Technically Speaking: Food trends in Europe

By Eugene Philhower, SSGA Technical Adviser, Europe

There is little doubt that the on-going pandemic has challenged the global agro-food sector in many ways. While there are some obvious weaknesses in the global supply chain, the sector generally has proven to be resilient – from farm-level production through transportation and processing, to retailers and consumers. For the most part, food has remained available, and there is little evidence of any longer-term negative impacts on critical foods supplies.

Nevertheless, food activists and policy wonks are rightfully calling for a re-examination of the global food system. As I have written before, the long global supply chains will be questioned, and there will be new attention and preferences for local production.

But what are the other trends and changes that can be expected, and how can and should SSGA respond? Recent surveys and reports coming out of Europe highlight some of the real opportunities for the identity-preserved (IP) products promoted by the SSGA.

In the United States and Western Europe, the consumption of alternative meat/plant protein products continues to grow rapidly. When asked about their motivation, consumers often cite “improving health” as the primary reason, with environment and animal welfare also raised as important considerations.

As we know, food is important part of our culture. What we eat and when and how we consumer food reflect the overall culture that we live in, and these cultural ties are difficult to change. Therefore, it is reasonable to assume that the products need to adapt to the culture and not vice versa. This is reinforced by some recent survey results about plant-based protein products and their acceptance on different national and subnational markets in Europe.

Western Europe is already the largest market for vegetarian and vegan foods in the world. Overall sales are higher in the United States, but the percent of plant protein products are higher in Europe at 12% in UK, 11% in Netherlands and Belgium, about 9% in Germany and less than 4% in France.

In the UK, 23% of new foods products introduced in 2019 were vegan. In the future, 54% of Brits are expected to eat less meat, 61% for health reasons, while 48% think eating less meat will lessen impact on the environment. But half the Brits think plant protein is more expensive and that the ingredient list is too complicated and too long, while 31% think plant protein is “too processed.”  When asked what meat product they miss, 41% responded with the “Sunday roast,” the traditional Sunday afternoon family meal of roast beef and potatoes. Meanwhile, 32% will miss bacon and sausage, more staples of the British diet.

Without a doubt, Germany leads the way in new vegan products. The vegan food market was estimated at almost $2 billion in 2018. A consumer survey by Proveg International reported that two-thirds of the population plan to reduce their meat consumption in the future, and 8% consider themselves vegetarians. The vegetarians consider this a lifestyle choice and not a diet. The motivation is similar to the UK with health and wellness as the prime reason, with the environment and animal welfare close behind. Long considered a meat-loving culture, there is strong demand for meat and dairy substitute.

So what does this mean for SSGA and our members interested in exporting products to Europe?

For one thing, demand for tofu and tempeh are expected to double in the next five years. The perception is that plant protein products are “expensive,” so price remains an important consideration.  Labeling and product claims are important, and the ingredient lists should be shorter and less-processed. Finally, one size does not fit all of the market, so efforts need to be targeted and adjusted for local taste and preferences.

Technically Speaking is an SSGA feature that includes news and information from SSGA’s technical advisers for North Asia, Southeast Asia and Europe.