retail environments and consumer communication, and as a new administration in Washington promises to make significant changes to the agencies that will have a direct impact on food production and policies.
Trend #1. Silicon Valley & Food
CB Insights estimates that over $1 billion has been invested in food startups and projects in 2016 alone. Why does Silicon Valley love food? Food meets the sustainability portfolio requirements for investing – and has the potential to make a positive impact on the world. Kimbal Musk through The Kitchen Community has underscored the potential by pointing out that the food opportunity is ten times bigger than the global software market. These high-tech food entrepreneurs like Rob Reinhart, CEO of Soylent, feels that “the food system is too complex and too fragile. Farms are inefficient due to climate and labor conditions,” and have a different model for a food brand or restaurant. For them the criteria includes having a social conscience, being health driven, solving a problem (life-hacking) and most importantly a mass-market orientation. No niche brands for them!
Trend #2. The Wild West
Traditional supermarkets saw store counts down 1% and their share of market down 0.7% following a decade of continued loss of sales and share. The new food retailers are stealing customers with a different approach and understanding of shoppers. Aldi, Lidl and Amazon GO are the future as high quality, low prices and convenience set the stage for food retailing. They know how to communicate and their offerings are on target. What’s the near future hold? Members only stores, zero-waste markets and delivery-only restaurants and grocers.
Trend #3. Enhanced Foods: Beyond Brownies
It’s a lot more than just adding protein to just about every food category; although sales prove that added protein can turn around categories that are declining like frozen appetizers. Look for the next big trends coming from Matcha, butter, beets, botanicals and yes, edible cannabis. The cannabis business is estimated to grow to $22 billion in sales by 2020 with nine states approving it for recreational use and another 21 for medicinal use. We have already seen cannabis-cured lox, shrimp stew, deviled eggs, brittle bars, chocolate, canna-oils and of course brownies on menus as well as upscale secret location restaurants like NYC’s Sinsemil.la offering haute cuisine at up to $250 a head.
Source: Forbes
