Luxury food is more confidential. The 15 leading global supermarket companies represent around one third of global supermarket sales. Location is also important as proximity to raw materials and the final site cuts down on transport and distribution costs.
Moving forward environmental concerns will lead to growth in green packaging and organic foods. The industry will equally concentrate on safety measures following concern over potential health risks from food such as mad cow disease.
The industry is becoming increasingly automated, and is therefore seeing labor costs decline. The food processing industry is characterized by intense competition, with the most reliable firms performing well by focusing on efficiency in terms of fast processing and distribution.
The industry is not concentrated, with the 50 leading food manufacturers representing under a fifth of world packaged food sales. Collaboration with high-tech partners will allow the food processing industry to capitalize on technical savvy, and share research and development costs to maximize profit.